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S08118 Summary:

BILL NOS08118C
 
SAME ASSAME AS A08712-C
 
SPONSORKAVANAGH
 
COSPNSRJACKSON
 
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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S08118 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         8118--C
            Cal. No. 1183
 
                               2025-2026 Regular Sessions
 
                    IN SENATE
 
                                      May 15, 2025
                                       ___________
 
        Introduced by Sens. KAVANAGH, JACKSON -- read twice and ordered printed,
          and  when  printed  to  be  committed to the Committee on Judiciary --
          recommitted to the Committee on Judiciary in  accordance  with  Senate
          Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to  said  committee  --  reported
          favorably  from  said  committee,  ordered to first and second report,
          ordered to a third reading, amended and ordered  reprinted,  retaining
          its  place  in the order of third reading -- again amended and ordered
          reprinted, retaining its place in the order of third reading
 
        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.
    15    §  2. Section 33 of the public service law, as added by chapter 713 of
    16  the laws of 1981, paragraphs (c) and (d) of subdivision 1 as amended  by
    17  chapter 195 of the laws of 2010, is amended to read as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13069-09-6

        S. 8118--C                          2
 
     1    § 33. [Discontinuance  of  residential  utility  service  to  multiple
     2  dwellings] Action for receivership of rents and common charges on  resi-
     3  dential  utility  service  to multiple dwellings. 1. Notwithstanding any
     4  other provisions of law, no public utility company, including  the  Long
     5  Island  power authority, or municipality shall discontinue gas, electric
     6  or steam service to an entire  multiple  dwelling  (as  defined  in  the
     7  multiple dwelling law or the multiple residence law) located anywhere in
     8  this state for nonpayment of bills rendered for service [unless such]. A
     9  public  utility  company  or municipality may commence an action against
    10  the owner of the premises affected seeking the appointment of a receiver
    11  of rents or payments for use and occupancy or common charges, as defined
    12  in section three hundred thirty-nine-e of the real property law, against
    13  such multiple dwelling for the amount of such utility bills.  A  utility
    14  shall  have  given  fifteen  days  written notice of its intention so to
    15  [discontinue] seek such appointment of a receiver as follows:
    16    (a) Such notice shall be served personally on the owner of  the  prem-
    17  ises  affected,  or in lieu thereof, to the person, firm, or corporation
    18  to whom or which the last preceding bill has been rendered and from whom
    19  or which the utility has received payment therefor, and  to  the  super-
    20  intendent  or  other  person  in  charge  of  the  building  or premises
    21  affected, if it can be readily ascertained that  there  is  such  super-
    22  intendent or other person in charge.
    23    (b)  In  lieu  of  personal delivery to the person or persons, firm or
    24  corporation specified in paragraph (a) [above] of this subdivision, such
    25  notice may be mailed in a postpaid wrapper to the address of such person
    26  or persons, firm or corporation.
    27    (c) In addition to the notice prescribed by paragraph (a)  or  (b)  of
    28  this subdivision, fifteen days written notice shall be (i) posted in the
    29  public areas of such multiple dwelling, (ii) mailed to the "Occupant" of
    30  each  unit  in  that multiple dwelling, (iii) mailed to the local health
    31  officer and the director of the social services district for  the  poli-
    32  tical subdivision in which the multiple dwelling is located, (iv) if the
    33  multiple dwelling is located in a city or a village, mailed to the mayor
    34  thereof, or if there be none, to the manager, or, if the multiple dwell-
    35  ing is located in a town, then mailed to the town supervisor, (v) mailed
    36  to  the county executive of the county in which the multiple dwelling is
    37  located, or if there be none, then to the [chairman] chairperson of such
    38  county's legislative body, and (vi) mailed to the office of the New York
    39  state long term care ombudsman, if the multiple dwelling is  a  residen-
    40  tial  health  care  facility  as defined in subdivision three of section
    41  twenty-eight hundred one of the public health law, an adult care facili-
    42  ty as defined in subdivision twenty-one of section  two  of  the  social
    43  services  law, or an assisted living residence as defined in subdivision
    44  one of section forty-six hundred fifty-one of the public health  law  as
    45  added  by chapter two of the laws of two thousand four.  Notice required
    46  by subparagraphs (iv) and (v) of this paragraph may  be  mailed  to  the
    47  persons  specified  therein or to their respective designees. The notice
    48  required by this paragraph shall state [the intended date of  discontin-
    49  uance  of  service,] the amount due for such service, and [the procedure
    50  by which any tenant or public agency may make such payment  and  thereby
    51  avoid  discontinuance  of service] that the utility will not discontinue
    52  service and shall seek  the  appointment  of  a  receiver  of  rents  or
    53  payments  against  the  owner.   The notice shall be in clear and under-
    54  standable language and provided in any language required by the  commis-
    55  sion  pursuant  to section forty-four of this article, provided that any

        S. 8118--C                          3
 
     1  more expansive language requirement established as  part  of  settlement
     2  with the commission or department shall be followed.
     3    [(d) The written notice required by subparagraphs (iii), (iv), (v) and
     4  (vi)  of  paragraph  (c)  of this subdivision shall be repeated not more
     5  than four days nor less than two days prior to such discontinuance.
     6    1-a. Whenever a notice of intention to discontinue utility service has
     7  been made pursuant to the provisions of  this  section  and  obligations
     8  owed  the  utility  or  municipality have been satisfied, the utility or
     9  municipality shall notify, in the same manner as it gave such notice  of
    10  intention,  the  occupant of each unit that the intention to discontinue
    11  utility service no longer exists.]
    12    2. (a) Following the notification of  intent  to  seek  an  action  as
    13  outlined  in  subdivision one of this section, a utility corporation may
    14  petition the court  of  competent  jurisdiction  for  appointment  of  a
    15  receiver  of  rents or payments for use and occupancy or common charges,
    16  as defined in section three hundred thirty-nine-e of the  real  property
    17  law, for any dwelling which the owner or the person, firm or corporation
    18  who  received  such notification is in default. The court shall issue an
    19  order to show cause why a receiver should not be appointed, which  shall
    20  be served upon the owner, the building's lessor, manager, or their agent
    21  in  a manner prescribed by the court which shall include posting of such
    22  order on the premises of such multiple dwelling in question in a  manner
    23  similar  to paragraph (c) of subdivision one of this section. If a peti-
    24  tion or petitions are filed by a single petitioner regarding  more  than
    25  one  building under the same ownership, the court shall, if practicable,
    26  appoint a common receiver for all such buildings and, if filed as  sepa-
    27  rate  actions, may consolidate such petitions and treat them as a single
    28  action.
    29    (b) A hearing shall be held on such order no  later  than  seventy-two
    30  hours  after  its  issuance  or the first court day thereafter. The sole
    31  purpose of such a hearing shall be to  determine  whether  there  is  an
    32  amount  owed  between  the  owner and the utility corporation. The court
    33  shall make a determination of any amount due and any  amount  so  deter-
    34  mined  shall  constitute a lien upon the real property of such owner. If
    35  after determination of any amount  due  by  the  court  the  owner,  the
    36  building's  lessor,  manager,  or  their agent petitions the court to be
    37  permitted to pay such amounts, the court may, in lieu  of  appointing  a
    38  receiver,  issue  an order permitting such owner, the building's lessor,
    39  manager, or agent to repay  the  amounts  due  the  petitioning  utility
    40  corporation  within  a  time fixed by the court. If at the time fixed in
    41  the order the amounts have not been repaid, the court shall appoint such
    42  receiver. Such lien shall include:
    43    (i) the name and address of the  utility  corporation,  including  any
    44  doing business as name or the corporation;
    45    (ii) the name and address of the corporation's attorney, if any;
    46    (iii) the name of the owner of the real property or properties against
    47  which such unpaid utility bills exist;
    48    (iv) the amount unpaid to the lienor for such arrearage; and
    49    (v)  the  property  or  properties  subject    to   the   lien, with a
    50  description thereof sufficient for identification; and if in a  city  or
    51  village, the property's or properties' location(s) by street and number.
    52    Such  lien  shall be filed   in   the   clerk's  office  of the county
    53  where the property or properties are situated. If such property or prop-
    54  erties are situated in  two  or  more   counties,   such lien  shall  be
    55  filed in the office of the clerk of each of such counties.

        S. 8118--C                          4
 
     1    (c)  As  soon  as  practicable,  but  no  more than ten days after the
     2  receipt of the order of appointment  of  such  receiver,  such  receiver
     3  shall  provide written notice to all occupants of the building or build-
     4  ings, delivered separately to  each  dwelling  unit,  stating  that  the
     5  receiver  has  been  authorized to collect all rents or payments for use
     6  and occupancy or common charges, as defined  in  section  three  hundred
     7  thirty-nine-e  of  the real property law due from such occupant and that
     8  the owner, the building's lessor, manager, or their agent is  prohibited
     9  from  collecting such rents or payments for use and occupancy, or common
    10  charges. The notice shall additionally be  sent  to  those  outlined  in
    11  paragraph  (c)  of  subdivision  one  of this section. Such notice shall
    12  include the address to which payments are to be  made  and  the  contact
    13  information  with  which  the  receiver  will  be contacted, which shall
    14  include at a minimum a telephone number. The notice shall  be  in  clear
    15  and understandable language and provided in any language required by the
    16  commission pursuant to section forty-four of this article, provided that
    17  any  more  expansive language requirement established as part of settle-
    18  ment between the commission or department and the  petitioner  shall  be
    19  followed.  A copy of the court order appointing the receiver and author-
    20  izing the collection of rents shall be attached to the notice.
    21    (d) The receiver appointed by the court shall  collect  all  rents  or
    22  payments  for  use  and occupancy or common charges forthcoming from the
    23  occupants of the building or buildings  in  question  in  place  of  the
    24  owner,  the  building's  lessor,  manager, or any agent. The court shall
    25  authorize the receiver to utilize such collected rents or payments   for
    26  expenses  reasonably  necessary to continue the operation and management
    27  of such building or buildings,  make  reasonable  repairs,  and  provide
    28  reasonable maintenance to the premises as determined by the court and in
    29  accordance  with  section two hundred thirty-five-b of the real property
    30  law,  the reasonable cost of which, should such actions not  be  covered
    31  by  the  rents  or payments received, shall be added to the total amount
    32  due and owing from the owner. The receiver may also petition  the  court
    33  in  order  to  recover  amounts due as determined under paragraph (b) of
    34  this subdivision and continuing charges for such gas, electric, or steam
    35  service until all such charges and other costs have been paid.
    36    (e) The owner, the building's lessor, manager, or their agent shall be
    37  liable for such reasonable fees and costs determined by the court to  be
    38  due  to  the  receiver,  which  fees and costs may be recovered from the
    39  rents or payments for use and occupancy under the control of the receiv-
    40  er, provided no such fees or costs shall be recovered  until  after  the
    41  payment  for  current  electric,  gas, water, or steam delivery has been
    42  made.  The receiver shall make payments for  electric,  gas,  water,  or
    43  steam  supplied  on and after the date of their appointment.  Any moneys
    44  from rental payments or payments for use and occupancy or common charges
    45  remaining after payment for  current  electric,  gas,  steam  and  water
    46  service  deliveries,  for  expenses reasonably necessary to continue the
    47  operation and management of such building or buildings as determined  by
    48  the  court  and  in accordance with section two hundred thirty-five-b of
    49  the real property law, and after payment for reasonable costs  and  fees
    50  to the receiver, shall be applied to any arrearage found by the court to
    51  be  due  and  owing  the  petitioner  from  the owner or their agent for
    52  service provided to such building or  buildings.  Any  moneys  remaining
    53  thereafter  shall  be  turned  over to the owner, the building's lessor,
    54  manager, or their agent. The court may order an accounting to be made at
    55  such times as it determines to be just, reasonable, and necessary.

        S. 8118--C                          5
 
     1    (f) For the purposes of this  section,  the  department  charged  with
     2  enforcing  the  multiple  dwelling  law  shall prepare a schedule of all
     3  multiple dwellings within its jurisdiction and shall provide a  copy  of
     4  such  schedule to any gas, steam or electric corporation or municipality
     5  subject  to  the  provisions  of  this  section.  Such schedule shall be
     6  revised semi-annually and a revised copy provided to  such  corporation.
     7  Every  county, and every municipality to which the multiple dwelling law
     8  does not apply, which county or municipality has compiled  or  hereafter
     9  may  compile a listing of all multiple dwellings within its jurisdiction
    10  shall make such listing available without charge to any  gas,  steam  or
    11  electric corporation providing service in such county or municipality.
    12    3. [Any gas, electric or steam corporation or municipality which will-
    13  fully  fails  to  comply  with  the  provisions of this section shall be
    14  liable for a penalty of twenty-five dollars for each  occupied  unit  of
    15  the  multiple  dwelling  for each day during which service is unlawfully
    16  discontinued; provided, however, that when the only non-compliance  with
    17  this section is failure to mail notice to each "Occupant" as required by
    18  clause  (ii) of paragraph (c) of subdivision one above the penalty shall
    19  be twenty-five dollars for each occupied unit of the  multiple  dwelling
    20  to  which  notice  was  not  mailed for each day during which service is
    21  unlawfully discontinued. An action  to  recover  a  penalty  under  this
    22  section  may be brought by the counsel to the commission in any court of
    23  competent jurisdiction in this state in the name of the  people  of  the
    24  state  of New York. Any moneys recovered in such action shall be paid to
    25  the state treasury to the credit of the general fund.
    26    4.]  Any receivership established pursuant to subdivision two of  this
    27  section  shall  be  terminated  by  the  court upon its finding, through
    28  notification by the receiver, that the arrearage which was  the  subject
    29  of  the  original  petition has been satisfied, or that the building has
    30  been sold and the  new  owner  has  assumed  liability  for  prospective
    31  service  supplied by the petitioner. Upon the court's termination of any
    32  receivership established pursuant to subdivision two  of  this  section,
    33  the receiver shall provide written notice to all occupants of the build-
    34  ing  or buildings, delivered in the same manner as notification was sent
    35  pursuant to paragraph (c) of subdivision two of  this  section,  stating
    36  that  the  receivership  has been terminated by the court and the owner,
    37  the building's lessor, manager, or their agent is  again  authorized  to
    38  collect rents or payments for use and occupancy, or common charges.
    39    4.  Nothing in this section shall prevent the petitioner from pursuing
    40  any other action or remedy it may have against the owner, the building's
    41  lessor, manager, or their agent.
    42    5. Nothing in this section shall prevent an  action  by  a  tenant  or
    43  tenants  from  pursuing  any  other  action  or remedy available to them
    44  against the owner or their agent, or limit any provision of law  provid-
    45  ing for the protection or rights of a tenant in regards to eviction.
    46    6.  Any  owner  or  agent  of  such  owner who collects or attempts to
    47  collect any rent or payment for use and occupancy from any occupant of a
    48  building subject to an order appointing a receiver may be  found,  after
    49  due notice and hearing, to be in contempt of court.
    50    7.  Any person who willfully interferes with the posting of the notice
    51  specified in [clause] subparagraph (i) of paragraph (c)  of  subdivision
    52  one [above], subdivision two, or in subdivision three of this section by
    53  any  gas, steam or electric corporation or municipality, or agent of the
    54  court willfully defaces or  mutilates  any  such  notice,  or  willfully
    55  removes  the  same  from the place where it is posted by such company or
    56  court agent prior to the date specified therein for the  [discontinuance

        S. 8118--C                          6

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

        S. 8118--C                          7

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

        S. 8118--C                          8
 
     1  the order the amounts have not been repaid, the court shall appoint such
     2  receiver. Such lien shall include:
     3    (i)  the  name  and  address of the utility corporation, including any
     4  doing business as name or the corporation;
     5    (ii) the name and address of the corporation's attorney, if any;
     6    (iii) the name of the owner of the real property or properties against
     7  which such unpaid utility bills exist;
     8    (iv) the amount unpaid to the lienor for such arrearage; and
     9    (v) the property or properties subject   to    the    lien,    with  a
    10  description  thereof  sufficient for identification; and if in a city or
    11  village, the property's or properties' location(s) by street and number.
    12    Such lien shall be filed  in   the   clerk's   office   of the  county
    13  where the property or properties are situated. If such property or prop-
    14  erties  are  situated in   two   or  more  counties,  such lien shall be
    15  filed in the office of the clerk of each of such counties.
    16    (c) As soon as practicable, but  no  more  than  ten  days  after  the
    17  receipt  of  the  order  of  appointment of such receiver, such receiver
    18  shall provide written notice to all occupants of the building or  build-
    19  ings,  delivered  separately  to  each  dwelling  unit, stating that the
    20  receiver has been authorized to collect all rents or  payments  for  use
    21  and  occupancy  or  common  charges, as defined in section three hundred
    22  thirty-nine-e of the real property law due from such occupant  and  that
    23  the  owner, the building's lessor, manager, or their agent is prohibited
    24  from collecting such rents or payments for use and occupancy, or  common
    25  charges.  The  notice  shall  additionally  be sent to those outlined in
    26  paragraph (c) of subdivision one of  this  section.  Such  notice  shall
    27  include  the  address  to  which payments are to be made and the contact
    28  information with which the  receiver  will  be  contacted,  which  shall
    29  include  at  a  minimum a telephone number. The notice shall be in clear
    30  and understandable language and provided in any language required by the
    31  commission pursuant to section forty-four of this chapter, provided that
    32  any more expansive language requirement established as part  of  settle-
    33  ment  between  the  commission or department and the petitioner shall be
    34  followed. A copy of the court order appointing the receiver and  author-
    35  izing the collection of rents shall be attached to the notice.
    36    (d)  The  receiver  appointed  by the court shall collect all rents or
    37  payments for use and occupancy or common charges  forthcoming  from  the
    38  occupants  of  the  building  or  buildings  in question in place of the
    39  owner, the building's lessor, manager, or any  agent.  The  court  shall
    40  authorize  the receiver to utilize such collected rents or payments  for
    41  expenses reasonably necessary to continue the operation  and  management
    42  of  such  building  or  buildings,  make reasonable repairs, and provide
    43  reasonable maintenance to the premises as determined by the court and in
    44  accordance with section two hundred thirty-five-b of the  real  property
    45  law,    the reasonable cost of which, should such actions not be covered
    46  by the rents or payments received, shall be added to  the  total  amount
    47  due  and  owing from the owner. The receiver may also petition the court
    48  in order to recover amounts due as determined  under  paragraph  (b)  of
    49  this subdivision and continuing charges for such water service until all
    50  such charges and other costs have been paid.
    51    (e)  The  owner or their agent shall be liable for reasonable fees and
    52  costs determined by the court to be due to the receiver, such  fees  and
    53  costs  may be recovered from the rents or payments for use and occupancy
    54  under the control of the receiver, provided no such fees or costs  shall
    55  be  recovered  until after the payment for current electric, gas, water,
    56  or steam delivery has been made.  The receiver shall make  payments  for

        S. 8118--C                          9

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

        S. 8118--C                         10
 
     1  against  the owner or their agent, or limit any provision of law provid-
     2  ing for the protection or rights of a tenant in regards to eviction.
     3    6.  Any  owner  or  agent  of  such  owner who collects or attempts to
     4  collect any rent or payment for use and occupancy from any occupant of a
     5  building subject to an order appointing a receiver may be  found,  after
     6  due notice and hearing, to be in contempt of court.
     7    7.  Any person who willfully interferes with the posting of the notice
     8  specified in [clause] subparagraph (i) of paragraph (c)  of  subdivision
     9  one,  subdivision  two, and subdivision three [above] of this section by
    10  any water corporation or agent of the court, willfully defaces or  muti-
    11  lates  any  such  notice,  or  willfully removes the same from the place
    12  where it is posted by such company or court  agent  prior  to  the  date
    13  specified  therein  for  the  [discontinuance of service] notice to seek
    14  lien, order to show cause, or notice of termination of receiver shall be
    15  guilty of a violation and, upon conviction, shall be punished by a  fine
    16  not exceeding twenty-five dollars.
    17    [5.  The  commission  shall  maintain  rules  and  regulations for the
    18  payment by tenants of utility bills for  water  service  in  a  multiple
    19  dwelling  to  which  this  section  applies  where the owner of any such
    20  multiple dwelling, or the person, firm or corporation to whom  or  which
    21  the  last  preceding  bill  has  been rendered or from whom or which the
    22  utility has received payment therefore, has failed to pay  such  utility
    23  bills. Such rules and regulations shall (i) provide that utility service
    24  may  not  be  discontinued  to any such multiple dwelling as long as the
    25  tenants continue to make timely payments in accordance with  established
    26  procedures;  (ii)  include designation of an office to advise tenants of
    27  the rights and procedures available pursuant to  such  rules  and  regu-
    28  lations;  (iii)  assure  that tenants shall not be liable for bills more
    29  than two months in arrears; and (iv) require the commission  upon  peti-
    30  tion  of twenty-five percent of the tenants of such multiple dwelling to
    31  meet with representatives of such tenants and the owner, person, firm or
    32  corporation to whom or which the last preceding bill has  been  rendered
    33  or from whom or which the utility has received payment therefore.]
    34    §  4.  This  act shall take effect on the ninetieth day after it shall
    35  have become a law.
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