NY State Senate Bill 2009-S906

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to housing, construction and community development
Jan 21, 2009	referred to judiciary

2009-S906 (ACTIVE) - Details

Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Add §773-a, amd §§778 & 1325, RPAP L
Versions Introduced in 2011-2012 Legislative Session:: S1960

2009-S906 (ACTIVE) - Summary

Provides that receivership shall not be material nor a defense to the appointment of an administrator, pursuant to provisions of the real property actions and proceedings law relating to special proceedings by tenants of dwellings in the city of New York, to deposit rent and make repairs to multiple dwellings, although a receiver in foreclosure may participate in such proceeding and may be appointed as administrator if the court so decides; provides that a receiver need not be named as a party or served with process in such special proceeding; requires receiver to register with the municipal department within seven days of appointment or else any action taken by such receiver may be voided by the court.

2009-S906 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S906

 TITLE OF BILL :
An act to amend the real property actions and proceedings law, in
relation to proceedings to deposit rents


 PURPOSE/SUMMARY OF PROVISIONS :
This bill would amend the real property actions and proceedings law by
adding a new section seven hundred seventy-three, a new subdivision
eight under section seven hundred seventy-eight, and three new
subdivisions, four, five and six, under section thirteen hundred
twenty-five. This bill has been introduced as a result of the Gomez
vs. Smith Williamsburg Better Housing Court decision filed in Kings
County, Trial Term, Part 35A. The purpose of this bill is to prevent
slum-mortgagees from using the issue of receivership as a tactic to
delay the implementation of article 7-A proceedings. The bill would
establish that receivership shall not be adjourned, dismissed or
delayed because the petitioner has not requested or received prior
approval from the supreme court, the supreme court has not authorized
such a lawsuit against a receiver or the receiver has not been named
or served with process in such proceeding. Provides that the existence
of a receiver prior to the judgement or appointment of an
administrator in such proceeding, shall not affect the court's
capacity to appoint or continue the appointment of such administrator.
The court may appoint an existing receiver as an administrator when it

is convinced that such receiver will take responsibility for
correcting all existing violations and dangerous conditions to the
dwelling. Lastly, the bill puts the receiver at risk if the court
order appointing him in a foreclosure proceeding does not include the
information mandated by the legislature in subdivision 3 of section
1325. Also, mandates that a receiver must register with the code
enforcement agency within seven days after being appointed receiver,
receivership order is void and receiver is stayed from commencing any
action until he is registered. Eliminates any requirement to request,
or receive, supreme court approval before a tenant or a municipal
agent may commence an action against a receiver.

 JUSTIFICATION :
Article 7-A provides a method for tenants and municipal authorities to
use rents, and other funds, to improve slum buildings where the owners
and mortgagees did not correct housing code violations and/or
hazardous conditions. However, some landlords and mortgagees attempt
to use misrepresentations, delaying tactics and total disregard of
provisions, in order to frustrate the legislative intent of this law.
This bill would amend the law to prohibit slum-mortgagees from arguing
that the receiver in a foreclosure should displace the 7-A
administrator or that the petitioners in the proceeding have not
gotten prior supreme court approval. This bill would also clarify the
section of the RPAPL which applies to the responsibility of a receiver
in a foreclosure and provides an enforcement mechanism for ensuring
that the receiver adheres to these responsibilities.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect on the first of October next succeeding the
date on which it shall have become a law.

2009-S906 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   906

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 21, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the  real  property  actions  and  proceedings  law,  in
  relation to proceedings to deposit rents

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property actions and proceedings law is amended by
adding a new section 773-a to read as follows:
  S 773-A. RECEIVERSHIP NOT MATERIAL. 1. RECEIVERSHIP  SHALL  NOT  BE  A
DEFENSE  TO  ANY SPECIAL PROCEEDING PURSUANT TO THIS ARTICLE AND NO SUCH
PROCEEDING SHALL BE ADJOURNED, DELAYED OR DISMISSED EITHER  BECAUSE  THE
PETITIONER  HAS  NOT  OR  PETITIONERS  HAVE  NOT  REQUESTED  OR RECEIVED
APPROVAL OF SUCH PROCEEDING BY THE SUPREME COURT OR A  LAWSUIT  HAS  NOT
BEEN AUTHORIZED AGAINST A RECEIVER APPOINTED BY SUCH COURT OR A RECEIVER
HAS NOT BEEN NAMED OR SERVED WITH PROCESS IN SUCH PROCEEDING.
  2.  THIS  SECTION  SHALL  NOT  PROHIBIT A RECEIVER IN FORECLOSURE FROM
PARTICIPATION IN SUCH PROCEEDING, IF SUCH RECEIVER SO DESIRES.
  S 2. Section 778 of the real property actions and proceedings  law  is
amended by adding a new subdivision 11 to read as follows:
  11.  THE  EXISTENCE  OF  A  RECEIVER  FOR  THE  DWELLING  PRIOR TO THE
COMMENCEMENT OF THE PROCEEDING, OR APPLICATION FOR OR APPOINTMENT  OF  A
RECEIVER  AT ANY TIME PRIOR TO JUDGMENT OR APPOINTMENT OF AN ADMINISTRA-
TOR PURSUANT TO THIS ARTICLE, SHALL NOT AFFECT THE POWER OF THE COURT TO
APPOINT OR CONTINUE THE APPOINTMENT OF  SUCH  AN  ADMINISTRATOR,  EXCEPT
THAT THE RIGHTS OF THE OWNER, INCLUDING THE RIGHTS TO ANY SURPLUS PURSU-
ANT  TO  PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, SHALL PASS TO
THE RECEIVER. IF SUCH RECEIVER HAS BEEN APPOINTED PRIOR  TO  APPOINTMENT
OF  AN ADMINISTRATOR, THE COURT MAY APPOINT SUCH RECEIVER AS ADMINISTRA-
TOR UNDER CIRCUMSTANCES WHERE IT IS CONVINCED THAT  SUCH  RECEIVER  WILL
PROPERLY  UNDERTAKE RESPONSIBILITY FOR CORRECTING ALL THE VIOLATIONS AND
DANGEROUS CONDITIONS, AND PROVIDE NECESSARY SERVICES TO THE DWELLING.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06439-01-9

S. 906                              2

  S 3. Section 1325 of the real property actions and proceedings law  is
amended by adding three new subdivisions 4, 5 and 6 to read as follows:
  4.  ANY  ORDER  PURSUANT  TO  THIS  ARTICLE WHICH DOES NOT INCLUDE THE
PROVISIONS REQUIRED BY SUBDIVISION THREE OF THIS SECTION, SHALL BE VOID-
ABLE.
  5. IF ANY RECEIVER DOES NOT REGISTER  WITH  THE  MUNICIPAL  DEPARTMENT
WITHIN  SEVEN DAYS AFTER THE DATE OF THE ORDER APPOINTING SUCH RECEIVER,
ALL ACTIONS TAKEN BY SUCH RECEIVER AFTER SAID SEVENTH DAY MAY BE  VOIDED
BY THE COURT; SUCH RECEIVER IS STAYED FROM COMMENCING ANY ACTIONS IN ANY
COURT UNTIL HE OR SHE IS SO REGISTERED.
  6.  WHEN ANY RECEIVER IS APPOINTED PURSUANT TO THIS SECTION, NO TENANT
OR MUNICIPAL AGENCY IS REQUIRED TO GET PRIOR APPROVAL FROM  THE  SUPREME
COURT BEFORE COMMENCING ANY ACTION AGAINST SAID RECEIVER.
  S  4. This act shall take effect on the first of October next succeed-
ing the date on which it shall have become a law.

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Senate Bill S906

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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2009-S906 (ACTIVE) - Details

2009-S906 (ACTIVE) - Summary

2009-S906 (ACTIVE) - Sponsor Memo

2009-S906 (ACTIVE) - Bill Text download pdf

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Sponsored By

Carl Kruger

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Actions

2009-S906 (ACTIVE) - Details

2009-S906 (ACTIVE) - Summary

2009-S906 (ACTIVE) - Sponsor Memo

2009-S906 (ACTIVE) - Bill Text download pdf

Comments