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A08712 Summary:

BILL NOA08712C
 
SAME ASSAME AS S08118-C
 
SPONSORRosenthal
 
COSPNSROtis
 
MLTSPNSR
 
Amd §235-a, RP L; amd §§33 & 116, Pub Serv L
 
Prohibits utility service terminations in multiple dwellings; authorizes utility companies or municipalities to commence an action against the owner of the premises affected to seek the appointment of a receiver of rents or payments for use and occupancy or common charges.
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A08712 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8712--C
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 2, 2025
                                       ___________
 
        Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
          Committee on Corporations, Authorities and Commissions --  recommitted
          to  the  Committee  on  Corporations,  Authorities  and Commissions in
          accordance with Assembly Rule 3, sec. 2 -- committee discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee -- again reported from said  committee  with  amendments,  ordered
          reprinted as amended and recommitted to said committee -- reported and
          referred  to  the  Committee  on  Codes  -- committee discharged, bill
          amended, ordered reprinted as amended and recommitted to said  commit-
          tee
 
        AN  ACT  to  amend  the real property law and the public service law, in
          relation to  prohibiting  utility  service  terminations  in  multiple
          dwellings
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 1 of section 235-a of the real property law, as
     2  amended by chapter 143 of the laws  of  2020,  is  amended  to  read  as
     3  follows:
     4    1.  In  any  case  in which a residential tenant shall lawfully make a
     5  payment to a utility company pursuant to  the  provisions  of  [sections
     6  thirty-three,]  section  thirty-four  [and  one  hundred sixteen] of the
     7  public service law, or to a utility company as  defined  in  subdivision
     8  twenty-three of section two of the public service law, public authority,
     9  water-works  corporation,  as  defined  in  subdivision  twenty-seven of
    10  section two of the public service law, or  municipal  water  system,  as
    11  prescribed in section eighty-nine-l of the public service law, for water
    12  service which a landlord is responsible for but has failed or refused to
    13  provide  payment  therefor,  such  payment  shall be deductible from any
    14  future payment of rent.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13069-08-6

        A. 8712--C                          2
 
     1    § 2. Section 33 of the public service law, as added by chapter 713  of
     2  the  laws of 1981, paragraphs (c) and (d) of subdivision 1 as amended by
     3  chapter 195 of the laws of 2010, is amended to read as follows:
     4    § 33. [Discontinuance  of  residential  utility  service  to  multiple
     5  dwellings] Action for receivership of rents and common charges on  resi-
     6  dential  utility  service  to multiple dwellings. 1. Notwithstanding any
     7  other provisions of law, no public utility company, including  the  Long
     8  Island  power authority, or municipality shall discontinue gas, electric
     9  or steam service to an entire  multiple  dwelling  (as  defined  in  the
    10  multiple dwelling law or the multiple residence law) located anywhere in
    11  this state for nonpayment of bills rendered for service [unless such]. A
    12  public  utility  company  or municipality may commence an action against
    13  the owner of the premises affected seeking the appointment of a receiver
    14  of rents or payments for use and occupancy or common charges, as defined
    15  in section three hundred thirty-nine-e of the real property law, against
    16  such multiple dwelling for the amount of such utility bills.  A  utility
    17  shall  have  given  fifteen  days  written notice of its intention so to
    18  [discontinue] seek such appointment of a receiver as follows:
    19    (a) Such notice shall be served personally on the owner of  the  prem-
    20  ises  affected,  or in lieu thereof, to the person, firm, or corporation
    21  to whom or which the last preceding bill has been rendered and from whom
    22  or which the utility has received payment therefor, and  to  the  super-
    23  intendent  or  other  person  in  charge  of  the  building  or premises
    24  affected, if it can be readily ascertained that  there  is  such  super-
    25  intendent or other person in charge.
    26    (b)  In  lieu  of  personal delivery to the person or persons, firm or
    27  corporation specified in paragraph (a) [above] of this subdivision, such
    28  notice may be mailed in a postpaid wrapper to the address of such person
    29  or persons, firm or corporation.
    30    (c) In addition to the notice prescribed by paragraph (a)  or  (b)  of
    31  this subdivision, fifteen days written notice shall be (i) posted in the
    32  public areas of such multiple dwelling, (ii) mailed to the "Occupant" of
    33  each  unit  in  that multiple dwelling, (iii) mailed to the local health
    34  officer and the director of the social services district for  the  poli-
    35  tical subdivision in which the multiple dwelling is located, (iv) if the
    36  multiple dwelling is located in a city or a village, mailed to the mayor
    37  thereof, or if there be none, to the manager, or, if the multiple dwell-
    38  ing is located in a town, then mailed to the town supervisor, (v) mailed
    39  to  the county executive of the county in which the multiple dwelling is
    40  located, or if there be none, then to the [chairman] chairperson of such
    41  county's legislative body, and (vi) mailed to the office of the New York
    42  state long term care ombudsman, if the multiple dwelling is  a  residen-
    43  tial  health  care  facility  as defined in subdivision three of section
    44  twenty-eight hundred one of the public health law, an adult care facili-
    45  ty as defined in subdivision twenty-one of section  two  of  the  social
    46  services  law, or an assisted living residence as defined in subdivision
    47  one of section forty-six hundred fifty-one of the public health  law  as
    48  added  by chapter two of the laws of two thousand four.  Notice required
    49  by subparagraphs (iv) and (v) of this paragraph may  be  mailed  to  the
    50  persons  specified  therein or to their respective designees. The notice
    51  required by this paragraph shall state [the intended date of  discontin-
    52  uance  of  service,] the amount due for such service, and [the procedure
    53  by which any tenant or public agency may make such payment  and  thereby
    54  avoid  discontinuance  of service] that the utility will not discontinue
    55  service and shall seek  the  appointment  of  a  receiver  of  rents  or
    56  payments  against  the  owner.   The notice shall be in clear and under-

        A. 8712--C                          3
 
     1  standable language and provided in any language required by the  commis-
     2  sion  pursuant  to section forty-four of this article, provided that any
     3  more expansive language requirement established as  part  of  settlement
     4  with the commission or department shall be followed.
     5    [(d) The written notice required by subparagraphs (iii), (iv), (v) and
     6  (vi)  of  paragraph  (c)  of this subdivision shall be repeated not more
     7  than four days nor less than two days prior to such discontinuance.
     8    1-a. Whenever a notice of intention to discontinue utility service has
     9  been made pursuant to the provisions of  this  section  and  obligations
    10  owed  the  utility  or  municipality have been satisfied, the utility or
    11  municipality shall notify, in the same manner as it gave such notice  of
    12  intention,  the  occupant of each unit that the intention to discontinue
    13  utility service no longer exists.]
    14    2. (a) Following the notification of  intent  to  seek  an  action  as
    15  outlined  in  subdivision one of this section, a utility corporation may
    16  petition the court  of  competent  jurisdiction  for  appointment  of  a
    17  receiver  of  rents or payments for use and occupancy or common charges,
    18  as defined in section three hundred thirty-nine-e of the  real  property
    19  law, for any dwelling which the owner or the person, firm or corporation
    20  who  received  such notification is in default. The court shall issue an
    21  order to show cause why a receiver should not be appointed, which  shall
    22  be served upon the owner, the building's lessor, manager, or their agent
    23  in  a manner prescribed by the court which shall include posting of such
    24  order on the premises of such multiple dwelling in question in a  manner
    25  similar  to paragraph (c) of subdivision one of this section. If a peti-
    26  tion or petitions are filed by a single petitioner regarding  more  than
    27  one  building under the same ownership, the court shall, if practicable,
    28  appoint a common receiver for all such buildings and, if filed as  sepa-
    29  rate  actions, may consolidate such petitions and treat them as a single
    30  action.
    31    (b) A hearing shall be held on such order no  later  than  seventy-two
    32  hours  after  its  issuance  or the first court day thereafter. The sole
    33  purpose of such a hearing shall be to  determine  whether  there  is  an
    34  amount  owed  between  the  owner and the utility corporation. The court
    35  shall make a determination of any amount due and any  amount  so  deter-
    36  mined  shall  constitute a lien upon the real property of such owner. If
    37  after determination of any amount  due  by  the  court  the  owner,  the
    38  building's  lessor,  manager,  or  their agent petitions the court to be
    39  permitted to pay such amounts, the court may, in lieu  of  appointing  a
    40  receiver,  issue  an order permitting such owner, the building's lessor,
    41  manager, or agent to repay  the  amounts  due  the  petitioning  utility
    42  corporation  within  a  time fixed by the court. If at the time fixed in
    43  the order the amounts have not been repaid, the court shall appoint such
    44  receiver. Such lien shall include:
    45    (i) the name and address of the  utility  corporation,  including  any
    46  doing business as name or the corporation;
    47    (ii) the name and address of the corporation's attorney, if any;
    48    (iii) the name of the owner of the real property or properties against
    49  which such unpaid utility bills exist;
    50    (iv) the amount unpaid to the lienor for such arrearage; and
    51    (v)  the  property  or  properties  subject    to   the   lien, with a
    52  description thereof sufficient for identification; and if in a  city  or
    53  village, the property's or properties' location(s) by street and number.
    54    Such  lien  shall be filed   in   the   clerk's  office  of the county
    55  where the property or properties are situated. If such property or prop-

        A. 8712--C                          4
 
     1  erties are situated in  two  or  more   counties,   such lien  shall  be
     2  filed in the office of the clerk of each of such counties.
     3    (c)  As  soon  as  practicable,  but  no  more than ten days after the
     4  receipt of the order of appointment  of  such  receiver,  such  receiver
     5  shall  provide written notice to all occupants of the building or build-
     6  ings, delivered separately to  each  dwelling  unit,  stating  that  the
     7  receiver  has  been  authorized to collect all rents or payments for use
     8  and occupancy or common charges, as defined  in  section  three  hundred
     9  thirty-nine-e  of  the real property law due from such occupant and that
    10  the owner, the building's lessor, manager, or their agent is  prohibited
    11  from  collecting such rents or payments for use and occupancy, or common
    12  charges. The notice shall additionally be  sent  to  those  outlined  in
    13  paragraph  (c)  of  subdivision  one  of this section. Such notice shall
    14  include the address to which payments are to be  made  and  the  contact
    15  information  with  which  the  receiver  will  be contacted, which shall
    16  include at a minimum a telephone number. The notice shall  be  in  clear
    17  and understandable language and provided in any language required by the
    18  commission pursuant to section forty-four of this article, provided that
    19  any  more  expansive language requirement established as part of settle-
    20  ment between the commission or department and the  petitioner  shall  be
    21  followed.  A copy of the court order appointing the receiver and author-
    22  izing the collection of rents shall be attached to the notice.
    23    (d) The receiver appointed by the court shall  collect  all  rents  or
    24  payments  for  use  and occupancy or common charges forthcoming from the
    25  occupants of the building or buildings  in  question  in  place  of  the
    26  owner,  the  building's  lessor,  manager, or any agent. The court shall
    27  authorize the receiver to utilize such collected rents or payments   for
    28  expenses  reasonably  necessary to continue the operation and management
    29  of such building or buildings,  make  reasonable  repairs,  and  provide
    30  reasonable maintenance to the premises as determined by the court and in
    31  accordance  with  section two hundred thirty-five-b of the real property
    32  law,  the reasonable cost of which, should such actions not  be  covered
    33  by  the  rents  or payments received, shall be added to the total amount
    34  due and owing from the owner. The receiver may also petition  the  court
    35  in  order  to  recover  amounts due as determined under paragraph (b) of
    36  this subdivision and continuing charges for such gas, electric, or steam
    37  service until all such charges and other costs have been paid.
    38    (e) The owner, the building's lessor, manager, or their agent shall be
    39  liable for such reasonable fees and costs determined by the court to  be
    40  due  to  the  receiver,  which  fees and costs may be recovered from the
    41  rents or payments for use and occupancy under the control of the receiv-
    42  er, provided no such fees or costs shall be recovered  until  after  the
    43  payment  for  current  electric,  gas, water, or steam delivery has been
    44  made.  The receiver shall make payments for  electric,  gas,  water,  or
    45  steam  supplied  on and after the date of their appointment.  Any moneys
    46  from rental payments or payments for use and occupancy or common charges
    47  remaining after payment for  current  electric,  gas,  steam  and  water
    48  service  deliveries,  for  expenses reasonably necessary to continue the
    49  operation and management of such building or buildings as determined  by
    50  the  court  and  in accordance with section two hundred thirty-five-b of
    51  the real property law, and after payment for reasonable costs  and  fees
    52  to the receiver, shall be applied to any arrearage found by the court to
    53  be  due  and  owing  the  petitioner  from  the owner or their agent for
    54  service provided to such building or  buildings.  Any  moneys  remaining
    55  thereafter  shall  be  turned  over to the owner, the building's lessor,

        A. 8712--C                          5
 
     1  manager, or their agent. The court may order an accounting to be made at
     2  such times as it determines to be just, reasonable, and necessary.
     3    (f)  For  the  purposes  of  this section, the department charged with
     4  enforcing the multiple dwelling law shall  prepare  a  schedule  of  all
     5  multiple  dwellings  within its jurisdiction and shall provide a copy of
     6  such schedule to any gas, steam or electric corporation or  municipality
     7  subject  to  the  provisions  of  this  section.  Such schedule shall be
     8  revised semi-annually and a revised copy provided to  such  corporation.
     9  Every  county, and every municipality to which the multiple dwelling law
    10  does not apply, which county or municipality has compiled  or  hereafter
    11  may  compile a listing of all multiple dwellings within its jurisdiction
    12  shall make such listing available without charge to any  gas,  steam  or
    13  electric corporation providing service in such county or municipality.
    14    3. [Any gas, electric or steam corporation or municipality which will-
    15  fully  fails  to  comply  with  the  provisions of this section shall be
    16  liable for a penalty of twenty-five dollars for each  occupied  unit  of
    17  the  multiple  dwelling  for each day during which service is unlawfully
    18  discontinued; provided, however, that when the only non-compliance  with
    19  this section is failure to mail notice to each "Occupant" as required by
    20  clause  (ii) of paragraph (c) of subdivision one above the penalty shall
    21  be twenty-five dollars for each occupied unit of the  multiple  dwelling
    22  to  which  notice  was  not  mailed for each day during which service is
    23  unlawfully discontinued. An action  to  recover  a  penalty  under  this
    24  section  may be brought by the counsel to the commission in any court of
    25  competent jurisdiction in this state in the name of the  people  of  the
    26  state  of New York. Any moneys recovered in such action shall be paid to
    27  the state treasury to the credit of the general fund.
    28    4.]  Any receivership established pursuant to subdivision two of  this
    29  section  shall  be  terminated  by  the  court upon its finding, through
    30  notification by the receiver, that the arrearage which was  the  subject
    31  of  the  original  petition has been satisfied, or that the building has
    32  been sold and the  new  owner  has  assumed  liability  for  prospective
    33  service  supplied by the petitioner. Upon the court's termination of any
    34  receivership established pursuant to subdivision two  of  this  section,
    35  the receiver shall provide written notice to all occupants of the build-
    36  ing  or buildings, delivered in the same manner as notification was sent
    37  pursuant to paragraph (c) of subdivision two of  this  section,  stating
    38  that  the  receivership  has been terminated by the court and the owner,
    39  the building's lessor, manager, or their agent is  again  authorized  to
    40  collect rents or payments for use and occupancy, or common charges.
    41    4.  Nothing in this section shall prevent the petitioner from pursuing
    42  any other action or remedy it may have against the owner, the building's
    43  lessor, manager, or their agent.
    44    5. Nothing in this section shall prevent an  action  by  a  tenant  or
    45  tenants  from  pursuing  any  other  action  or remedy available to them
    46  against the owner or their agent, or limit any provision of law  provid-
    47  ing for the protection or rights of a tenant in regards to eviction.
    48    6.  Any  owner  or  agent  of  such  owner who collects or attempts to
    49  collect any rent or payment for use and occupancy from any occupant of a
    50  building subject to an order appointing a receiver may be  found,  after
    51  due notice and hearing, to be in contempt of court.
    52    7.  Any person who willfully interferes with the posting of the notice
    53  specified in [clause] subparagraph (i) of paragraph (c)  of  subdivision
    54  one [above], subdivision two, or in subdivision three of this section by
    55  any  gas, steam or electric corporation or municipality, or agent of the
    56  court willfully defaces or  mutilates  any  such  notice,  or  willfully

        A. 8712--C                          6
 
     1  removes  the  same  from the place where it is posted by such company or
     2  court agent prior to the date specified therein for the  [discontinuance
     3  of  service]  notice  to  seek  lien,  order to show cause, or notice of
     4  termination  of  receiver  shall  be  guilty  of  a  violation and, upon
     5  conviction, shall be  punished  by  a  fine  not  exceeding  twenty-five
     6  dollars.
     7    [5.  The  commission  shall  maintain  rules  and  regulations for the
     8  payment by tenants of utility bills for gas, electric or  steam  service
     9  in  a multiple dwelling to which this section applies where the owner of
    10  any such multiple dwelling, or the person, firm or corporation  to  whom
    11  or which the last preceding bill has been rendered or from whom or which
    12  the utility or municipality has received payment therefor, has failed to
    13  pay  such  utility  bills.  Such rules and regulations shall (a) provide
    14  that utility service may not be discontinued to any such multiple dwell-
    15  ing as long as the tenants continue to make timely payments  in  accord-
    16  ance  with  established procedures; (b) include designation of an office
    17  to advise tenants of the rights and  procedures  available  pursuant  to
    18  such  rules and regulations; (c) assure that tenants shall not be liable
    19  for bills more than two months in arrears; and (d) require  the  commis-
    20  sion  upon petition of twenty-five percent of the tenants of such multi-
    21  ple dwelling to meet with representatives of such tenants and the owner,
    22  person, firm or corporation to whom or which the last preceding bill has
    23  been rendered or from whom or which the  utility  has  received  payment
    24  therefor.]
    25    §  3. Section 116 of the public service law, as amended by chapter 713
    26  of the laws of 1981, subdivision 5 as separately amended by chapter  511
    27  of the laws of 1981, is amended to read as follows:
    28    § 116. [Discontinuance of water service to multiple dwellings.] Action
    29  for  receivership  of  rents  and  common  charges  on residential water
    30  service to multiple dwellings. 1. Notwithstanding any  other  provisions
    31  of  law, no public utility company shall discontinue water service to an
    32  entire multiple dwelling (as defined in the multiple dwelling law or the
    33  multiple residence law) located anywhere in this state for nonpayment of
    34  bills rendered for service [unless such]. A public  utility  company  or
    35  municipality  may  commence  an action against the owner of the premises
    36  affected seeking the appointment of a receiver of rents or payments  for
    37  use and occupancy or common charges, as defined in section three hundred
    38  thirty-nine-e  of  the real property law, against such multiple dwelling
    39  for the amount of such utility bills. A utility shall have given fifteen
    40  days' written notice of its intention  so  to  [discontinue]  seek  such
    41  appointment of receiver as follows:
    42    (a)  Such  notice shall be served personally on the owner of the prem-
    43  ises affected, or in lieu thereof, to the person, firm,  or  corporation
    44  to whom or which the last preceding bill has been rendered and from whom
    45  or  which  the  utility has received payment therefor, and to the super-
    46  intendent or  other  person  in  charge  of  the  building  or  premises
    47  affected,  if  it  can  be readily ascertained that there is such super-
    48  intendent or other person in charge.
    49    (b) In lieu of personal delivery to the person  or  persons,  firm  or
    50  corporation specified in paragraph (a) [above] of this subdivision, such
    51  notice may be mailed in a postpaid wrapper to the address of such person
    52  or persons, firm or corporation.
    53    (c)  In  addition  to  the  notice  prescribed by paragraph (a) or (b)
    54  [above] of this subdivision, fifteen days' written notice shall  be  (i)
    55  posted in the public areas of such multiple dwelling, (ii) mailed to the
    56  "Occupant"  of  each unit in that multiple dwelling, (iii) mailed to the

        A. 8712--C                          7
 
     1  local health officer and the director of the  social  services  district
     2  for the political subdivision in which the multiple dwelling is located,
     3  (iv)  if the multiple dwelling is located in a city or a village, mailed
     4  to  the  mayor  thereof, or if there be none, to the manager, or, if the
     5  multiple dwelling is located in a town, then mailed to the town supervi-
     6  sor, and (v) mailed to the county executive of the county in  which  the
     7  multiple  dwelling  is located, or if there be none, then to the [chair-
     8  man] chairperson of such county's legislative body. Notice  required  by
     9  subparagraphs  (iv)  and  (v)  of  this  paragraph  may be mailed to the
    10  persons specified therein or to their respective designees.  The  notice
    11  required  by this paragraph shall state the [intended date of discontin-
    12  uance of service, the] amount due for such service, and  [the  procedure
    13  by  which  any tenant or public agency may make such payment and thereby
    14  avoid discontinuance of service] that the utility will  not  discontinue
    15  service  and  shall  seek  the  appointment  of  a  receiver of rents or
    16  payments against the owner. The notice shall be in clear and understand-
    17  able language and provided in any language required  by  the  commission
    18  pursuant  to  section forty-four of this chapter, provided that any more
    19  expansive language requirement established as part  of  settlement  with
    20  the commission or department shall be followed.
    21    [(d)  The  written  notice  required by clauses (iii), (iv) and (v) of
    22  paragraph (c) above shall be repeated not more than four days  nor  less
    23  than two days prior to such discontinuance.
    24    1-a. Whenever a notice of intention to discontinue utility service has
    25  been  made  pursuant  to  the provisions of this section and obligations
    26  owed the utility have been satisfied, the utility shall notify,  in  the
    27  same  manner  as  it gave such notice of intention, the occupant of each
    28  unit that  the  intention  to  discontinue  utility  service  no  longer
    29  exists.]
    30    2.  (a)  Following  the  notification  of  intent to seek an action as
    31  outlined in subdivision one of this section, a utility  corporation  may
    32  petition  the  court  of  competent  jurisdiction  for  appointment of a
    33  receiver of rents or payments for use and occupancy or  common  charges,
    34  as  defined  in section three hundred thirty-nine-e of the real property
    35  law, for any dwelling which the owner or the person, firm or corporation
    36  who received such notification is in default. The court shall  issue  an
    37  order  to show cause why a receiver should not be appointed, which shall
    38  be served upon the owner, the building's lessor, manager, or their agent
    39  in a manner prescribed by the court which shall include posting of  such
    40  order  on the premises of such multiple dwelling in question in a manner
    41  similar to paragraph (c) of subdivision one of this section. If a  peti-
    42  tion  or  petitions are filed by a single petitioner regarding more than
    43  one building under the same ownership, the court shall, if  practicable,
    44  appoint  a common receiver for all such buildings and, if filed as sepa-
    45  rate actions, may consolidate such petitions and treat them as a  single
    46  action.
    47    (b)  A  hearing  shall be held on such order no later than seventy-two
    48  hours after its issuance or the first court  day  thereafter.  The  sole
    49  purpose  of  such  a  hearing  shall be to determine whether there is an
    50  amount owed between the owner and the  utility  corporation.  The  court
    51  shall  make  a  determination of any amount due and any amount so deter-
    52  mined shall constitute a lien upon the real property of such  owner.  If
    53  after  determination  of  any  amount  due  by  the court the owner, the
    54  building's lessor, manager, or their agent petitions  the  court  to  be
    55  permitted  to  pay  such amounts, the court may, in lieu of appointing a
    56  receiver, issue an order permitting such owner, the  building's  lessor,

        A. 8712--C                          8
 
     1  manager,  or  agent  to  repay  the  amounts due the petitioning utility
     2  corporation within a time fixed by the court. If at the  time  fixed  in
     3  the order the amounts have not been repaid, the court shall appoint such
     4  receiver. Such lien shall include:
     5    (i)  the  name  and  address of the utility corporation, including any
     6  doing business as name or the corporation;
     7    (ii) the name and address of the corporation's attorney, if any;
     8    (iii) the name of the owner of the real property or properties against
     9  which such unpaid utility bills exist;
    10    (iv) the amount unpaid to the lienor for such arrearage; and
    11    (v) the property or properties subject   to    the    lien,    with  a
    12  description  thereof  sufficient for identification; and if in a city or
    13  village, the property's or properties' location(s) by street and number.
    14    Such lien shall be filed  in   the   clerk's   office   of the  county
    15  where the property or properties are situated. If such property or prop-
    16  erties  are  situated in   two   or  more  counties,  such lien shall be
    17  filed in the office of the clerk of each of such counties.
    18    (c) As soon as practicable, but  no  more  than  ten  days  after  the
    19  receipt  of  the  order  of  appointment of such receiver, such receiver
    20  shall provide written notice to all occupants of the building or  build-
    21  ings,  delivered  separately  to  each  dwelling  unit, stating that the
    22  receiver has been authorized to collect all rents or  payments  for  use
    23  and  occupancy  or  common  charges, as defined in section three hundred
    24  thirty-nine-e of the real property law due from such occupant  and  that
    25  the  owner, the building's lessor, manager, or their agent is prohibited
    26  from collecting such rents or payments for use and occupancy, or  common
    27  charges.  The  notice  shall  additionally  be sent to those outlined in
    28  paragraph (c) of subdivision one of  this  section.  Such  notice  shall
    29  include  the  address  to  which payments are to be made and the contact
    30  information with which the  receiver  will  be  contacted,  which  shall
    31  include  at  a  minimum a telephone number. The notice shall be in clear
    32  and understandable language and provided in any language required by the
    33  commission pursuant to section forty-four of this chapter, provided that
    34  any more expansive language requirement established as part  of  settle-
    35  ment  between  the  commission or department and the petitioner shall be
    36  followed. A copy of the court order appointing the receiver and  author-
    37  izing the collection of rents shall be attached to the notice.
    38    (d)  The  receiver  appointed  by the court shall collect all rents or
    39  payments for use and occupancy or common charges  forthcoming  from  the
    40  occupants  of  the  building  or  buildings  in question in place of the
    41  owner, the building's lessor, manager, or any  agent.  The  court  shall
    42  authorize  the receiver to utilize such collected rents or payments  for
    43  expenses reasonably necessary to continue the operation  and  management
    44  of  such  building  or  buildings,  make reasonable repairs, and provide
    45  reasonable maintenance to the premises as determined by the court and in
    46  accordance with section two hundred thirty-five-b of the  real  property
    47  law,    the reasonable cost of which, should such actions not be covered
    48  by the rents or payments received, shall be added to  the  total  amount
    49  due  and  owing from the owner. The receiver may also petition the court
    50  in order to recover amounts due as determined  under  paragraph  (b)  of
    51  this subdivision and continuing charges for such water service until all
    52  such charges and other costs have been paid.
    53    (e)  The  owner or their agent shall be liable for reasonable fees and
    54  costs determined by the court to be due to the receiver, such  fees  and
    55  costs  may be recovered from the rents or payments for use and occupancy
    56  under the control of the receiver, provided no such fees or costs  shall

        A. 8712--C                          9
 
     1  be  recovered  until after the payment for current electric, gas, water,
     2  or steam delivery has been made.  The receiver shall make  payments  for
     3  electric,  gas,  water, or steam supplied on and after the date of their
     4  appointment.    Any  moneys from rental payments or payments for use and
     5  occupancy or common charges remaining after payment  for  current  elec-
     6  tric,  gas,  steam and water service deliveries, for expenses reasonably
     7  necessary to continue the operation and management of such  building  or
     8  buildings  as determined by the court and in accordance with section two
     9  hundred thirty-five-b of the real property law, and  after  payment  for
    10  reasonable  costs  and  fees  to  the  receiver, shall be applied to any
    11  arrearage found by the court to be due and owing the petitioner from the
    12  owner or their agent for service provided to such building or buildings.
    13  Any moneys remaining thereafter shall be turned over to the  owner,  the
    14  building's  lessor,  manager,  or  their  agent.  The court may order an
    15  accounting to be made at such times as it determines to be just, reason-
    16  able, and necessary.
    17    (f) For the purposes of this  section,  the  department  charged  with
    18  enforcing  the  multiple  dwelling  law  shall prepare a schedule of all
    19  multiple dwellings within its jurisdiction and shall provide a  copy  of
    20  such schedule to any water corporation subject to the provisions of this
    21  section. Such schedule shall be revised semi-annually and a revised copy
    22  provided  to  such  corporation. Every county, and every municipality to
    23  which the multiple dwelling law does not apply, which county or  munici-
    24  pality  has  compiled or hereafter may compile a listing of all multiple
    25  dwellings within its jurisdiction  shall  make  such  listing  available
    26  without charge to any water corporation providing service in such county
    27  or municipality.
    28    3.  [Any  water  corporation  which willfully fails to comply with the
    29  provisions of this section shall be liable for a penalty of  twenty-five
    30  dollars  for  each  occupied  unit of the multiple dwelling for each day
    31  during which service is unlawfully discontinued; provided, however, that
    32  when the only non-compliance with this section is failure to mail notice
    33  to each "Occupant" as required by clause (ii) of paragraph (c) of subdi-
    34  vision one above the penalty shall be twenty-five dollars for each occu-
    35  pied unit of the multiple dwelling to which notice was  not  mailed  for
    36  each  day during which service is unlawfully discontinued.  An action to
    37  recover a penalty under this section may be brought by  the  counsel  to
    38  the  commission  in any court of competent jurisdiction in this state in
    39  the name of the people of the state of New York. Any monies recovered in
    40  such action shall be paid to the state treasury to  the  credit  of  the
    41  general fund.
    42    4.]  Any  receivership established pursuant to subdivision two of this
    43  section shall be terminated by  the  court  upon  its  finding,  through
    44  notification  by  the receiver, that the arrearage which was the subject
    45  of the original petition has been satisfied, or that  the  building  has
    46  been  sold  and  the  new  owner  has  assumed liability for prospective
    47  service supplied by the petitioner. Upon the court's termination of  any
    48  receivership  established  pursuant  to subdivision two of this section,
    49  the receiver shall provide written notice to all occupants of the build-
    50  ing or buildings, delivered in the same manner as notification was  sent
    51  pursuant  to  paragraph  (c) of subdivision two of this section, stating
    52  that the receivership has been terminated by the court  and  the  owner,
    53  the  building's  lessor,  manager, or their agent is again authorized to
    54  collect rents or payments for use and occupancy, or common charges.
    55    4. Nothing in this section shall prevent the petitioner from  pursuing
    56  any other action or remedy it may have against the owner or their agent.

        A. 8712--C                         10
 
     1    5.  Nothing  in  this  section  shall prevent an action by a tenant or
     2  tenants from pursuing any other  action  or  remedy  available  to  them
     3  against  the owner or their agent, or limit any provision of law provid-
     4  ing for the protection or rights of a tenant in regards to eviction.
     5    6.  Any  owner  or  agent  of  such  owner who collects or attempts to
     6  collect any rent or payment for use and occupancy from any occupant of a
     7  building subject to an order appointing a receiver may be  found,  after
     8  due notice and hearing, to be in contempt of court.
     9    7.  Any person who willfully interferes with the posting of the notice
    10  specified in [clause] subparagraph (i) of paragraph (c)  of  subdivision
    11  one,  subdivision  two, and subdivision three [above] of this section by
    12  any water corporation or agent of the court, willfully defaces or  muti-
    13  lates  any  such  notice,  or  willfully removes the same from the place
    14  where it is posted by such company or court  agent  prior  to  the  date
    15  specified  therein  for  the  [discontinuance of service] notice to seek
    16  lien, order to show cause, or notice of termination of receiver shall be
    17  guilty of a violation and, upon conviction, shall be punished by a  fine
    18  not exceeding twenty-five dollars.
    19    [5.  The  commission  shall  maintain  rules  and  regulations for the
    20  payment by tenants of utility bills for  water  service  in  a  multiple
    21  dwelling  to  which  this  section  applies  where the owner of any such
    22  multiple dwelling, or the person, firm or corporation to whom  or  which
    23  the  last  preceding  bill  has  been rendered or from whom or which the
    24  utility has received payment therefore, has failed to pay  such  utility
    25  bills. Such rules and regulations shall (i) provide that utility service
    26  may  not  be  discontinued  to any such multiple dwelling as long as the
    27  tenants continue to make timely payments in accordance with  established
    28  procedures;  (ii)  include designation of an office to advise tenants of
    29  the rights and procedures available pursuant to  such  rules  and  regu-
    30  lations;  (iii)  assure  that tenants shall not be liable for bills more
    31  than two months in arrears; and (iv) require the commission  upon  peti-
    32  tion  of twenty-five percent of the tenants of such multiple dwelling to
    33  meet with representatives of such tenants and the owner, person, firm or
    34  corporation to whom or which the last preceding bill has  been  rendered
    35  or from whom or which the utility has received payment therefore.]
    36    §  4.  This  act shall take effect on the ninetieth day after it shall
    37  have become a law.
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