Rpld §777, amd RPAP L, generally; amd §110, NYC Civ Ct Act; amd §202, Chap 570 of 1909; amd §3, Chap 464 of
2021
Expands the right to seek the appointment of administrators of buildings to tenants and local governments throughout the state and to make procedures conform with realities of housing stock throughout the state.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2194
SPONSOR: Meeks TITLE OF BILL:
An act to amend the real property actions and proceedings law and the
New York city civil court act, in relation to expanding the right to
seek the appointment of administrators of buildings, pursuant to article
7-A of the real property actions and proceedings law, to tenants and
local governments throughout the state and to make procedures conform
with realities of housing stock throughout the state; to amend chapter
570 of the laws of 1909 relating to the establishment of the city court
of Buffalo, in relation to actions and proceedings under article 7-A of
the real property actions and proceedings law; to amend chapter 464 of
the laws of 2021 relating to enacting the Rochester housing court act,
in relation to actions and proceedings under article 7-A of the real
property actions and proceedings law; and to repeal section 777 of the
real property actions and proceedings law relating thereto
PURPOSE:
This legislation expands the. right to seek the appointment of adminis-
trators of buildings, pursuant to article 7-A, to tenants and local
governments throughout to make procedures conform with realities of
housing stock; repealer.
SUMMARY OF PROVISIONS:
Section 1. Subdivision 1 of section 769 of the real property actions and
proceedings law, as amended by chapter 877 of the laws of 1982, is
amended to read as follows: 1. A special proceeding by tenants of a
dwelling
IN THE CITY OF NEW YORK OR THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND AND WESTCHESTER or by the department or agency of a city,
town, village, or county responsible for the enforcement of the multiple
dwelling law, the multiple residence law, the uniform fire prevention
and building code, or any other law, code or ordinance governing the
occupancy and maintenance of residential property or addressing condi-
tions dangerous to health, life, and safety in the municipality or coun-
ty where the dwelling is located (hereinafter in this article referred
to as "the housing standards department") for a judgement directing the
deposit of rents into court and their use for the purpose of remedying
conditions dangerous to life, health or safety may be maintained in the
civil court of the city of New York, the district court of•the counties
of Suffolk and Nassau, the housing courts in the cities of Buffalo and
Rochester, and the county courts (or), city courts or town courts in
THE COUNTIES OF ROCKLAND AND WESTCHESTER all other counties. 3. For
the purpose of this article, a business practice of neglect shall be
defined as a course of conduct comprising acts or omissions by the
owner, person acting on the owner's behalf, mortgagee, and/or lienor of
record, which results in a clear and convincing pattern of recurrent
qualifying conditions and/or code violations, even if no such conditions
or violations exist at the time of the filing of the petition. A quali-
fying condition for purposes of this article is a condition dangerous to
health, life, or safety. A clear and convincing pattern of recurrent
qualifying conditions and/or code violations exists when within the
twelve months preceding the date of the filing of the petition: (a) for
at least one-third of the dwelling units within the subject dwelling,
there have existed at least two qualifying conditions and/or code
violations for a qualifying condition; or (b) the sum of qualifying
conditions and/or code violations for a qualifying condition which have
existed within the subject dwelling or dwelling units therein equals or
exceeds twice the number of dwelling units; or (c) the sum of qualifying
conditions and/or violations for qualifying conditions which the owner
has failed to promptly correct within the subject dwelling
or dwelling units therein equals or exceeds the number dwelling units;
or (d) for at least one-third of the dwelling units within the subject
dwelling, there have existed at least one qualifying condition and/or
violation for a qualifying condition, and a clear and convincing pattern
of recurrent qualifying conditions or code violations as defined in
paragraph (a), (b), or (c) of this subdivision exists in another dwell-
ing within New York state with the same owner.
JUSTIFICATION:
Tenants need improved living conditions and to create a path to not-for-
profit or tenant/community ownership through reform of the outdated "7A"
program, a program which currently allows tenants in New York City to
seek court administrators in properties that are extremely physically
distressed.
The statute - which has not changed since the 1970s - is no longer work-
ing well for the housing market of 2021. 7A court administrators are not
held to high standards for maintaining and operating buildings - in
fact, the standards are practically non-existent - and there are insuf-
ficient financial and other resources to support administrators in doing
an effective job. We are proposing key changes to the 7A statute to make
it easier for tenants to seek repairs/safe living conditions; make it
easier for buildings with persistent neglect to be transferred to
nonprofit ownership. Major parts of this reform include, (i) creating
new grounds for action/appointment of 7A administrators: a "business
practice of neglect" statute, and (ii) expanding the program to cover
the entire state.
LEGISLATIVE HISTORY:
A10407 of 21-22: referred to judiciary
FISCAL IMPLICATION:
None
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law; provided, however, that the amendments to
subdivision 10 of section 778 of the real property actions and
proceedings law made by section nine of this act shall not affect the
repeal of such subdivision and shall be deemed repealed therewith.
STATE OF NEW YORK
________________________________________________________________________
2194
2023-2024 Regular Sessions
IN ASSEMBLY
January 23, 2023
___________
Introduced by M. of A. MEEKS -- read once and referred to the Committee
on Judiciary
AN ACT to amend the real property actions and proceedings law and the
New York city civil court act, in relation to expanding the right to
seek the appointment of administrators of buildings, pursuant to arti-
cle 7-A of the real property actions and proceedings law, to tenants
and local governments throughout the state and to make procedures
conform with realities of housing stock throughout the state; to amend
chapter 570 of the laws of 1909 relating to the establishment of the
city court of Buffalo, in relation to actions and proceedings under
article 7-A of the real property actions and proceedings law; to amend
chapter 464 of the laws of 2021 relating to enacting the Rochester
housing court act, in relation to actions and proceedings under arti-
cle 7-A of the real property actions and proceedings law; and to
repeal section 777 of the real property actions and proceedings law
relating thereto
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 769 of the real property actions
2 and proceedings law, as amended by chapter 877 of the laws of 1982, is
3 amended to read as follows:
4 1. A special proceeding by tenants of a dwelling [in the city of New
5 York or the counties of Nassau, Suffolk, Rockland and Westchester] or by
6 the department or agency of a city, town, village, or county responsible
7 for the enforcement of the multiple dwelling law, the multiple residence
8 law, the uniform fire prevention and building code, or any other law,
9 code or ordinance governing the occupancy and maintenance of residential
10 property or addressing conditions dangerous to health, life, and safety
11 in the municipality or county where the dwelling is located (hereinafter
12 in this article referred to as "the housing standards department") for a
13 judgment directing the deposit of rents into court and their use for the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04673-01-3
A. 2194 2
1 purpose of remedying conditions dangerous to life, health or safety may
2 be maintained in the civil court of the city of New York, the district
3 court of the counties of Suffolk and Nassau, the housing courts in the
4 cities of Buffalo and Rochester, and the county courts [or], city courts
5 or town courts in [the counties of Rockland and Westchester] all other
6 counties.
7 § 2. Section 770 of the real property actions and proceedings law, as
8 amended by chapter 655 of the laws of 1978, subdivision 1 as amended by
9 chapter 455 of the laws of 2013, is amended to read as follows:
10 § 770. Grounds for the proceeding. 1. One-third or more of the tenants
11 occupying a dwelling [located in the city of New York or the commission-
12 er of the department of the city of New York charged with enforcement of
13 the housing maintenance code of such city, or in the counties of Nassau,
14 Suffolk, Rockland and Westchester] and/or the housing standards depart-
15 ment may [maintain] commence a special proceeding as provided in this
16 article, upon the ground that there exists in such dwellings or in any
17 part thereof a lack of heat or of running water or of light or of elec-
18 tricity or of adequate sewage disposal facilities, or any other condi-
19 tion dangerous to life, health or safety, which has existed for five
20 days, or an infestation by rodents, or any combination of such condi-
21 tions; or course of conduct by the owner or the owner's agents of
22 harassment, illegal eviction, retaliation as defined by section two
23 hundred twenty-three-b of the real property law, interference with the
24 right of tenants to form, join or participate in tenants' groups pursu-
25 ant to section two hundred thirty of the real property law, continued
26 deprivation of services or other acts dangerous to life, health or safe-
27 ty, or a business practice of neglect as defined in subdivision three of
28 this section, or the issuance of an order to the owner of such dwelling
29 by the commissioner of such department of the city of New York pursuant
30 to the alternative enforcement program under section 27-2153 of the
31 administrative code of the city of New York, provided that such dwelling
32 has not been discharged from the program pursuant to such section and
33 there has not been a determination that the owner has substantially
34 complied with such order.
35 2. If the proceeding is instituted by the [commissioner of the depart-
36 ment of the city of New York charged with enforcement of the housing
37 maintenance code of such city] housing standards department, one-third
38 or more of the tenants may, at any time thereafter during the pendency
39 of the proceeding or after final judgment pursuant to section seven
40 hundred seventy-six [or seven hundred seventy-seven] of this article,
41 petition for substitution of themselves in place and [stead] instead of
42 such [commissioner of such] housing standards department, or, in the
43 alternative, move to be joined as a party. Such substitution or joinder
44 shall be ordered by the court unless good reason to the contrary shall
45 be shown.
46 3. For the purposes of this article, a business practice of neglect
47 shall be defined as a course of conduct comprising acts or omissions by
48 the owner, person acting on the owner's behalf, mortgagee, and/or lienor
49 of record, which results in a clear and convincing pattern of recurrent
50 qualifying conditions and/or code violations, even if no such conditions
51 or violations exist at the time of the filing of the petition. A quali-
52 fying condition for purposes of this article is a condition dangerous to
53 health, life, or safety. A clear and convincing pattern of recurrent
54 qualifying conditions and/or code violations exists when within the
55 twelve months preceding the date of the filing of the petition:
A. 2194 3
1 (a) for at least one-third of the dwelling units within the subject
2 dwelling, there have existed at least two qualifying conditions and/or
3 code violations for a qualifying condition; or
4 (b) the sum of qualifying conditions and/or code violations for a
5 qualifying condition which have existed within the subject dwelling or
6 dwelling units therein equals or exceeds twice the number of dwelling
7 units; or
8 (c) the sum of qualifying conditions and/or violations for qualifying
9 conditions which the owner has failed to promptly correct within the
10 subject dwelling or dwelling units therein equals or exceeds the number
11 of dwelling units; or
12 (d) for at least one-third of the dwelling units within the subject
13 dwelling, there have existed at least one qualifying condition and/or
14 violation for a qualifying condition, and a clear and convincing pattern
15 of recurrent qualifying conditions or code violations as defined in
16 paragraph (a), (b), or (c) of this subdivision exists in another dwell-
17 ing within New York state with the same owner.
18 § 3. Section 771 of the real property actions and proceedings law, as
19 amended by chapter 877 of the laws of 1982, is amended to read as
20 follows:
21 § 771. Commencement; notice of petition; time and manner of service.
22 1. A special proceeding prescribed by this article shall be commenced by
23 the service of a petition and notice of petition. [A notice of petition
24 may be issued only by a judge or the clerk of the court.]
25 2. The notice of petition shall specify the time and place of the
26 hearing on the petition and state that if at such time, a defense to
27 such petition is not interposed and established by the owner or any
28 mortgagee or lienor of record, a final judgment may be rendered direct-
29 ing that the rents due on the date of entry of such judgment from the
30 petitioning tenants and the rents due on the dates of service of such
31 judgment on all other tenants occupying such dwelling, from such other
32 tenants, shall be deposited with the administrator appointed pursuant to
33 section seven hundred seventy-eight of this article, and any rents to
34 become due in the future from such petitioners and from all other
35 tenants occupying such dwelling shall be deposited with such administra-
36 tor as they fall due; and that such deposited rents shall be used,
37 subject to the court's direction, to the extent necessary to remedy the
38 condition or conditions alleged in the petition.
39 3. The notice of petition and petition shall be served:
40 a. upon the owner of such dwelling last registered with the department
41 of housing preservation and development of such city pursuant to article
42 [forty-one of chapter twenty-six] two of subchapter four of chapter two
43 of title twenty-seven of the administrative code of the city of New York
44 [and in Nassau, Suffolk, Rockland and Westchester counties upon the
45 person set forth as the owner on the last recorded deed to the rented
46 property and];
47 b. upon every mortgagee and lienor of record[, and upon the city of
48 New York, at least five days before the time at which the petition is
49 noticed to be heard];
50 c. upon the municipality where the dwelling is located; and
51 d. upon any non-petitioning tenants.
52 4. The proof of service shall be filed with the court before which the
53 petition is to be heard on or before the return date.
54 5. Manner of service of the notice of petition and petition. a. Upon
55 the owner. (1) Service [of the notice of petition and petition] shall be
56 made upon the owner at least five days before the time at which the
A. 2194 4
1 petition is noticed to be heard by personally delivering [them] the
2 notice of petition and petition to the person or persons required to be
3 served pursuant to paragraphs a and b of subdivision three of this
4 section. [Service upon the city of New York shall be made by personal
5 delivery to the commissioner of the city department charged with
6 enforcement of the housing maintenance code of such city, or to an agent
7 duly authorized to accept such service on his behalf. If service cannot
8 with due diligence be made within the city upon an owner, mortgagee or
9 lienor of record in such manner, it shall be made:
10 (1) upon the owner last registered with the department of housing
11 preservation and development pursuant to article forty-one of chapter
12 twenty-six of the administrative code of the city of New York and in
13 Nassau, Suffolk, Rockland and Westchester counties upon the person set
14 forth as the owner on the last recorded deed to the rented property by
15 delivering to and leaving personally with the person designated pursuant
16 to article forty-one of chapter twenty-six of such code as managing
17 agent of the subject dwelling, and in Nassau, Suffolk, Rockland and
18 Westchester counties upon the person designated as the managing agent of
19 the rented property if one shall have been designated, a copy of the
20 notice of petition and petition;
21 (2) upon a mortgagee or lienor of record, by registered or certified
22 mail, return receipt requested, at the address set forth in the recorded
23 mortgage or lien.
24 b. If such personal service upon the person designated pursuant to
25 article forty-one of chapter twenty-six of the administrative code of
26 the city of New York as managing agent of the subject dwelling and in
27 Nassau, Suffolk, Rockland and Westchester counties upon the person set
28 forth as the owner on the last recorded deed to the rented property
29 cannot be made with due diligence, service upon such last registered
30 owner shall be made by affixing a copy of the notice and petition upon a
31 conspicuous part of the subject dwelling; and in addition, within two
32 days after such affixing, by sending a copy thereof by registered or
33 certified mail, return receipt requested, to the owner at the last
34 address registered by him with the department of housing preservation
35 and development or, in the absence of such registration, to the address
36 set forth in the last recorded deed with respect to such premises.]
37 (2) If such service cannot be made with due diligence within the city
38 of New York if the dwelling is located therein or otherwise within the
39 county where the dwelling is located, it shall be made by affixing a
40 copy of the notice and petition upon a conspicuous part of the subject
41 dwelling; and in addition, within two days after such affixing, by send-
42 ing to the owner a copy thereof by registered or certified mail, return
43 receipt requested, and a copy thereof by registered or certified or
44 regular first-class mail, no return receipt requested. If the subject
45 dwelling is located in the city of New York, such mailing shall be sent
46 to the address last registered with the department of housing preserva-
47 tion and development pursuant to article two of subchapter four of chap-
48 ter two of title twenty-seven of the administrative code of the city of
49 New York, or in the absence of such registration, to the address set
50 forth in the last recorded deed for the subject dwelling. If the subject
51 dwelling is located outside the city of New York, such mailing shall be
52 sent to the address where local property tax bills for the subject
53 dwelling are sent or, in the alternative if the jurisdiction in which
54 the court sits has a rental registry requirement, at the registered
55 address for the subject dwelling.
A. 2194 5
1 (3) Upon receipt of service of the petition, the owner shall provide
2 to the petitioners, within three days, a written list of all mortgagees
3 and lienors of which the owner is aware and addresses for each.
4 b. Upon mortgagees and lienors. (1) Service shall be made upon each
5 mortgagee and lienor of record at least five days before the time at
6 which the petition is noticed to be heard by either personally deliver-
7 ing the notice of petition and petition or, in the alternative, sending
8 a copy thereof to each mortgagee and lienor of record at the address set
9 forth in the recorded mortgage or lien by certified or registered mail,
10 return receipt requested, and a second copy thereof by certified or
11 registered or regular first-class mail, no return receipt requested.
12 (2) For the purposes of this article, a "mortgagee or lienor of
13 record" shall include only those mortgagees or lienholders whose inter-
14 est is recorded in a publicly accessible database or can be provided on
15 request by the municipal or county registrar, as long as the request
16 includes, at minimum, the address and borough, block, and lot number of
17 the subject dwelling, and follows the applicable rules and regulations
18 of the registrar of the county or municipality in which the property is
19 located for requesting such information.
20 c. Upon the municipality. Service shall be made at least five days
21 before the time at which the petition is noticed to be heard upon the
22 municipality as required by paragraph c of subdivision three of this
23 section to the official charged with management of the housing standards
24 department of such municipality, or to an agent duly authorized to
25 accept service on their behalf, either by personally delivering the
26 notice of petition and petition or, in the alternative, sending a copy
27 thereof to the address designated by the official for receipt of service
28 or, if no such address is designated, to the headquarters of the depart-
29 ment, by registered or certified mail, return receipt requested, and a
30 second copy by registered or certified or regular first-class mail, no
31 return receipt requested.
32 d. Upon non-petitioning tenants. Service shall be made at least five
33 days before the time at which the petition is noticed to be heard upon
34 non-petitioning tenants occupying the dwelling by affixing a copy of the
35 notice of petition and petition upon a conspicuous part of the subject
36 dwelling or, in the alternative, by mailing a copy of the notice of
37 petition and petition to each dwelling unit not occupied by a petition-
38 ing tenant, addressed to "Current Tenant(s)", by registered or certified
39 mail, and a second copy by registered or certified or regular first-
40 class mail, no return receipt requested.
41 6. [Notice to non-petitioning tenants. Notice of the proceeding shall
42 be given to the non-petitioning tenants occupying the dwelling by affix-
43 ing a copy of the notice of petition and petition upon a conspicuous
44 part of the subject dwelling] Contesting service. Defects in service of
45 notice to non-parties are not jurisdictional. The court upon motion or
46 sua sponte may adjourn the proceeding for five days, or up to ten days
47 if requested by petitioners, within which time petitioners shall cure
48 any defects identified by the court.
49 § 4. Subdivisions 1 and 2 of section 772 of the real property actions
50 and proceedings law, as amended by chapter 877 of the laws of 1982, are
51 amended to read as follows:
52 1. Allege material facts showing that there exists in such dwelling or
53 any part thereof one or more of the following: a lack of heat or of
54 running water or of light or electricity or of adequate sewage disposal
55 facilities, or any other condition dangerous to life, health or safety,
56 which has existed for five days, or an infestation of rodents or course
A. 2194 6
1 of conduct by the owner or his agents of harassment, illegal eviction,
2 retaliation as defined by section two hundred twenty-three-b of the real
3 property law, interference with the right of tenants to form, join or
4 participate in tenants' groups pursuant to section two hundred thirty of
5 the real property law, continued deprivation of services or other acts
6 dangerous to life, health or safety; or a business practice of neglect
7 as defined in subdivision three of section seven hundred seventy of this
8 article; or the issuance of an order to the owner of such dwelling by
9 the commissioner of such housing standards department of the city of New
10 York pursuant to the alternative enforcement program under section
11 27-2153 of the administrative code of the city of New York, provided
12 that such dwelling has not been discharged from the program pursuant to
13 such section and there has not been a determination that the owner has
14 substantially complied with such order.
15 2. If the petitioners shall be tenants occupying the dwelling, they
16 shall allege the number of petitioners making the petition and that they
17 constitute one-third or more of the tenants of said dwelling in occupan-
18 cy thereof, or, in the case of a single residence dwelling, that they
19 are the occupants of such dwelling.
20 § 5. Section 774 of the real property actions and proceedings law, as
21 added by chapter 909 of the laws of 1965, is amended to read as follows:
22 § 774. Trial. 1. Where triable issues of fact are raised, they shall
23 be tried by the court without a jury at the time when issue is joined.
24 However, the court[, in its discretion,] may grant [an] a single
25 adjournment of such trial [at] upon request of [either] any party who
26 appears, if [it determines] the requesting party shows that an adjourn-
27 ment is necessary [to enable either of the parties] to procure the
28 necessary witnesses, or upon consent of all the parties who appear. Such
29 adjournment shall not be for more than five days except by consent of
30 all the parties who appear.
31 2. The proceeding shall not be adjourned more than once at the request
32 of the same party except by consent of all the parties who appear, and
33 such adjournments shall not be for more than five days except by consent
34 of all the parties who appear.
35 3. The trial must take place each court day whenever the court is in
36 session until the conclusion of the trial, and accordingly no other
37 cases should be scheduled on the court's calendar for dates prior to the
38 anticipated conclusion of the trial, except by consent of all the
39 parties who appear or during adjournments pursuant to subdivision one or
40 two of this section.
41 § 6. Subdivision c of section 775 of the real property actions and
42 proceedings law, as amended by chapter 877 of the laws of 1982, is
43 amended and a new subdivision d is added to read as follows:
44 c. Any tenant or resident of the dwelling has expressly refused entry
45 to the owner or his agent with access to a portion of the premises for
46 the purpose of correcting such condition or conditions after the owner
47 or their agent provided the tenant or resident with no less than one
48 week written notice of a desire for access, except where such condition
49 requires immediate access in order to prevent injury to persons or
50 damage to property, in which case notice shall be provided by telephone,
51 email, or by knocking on the tenant or occupant's door at a reasonable
52 time when he or she would be expected to be present.
53 d. A tenant's request to reschedule dates of access to a time conven-
54 ient for the tenant or a household member shall not be deemed an express
55 refusal for the purposes of this section.
A. 2194 7
1 § 7. Section 776 of the real property actions and proceedings law, as
2 added by chapter 909 of the laws of 1965, subdivision b as amended by
3 chapter 877 of the laws of 1982, is amended to read as follows:
4 § 776. Judgment. The court shall render a final judgment either
5 a. Dismissing the petition for failure to affirmatively establish the
6 allegations thereof or because of the affirmative establishment by the
7 owner or a mortgagee or lienor of record of a defense or defenses speci-
8 fied in section seven hundred seventy-five of this article; or
9 b. Directing that (1) the rents due on the date of the entry of such
10 judgment from the petitioning tenants and the rents due on the dates of
11 service of the judgment on all other residential and non-residential
12 tenants occupying such dwelling from such other tenants, shall be depos-
13 ited with the administrator appointed by the court, pursuant to section
14 seven hundred seventy-eight of this article; (2) any rents to become due
15 in the future from all tenants occupying such dwelling shall be deposit-
16 ed with such administrator as they fall due; (3) such deposited rents
17 shall be used, subject to the court's direction, to the extent necessary
18 to remedy the condition or conditions or course of conduct alleged in
19 the petition and (4) upon the completion of such work in accordance with
20 such judgment, any remaining surplus shall be turned over to the owner,
21 together with a complete accounting of the rents deposited and the costs
22 incurred; and granting such other and further relief as to the court may
23 seem just and proper. A certified copy of such judgment shall be served
24 personally, by the administrator appointed by the court pursuant to
25 section seven hundred seventy-eight of this article, upon each non-peti-
26 tioning tenant occupying such dwelling and [upon the city of New York]
27 the housing standards department by service as provided in subdivision
28 five of section seven hundred seventy-one of this article. If personal
29 service on any such non-petitioning tenant cannot be made with due dili-
30 gence, service on such tenant shall be made by affixing a certified copy
31 of such judgment on the entrance door of such tenant's apartment, store
32 or other unit and, in addition, within one day after such affixing, by
33 sending a certified copy thereof by certified or registered mail, return
34 receipt requested, to such tenant. Any right of the owner of such dwell-
35 ing to collect such rent moneys from any petitioning tenant of such
36 dwelling on or after the date of entry of such judgment, and from any
37 non-petitioning tenant of such dwelling on or after the date of service
38 of such judgment on such non-petitioning tenant as herein provided,
39 shall be void and unenforceable to the extent that such petitioning or
40 non-petitioning tenant, as the case may be, has deposited such moneys
41 with the administrator in accordance with the terms of such judgment,
42 regardless of whether such right of the owner arises from a lease,
43 contract, agreement or understanding heretofore or hereafter made or
44 entered into or arises as a matter of law from the relationship of the
45 parties or otherwise. It shall be a valid defense in any action or
46 proceeding against any such tenant to recover possession of real proper-
47 ty for the non-payment of rent or for use or occupation to prove that
48 the rent alleged to be unpaid was deposited with the administrator in
49 accordance with the terms of a judgment entered under this section.
50 c. Directing the owner to provide written notice to the court, court-
51 appointed administrator, housing standards department, and petitioning
52 tenants within ten days of entering into a contract of sale with a
53 prospective purchaser of the premises.
54 d. Neither the owner nor a court-appointed administrator shall, with-
55 out good cause, serve a notice to quit upon any tenant or commence any
56 action to recover real property or summary proceeding to recover
A. 2194 8
1 possession of real property, or substantially alter the terms of a
2 tenant's lease, including, but not limited to, refusing to continue a
3 tenancy of the tenant upon expiration of the tenant's lease, to renew
4 the lease or offer a new lease, or offering a new lease with a rent
5 increase equal to or greater than five percent above the current lease,
6 within one year of a judgment pursuant to this section; provided, howev-
7 er, that an owner shall not be required under this section to offer a
8 new lease or a lease renewal for a term greater than one year.
9 § 8. Section 777 of the real property actions and proceedings law is
10 REPEALED.
11 § 9. Section 778 of the real property actions and proceedings law, as
12 amended by chapter 963 of the laws of 1974, subdivisions 1 and 6 as
13 amended and subdivision 11 as added by chapter 455 of the laws of 2013,
14 the opening paragraph of subdivision 1 as amended by chapter 48 of the
15 laws of 2015, subdivision 3 as amended by chapter 305 of the laws of
16 1978, subdivision 4 as added by chapter 521 of the laws of 1979, subdi-
17 vision 5 as added by chapter 769 of the laws of 1981, subdivision 7 as
18 added by chapter 737 of the laws of 1985, subdivisions 8 and 9 as added
19 by chapter 95 of the laws of 1989, subdivision 10 as amended by chapter
20 40 of the laws of 2001, paragraph (a) of subdivision 10 as amended by
21 chapter 387 of the laws of 2003 and paragraph (b) of subdivision 10 as
22 amended by chapter 265 of the laws of 2009, is amended to read as
23 follows:
24 § 778. Appointment of administrator. 1. The court is authorized and
25 empowered, in implementation of a judgment rendered pursuant to section
26 seven hundred seventy-six [or seven hundred seventy-seven] of this arti-
27 cle, to appoint a person other than the owner, a mortgagee or lienor, to
28 receive and administer the rent moneys or security deposited with such
29 owner, mortgagee or lienor, subject to the court's direction. The court
30 may appoint the [commissioner of the department of the city of New York
31 charged with enforcement of the housing maintenance code of such city]
32 official charged with managing the housing standards department or the
33 commissioner's designee as such administrator, provided that the commis-
34 sioner or the commissioner's designee shall consent, in writing, to such
35 appointment. Any administrator is authorized and empowered in accordance
36 with the direction of the court, to order the necessary materials, labor
37 and services to remove or remedy the conditions specified in the judg-
38 ment, and to make disbursements in payment thereof; and to demand,
39 collect and receive the rents from the tenants; and to institute all
40 necessary legal proceedings including, but not limited to, summary
41 proceedings for the removal of any tenant or tenants; and to rent or
42 lease for terms not exceeding three years any part of said premises,
43 however, the court may direct the administrator to rent or lease commer-
44 cial parts of said premises for terms that the court may approve. In
45 addition, such administrator is authorized and empowered in accordance
46 with the direction of the court to accept and repay such moneys as may
47 be received from the housing standards department [charged with enforce-
48 ment of the housing maintenance code of the city of New York] for the
49 purpose of managing the premises, replacing or substantially rehabili-
50 tating systems or making other repairs or capital improvements author-
51 ized by the court. All moneys expended by the department pursuant to the
52 foregoing shall constitute a debt recoverable from the owner and a lien
53 upon the building and lot, and upon the rents and other income thereof.
54 Such lien shall be enforced in accordance with the provisions of article
55 eight of subchapter five of the housing maintenance code of the city of
56 New York, or in accordance with any applicable provisions for all other
A. 2194 9
1 counties. Such administrator, shall, upon completion of the work
2 prescribed in such judgment, file with the court a full accounting of
3 all receipts and expenditures for such work. Such administrator shall
4 dispose of the rents and other monies deposited with such administrator
5 according to the following order of priority:
6 (a) Payment in full for all of the work specified in the judgment,
7 fuel bills, fire and liability insurance, and bills for ordinary repairs
8 and maintenance, including correcting conditions in violation of the
9 law. Until all of the work specified in the judgment has been completed
10 and payment for such work has been made, no other disbursements shall be
11 permitted[, except for fuel bills, fire and liability insurance, and
12 bills for ordinary repairs and maintenance].
13 (b) Payment of a reasonable amount for the services of such adminis-
14 trator, including reimbursement of any legal fees incurred by such
15 administrator in connection with management of the building.
16 (c) Payment of outstanding real property tax liens claimed by [the
17 city of New York] any municipality or county in which the dwelling is
18 located.
19 (d) Payment of outstanding emergency repair liens filed and recorded
20 by [the city of New York] any municipality or county in which the dwell-
21 ing is located and outstanding liens filed and recorded by [the city]
22 such municipality or county pursuant to this section.
23 (e) Abatements for all tenants of up to twenty-five percent of rent
24 for the period during which the administrator is appointed. Nothing in
25 this paragraph shall prevent any tenant from prosecuting a claim in a
26 court of competent jurisdiction for breach of warranty of habitability;
27 however, any resulting relief from such claim will be reduced by the
28 amount of the abatement awarded herein.
29 (f) Payment to the owner of any surplus remaining after payments of
30 paragraphs (a) through [(d)] (e) of this subdivision have been made.
31 2. Unless the administrator is the [city of New York] municipality or
32 county, the court may allow from the rent moneys or security on deposit
33 a reasonable amount for services of such administrator.
34 3. Unless such administrator is the [city of New York] municipality or
35 county, the administrator so appointed shall furnish a bond, the amount
36 and form of which shall be approved by the court. In its discretion and
37 for good cause shown, the court may dispense with the necessity for a
38 bond. The cost of a required bond shall be paid from the moneys so
39 deposited.
40 4. Such administrator shall file a transcript of the judgment appoint-
41 ing [him] them with the county clerk within fifteen days of [his] their
42 appointment.
43 5. The duties of such administrator shall not be affected by the
44 appointment of a receiver in an action to foreclose a mortgage on the
45 premises, except that the rights of the owner, including the right to
46 any surplus, pursuant to paragraph [(e)] (f) of subdivision one of this
47 section, shall pass to the receiver. The court in which the action to
48 foreclose a mortgage on the premises is pending may appoint such admin-
49 istrator to serve as receiver in that action in addition to [his] their
50 duties as administrator pursuant to this article.
51 6. Such administrator shall be liable only in his or her official
52 capacity for injury to persons and property by reason of conditions of
53 the premises in a case where an owner would have been liable; he or she
54 shall not have any liability in his or her personal capacity. Appoint-
55 ment of an administrator pursuant to subdivision one of this section
A. 2194 10
1 shall not relieve an owner of liability for injury to persons and prop-
2 erty in such case.
3 7. No [city] municipality or county specified in section seven hundred
4 sixty-nine of this article shall be liable to any party, including such
5 administrator or the owner, for injury to persons or property by reason
6 of conditions of the premises or the acts or omissions of such adminis-
7 trator, except that when the [city of New York] municipality or county
8 is appointed administrator, liability shall be determined in accordance
9 with subdivision six of this section.
10 8. The commissioner of the department of the city of New York charged
11 with the enforcement of the housing maintenance code of such city shall
12 promulgate rules and regulations regarding criteria for the selection of
13 administrators to be appointed pursuant to this section and shall estab-
14 lish and maintain a list of organizations and persons approved by such
15 department. If the dwelling is located outside the city of New York,
16 the official charged with management of the housing standards department
17 shall promulgate rules and regulations regarding criteria for the
18 selection of administrators to be appointed pursuant to this section and
19 may establish and maintain a list of organizations and persons approved
20 by such department. Unless the administrator is the [city of New York]
21 municipality or county, any person appointed as an administrator within
22 such city shall be selected from among the organizations and persons
23 approved as administrators pursuant to such list, any organizations or
24 individuals submitted to the court for consideration by the petitioning
25 tenants pursuant to paragraph (a) of this subdivision, and the petition-
26 ing tenants deemed to have sufficient knowledge and expertise to serve
27 as the administrator.
28 (a) Where an article seven-A proceeding is initiated by tenants, the
29 petitioning tenants shall have the right to submit to the court a list
30 of three preferred organizations and/or individuals selected from the
31 approved list of administrators provided that, if the tenants find no
32 organization or individual on the list to be suitable, the tenants may
33 nominate organizations or individuals outside of the list, including
34 from among the petitioning tenants, along with a summary of each nomi-
35 nee's experience and credentials, for consideration by the court.
36 (b) Where petitioning tenants have submitted preferred organizations
37 and/or individuals selected from the approved list of administrators,
38 the court must appoint an administrator from among the petitioning
39 tenants' preferred approved administrators absent good cause to the
40 contrary.
41 (c) Where petitioning tenants have not submitted preferred organiza-
42 tions or individuals or where the court declines to appoint an adminis-
43 trator from among the petitioning tenants' preferred administrators or
44 nominees, priority of appointment shall be given to not-for-profit
45 corporations formed for the purpose of preserving or developing afforda-
46 ble housing whenever there is no eligible for-profit organization or
47 individual that is clearly more competent.
48 9. (a) Such administrator shall, within thirty days of appointment,
49 file with the court a plan for the provision of essential services and
50 for the correction of such other hazardous conditions as may exist at
51 the premises, specifying dates by which such services shall be provided
52 and such conditions corrected. If such administrator cannot provide such
53 services and correct such conditions by the dates specified in the plan,
54 [he] they shall be required to file with the court an amendment to the
55 plan setting forth the reasons why such services and corrections could
56 not be provided by such date and specifying new dates for such services
A. 2194 11
1 and corrections. Such plan and any amendments to such plan shall be
2 provided to the tenants by first-class or registered or certified mail
3 [or] and by conspicuously posting in a common area of the building, and
4 to the owner of record by first-class or registered or certified mail.
5 (b) Where an organization has been appointed as the administrator,
6 such administrator shall promptly delegate the responsibilities to a
7 single individual and inform the court of such designation within thirty
8 days. Such person shall remain accountable to the court as the adminis-
9 trator's representative until the administrator's discharge.
10 10. (a) Where a building for which an administrator has been appointed
11 pursuant to this section is transferred to a new owner at any time
12 following the appointment of such administrator, whether or not such
13 building remains subject to such administrator, the housing standards
14 department [charged with enforcement of the housing maintenance code of
15 the city of New York] may enter into a regulatory agreement with such
16 new owner. Such regulatory agreement may impose such terms and condi-
17 tions upon the operation and repair of such building as such department
18 may determine. Notwithstanding any general, special or local law to the
19 contrary, such regulatory agreement may provide that, upon transfer of
20 such building to the new owner, any outstanding liens filed with and
21 recorded by the city pursuant to this section or pursuant to section
22 three hundred nine of the multiple dwelling law shall immediately be
23 reduced to zero, provided that such regulatory agreement shall require,
24 in consideration for such reduction to zero, the provision of adequate,
25 safe and sanitary housing accommodations for persons of low income for a
26 period of not less than [thirty] ninety-nine years. Any regulatory
27 agreement pursuant to this subdivision shall include a certification by
28 the new owner of the real property that (i) the prior owner has no
29 direct or indirect interest in such real property, and (ii) the prior
30 owner has no direct or indirect interest in such new owner.
31 (b) On or about June thirtieth, two thousand [nine] twenty-two and for
32 every three years thereafter for as long as the program continues to be
33 in effect, the [city] municipality or county shall submit a report to
34 the governor, the temporary president of the senate, the speaker of the
35 assembly, the minority leader of the senate and the minority leader of
36 the assembly. Each report following the initial report shall describe
37 the program activities carried out during the three prior calendar years
38 pursuant to this subdivision.
39 11. (a) The court may only discharge an administrator if the owner
40 makes a prima facie showing that the conditions and course of conduct
41 which required the appointment of the article seven-A administrator have
42 been cured and that the owner has a detailed plan for the continued
43 maintenance and operation of the dwelling, the owner has paid in full or
44 entered into a payment agreement to pay in full all outstanding real
45 property tax liens claimed by [the city of New York] any municipality or
46 county in which the dwelling is located, all outstanding emergency
47 repair liens filed and recorded by [the city of New York] any munici-
48 pality or county in which the dwelling is located, all outstanding
49 charges and liens assessed in connection to the alternative enforcement
50 program authorized by section 27-2153 of the administrative code of the
51 city of New York, and outstanding liens filed and recorded by [the city]
52 such municipality or county pursuant to this section. The provisions of
53 this subdivision shall not apply to buildings transferred pursuant to
54 subdivision ten of this section.
55 (b) A detailed plan for the continued maintenance of the operations of
56 the dwelling shall include sufficient submissions for the court to eval-
A. 2194 12
1 uate the owner's willingness and ability to make repairs, including
2 specifying the repairs they will undertake, an estimated budget, a time-
3 table for doing so, identifying the source of funds for those expendi-
4 tures, and balance sheets or income statements.
5 (c) In assessing an owner's fitness for the continued maintenance and
6 operation of the dwelling, the court shall consider the conditions of
7 other properties owned or managed by the owner and shall not discharge
8 the article seven-A administrator where it is found that the owner oper-
9 ates a separate property or separate properties at a standard which is
10 contrary to public health and safety. The court may rely on the visually
11 displayed or the printed computerized violation files of the department
12 responsible for maintaining such files and all other computerized data
13 as shall be relevant to the enforcement of state and local laws for the
14 establishment and maintenance of housing standards.
15 12. (a) Where a judgment has been entered pursuant to section seven
16 hundred seventy-eight of this article, the municipality must, within six
17 months of such a judgment, certify a finding pursuant to paragraph (c)
18 of subdivision one of section nineteen hundred seventy-one of this chap-
19 ter.
20 (b) Where a finding of abandonment has been certified, the munici-
21 pality may commence a proceeding pursuant to section nineteen hundred
22 seventy-three of this chapter, or, in the alternative, authorize the
23 court-appointed administrator to sell the property to a purchaser
24 approved by the court pursuant to section seven hundred eighty-four of
25 this article.
26 (c) Notice of such authorization must be issued to all owners, mortga-
27 gors, lienors and lessees of record pursuant to section nineteen hundred
28 seventy-two of this chapter, as well as to all tenants of the subject
29 building.
30 (d) Any owner, mortgagor, lienor or lessee may challenge the authori-
31 zation of sale, provided that the burden of proof is on the challenging
32 party to demonstrate its capacity to resume control of the premises
33 pursuant to subdivision eleven of this section.
34 § 10. Section 779 of the real property actions and proceedings law, as
35 amended by chapter 95 of the laws of 1989, is amended to read as
36 follows:
37 § 779. Presentation or settlement of accounts. The court shall
38 require the keeping of written accounts itemizing the receipts and
39 expenditures under an order issued pursuant to section seven hundred
40 seventy-six [or seven hundred seventy-seven] of this article, which
41 shall be open to inspection by the owner, any mortgagee or lienor or any
42 other person having an interest in such receipts or expenditures
43 provided, however, notwithstanding any other provision of law to the
44 contrary, such information as may be in the possession of the [city of
45 New York with the department charged with the enforcement of the housing
46 maintenance code of such city] housing standards department shall be
47 available from such department for inspection only by the owner, tenant
48 of such property, or person having a recorded interest in the property.
49 Upon motion of the court or the administrator or of the owner, any mort-
50 gagee or lienor of record or of any person having an interest, or the
51 petitioning tenants, the court may require a presentation or settlement
52 of the accounts with respect thereto. Notice of a motion for presenta-
53 tion or settlement of such accounts shall be served on the owner, any
54 mortgagee or other lienor of record who appeared in the proceeding and
55 [any person having an interest in such receipts or expenditures] the
56 petitioning tenants.
A. 2194 13
1 § 11. Section 782 of the real property actions and proceedings law, as
2 amended by chapter 877 of the laws of 1982, is amended to read as
3 follows:
4 § 782. "Dwelling" defined. As used in this article, the term "dwell-
5 ing" shall mean any building or structure or portion thereof which is
6 occupied in whole or in part as the home, residence or sleeping place of
7 one or more human beings and is either rented, leased, let or hired out,
8 to be occupied, or is occupied as the residence or home of [three] one
9 or more families [living independently of each other]; or is a garden-
10 type maisonette dwelling project as defined in the multiple dwelling law
11 or other similar dwellings which in their aggregate are arranged or
12 designed to provide three or more apartments, have common facilities
13 such as but not limited to a sewer line, water main, or heating plant
14 and are operated as a unit under common ownership, notwithstanding that
15 certificates of occupancy were issued for portions thereof as one or two
16 family dwellings or that the dwellings are not a multiple dwelling as
17 defined in the multiple dwelling law. "Dwelling" shall also include
18 premises zoned for mixed residential and commercial use, provided that a
19 portion of such premises are, in fact, occupied by one or more tenants
20 for residential purposes.
21 § 12. Section 783 of the real property actions and proceedings law, as
22 added by chapter 95 of the laws of 1989, is amended to read as follows:
23 § 783. Defense of warranty of habitability inapplicable. Notwith-
24 standing any other provision of law, in any proceeding for the payment
25 of rent commenced by an administrator appointed pursuant to this arti-
26 cle, the provisions of section two hundred thirty-five-b of the real
27 property law pertaining to the warranty of habitability shall not be a
28 defense to such a proceeding for rent which accrues during the period of
29 time that a judgment or an order pursuant to this article is in effect,
30 unless the court determines that the conditions upon which such defense
31 is based were caused by the failure of such administrator to perform his
32 duties in a reasonable manner. The burden of showing performance of
33 duties in a reasonable manner shall be made by the administrator in such
34 summary proceeding.
35 § 13. The real property actions and proceedings law is amended by
36 adding a new section 784 to read as follows:
37 § 784. Sale of premises; court review. Prior to entering into any
38 contract of sale of the premises subject to judgment, an owner, adminis-
39 trator, mortgagor, or lienor shall submit the proposed contract of sale
40 for review before the court.
41 § 14. The real property actions and proceedings law is amended by
42 adding a new section 785 to read as follows:
43 § 785. Waiver void. Any provision of a lease or other agreement where-
44 by any provision of this article for the benefit of a tenant, resident
45 or occupant of a dwelling is waived, shall be deemed against public
46 policy and shall be void.
47 § 15. Paragraph 5 of subdivision (a) of section 110 of the New York
48 city civil court act, as amended by chapter 849 of the laws of 1977, is
49 amended to read as follows:
50 (5) Actions and proceedings under article seven-A of the real property
51 actions and proceedings law, and all summary proceedings to recover
52 possession of residential premises to remove tenants therefrom, and to
53 render judgment for rent due, including without limitation those cases
54 in which a tenant alleges a defense under section seven hundred fifty-
55 five of the real property actions and proceedings law, relating to stay
56 or proceedings or action for rent upon failure to make repairs, section
A. 2194 14
1 three hundred two-a of the multiple dwelling law, relating to the abate-
2 ment of rent in case of certain violations of section D26-41.21 of such
3 housing maintenance code. Where one or multiple parts within the housing
4 part have been designated to hear trials, actions and proceedings under
5 article seven-A of the real property actions and proceedings law, such
6 proceedings shall be held before those trial parts and not before the
7 part within the housing part.
8 § 16. Subdivision (e) of section 202 of chapter 570 of the laws of
9 1909, relating to the establishment of the city court of Buffalo, as
10 added by chapter 516 of the laws of 1978, is amended to read as follows:
11 (e) [All] Actions and proceedings under article seven-A of the real
12 property actions and proceedings law, and all summary proceedings to
13 recover possession of residential premises to remove tenants therefrom,
14 and to render judgment for rent due, in which a tenant alleges a defense
15 under section seven hundred fifty-five of the real property actions and
16 proceedings law, relating to stay or proceedings or action for rent upon
17 failure to make repairs, section three hundred two-a of the multiple
18 dwelling law, relating to the abatement of rent in case of certain
19 violations of any housing codes, and section two hundred thirty-five-b
20 of the real property law, relating to a landlord's duty to maintain
21 habitable premises, or any other law involving housing code enforcement.
22 The administrative judge of Buffalo city court may, in [his] their
23 discretion, empower the housing part to hear all summary proceedings to
24 recover possession of residential premises, regardless of whether a
25 tenant alleges a defense, at any time when [he] the administrative judge
26 feels that housing part is capable of handling all such summary
27 proceedings.
28 § 17. Subdivision (e) of section 3 of chapter 464 of the laws of 2021
29 relating to enacting the Rochester housing court act, is amended to read
30 as follows:
31 (e) [All] Actions and proceedings under article seven-A of the real
32 property actions and proceedings law, and all summary proceedings to
33 recover possession of residential premises to remove tenants therefrom,
34 and to render judgment for rent due, in which a tenant alleges a defense
35 under section seven hundred fifty-five of the real property actions and
36 proceedings law, relating to stay or proceedings or action for rent upon
37 failure to make repairs, section three hundred five-a of the multiple
38 residence law, relating to the abatement of rent in case of certain
39 violations of any housing codes, and section two hundred thirty-five-b
40 of the real property law, relating to a landlord's duty to maintain
41 habitable premises, or any other law involving housing code enforcement.
42 The administrative judge of Rochester city court may, in his or her
43 discretion, empower the housing part to hear all summary proceedings to
44 recover possession of residential premises, regardless of whether a
45 tenant alleges a defense, at any time when he or she feels that housing
46 part is capable of handling all such summary proceedings.
47 § 18. This act shall take effect on the one hundred eightieth day
48 after it shall have become a law; provided, however, that the amendments
49 to subdivision 10 of section 778 of the real property actions and
50 proceedings law made by section nine of this act shall not affect the
51 repeal of such subdivision and shall be deemed repealed therewith.
