S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6721
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 13, 2021
                                ___________
 
 Introduced  by  Sen.  RYAN  --  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  special  proceedings by tenants of dwellings outside the
   city of New York and certain counties for judgment  directing  deposit
   of  rents  and the use thereof for the purpose of remedying conditions
   dangerous to life, health or safety
 
   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 article 7-C to read as follows:
                                ARTICLE 7-C
                SPECIAL PROCEEDINGS BY TENANTS OF DWELLINGS
            FOR JUDGMENT DIRECTING DEPOSIT OF RENTS AND THE USE
         THEREOF FOR THE PURPOSE OF REMEDYING CONDITIONS DANGEROUS
                         TO LIFE, HEALTH OR SAFETY
 SECTION 796.   DEFINITIONS.
         796-A. JURISDICTION; COURT; VENUE.
         796-B. GROUNDS FOR THE PROCEEDING.
         796-C. COMMENCEMENT; NOTICE OF  PETITION;  TIME  AND  MANNER  OF
                  SERVICE.
         796-D. CONTENTS OF PETITION.
         796-E. ANSWER.
         796-F. TRIAL.
         796-G. DEFENSES.
         796-H. JUDGMENT.
         796-I. APPLICATION  BY  MORTGAGEE  OR  LIENOR OF RECORD OR OTHER
                  PERSON HAVING AN INTEREST IN THE PROPERTY.
         796-J. APPOINTMENT OF ADMINISTRATOR.
         796-K. PRESENTATION OR SETTLEMENT OF ACCOUNTS.
         796-L. WAIVER VOID.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01841-01-1

 S. 6721                             2
 
         796-M. DEFENSE OF WARRANTY OF HABITABILITY INAPPLICABLE.
   § 796. DEFINITIONS. AS USED IN THIS ARTICLE:
   1.  "OWNER"  MEANS  THE  OWNER OR OWNERS OF THE DWELLING, MORTGAGEE OR
 VENDEE IN POSSESSION, ASSIGNEE OF RENTS,  RECEIVER,  EXECUTOR,  TRUSTEE,
 LESSEE,  AGENT,  OR ANY OTHER PERSON OR ENTITY DIRECTLY OR INDIRECTLY IN
 CONTROL OF A DWELLING, BUT SHALL NOT INCLUDE A RECEIVER APPOINTED PURSU-
 ANT TO SECTION THREE HUNDRED NINE OF THE MULTIPLE DWELLING LAW.
   2. "DWELLING" OR "PREMISES" MEANS ANY BUILDING OR STRUCTURE OR PORTION
 THEREOF WHICH IS OCCUPIED IN WHOLE OR IN PART AS THE HOME, RESIDENCE  OR
 SLEEPING PLACE OF ONE OR MORE HUMAN BEINGS AND IS EITHER RENTED, LEASED,
 LET OR HIRED OUT, TO BE OCCUPIED AS SUCH, INCLUDING, BUT NOT LIMITED TO,
 AN APARTMENT BUILDING, A CONDOMINIUM, A TOWNHOUSE, A SINGLE-FAMILY HOUSE
 OR  A MULTIPLE-FAMILY RESIDENCE BUILDING. "DWELLING" OR "PREMISES" SHALL
 ALSO INCLUDE PREMISES ZONED FOR MIXED RESIDENTIAL  AND  COMMERCIAL  USE,
 PROVIDED  THAT  A PORTION OF SUCH PREMISES ARE, IN FACT, OCCUPIED BY ONE
 OR MORE TENANTS FOR RESIDENTIAL PURPOSES.
   3. "COMMISSIONER" MEANS THE COMMISSIONER, CHIEF  SUPERVISOR  OR  CHIEF
 OFFICER OF A DEPARTMENT.
   4. "DEPARTMENT" MEANS A DEPARTMENT, AGENCY OR OFFICE.
   5. "MUNICIPALITY" MEANS A COUNTY, CITY, TOWN OR VILLAGE.
   6.  "PERSON"  MEANS  AN  INDIVIDUAL, PARTNERSHIP, CORPORATION, ASSOCI-
 ATION, TRUST OR OTHER GROUP OR LEGAL ENTITY, HOWEVER ORGANIZED.
   § 796-A. JURISDICTION; COURT; VENUE. 1. A  SPECIAL  PROCEEDING  FOR  A
 JUDGMENT  DIRECTING  THE DEPOSIT OF RENTS INTO COURT AND THE USE OF SUCH
 MONIES FOR THE PURPOSE OF REMEDYING CONDITIONS AT A  DWELLING  DANGEROUS
 TO  LIFE, HEALTH OR SAFETY MAY BE MAINTAINED BY TENANT OR TENANTS OF THE
 DWELLING IN THE COUNTY COURT, DISTRICT COURT OR CITY COURT HAVING JURIS-
 DICTION IN THE MUNICIPALITY IN WHICH THE DWELLING IS LOCATED.
   2. A SPECIAL PROCEEDING  AS  DESCRIBED  IN  SUBDIVISION  ONE  OF  THIS
 SECTION  MAY  ALSO  BE  COMMENCED  BY THE COMMISSIONER OF THE DEPARTMENT
 CHARGED WITH ENFORCEMENT OF THE HOUSING MAINTENANCE CODE IN THE  MUNICI-
 PALITY WHERE THE DWELLING IS LOCATED.
   (A) IF THE PROCEEDING IS INSTITUTED BY SUCH COMMISSIONER, ONE-THIRD OR
 MORE  OF  THE TENANTS OF THE DWELLING MAY, AT ANY TIME THEREAFTER DURING
 THE PENDENCY OF THE PROCEEDING  OR  AFTER  FINAL  JUDGMENT  PURSUANT  TO
 SECTION SEVEN HUNDRED NINETY-SIX-H OR SEVEN HUNDRED NINETY-SIX-I OF THIS
 ARTICLE, PETITION FOR SUBSTITUTION OF THEMSELVES IN PLACE AND INSTEAD OF
 SUCH  COMMISSIONER.    SUCH  SUBSTITUTION  SHALL BE ORDERED BY THE COURT
 UNLESS GOOD REASON TO THE CONTRARY SHALL BE SHOWN.
   (B) A SPECIAL PROCEEDING PURSUANT TO THE PROVISIONS  OF  THIS  ARTICLE
 MAY  ONLY  BE COMMENCED WITH RESPECT TO THE SAME PREMISES BY ONE MUNICI-
 PALITY AT A TIME.
   3. THE PLACE OF TRIAL OF THE SPECIAL PROCEEDING SHALL  BE  WITHIN  THE
 COUNTY  IN  WHICH THE DWELLING OR A PORTION THEREOF FROM WHICH THE RENTS
 ISSUE IS SITUATED.
   4. THE PROVISIONS OF THIS ARTICLE SHALL NOT APPLY TO DWELLINGS LOCATED
 IN THE CITY OF NEW YORK OR IN THE COUNTIES OF NASSAU, SUFFOLK,  ROCKLAND
 AND WESTCHESTER OR IN ANY CITIES, TOWNS OR VILLAGES OF SUCH COUNTIES.
   §  796-B. GROUNDS FOR THE PROCEEDING. ONE-THIRD OR MORE OF THE TENANTS
 OCCUPYING A MULTIPLE RESIDENCE DWELLING OR A TENANT OCCUPYING  A  SINGLE
 RESIDENCE  DWELLING  OR  THE COMMISSIONER OF THE DEPARTMENT CHARGED WITH
 ENFORCEMENT OF THE HOUSING MAINTENANCE CODE IN  THE  MUNICIPALITY  WHERE
 THE DWELLING IS LOCATED MAY MAINTAIN A SPECIAL PROCEEDING AS PROVIDED IN
 THIS ARTICLE, UPON THE GROUNDS THAT THERE EXISTS IN SUCH DWELLING, OR IN
 ANY PART THEREOF:

 S. 6721                             3
 
   1.  A LACK OF HEAT, RUNNING WATER, LIGHT, ELECTRICITY, ADEQUATE SEWAGE
 DISPOSAL FACILITIES, OR ANY OTHER CONDITION DANGEROUS TO LIFE, HEALTH OR
 SAFETY, WHICH HAS EXISTED FOR FIVE DAYS, OR AN INFESTATION  BY  RODENTS,
 OR ANY COMBINATION OF SUCH CONDITIONS; OR
   2.  A  COURSE OF CONDUCT BY THE OWNER OR THE OWNER'S AGENTS OF HARASS-
 MENT, ILLEGAL EVICTION, CONTINUED DEPRIVATION OF SERVICES OR OTHER  ACTS
 DANGEROUS TO LIFE, HEALTH OR SAFETY.
   § 796-C. COMMENCEMENT; NOTICE OF PETITION; TIME AND MANNER OF SERVICE.
   1.  A SPECIAL PROCEEDING PRESCRIBED BY THIS ARTICLE SHALL BE COMMENCED
 BY THE SERVICE OF A PETITION AND NOTICE OF PETITION. A NOTICE  OF  PETI-
 TION MAY BE ISSUED ONLY BY A JUDGE OR THE CLERK OF THE COURT.
   2.  THE  NOTICE  OF  PETITION  SHALL SPECIFY THE TIME AND PLACE OF THE
 HEARING ON THE PETITION AND STATE THAT IF AT SUCH  TIME,  A  DEFENSE  TO
 SUCH  PETITION  IS  NOT  INTERPOSED  AND ESTABLISHED BY THE OWNER OR ANY
 MORTGAGEE OR LIENOR OF RECORD, A FINAL JUDGMENT MAY BE RENDERED  DIRECT-
 ING THAT:
   (A) THE RENTS DUE ON THE DATE OF ENTRY OF SUCH JUDGMENT FROM THE PETI-
 TIONING  TENANTS AND THE RENTS DUE ON THE DATES OF SERVICE OF SUCH JUDG-
 MENT ON ALL OTHER TENANTS  OCCUPYING  SUCH  DWELLING,  FROM  SUCH  OTHER
 TENANTS, SHALL BE DEPOSITED WITH THE ADMINISTRATOR APPOINTED PURSUANT TO
 SECTION SEVEN HUNDRED NINETY-SIX-J OF THIS ARTICLE;
   (B)  ANY  RENTS  TO BECOME DUE IN THE FUTURE FROM SUCH PETITIONERS AND
 FROM ALL OTHER TENANTS OCCUPYING SUCH DWELLING SHALL BE  DEPOSITED  WITH
 SUCH ADMINISTRATOR AS THEY FALL DUE; AND
   (C)  SUCH DEPOSITED RENTS SHALL BE USED, SUBJECT TO THE COURT'S DIREC-
 TION, TO THE EXTENT NECESSARY TO  REMEDY  THE  CONDITION  OR  CONDITIONS
 ALLEGED IN THE PETITION.
   3. THE NOTICE OF PETITION AND PETITION SHALL BE SERVED UPON THE PERSON
 SET  FORTH AS THE OWNER ON THE LAST RECORDED DEED TO THE RENTED DWELLING
 AND UPON EVERY MORTGAGEE AND LIENOR OF RECORD, AT LEAST FIVE DAYS BEFORE
 THE TIME AT WHICH THE PETITION IS NOTICED TO BE HEARD.
   4. THE PROOF OF SERVICE SHALL BE FILED WITH THE COURT BEFORE WHICH THE
 PETITION IS TO BE HEARD ON OR BEFORE THE RETURN DATE.
   5. (A) SERVICE OF THE NOTICE OF PETITION AND PETITION SHALL BE MADE BY
 PERSONALLY DELIVERING THEM TO THE  PERSON  OR  PERSONS  REQUIRED  TO  BE
 SERVED  PURSUANT TO SUBDIVISION THREE OF THIS SECTION. IF SERVICE CANNOT
 WITH DUE DILIGENCE BE MADE UPON AN OWNER, MORTGAGEE OR LIENOR OF  RECORD
 IN SUCH MANNER, IT SHALL BE MADE:
   (I)  UPON THE PERSON SET FORTH AS THE OWNER ON THE LAST RECORDED DEED,
 TO THE RENTED DWELLING BY REGISTERED OR CERTIFIED MAIL,  RETURN  RECEIPT
 REQUESTED, AT THE ADDRESS SET FORTH IN THE RECORDED DEED AND BY DELIVER-
 ING  TO  AND  LEAVING  COPIES OF THE NOTICE OF PETITION AND THE PETITION
 PERSONALLY WITH THE PERSON DESIGNATED  AS  THE  MANAGING  AGENT  OF  THE
 DWELLING, IF ONE SHALL HAVE BEEN DESIGNATED;
   (II)  UPON A MORTGAGEE OR LIENOR OF RECORD, BY REGISTERED OR CERTIFIED
 MAIL, RETURN RECEIPT REQUESTED, AT THE ADDRESS SET FORTH IN THE RECORDED
 MORTGAGE OR LIEN.
   (B) IF SUCH PERSONAL SERVICE UPON THE PERSON SET FORTH AS THE OWNER ON
 THE LAST RECORDED DEED TO THE RENTED PROPERTY CANNOT BE  MADE  WITH  DUE
 DILIGENCE,  SERVICE  UPON  SUCH  LAST  REGISTERED OWNER SHALL BE MADE BY
 AFFIXING A COPY OF THE NOTICE AND PETITION UPON A  CONSPICUOUS  PART  OF
 THE SUBJECT DWELLING; AND IN ADDITION, WITHIN TWO DAYS AFTER SUCH AFFIX-
 ING,  BY  SENDING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL, RETURN
 RECEIPT REQUESTED, TO THE OWNER AT THE ADDRESS SET  FORTH  IN  THE  LAST
 RECORDED DEED WITH RESPECT TO SUCH DWELLING.

 S. 6721                             4
 
   6.  NOTICE  OF  THE  PROCEEDING  SHALL BE GIVEN TO THE NON-PETITIONING
 TENANTS OCCUPYING THE DWELLING BY AFFIXING A COPY OF THE NOTICE OF PETI-
 TION AND PETITION UPON A CONSPICUOUS PART OF THE SUBJECT DWELLING.
   § 796-D. CONTENTS OF PETITION. THE PETITION SHALL:
   1. ALLEGE MATERIAL FACTS SHOWING THAT THERE EXISTS IN SUCH DWELLING OR
 ANY PART THEREOF ONE OR MORE OF THE FOLLOWING:
   (A) A LACK OF HEAT, RUNNING WATER, LIGHT, ELECTRICITY, ADEQUATE SEWAGE
 DISPOSAL FACILITIES, OR ANY OTHER CONDITION DANGEROUS TO LIFE, HEALTH OR
 SAFETY,  WHICH  HAS EXISTED FOR FIVE DAYS, OR AN INFESTATION OF RODENTS;
 OR
   (B) A COURSE OF CONDUCT BY THE OWNER  OR  HIS  AGENTS  OF  HARASSMENT,
 ILLEGAL  EVICTION,  CONTINUED  DEPRIVATION  OF  SERVICES  OR  OTHER ACTS
 DANGEROUS TO LIFE, HEALTH OR SAFETY.
   2. IF THE PETITIONERS SHALL BE TENANTS OCCUPYING  THE  DWELLING,  THEY
 SHALL ALLEGE THE NUMBER OF PETITIONERS MAKING THE PETITION AND THAT:
   (A)  IN  THE  CASE  OF  A MULTIPLE RESIDENCE DWELLING, THEY CONSTITUTE
 ONE-THIRD OR MORE OF THE TENANTS IN OCCUPANCY THEREOF; OR
   (B) IN THE CASE OF A SINGLE RESIDENCE DWELLING, THEY ARE THE OCCUPANTS
 OF SUCH SINGLE-RESIDENCE DWELLING.
   3. ALLEGE A BRIEF DESCRIPTION OF THE NATURE OF THE  WORK  REQUIRED  TO
 REMOVE  OR  REMEDY  THE CONDITION AND AN ESTIMATE AS TO THE COST THEREOF
 EXCEPT THAT IF THE PETITIONERS SHALL BE TENANTS OCCUPYING THE  DWELLING,
 THE PETITION MAY ALLEGE THE CONDITIONS COMPLAINED OF IN WHICH EVENT SUCH
 DESCRIPTION  SHALL  NOT  BE REQUIRED TO BE MADE BY ANYONE NOT A PARTY TO
 THE PETITION.
   4. IF THE PETITIONERS SHALL BE TENANTS OCCUPYING  THE  DWELLING,  THEY
 SHALL ALLEGE THE AMOUNT OF RENT DUE FROM EACH SUCH PETITIONER, MONTHLY.
   5. STATE THE RELIEF SOUGHT.
   §  796-E.  ANSWER.  AT  THE TIME WHEN THE PETITION IS TO BE HEARD, THE
 OWNER AND ANY MORTGAGEE OR LIENOR OF RECORD, SHALL ANSWER IN WRITING. IF
 THE NOTICE OF PETITION WAS SERVED AT LEAST EIGHT DAYS BEFORE THE TIME AT
 WHICH IT WAS NOTICED TO BE HEARD AND IT SO DEMANDS, THE ANSWER SHALL  BE
 SERVED AT LEAST THREE DAYS BEFORE THE TIME THE PETITION IS NOTICED TO BE
 HEARD AND ANY REPLY SHALL BE SERVED AT LEAST ONE DAY BEFORE SUCH TIME.
   § 796-F. TRIAL. WHERE TRIABLE ISSUES OF FACT ARE RAISED, THEY SHALL BE
 TRIED  BY  THE  COURT  WITHOUT  A JURY AT THE TIME WHEN ISSUE IS JOINED;
 PROVIDED, HOWEVER, THAT THE COURT,  IN  ITS  DISCRETION,  MAY  GRANT  AN
 ADJOURNMENT  OF  SUCH TRIAL AT REQUEST OF EITHER PARTY, IF IT DETERMINES
 THAT AN ADJOURNMENT IS NECESSARY TO ENABLE  EITHER  OF  THE  PARTIES  TO
 PROCURE  THE NECESSARY WITNESSES, OR UPON CONSENT OF ALL THE PARTIES WHO
 APPEAR. SUCH ADJOURNMENT SHALL NOT BE FOR MORE THAN FIVE DAYS EXCEPT  BY
 CONSENT OF ALL THE PARTIES WHO APPEAR.
   § 796-G. DEFENSES. IT SHALL BE A SUFFICIENT DEFENSE TO THE PROCEEDING,
 IF THE OWNER OR ANY MORTGAGEE OR LIENOR OF RECORD ESTABLISH THAT:
   1. THE CONDITION OR CONDITIONS ALLEGED IN THE PETITION DID NOT IN FACT
 EXIST  OR  THAT  SUCH CONDITION OR CONDITIONS HAVE BEEN REMOVED OR REME-
 DIED; OR
   2. SUCH CONDITION OR CONDITIONS HAVE  BEEN  CAUSED  BY  A  PETITIONING
 TENANT OR TENANTS OR MEMBERS OF THE FAMILY OR FAMILIES OF SUCH PETITION-
 ER OR PETITIONERS OR OF THEIR GUESTS OR BY OTHER RESIDENTS OF THE DWELL-
 ING OR THEIR FAMILIES OR GUESTS; OR
   3.  ANY  TENANT  OR  RESIDENT OF THE DWELLING HAS REFUSED ENTRY TO THE
 OWNER OR THE OWNER'S AGENT TO A PORTION OF THE PREMISES FOR THE  PURPOSE
 OF CORRECTING SUCH CONDITION OR CONDITIONS.
   § 796-H. JUDGMENT. 1. THE COURT SHALL RENDER A FINAL JUDGMENT EITHER:

 S. 6721                             5
 
   (A) DISMISSING THE PETITION FOR FAILURE TO AFFIRMATIVELY ESTABLISH THE
 ALLEGATIONS  THEREOF  OR BECAUSE OF THE AFFIRMATIVE ESTABLISHMENT BY THE
 OWNER OR A MORTGAGEE OR LIENOR OF RECORD OF A DEFENSE OR DEFENSES SPECI-
 FIED IN SECTION SEVEN HUNDRED NINETY-SIX-G OF THIS ARTICLE; OR
   (B)(I) DIRECTING THAT:
   (A)  THE  RENTS DUE ON THE DATE OF THE ENTRY OF SUCH JUDGMENT FROM THE
 PETITIONING TENANTS AND THE RENTS DUE ON THE DATES  OF  SERVICE  OF  THE
 JUDGMENT  ON ALL OTHER RESIDENTIAL AND NON-RESIDENTIAL TENANTS OCCUPYING
 SUCH DWELLING FROM SUCH OTHER  TENANTS,  SHALL  BE  DEPOSITED  WITH  THE
 ADMINISTRATOR  APPOINTED BY THE COURT, PURSUANT TO SECTION SEVEN HUNDRED
 NINETY-SIX-J OF THIS ARTICLE;
   (B) ANY RENTS TO BECOME DUE IN THE FUTURE FROM ALL  TENANTS  OCCUPYING
 SUCH  DWELLING  SHALL  BE DEPOSITED WITH SUCH ADMINISTRATOR AS THEY COME
 DUE;
   (C) SUCH DEPOSITED RENTS SHALL BE USED, SUBJECT TO THE COURT'S  DIREC-
 TION,  TO  THE  EXTENT  NECESSARY  TO REMEDY THE CONDITION OR CONDITIONS
 ALLEGED IN THE PETITION; AND
   (D) UPON THE COMPLETION OF SUCH WORK IN ACCORDANCE WITH SUCH JUDGMENT,
 ANY REMAINING SURPLUS SHALL BE TURNED OVER TO THE OWNER, TOGETHER WITH A
 COMPLETE ACCOUNTING OF THE RENTS DEPOSITED AND THE COSTS INCURRED; AND
   (II) GRANTING SUCH OTHER AND FURTHER RELIEF AS TO THE COURT  MAY  SEEM
 JUST AND PROPER.
   2.  (A)  A  CERTIFIED COPY OF SUCH JUDGMENT SHALL BE SERVED PERSONALLY
 UPON EACH NON-PETITIONING TENANT OCCUPYING SUCH  DWELLING.  IF  PERSONAL
 SERVICE ON ANY SUCH NON-PETITIONING TENANT CANNOT BE MADE WITH DUE DILI-
 GENCE, SERVICE ON SUCH TENANT SHALL BE MADE BY AFFIXING A CERTIFIED COPY
 OF  SUCH  JUDGMENT  ON  THE  ENTRANCE DOOR OF SUCH TENANT'S APARTMENT OR
 OTHER UNIT AND, IN ADDITION, WITHIN ONE  DAY  AFTER  SUCH  AFFIXING,  BY
 SENDING  A  CERTIFIED  COPY  THEREOF  BY REGISTERED MAIL, RETURN RECEIPT
 REQUESTED, TO SUCH TENANT.
   (B) ANY RIGHT OF THE OWNER OF  SUCH  DWELLING  TO  COLLECT  SUCH  RENT
 MONEYS FROM ANY PETITIONING TENANT OF SUCH DWELLING ON OR AFTER THE DATE
 OF  ENTRY  OF SUCH JUDGMENT, AND FROM ANY NON-PETITIONING TENANT OF SUCH
 DWELLING ON OR AFTER THE DATE OF SERVICE OF SUCH JUDGMENT ON  SUCH  NON-
 PETITIONING  TENANT  AS HEREIN PROVIDED, SHALL BE VOID AND UNENFORCEABLE
 TO THE EXTENT THAT SUCH PETITIONING OR NON-PETITIONING  TENANT,  AS  THE
 CASE MAY BE, HAS DEPOSITED SUCH MONEYS WITH THE ADMINISTRATOR IN ACCORD-
 ANCE  WITH  THE TERMS OF SUCH JUDGMENT, REGARDLESS OF WHETHER SUCH RIGHT
 OF THE OWNER ARISES FROM A LEASE, CONTRACT, AGREEMENT  OR  UNDERSTANDING
 HERETOFORE  OR  HEREAFTER  MADE OR ENTERED INTO OR ARISES AS A MATTER OF
 LAW FROM THE RELATIONSHIP OF THE PARTIES OR OTHERWISE.  IT  SHALL  BE  A
 VALID  DEFENSE  IN  ANY  ACTION OR PROCEEDING AGAINST ANY SUCH TENANT TO
 RECOVER POSSESSION OF REAL PROPERTY FOR THE NON-PAYMENT OF RENT  OR  FOR
 USE OR OCCUPATION TO PROVE THAT THE RENT ALLEGED TO BE UNPAID WAS DEPOS-
 ITED  WITH  THE ADMINISTRATOR IN ACCORDANCE WITH THE TERMS OF A JUDGMENT
 ENTERED UNDER THIS SECTION.
   § 796-I. APPLICATION BY MORTGAGEE OR LIENOR OF RECORD OR OTHER  PERSON
 HAVING  AN  INTEREST  IN  THE  PROPERTY. 1. IF, AFTER A TRIAL, THE COURT
 SHALL DETERMINE THAT THE FACTS ALLEGED IN THE PETITION HAVE BEEN  AFFIR-
 MATIVELY  ESTABLISHED BY THE PETITIONERS, THAT NO DEFENSE THERETO SPECI-
 FIED IN SECTION SEVEN HUNDRED NINETY-SIX-G  OF  THIS  ARTICLE  HAS  BEEN
 AFFIRMATIVELY  ESTABLISHED  BY  THE  OWNER  OR  A MORTGAGEE OR LIENOR OF
 RECORD, AND THAT THE FACTS ALLEGED IN THE PETITION WARRANT THE  GRANTING
 OF  THE  RELIEF  SOUGHT,  AND IF THE OWNER OR ANY MORTGAGEE OR LIENOR OF
 RECORD OR OTHER PERSON HAVING AN INTEREST IN THE PROPERTY,  SHALL  APPLY
 TO  THE  COURT TO BE PERMITTED TO REMOVE OR REMEDY THE CONDITIONS SPECI-

 S. 6721                             6
 
 FIED IN SUCH PETITION AND SHALL (I) DEMONSTRATE THE ABILITY PROMPTLY  TO
 UNDERTAKE  THE  WORK REQUIRED AND (II) POST SECURITY FOR THE PERFORMANCE
 OF SUCH WORK WITHIN THE TIME, AND  IN  THE  AMOUNT  AND  MANNER,  DEEMED
 NECESSARY BY THE COURT, THEN THE COURT, IN LIEU OF RENDERING JUDGMENT AS
 PROVIDED  IN  SECTION  SEVEN  HUNDRED  NINETY-SIX-H OF THIS ARTICLE, MAY
 ISSUE AN ORDER PERMITTING SUCH PERSON TO PERFORM THE WORK WITHIN A  TIME
 FIXED BY THE COURT.
   2.  IF,  AFTER THE ISSUANCE OF AN ORDER PURSUANT TO SUBDIVISION ONE OF
 THIS SECTION, BUT BEFORE THE TIME FIXED IN SUCH ORDER FOR THE COMPLETION
 OF THE WORK PRESCRIBED THEREIN, IT SHALL APPEAR TO THE PETITIONERS  THAT
 THE  PERSON  PERMITTED  TO  DO THE SAME IS NOT PROCEEDING WITH DUE DILI-
 GENCE, THE PETITIONS MAY APPLY TO THE COURT ON NOTICE TO  THOSE  PERSONS
 WHO  HAVE  APPEARED IN THE PROCEEDING FOR A HEARING TO DETERMINE WHETHER
 JUDGMENT SHOULD BE RENDERED IMMEDIATELY AS PROVIDED IN SUBDIVISION THREE
 OF THIS SECTION.
   3. IF, UPON A HEARING AUTHORIZED IN SUBDIVISION TWO OF  THIS  SECTION,
 THE  COURT  SHALL  DETERMINE  THAT THE OWNER, MORTGAGEE, LIENOR OR OTHER
 PERSON IS NOT PROCEEDING WITH DUE DILIGENCE, OR UPON THE FAILURE OF  THE
 OWNER, MORTGAGEE, LIENOR OR OTHER PERSON TO COMPLETE THE WORK IN ACCORD-
 ANCE  WITH  THE  PROVISIONS OF THE ORDER, THE COURT SHALL RENDER A FINAL
 JUDGMENT APPOINTING AN ADMINISTRATOR  AS  AUTHORIZED  IN  SECTION  SEVEN
 HUNDRED  NINETY-SIX-J  OF  THIS  ARTICLE. SUCH JUDGMENT SHALL DIRECT THE
 ADMINISTRATOR TO APPLY THE SECURITY POSTED BY SUCH PERSON TO THE  REMOV-
 ING  OR  REMEDYING OF THE CONDITION OR CONDITIONS SPECIFIED IN THE PETI-
 TION.  IN THE EVENT THAT THE AMOUNT OF SUCH SECURITY SHOULD BE  INSUFFI-
 CIENT  FOR SUCH PURPOSE, SUCH JUDGMENT SHALL DIRECT THE DEPOSIT OF RENTS
 WITH THE ADMINISTRATOR, AS AUTHORIZED BY SECTION SEVEN  HUNDRED  NINETY-
 SIX-H  OF  THIS  ARTICLE, TO THE EXTENT OF SUCH DEFICIENCY. IN THE EVENT
 THAT SUCH SECURITY SHOULD EXCEED THE AMOUNT REQUIRED TO REMOVE OR REMEDY
 SUCH CONDITION OR CONDITIONS, SUCH JUDGMENT SHALL DIRECT THE ADMINISTRA-
 TOR TO FILE WITH THE COURT, UPON COMPLETION OF THE WORK PRESCRIBED THER-
 EIN, A FULL ACCOUNTING OF THE AMOUNT OF SUCH SECURITY AND  THE  EXPENDI-
 TURES  MADE  PURSUANT TO SUCH JUDGMENT, AND TO TURN OVER SUCH SURPLUS TO
 THE PERSON WHO POSTED SUCH  SECURITY,  TOGETHER  WITH  A  COPY  OF  SUCH
 ACCOUNTING.
   §  796-J.  APPOINTMENT OF ADMINISTRATOR. 1.(A) THE COURT IS AUTHORIZED
 AND EMPOWERED, IN IMPLEMENTATION OF  A  JUDGMENT  RENDERED  PURSUANT  TO
 SECTION SEVEN HUNDRED NINETY-SIX-H OR SEVEN HUNDRED NINETY-SIX-I OF THIS
 ARTICLE,  TO  APPOINT  A  PERSON  OTHER THAN THE OWNER, A MORTGAGEE OR A
 LIENOR, TO RECEIVE AND ADMINISTER THE RENT MONEYS OR SECURITY  DEPOSITED
 WITH SUCH OWNER, MORTGAGEE OR LIENOR, SUBJECT TO THE COURT'S DIRECTION.
   (B)  THE  COURT MAY APPOINT THE COMMISSIONER OF THE DEPARTMENT CHARGED
 WITH ENFORCEMENT OF THE HOUSING MAINTENANCE  CODE  IN  THE  MUNICIPALITY
 WHERE  THE  DWELLING  IS  LOCATED OR THE COMMISSIONER'S DESIGNEE AS SUCH
 ADMINISTRATOR, PROVIDED THAT  THE  COMMISSIONER  OR  THE  COMMISSIONER'S
 DESIGNEE SHALL CONSENT, IN WRITING, TO SUCH APPOINTMENT.
   (C)  ANY  ADMINISTRATOR IS AUTHORIZED AND EMPOWERED IN ACCORDANCE WITH
 THE DIRECTION OF THE COURT, TO:
   (I) ORDER THE NECESSARY MATERIALS, LABOR AND  SERVICES  TO  REMOVE  OR
 REMEDY  THE  CONDITIONS SPECIFIED IN THE JUDGMENT, AND TO MAKE DISBURSE-
 MENTS IN PAYMENT THEREOF;
   (II) DEMAND, COLLECT AND RECEIVE THE RENTS FROM  THE  TENANTS  OF  THE
 DWELLING;
   (III)  INSTITUTE  ALL  NECESSARY  LEGAL PROCEEDINGS INCLUDING, BUT NOT
 LIMITED TO, SUMMARY  PROCEEDINGS  FOR  THE  REMOVAL  OF  ANY  TENANT  OR
 TENANTS;

 S. 6721                             7

   (IV)  TO RENT OR LEASE FOR TERMS NOT EXCEEDING THREE YEARS ANY PART OF
 SAID PREMISES, HOWEVER, THE COURT MAY DIRECT THE ADMINISTRATOR  TO  RENT
 OR  LEASE  COMMERCIAL  PORTIONS OF A PREMISES ZONED FOR MIXED COMMERCIAL
 AND RESIDENTIAL USE FOR TERMS THAT THE COURT MAY APPROVE; AND
   (V) IN ACCORDANCE WITH THE DIRECTION OF THE COURT, TO ACCEPT AND REPAY
 SUCH  MONEYS  AS  MAY  BE  RECEIVED  FROM  THE DEPARTMENT OR DEPARTMENTS
 CHARGED WITH ENFORCEMENT OF THE HOUSING MAINTENANCE CODE IN THE  MUNICI-
 PALITY  OR  MUNICIPALITIES WHERE THE DWELLING IS LOCATED FOR THE PURPOSE
 OF MANAGING THE  PREMISES,  REPLACING  OR  SUBSTANTIALLY  REHABILITATING
 SYSTEMS  OR  MAKING  OTHER REPAIRS OR CAPITAL IMPROVEMENTS AUTHORIZED BY
 THE COURT. ALL MONEYS EXPENDED BY SUCH DEPARTMENT OR DEPARTMENTS  PURSU-
 ANT  TO THE FOREGOING SHALL CONSTITUTE A DEBT RECOVERABLE FROM THE OWNER
 AND A LIEN UPON THE BUILDING AND LOT,  AND  UPON  THE  RENTS  AND  OTHER
 INCOME THEREOF.
   (D)  UPON  COMPLETION  OF  THE  WORK  PRESCRIBED IN SUCH JUDGMENT, THE
 ADMINISTRATOR, SHALL FILE WITH  THE  COURT  A  FULL  ACCOUNTING  OF  ALL
 RECEIPTS AND EXPENDITURES FOR SUCH WORK. THE ADMINISTRATOR SHALL DISPOSE
 OF  THE RENTS AND OTHER MONIES DEPOSITED WITH SUCH ADMINISTRATOR ACCORD-
 ING TO THE FOLLOWING ORDER OF PRIORITY:
   (I) PAYMENT IN FULL FOR ALL OF THE WORK  SPECIFIED  IN  THE  JUDGMENT;
 UNTIL  ALL  OF THE WORK SPECIFIED IN THE JUDGMENT HAS BEEN COMPLETED AND
 PAYMENT FOR SUCH WORK HAS BEEN MADE, NO  OTHER  DISBURSEMENTS  SHALL  BE
 PERMITTED,  EXCEPT  FOR  FUEL  BILLS,  FIRE AND LIABILITY INSURANCE, AND
 BILLS FOR ORDINARY REPAIRS AND MAINTENANCE.
   (II) PAYMENT OF A REASONABLE AMOUNT FOR THE SERVICES OF  THE  ADMINIS-
 TRATOR, INCLUDING REIMBURSEMENT OF ANY LEGAL FEES INCURRED BY THE ADMIN-
 ISTRATOR IN CONNECTION WITH MANAGEMENT OF THE BUILDING.
   (III)  PAYMENT  OF  OUTSTANDING REAL PROPERTY TAX LIENS CLAIMED BY ANY
 MUNICIPALITY IN WHICH THE DWELLING IS LOCATED.
   (IV) PAYMENT OF OUTSTANDING EMERGENCY REPAIR LIENS FILED AND  RECORDED
 BY  ANY  MUNICIPALITY  IN  WHICH THE DWELLING IS LOCATED AND OUTSTANDING
 LIENS FILED AND RECORDED BY SUCH MUNICIPALITY OR MUNICIPALITIES PURSUANT
 TO THIS SECTION.
   (V) PAYMENT TO THE OWNER OF THE  DWELLING  OF  ANY  SURPLUS  REMAINING
 AFTER  PAYMENTS OF SUBPARAGRAPHS (I), (II), (III) AND (IV) OF THIS PARA-
 GRAPH HAVE BEEN MADE.
   2. THE COURT MAY ALLOW FROM THE RENT MONEYS OR SECURITY ON  DEPOSIT  A
 REASONABLE AMOUNT FOR SERVICES OF SUCH ADMINISTRATOR.
   3.  THE  ADMINISTRATOR  SHALL  FURNISH  A BOND, THE AMOUNT AND FORM OF
 WHICH SHALL BE APPROVED BY THE COURT. IN ITS  DISCRETION  AND  FOR  GOOD
 CAUSE  SHOWN,  THE COURT MAY DISPENSE WITH THE NECESSITY FOR A BOND. THE
 COST OF A REQUIRED BOND SHALL BE PAID FROM THE MONEYS SO DEPOSITED.
   4. THE ADMINISTRATOR SHALL FILE A TRANSCRIPT OF THE JUDGMENT  APPOINT-
 ING  HIM  OR HER WITH THE CLERK OF THE COUNTY IN WHICH THE SUBJECT PREM-
 ISES IS LOCATED WITHIN FIFTEEN DAYS OF HIS OR HER APPOINTMENT.
   5. THE DUTIES OF THE  ADMINISTRATOR  SHALL  NOT  BE  AFFECTED  BY  THE
 APPOINTMENT  OF  A  RECEIVER IN AN ACTION TO FORECLOSE A MORTGAGE ON THE
 PREMISES, EXCEPT THAT THE RIGHTS OF THE OWNER, INCLUDING  THE  RIGHT  TO
 ANY  SURPLUS,  PURSUANT TO SUBPARAGRAPH (V) OF PARAGRAPH (D) OF SUBDIVI-
 SION ONE OF THIS SECTION, SHALL PASS TO THE RECEIVER. THE COURT IN WHICH
 THE ACTION TO FORECLOSE A  MORTGAGE  ON  THE  PREMISES  IS  PENDING  MAY
 APPOINT  SUCH ADMINISTRATOR TO SERVE AS RECEIVER IN THAT ACTION IN ADDI-
 TION TO HIS OR HER DUTIES AS ADMINISTRATOR PURSUANT TO THIS ARTICLE.
   6.(A) SUCH ADMINISTRATOR SHALL BE LIABLE ONLY IN HIS OR  HER  OFFICIAL
 CAPACITY  FOR  INJURY TO PERSONS AND PROPERTY BY REASON OF CONDITIONS OF

 S. 6721                             8
 
 THE PREMISES IN A CASE WHERE AN OWNER WOULD HAVE BEEN LIABLE; HE OR  SHE
 SHALL NOT HAVE ANY LIABILITY IN HIS OR HER PERSONAL CAPACITY.
   (B)  APPOINTMENT  OF  AN  ADMINISTRATOR PURSUANT TO SUBDIVISION ONE OF
 THIS SECTION SHALL NOT RELIEVE AN  OWNER  OF  LIABILITY  FOR  INJURY  TO
 PERSONS AND PROPERTY IN SUCH CASE.
   7.  NO MUNICIPALITY SHALL BE LIABLE TO ANY PARTY, INCLUDING THE ADMIN-
 ISTRATOR OR THE OWNER OF THE DWELLING, FOR INJURY TO PERSONS OR PROPERTY
 BY REASON OF CONDITIONS OF THE PREMISES OR THE ACTS OR OMISSIONS OF  THE
 ADMINISTRATOR.
   8.  THE COMMISSIONER OF THE DEPARTMENT CHARGED WITH ENFORCEMENT OF THE
 HOUSING MAINTENANCE CODE IN  THE  MUNICIPALITY  WHERE  THE  DWELLING  IS
 LOCATED  SHALL  PROMULGATE  RULES AND REGULATIONS REGARDING CRITERIA FOR
 THE SELECTION OF ADMINISTRATORS TO BE APPOINTED PURSUANT TO THIS SECTION
 AND SHALL ESTABLISH AND MAINTAIN A LIST  OF  PERSONS  APPROVED  BY  SUCH
 DEPARTMENT. ANY PERSON APPOINTED AS AN ADMINISTRATOR WITHIN SUCH MUNICI-
 PALITY  SHALL BE SELECTED FROM AMONG THE PERSONS APPROVED AS ADMINISTRA-
 TORS PURSUANT TO SUCH LIST. A CITY, TOWN OR VILLAGE  MAY  ESTABLISH  AND
 MAINTAIN  SUCH  LIST  ITSELF  OR ELECT TO HAVE SUCH LIST ESTABLISHED AND
 MAINTAINED BY THE COMMISSIONER OF THE DEPARTMENT CHARGED  WITH  ENFORCE-
 MENT  OF  THE HOUSING MAINTENANCE CODE IN THE COUNTY IN WHICH A DWELLING
 IS LOCATED.
   9. THE ADMINISTRATOR SHALL, WITHIN THIRTY DAYS  OF  APPOINTMENT,  FILE
 WITH  THE  COURT  A PLAN FOR THE PROVISION OF ESSENTIAL SERVICES AND FOR
 THE CORRECTION OF SUCH OTHER HAZARDOUS CONDITIONS AS MAY  EXIST  AT  THE
 PREMISES,  SPECIFYING DATES BY WHICH SUCH SERVICES SHALL BE PROVIDED AND
 SUCH CONDITIONS CORRECTED. IF SUCH  ADMINISTRATOR  CANNOT  PROVIDE  SUCH
 SERVICES AND CORRECT SUCH CONDITIONS BY THE DATES SPECIFIED IN THE PLAN,
 HE  OR  SHE SHALL BE REQUIRED TO FILE WITH THE COURT AN AMENDMENT TO THE
 PLAN SETTING FORTH THE REASONS WHY SUCH SERVICES AND  CORRECTIONS  COULD
 NOT  BE PROVIDED BY SUCH DATE AND SPECIFYING NEW DATES FOR SUCH SERVICES
 AND CORRECTIONS. SUCH PLAN AND ANY AMENDMENTS  TO  SUCH  PLAN  SHALL  BE
 PROVIDED  TO  THE  TENANTS BY MAIL OR BY POSTING IN A COMMON AREA OF THE
 BUILDING AND TO THE OWNER OF RECORD BY MAIL.
   10. THE COURT MAY ONLY DISCHARGE AN ADMINISTRATOR  IF  THE  OWNER  HAS
 PAID  IN  FULL  OR  ENTERED  INTO A PAYMENT AGREEMENT TO PAY IN FULL ALL
 OUTSTANDING REAL PROPERTY TAX LIENS CLAIMED BY ANY MUNICIPALITY IN WHICH
 THE DWELLING IS LOCATED, ALL OUTSTANDING EMERGENCY  REPAIR  LIENS  FILED
 AND  RECORDED  BY  ANY MUNICIPALITY IN WHICH THE DWELLING IS LOCATED AND
 ALL OUTSTANDING LIENS FILED AND RECORDED BY SUCH MUNICIPALITY OR MUNICI-
 PALITIES PURSUANT TO THIS SECTION.
   § 796-K. PRESENTATION OR  SETTLEMENT  OF  ACCOUNTS.  THE  COURT  SHALL
 REQUIRE  THE  KEEPING  OF  WRITTEN  ACCOUNTS  ITEMIZING THE RECEIPTS AND
 EXPENDITURES FOR WORK  PERFORMED  UNDER  AN  ORDER  ISSUED  PURSUANT  TO
 SECTION SEVEN HUNDRED NINETY-SIX-H OR SEVEN HUNDRED NINETY-SIX-I OF THIS
 ARTICLE, WHICH SHALL BE OPEN TO INSPECTION BY THE OWNER OF THE DWELLING,
 OR  ANY  MORTGAGEE  OR  LIENOR OR ANY OTHER PERSON HAVING AN INTEREST IN
 SUCH RECEIPTS OR EXPENDITURES PROVIDED,  HOWEVER,  THAT  NOTWITHSTANDING
 ANY  OTHER  PROVISION OF LAW TO THE CONTRARY, SUCH INFORMATION AS MAY BE
 IN THE POSSESSION OF THE DEPARTMENT CHARGED WITH THE ENFORCEMENT OF  THE
 HOUSING  MAINTENANCE  CODE OF THE COUNTY OR CITY SHALL BE AVAILABLE FROM
 SUCH DEPARTMENT FOR INSPECTION ONLY BY THE OWNER OF  THE  DWELLING,  THE
 TENANT  OF  THE  DWELLING, OR A PERSON HAVING A RECORDED INTEREST IN THE
 PROPERTY. UPON MOTION OF THE COURT OR THE ADMINISTRATOR OR OF THE OWNER,
 ANY MORTGAGEE OR LIENOR OF RECORD OR OF ANY PERSON HAVING  AN  INTEREST,
 THE  COURT MAY REQUIRE A PRESENTATION OR SETTLEMENT OF THE ACCOUNTS WITH
 RESPECT THERETO. NOTICE OF A MOTION FOR PRESENTATION  OR  SETTLEMENT  OF

 S. 6721                             9
 
 SUCH  ACCOUNTS  SHALL  BE  SERVED  ON  THE OWNER, ANY MORTGAGEE OR OTHER
 LIENOR OF RECORD WHO APPEARED IN THE PROCEEDING AND ANY PERSON HAVING AN
 INTEREST IN SUCH RECEIPTS OR EXPENDITURES.
   §  796-L.  WAIVER  VOID.  ANY  PROVISION OF A LEASE OR OTHER AGREEMENT
 WHEREBY ANY PROVISION OF THIS ARTICLE FOR THE BENEFIT OF A TENANT, RESI-
 DENT OR OCCUPANT OF A DWELLING IS WAIVED, SHALL BE DEEMED AGAINST PUBLIC
 POLICY AND SHALL BE VOID.
   § 796-M. DEFENSE OF WARRANTY OF HABITABILITY INAPPLICABLE.    NOTWITH-
 STANDING  ANY  OTHER PROVISION OF LAW, IN ANY PROCEEDING FOR THE PAYMENT
 OF RENT COMMENCED BY AN ADMINISTRATOR APPOINTED PURSUANT TO  THIS  ARTI-
 CLE,  THE  PROVISIONS  OF  SECTION TWO HUNDRED THIRTY-FIVE-B OF THE REAL
 PROPERTY LAW PERTAINING TO THE WARRANTY OF HABITABILITY SHALL NOT  BE  A
 DEFENSE TO SUCH A PROCEEDING FOR RENT WHICH ACCRUES DURING THE PERIOD OF
 TIME  THAT A JUDGMENT OR AN ORDER PURSUANT TO THIS ARTICLE IS IN EFFECT,
 UNLESS THE COURT DETERMINES THAT THE CONDITIONS UPON WHICH SUCH  DEFENSE
 IS BASED WERE CAUSED BY THE FAILURE OF SUCH ADMINISTRATOR TO PERFORM HIS
 OR HER DUTIES IN A REASONABLE MANNER.
   § 2. This act shall take effect immediately.