Senate Bill S8117

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8117
 
                             I N  S E N A T E
 
                              January 8, 2024
                                ___________
 
 Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
   when printed to be committed to the Committee on Housing, Construction
   and Community Development
 
 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:

   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 CONDITIONS DANGEROUS TO HEALTH, LIFE, AND SAFETY
 IN THE MUNICIPALITY OR COUNTY WHERE THE DWELLING IS LOCATED (HEREINAFTER
 IN THIS ARTICLE REFERRED TO AS "THE HOUSING STANDARDS DEPARTMENT") for a
 judgment 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04673-01-3
 S. 8117                             2
 
 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.
   §  2. Section 770 of the real property actions and proceedings law, as
 amended by chapter 655 of the laws of 1978, subdivision 1 as amended  by
 chapter 455 of the laws of 2013, is amended to read as follows:
   § 770. Grounds for the proceeding. 1. One-third or more of the tenants
 occupying a dwelling [located in the city of New York or the commission-
 er of the department of the city of New York charged with enforcement of
 the housing maintenance code of such city, or in the counties of Nassau,
 Suffolk,  Rockland and Westchester] AND/OR THE HOUSING STANDARDS DEPART-
 MENT may [maintain] COMMENCE a special proceeding as  provided  in  this
 article,  upon  the ground that there exists in such dwellings or in any
 part thereof a lack of heat or of running water or of light or of  elec-
 tricity  or  of adequate sewage disposal facilities, or any other condi-
 tion dangerous to life, health or safety, which  has  existed  for  five
 days,  or  an  infestation by rodents, or any combination of such condi-
 tions; or course of conduct by  the  owner  or  the  owner's  agents  of
 harassment,  illegal  eviction,  RETALIATION  AS  DEFINED BY SECTION TWO
 HUNDRED TWENTY-THREE-B OF THE REAL PROPERTY LAW, INTERFERENCE  WITH  THE
 RIGHT  OF TENANTS TO FORM, JOIN OR PARTICIPATE IN TENANTS' GROUPS PURSU-
 ANT TO SECTION TWO HUNDRED THIRTY OF THE REAL  PROPERTY  LAW,  continued
 deprivation of services or other acts dangerous to life, health or safe-
 ty, OR A BUSINESS PRACTICE OF NEGLECT AS DEFINED IN SUBDIVISION THREE OF
 THIS  SECTION, or the issuance of an order to the owner of such dwelling
 by the commissioner of such department of the city of New York  pursuant
 to  the  alternative  enforcement  program  under section 27-2153 of the
 administrative code of the city of New York, provided that such dwelling
 has not been discharged from the program pursuant to  such  section  and
 there  has  not  been  a  determination that the owner has substantially
 complied with such order.
   2. If the proceeding is instituted by the [commissioner of the depart-
 ment of the city of New York charged with  enforcement  of  the  housing
 maintenance  code  of such city] HOUSING STANDARDS DEPARTMENT, one-third
 or more of the tenants may, at any time thereafter during  the  pendency
 of  the  proceeding  or  after  final judgment pursuant to section seven
 hundred seventy-six [or seven hundred seventy-seven]  of  this  article,
 petition  for substitution of themselves in place and [stead] INSTEAD of
 such [commissioner of such] HOUSING STANDARDS  department,  OR,  IN  THE
 ALTERNATIVE,  MOVE TO BE JOINED AS A PARTY. Such substitution OR JOINDER
 shall be ordered by the court unless good reason to the  contrary  shall
 be shown.
   3.  FOR  THE  PURPOSES 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
 S. 8117                             3
 
   (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
 OF 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.
   § 3. Section 771 of the real property actions and proceedings law,  as
 amended  by  chapter  877  of  the  laws  of 1982, is amended to read as
 follows:
   § 771. 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 petition
 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  the  rents due on the date of entry of such judgment from the
 petitioning tenants and the rents due on the dates of  service  of  such
 judgment  on  all other tenants occupying such dwelling, from such other
 tenants, shall be deposited with the administrator appointed pursuant to
 section seven hundred seventy-eight of this article, and  any  rents  to
 become  due  in  the  future  from  such  petitioners and from all other
 tenants occupying such dwelling shall be deposited with such administra-
 tor as they fall due; and that  such  deposited  rents  shall  be  used,
 subject  to the court's direction, to the extent necessary to remedy the
 condition or conditions alleged in the petition.
   3. The notice of petition and petition shall be served:
   A. upon the owner of such dwelling last registered with the department
 of housing preservation and development of such city pursuant to article
 [forty-one of chapter twenty-six] TWO OF SUBCHAPTER FOUR OF CHAPTER  TWO
 OF TITLE TWENTY-SEVEN of the administrative code of the city of New York
 [and  in  Nassau,  Suffolk,  Rockland  and Westchester counties upon the
 person set forth as the owner on the last recorded deed  to  the  rented
 property and];
   B.  upon  every  mortgagee and lienor of record[, and upon the city of
 New York, at least five days before the time at which  the  petition  is
 noticed to be heard];
   C. UPON THE MUNICIPALITY WHERE THE DWELLING IS LOCATED; AND
   D. UPON ANY NON-PETITIONING TENANTS.
   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.  Manner of service OF THE NOTICE OF PETITION AND PETITION.  a. UPON
 THE OWNER. (1) Service [of the notice of petition and petition] shall be
 made UPON THE OWNER AT LEAST FIVE DAYS BEFORE  THE  TIME  AT  WHICH  THE
 PETITION  IS  NOTICED  TO  BE  HEARD by personally delivering [them] THE
 NOTICE OF PETITION AND PETITION to the person or persons required to  be
 served  pursuant  to  PARAGRAPHS  A  AND  B OF subdivision three of this
 S. 8117                             4

 section. [Service upon the city of New York shall be  made  by  personal
 delivery  to  the  commissioner  of  the  city  department  charged with
 enforcement of the housing maintenance code of such city, or to an agent
 duly  authorized to accept such service on his behalf. If service cannot
 with due diligence be made within the city upon an owner,  mortgagee  or
 lienor of record in such manner, it shall be made:
   (1)  upon  the  owner  last  registered with the department of housing
 preservation and development pursuant to article  forty-one  of  chapter
 twenty-six  of  the  administrative  code of the city of New York and in
 Nassau, Suffolk, Rockland and Westchester counties upon the  person  set
 forth  as  the owner on the last recorded deed to the rented property by
 delivering to and leaving personally with the person designated pursuant
 to article forty-one of chapter twenty-six  of  such  code  as  managing
 agent  of  the  subject  dwelling,  and in Nassau, Suffolk, Rockland and
 Westchester counties upon the person designated as the managing agent of
 the rented property if one shall have been designated,  a  copy  of  the
 notice of petition and petition;
   (2)  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  designated  pursuant  to
 article  forty-one  of  chapter twenty-six of the administrative code of
 the city of New York as managing agent of the subject  dwelling  and  in
 Nassau,  Suffolk,  Rockland and Westchester counties 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  affixing,  by sending a copy thereof by registered or
 certified mail, return receipt requested,  to  the  owner  at  the  last
 address  registered  by  him with the department of housing preservation
 and development or, in the absence of such registration, to the  address
 set forth in the last recorded deed with respect to such premises.]
   (2)  IF SUCH SERVICE CANNOT BE MADE WITH DUE DILIGENCE WITHIN THE CITY
 OF NEW YORK IF THE DWELLING IS LOCATED THEREIN OR OTHERWISE  WITHIN  THE
 COUNTY  WHERE  THE  DWELLING  IS LOCATED, IT 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 AFFIXING, BY SEND-
 ING  TO THE OWNER A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL, RETURN
 RECEIPT REQUESTED, AND A COPY THEREOF  BY  REGISTERED  OR  CERTIFIED  OR
 REGULAR  FIRST-CLASS  MAIL,  NO RETURN RECEIPT REQUESTED. IF THE SUBJECT
 DWELLING IS LOCATED IN THE CITY OF NEW YORK, SUCH MAILING SHALL BE  SENT
 TO  THE ADDRESS LAST REGISTERED WITH THE DEPARTMENT OF HOUSING PRESERVA-
 TION AND DEVELOPMENT PURSUANT TO ARTICLE TWO OF SUBCHAPTER FOUR OF CHAP-
 TER TWO OF TITLE TWENTY-SEVEN OF THE ADMINISTRATIVE CODE OF THE CITY  OF
 NEW  YORK,  OR  IN  THE ABSENCE OF SUCH REGISTRATION, TO THE ADDRESS SET
 FORTH IN THE LAST RECORDED DEED FOR THE SUBJECT DWELLING. IF THE SUBJECT
 DWELLING IS LOCATED OUTSIDE THE CITY OF NEW YORK, SUCH MAILING SHALL  BE
 SENT  TO  THE  ADDRESS  WHERE  LOCAL  PROPERTY TAX BILLS FOR THE SUBJECT
 DWELLING ARE SENT OR, IN THE ALTERNATIVE IF THE  JURISDICTION  IN  WHICH
 THE  COURT  SITS  HAS  A  RENTAL REGISTRY REQUIREMENT, AT THE REGISTERED
 ADDRESS FOR THE SUBJECT DWELLING.
   (3) UPON RECEIPT OF SERVICE OF THE PETITION, THE OWNER  SHALL  PROVIDE
 TO  THE PETITIONERS, WITHIN THREE DAYS, A WRITTEN LIST OF ALL MORTGAGEES
 AND LIENORS OF WHICH THE OWNER IS AWARE AND ADDRESSES FOR EACH.
 S. 8117                             5
 
   B. UPON MORTGAGEES AND LIENORS. (1) SERVICE SHALL BE  MADE  UPON  EACH
 MORTGAGEE  AND  LIENOR  OF  RECORD AT LEAST FIVE DAYS BEFORE THE TIME AT
 WHICH THE PETITION IS NOTICED TO BE HEARD BY EITHER PERSONALLY  DELIVER-
 ING  THE NOTICE OF PETITION AND PETITION OR, IN THE ALTERNATIVE, SENDING
 A COPY THEREOF TO EACH MORTGAGEE AND LIENOR OF RECORD AT THE ADDRESS SET
 FORTH  IN THE RECORDED MORTGAGE OR LIEN BY CERTIFIED OR REGISTERED MAIL,
 RETURN RECEIPT REQUESTED, AND A SECOND  COPY  THEREOF  BY  CERTIFIED  OR
 REGISTERED OR REGULAR FIRST-CLASS MAIL, NO RETURN RECEIPT REQUESTED.
   (2)  FOR  THE  PURPOSES  OF  THIS  ARTICLE,  A "MORTGAGEE OR LIENOR OF
 RECORD" SHALL INCLUDE ONLY THOSE MORTGAGEES OR LIENHOLDERS WHOSE  INTER-
 EST  IS RECORDED IN A PUBLICLY ACCESSIBLE DATABASE OR CAN BE PROVIDED ON
 REQUEST BY THE MUNICIPAL OR COUNTY REGISTRAR, AS  LONG  AS  THE  REQUEST
 INCLUDES,  AT MINIMUM, THE ADDRESS AND BOROUGH, BLOCK, AND LOT NUMBER OF
 THE SUBJECT DWELLING, AND FOLLOWS THE APPLICABLE RULES  AND  REGULATIONS
 OF  THE REGISTRAR OF THE COUNTY OR MUNICIPALITY IN WHICH THE PROPERTY IS
 LOCATED FOR REQUESTING SUCH INFORMATION.
   C. UPON THE MUNICIPALITY. SERVICE SHALL BE MADE  AT  LEAST  FIVE  DAYS
 BEFORE  THE  TIME  AT WHICH THE PETITION IS NOTICED TO BE HEARD UPON THE
 MUNICIPALITY AS REQUIRED BY PARAGRAPH C OF  SUBDIVISION  THREE  OF  THIS
 SECTION TO THE OFFICIAL CHARGED WITH MANAGEMENT OF THE HOUSING STANDARDS
 DEPARTMENT  OF  SUCH  MUNICIPALITY,  OR  TO  AN AGENT DULY AUTHORIZED TO
 ACCEPT SERVICE ON THEIR BEHALF,  EITHER  BY  PERSONALLY  DELIVERING  THE
 NOTICE  OF  PETITION AND PETITION OR, IN THE ALTERNATIVE, SENDING A COPY
 THEREOF TO THE ADDRESS DESIGNATED BY THE OFFICIAL FOR RECEIPT OF SERVICE
 OR, IF NO SUCH ADDRESS IS DESIGNATED, TO THE HEADQUARTERS OF THE DEPART-
 MENT, BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED,  AND  A
 SECOND  COPY  BY REGISTERED OR CERTIFIED OR REGULAR FIRST-CLASS MAIL, NO
 RETURN RECEIPT REQUESTED.
   D. UPON NON-PETITIONING TENANTS. SERVICE SHALL BE MADE AT  LEAST  FIVE
 DAYS  BEFORE  THE TIME AT WHICH THE PETITION IS NOTICED TO BE HEARD UPON
 NON-PETITIONING TENANTS OCCUPYING THE DWELLING BY AFFIXING A COPY OF THE
 NOTICE OF PETITION AND PETITION UPON A CONSPICUOUS PART OF  THE  SUBJECT
 DWELLING  OR,  IN  THE  ALTERNATIVE,  BY MAILING A COPY OF THE NOTICE OF
 PETITION AND PETITION TO EACH DWELLING UNIT NOT OCCUPIED BY A  PETITION-
 ING TENANT, ADDRESSED TO "CURRENT TENANT(S)", BY REGISTERED OR CERTIFIED
 MAIL,  AND  A  SECOND  COPY BY REGISTERED OR CERTIFIED OR REGULAR FIRST-
 CLASS MAIL, NO RETURN RECEIPT REQUESTED.
   6. [Notice to non-petitioning tenants.  Notice of the proceeding shall
 be given to the non-petitioning tenants occupying the dwelling by affix-
 ing a copy of the notice of petition and  petition  upon  a  conspicuous
 part  of the subject dwelling] CONTESTING SERVICE. DEFECTS IN SERVICE OF
 NOTICE TO NON-PARTIES ARE NOT JURISDICTIONAL. THE COURT UPON  MOTION  OR
 SUA  SPONTE  MAY ADJOURN THE PROCEEDING FOR FIVE DAYS, OR UP TO TEN DAYS
 IF REQUESTED BY PETITIONERS, WITHIN WHICH TIME  PETITIONERS  SHALL  CURE
 ANY DEFECTS IDENTIFIED BY THE COURT.
   §  4. Subdivisions 1 and 2 of section 772 of the real property actions
 and proceedings law, as amended by chapter 877 of the laws of 1982,  are
 amended to read as follows:
   1. Allege material facts showing that there exists in such dwelling or
 any  part  thereof  one  or more of the following:  a lack of heat or of
 running water or of light or electricity or of 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  course
 of  conduct  by the owner or his agents of harassment, illegal eviction,
 RETALIATION AS DEFINED BY SECTION TWO HUNDRED TWENTY-THREE-B OF THE REAL
 PROPERTY LAW, INTERFERENCE WITH THE RIGHT OF TENANTS TO  FORM,  JOIN  OR
 S. 8117                             6
 
 PARTICIPATE IN TENANTS' GROUPS PURSUANT TO SECTION TWO HUNDRED THIRTY OF
 THE  REAL  PROPERTY LAW, continued deprivation of services or other acts
 dangerous to life, health or safety; OR A BUSINESS PRACTICE  OF  NEGLECT
 AS DEFINED IN SUBDIVISION THREE OF SECTION SEVEN HUNDRED SEVENTY OF THIS
 ARTICLE;  OR  THE  ISSUANCE OF AN ORDER TO THE OWNER OF SUCH DWELLING BY
 THE COMMISSIONER OF SUCH HOUSING STANDARDS DEPARTMENT OF THE CITY OF NEW
 YORK PURSUANT TO  THE  ALTERNATIVE  ENFORCEMENT  PROGRAM  UNDER  SECTION
 27-2153  OF  THE  ADMINISTRATIVE  CODE OF THE CITY OF NEW YORK, PROVIDED
 THAT SUCH DWELLING HAS NOT BEEN DISCHARGED FROM THE PROGRAM PURSUANT  TO
 SUCH  SECTION  AND THERE HAS NOT BEEN A DETERMINATION THAT THE OWNER HAS
 SUBSTANTIALLY COMPLIED WITH SUCH ORDER.
   2. If the petitioners shall be tenants occupying  the  dwelling,  they
 shall allege the number of petitioners making the petition and that they
 constitute one-third or more of the tenants of said dwelling in occupan-
 cy  thereof,  OR,  IN THE CASE OF A SINGLE RESIDENCE DWELLING, THAT THEY
 ARE THE OCCUPANTS OF SUCH DWELLING.
   § 5. Section 774 of the real property actions and proceedings law,  as
 added by chapter 909 of the laws of 1965, is amended to read as follows:
   §  774.  Trial. 1. Where triable issues of fact are raised, they shall
 be tried by the court without a jury at the time when issue  is  joined.
 However,  the  court[,  in  its  discretion,]  may  grant  [an] A SINGLE
 adjournment of such trial [at] UPON request of [either]  ANY  party  WHO
 APPEARS,  if [it determines] THE REQUESTING PARTY SHOWS that an adjourn-
 ment 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.
   2. THE PROCEEDING SHALL NOT BE ADJOURNED MORE THAN ONCE AT THE REQUEST
 OF THE SAME PARTY EXCEPT BY CONSENT OF ALL THE PARTIES WHO  APPEAR,  AND
 SUCH ADJOURNMENTS SHALL NOT BE FOR MORE THAN FIVE DAYS EXCEPT BY CONSENT
 OF ALL THE PARTIES WHO APPEAR.
   3.  THE  TRIAL MUST TAKE PLACE EACH COURT DAY WHENEVER THE COURT IS IN
 SESSION UNTIL THE CONCLUSION OF THE  TRIAL,  AND  ACCORDINGLY  NO  OTHER
 CASES SHOULD BE SCHEDULED ON THE COURT'S CALENDAR FOR DATES PRIOR TO THE
 ANTICIPATED  CONCLUSION  OF  THE  TRIAL,  EXCEPT  BY  CONSENT OF ALL THE
 PARTIES WHO APPEAR OR DURING ADJOURNMENTS PURSUANT TO SUBDIVISION ONE OR
 TWO OF THIS SECTION.
   § 6. Subdivision c of section 775 of the  real  property  actions  and
 proceedings  law,  as  amended  by  chapter  877 of the laws of 1982, is
 amended and a new subdivision d is added to read as follows:
   c. Any tenant or resident of the dwelling has EXPRESSLY refused  entry
 to  the  owner or his agent WITH ACCESS to a portion of the premises for
 the purpose of correcting such condition or conditions  AFTER THE  OWNER
 OR  THEIR  AGENT  PROVIDED  THE TENANT OR RESIDENT WITH NO LESS THAN ONE
 WEEK WRITTEN NOTICE OF A DESIRE FOR ACCESS, EXCEPT WHERE SUCH  CONDITION
 REQUIRES  IMMEDIATE  ACCESS  IN  ORDER  TO  PREVENT INJURY TO PERSONS OR
 DAMAGE TO PROPERTY, IN WHICH CASE NOTICE SHALL BE PROVIDED BY TELEPHONE,
 EMAIL, OR BY KNOCKING ON THE TENANT OR OCCUPANT'S DOOR AT  A  REASONABLE
 TIME WHEN HE OR SHE WOULD BE EXPECTED TO BE PRESENT.
   D.  A TENANT'S REQUEST TO RESCHEDULE DATES OF ACCESS TO A TIME CONVEN-
 IENT FOR THE TENANT OR A HOUSEHOLD MEMBER SHALL NOT BE DEEMED AN EXPRESS
 REFUSAL FOR THE PURPOSES OF THIS SECTION.
   § 7. Section 776 of the real property actions and proceedings law,  as
 added  by  chapter  909 of the laws of 1965, subdivision b as amended by
 chapter 877 of the laws of 1982, is amended to read as follows:
   § 776. Judgment. The court shall render a final judgment either
 S. 8117                             7
 
   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 seventy-five of this article; or
   b.  Directing  that (1) 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 depos-
 ited with the administrator appointed by the court, pursuant to  section
 seven hundred seventy-eight of this article; (2) any rents to become due
 in the future from all tenants occupying such dwelling shall be deposit-
 ed  with  such  administrator as they fall due; (3) such deposited rents
 shall be used, subject to the court's direction, to the extent necessary
 to remedy the condition or conditions OR COURSE OF  CONDUCT  alleged  in
 the petition and (4) 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 granting such other and further relief as to the court may
 seem just and proper. A certified copy of such judgment shall be  served
 personally,  BY  THE  ADMINISTRATOR  APPOINTED  BY THE COURT PURSUANT TO
 SECTION SEVEN HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, upon each non-peti-
 tioning tenant occupying such dwelling and [upon the city of  New  York]
 THE  HOUSING  STANDARDS DEPARTMENT by service as provided in subdivision
 five of section seven hundred seventy-one of this article.  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, store
 or other unit and, in addition, within one day after such  affixing,  by
 sending a certified copy thereof by CERTIFIED OR registered mail, return
 receipt requested, to such tenant. Any right of the owner of such dwell-
 ing  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 accordance 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 proper-
 ty for the non-payment of rent or for use or occupation  to  prove  that
 the  rent  alleged  to be unpaid was deposited with the administrator in
 accordance with the terms of a judgment entered under this section.
   C. DIRECTING THE OWNER TO PROVIDE WRITTEN NOTICE TO THE COURT,  COURT-
 APPOINTED  ADMINISTRATOR,  HOUSING STANDARDS DEPARTMENT, AND PETITIONING
 TENANTS WITHIN TEN DAYS OF ENTERING INTO  A  CONTRACT  OF  SALE  WITH  A
 PROSPECTIVE PURCHASER OF THE PREMISES.
   D.  NEITHER THE OWNER NOR A COURT-APPOINTED ADMINISTRATOR SHALL, WITH-
 OUT GOOD CAUSE, SERVE A NOTICE TO QUIT UPON ANY TENANT OR  COMMENCE  ANY
 ACTION  TO  RECOVER  REAL  PROPERTY  OR  SUMMARY  PROCEEDING  TO RECOVER
 POSSESSION OF REAL PROPERTY, OR  SUBSTANTIALLY  ALTER  THE  TERMS  OF  A
 TENANT'S  LEASE,  INCLUDING,  BUT NOT LIMITED TO, REFUSING TO CONTINUE A
 TENANCY OF THE TENANT UPON EXPIRATION OF THE TENANT'S  LEASE,  TO  RENEW
 THE  LEASE  OR  OFFER  A  NEW LEASE, OR OFFERING A NEW LEASE WITH A RENT
 S. 8117                             8
 
 INCREASE EQUAL TO OR GREATER THAN FIVE PERCENT ABOVE THE CURRENT  LEASE,
 WITHIN ONE YEAR OF A JUDGMENT PURSUANT TO THIS SECTION; PROVIDED, HOWEV-
 ER,  THAT  AN  OWNER SHALL NOT BE REQUIRED UNDER THIS SECTION TO OFFER A
 NEW LEASE OR A LEASE RENEWAL FOR A TERM GREATER THAN ONE YEAR.
   §  8.  Section 777 of the real property actions and proceedings law is
 REPEALED.
   § 9. Section 778 of the real property actions and proceedings law,  as
 amended  by  chapter  963  of  the laws of 1974, subdivisions 1 and 6 as
 amended and subdivision 11 as added by chapter 455 of the laws of  2013,
 the  opening  paragraph of subdivision 1 as amended by chapter 48 of the
 laws of 2015, subdivision 3 as amended by chapter 305  of  the  laws  of
 1978,  subdivision 4 as added by chapter 521 of the laws of 1979, subdi-
 vision 5 as added by chapter 769 of the laws of 1981, subdivision  7  as
 added  by chapter 737 of the laws of 1985, subdivisions 8 and 9 as added
 by chapter 95 of the laws of 1989, subdivision 10 as amended by  chapter
 40  of  the  laws of 2001, paragraph (a) of subdivision 10 as amended by
 chapter 387 of the laws of 2003 and paragraph (b) of subdivision  10  as
 amended  by  chapter  265  of  the  laws  of 2009, is amended to read as
 follows:
   § 778. Appointment of administrator. 1. The court  is  authorized  and
 empowered,  in implementation of a judgment rendered pursuant to section
 seven hundred seventy-six [or seven hundred seventy-seven] of this arti-
 cle, to appoint a person other than the owner, a mortgagee or lienor, to
 receive and administer the rent moneys or security deposited  with  such
 owner, mortgagee or lienor, subject to the court's direction.  The court
 may  appoint the [commissioner of the department of the city of New York
 charged with enforcement of the housing maintenance code of  such  city]
 OFFICIAL  CHARGED  WITH MANAGING THE HOUSING STANDARDS DEPARTMENT or the
 commissioner's designee as such administrator, provided that the commis-
 sioner or the commissioner's designee shall consent, in writing, to such
 appointment. Any administrator is authorized and empowered in accordance
 with the direction of the court, to order the necessary materials, labor
 and services to remove or remedy the conditions specified in  the  judg-
 ment,  and  to  make  disbursements  in  payment thereof; and to demand,
 collect and receive the rents from the tenants;  and  to  institute  all
 necessary  legal  proceedings  including,  but  not  limited to, summary
 proceedings for the removal of any tenant or tenants;  and  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 commer-
 cial parts of said premises for terms that the  court  may  approve.  In
 addition,  such  administrator is authorized and empowered in accordance
 with the direction of the court to accept and repay such moneys  as  may
 be received from the HOUSING STANDARDS department [charged with enforce-
 ment  of  the  housing maintenance code of the city of New York] for the
 purpose of managing the premises, replacing or  substantially  rehabili-
 tating  systems  or making other repairs or capital improvements author-
 ized by the court. All moneys expended by the department pursuant 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.
 Such lien shall be enforced in accordance with the provisions of article
 eight of subchapter five of the housing maintenance code of the city  of
 New  York, OR IN ACCORDANCE WITH ANY APPLICABLE PROVISIONS FOR ALL OTHER
 COUNTIES.   Such administrator,  shall,  upon  completion  of  the  work
 prescribed  in  such  judgment, file with the court a full accounting of
 all receipts and expenditures for such work.  Such  administrator  shall
 S. 8117                             9
 
 dispose  of the rents and other monies deposited with such administrator
 according to the following order of priority:
   (a)  Payment  in  full  for all of the work specified in the judgment,
 FUEL BILLS, FIRE AND LIABILITY INSURANCE, AND BILLS FOR ORDINARY REPAIRS
 AND MAINTENANCE, INCLUDING CORRECTING CONDITIONS  IN  VIOLATION  OF  THE
 LAW.  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].
   (b)  Payment  of a reasonable amount for the services of such adminis-
 trator, including reimbursement of  any  legal  fees  incurred  by  such
 administrator in connection with management of the building.
   (c)  Payment  of  outstanding  real property tax liens claimed by [the
 city of New York] ANY MUNICIPALITY OR COUNTY IN WHICH  THE  DWELLING  IS
 LOCATED.
   (d)  Payment  of outstanding emergency repair liens filed and recorded
 by [the city of New York] ANY MUNICIPALITY OR COUNTY IN WHICH THE DWELL-
 ING IS LOCATED and outstanding liens filed and recorded  by  [the  city]
 SUCH MUNICIPALITY OR COUNTY pursuant to this section.
   (e)  ABATEMENTS  FOR  ALL TENANTS OF UP TO TWENTY-FIVE PERCENT OF RENT
 FOR THE PERIOD DURING WHICH THE ADMINISTRATOR IS APPOINTED.  NOTHING  IN
 THIS  PARAGRAPH  SHALL  PREVENT ANY TENANT FROM PROSECUTING A CLAIM IN A
 COURT OF COMPETENT JURISDICTION FOR BREACH OF WARRANTY OF  HABITABILITY;
 HOWEVER,  ANY  RESULTING  RELIEF  FROM SUCH CLAIM WILL BE REDUCED BY THE
 AMOUNT OF THE ABATEMENT AWARDED HEREIN.
   (F) Payment to the owner of any surplus remaining  after  payments  of
 paragraphs (a) through [(d)] (E) of this subdivision have been made.
   2.  Unless the administrator is the [city of New York] MUNICIPALITY OR
 COUNTY, the court may allow from the rent moneys or security on  deposit
 a reasonable amount for services of such administrator.
   3. Unless such administrator is the [city of New York] MUNICIPALITY OR
 COUNTY,  the administrator so appointed 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. Such administrator shall file a transcript of the judgment appoint-
 ing  [him] THEM with the county clerk within fifteen days of [his] THEIR
 appointment.
   5. The duties of such 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 paragraph [(e)] (F) of subdivision 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 admin-
 istrator to serve as receiver in that action in addition to [his]  THEIR
 duties as administrator pursuant to this article.
   6.  Such  administrator  shall  be  liable only in his or her official
 capacity for injury to persons and property by reason of  conditions  of
 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.   Appoint-
 ment  of  an  administrator  pursuant to subdivision one of this section
 shall not relieve an owner of liability for injury to persons and  prop-
 erty in such case.
   7. No [city] MUNICIPALITY or county specified in section seven hundred
 sixty-nine  of this article shall be liable to any party, including such
 S. 8117                            10
 
 administrator or the owner, for injury to persons or property by  reason
 of  conditions of the premises or the acts or omissions of such adminis-
 trator, except that when the [city of New York] MUNICIPALITY  OR  COUNTY
 is  appointed administrator, liability shall be determined in accordance
 with subdivision six of this section.
   8. The commissioner of the department of the city of New York  charged
 with  the enforcement of the housing maintenance code of such city shall
 promulgate rules and regulations regarding criteria for the selection of
 administrators to be appointed pursuant to this section and shall estab-
 lish and maintain a list of ORGANIZATIONS AND persons approved  by  such
 department.    IF  THE DWELLING IS LOCATED OUTSIDE THE CITY OF NEW YORK,
 THE OFFICIAL CHARGED WITH MANAGEMENT OF THE HOUSING STANDARDS DEPARTMENT
 SHALL PROMULGATE  RULES  AND  REGULATIONS  REGARDING  CRITERIA  FOR  THE
 SELECTION OF ADMINISTRATORS TO BE APPOINTED PURSUANT TO THIS SECTION AND
 MAY  ESTABLISH AND MAINTAIN A LIST OF ORGANIZATIONS AND PERSONS APPROVED
 BY SUCH DEPARTMENT. Unless the administrator is the [city of  New  York]
 MUNICIPALITY  OR COUNTY, any person appointed as an administrator within
 such city shall be selected from among  the  ORGANIZATIONS  AND  persons
 approved  as  administrators pursuant to such list, ANY ORGANIZATIONS OR
 INDIVIDUALS SUBMITTED TO THE COURT FOR CONSIDERATION BY THE  PETITIONING
 TENANTS PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, AND THE PETITION-
 ING  TENANTS  DEEMED TO HAVE SUFFICIENT KNOWLEDGE AND EXPERTISE TO SERVE
 AS THE ADMINISTRATOR.
   (A) WHERE AN ARTICLE SEVEN-A PROCEEDING IS INITIATED BY  TENANTS,  THE
 PETITIONING  TENANTS  SHALL HAVE THE RIGHT TO SUBMIT TO THE COURT A LIST
 OF THREE PREFERRED ORGANIZATIONS AND/OR INDIVIDUALS  SELECTED  FROM  THE
 APPROVED  LIST  OF  ADMINISTRATORS PROVIDED THAT, IF THE TENANTS FIND NO
 ORGANIZATION OR INDIVIDUAL ON THE LIST TO BE SUITABLE, THE  TENANTS  MAY
 NOMINATE  ORGANIZATIONS  OR  INDIVIDUALS  OUTSIDE OF THE LIST, INCLUDING
 FROM AMONG THE PETITIONING TENANTS, ALONG WITH A SUMMARY OF  EACH  NOMI-
 NEE'S EXPERIENCE AND CREDENTIALS, FOR CONSIDERATION BY THE COURT.
   (B)  WHERE  PETITIONING TENANTS HAVE SUBMITTED PREFERRED ORGANIZATIONS
 AND/OR INDIVIDUALS SELECTED FROM THE APPROVED  LIST  OF  ADMINISTRATORS,
 THE  COURT  MUST  APPOINT  AN  ADMINISTRATOR  FROM AMONG THE PETITIONING
 TENANTS' PREFERRED APPROVED ADMINISTRATORS  ABSENT  GOOD  CAUSE  TO  THE
 CONTRARY.
   (C)  WHERE  PETITIONING TENANTS HAVE NOT SUBMITTED PREFERRED ORGANIZA-
 TIONS OR INDIVIDUALS OR WHERE THE COURT DECLINES TO APPOINT AN  ADMINIS-
 TRATOR  FROM  AMONG THE PETITIONING TENANTS' PREFERRED ADMINISTRATORS OR
 NOMINEES, PRIORITY OF  APPOINTMENT  SHALL  BE  GIVEN  TO  NOT-FOR-PROFIT
 CORPORATIONS FORMED FOR THE PURPOSE OF PRESERVING OR DEVELOPING AFFORDA-
 BLE  HOUSING  WHENEVER  THERE  IS NO ELIGIBLE FOR-PROFIT ORGANIZATION OR
 INDIVIDUAL THAT IS CLEARLY MORE COMPETENT.
   9. (A) Such 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] THEY 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 FIRST-CLASS OR REGISTERED OR  CERTIFIED  mail
 [or]  AND by CONSPICUOUSLY posting in a common area of the building, and
 to the owner of record by FIRST-CLASS OR REGISTERED OR CERTIFIED mail.
 S. 8117                            11
 
   (B) WHERE AN ORGANIZATION HAS BEEN  APPOINTED  AS  THE  ADMINISTRATOR,
 SUCH  ADMINISTRATOR  SHALL  PROMPTLY  DELEGATE THE RESPONSIBILITIES TO A
 SINGLE INDIVIDUAL AND INFORM THE COURT OF SUCH DESIGNATION WITHIN THIRTY
 DAYS.  SUCH PERSON SHALL REMAIN ACCOUNTABLE TO THE COURT AS THE ADMINIS-
 TRATOR'S REPRESENTATIVE UNTIL THE ADMINISTRATOR'S DISCHARGE.
   10. (a) Where a building for which an administrator has been appointed
 pursuant  to  this  section  is  transferred  to a new owner at any time
 following the appointment of such administrator,  whether  or  not  such
 building  remains  subject  to such administrator, the HOUSING STANDARDS
 department [charged with enforcement of the housing maintenance code  of
 the  city  of  New York] may enter into a regulatory agreement with such
 new owner. Such regulatory agreement may impose such  terms  and  condi-
 tions  upon the operation and repair of such building as such department
 may determine.  Notwithstanding any general, special or local law to the
 contrary, such regulatory agreement may provide that, upon  transfer  of
 such  building  to  the  new owner, any outstanding liens filed with and
 recorded by the city pursuant to this section  or  pursuant  to  section
 three  hundred  nine  of  the multiple dwelling law shall immediately be
 reduced to zero, provided that such regulatory agreement shall  require,
 in  consideration for such reduction to zero, the provision of adequate,
 safe and sanitary housing accommodations for persons of low income for a
 period of not less  than  [thirty]  NINETY-NINE  years.  Any  regulatory
 agreement  pursuant to this subdivision shall include a certification by
 the new owner of the real property that  (i)  the  prior  owner  has  no
 direct  or  indirect  interest in such real property, and (ii) the prior
 owner has no direct or indirect interest in such new owner.
   (b) On or about June thirtieth, two thousand [nine] TWENTY-TWO and for
 every three years thereafter for as long as the program continues to  be
 in  effect,  the  [city] MUNICIPALITY OR COUNTY shall submit a report to
 the governor, the temporary president of the senate, the speaker of  the
 assembly,  the  minority leader of the senate and the minority leader of
 the assembly. Each report following the initial  report  shall  describe
 the program activities carried out during the three prior calendar years
 pursuant to this subdivision.
   11.  (A)  The  court  may only discharge an administrator if the owner
 MAKES A PRIMA FACIE SHOWING THAT THE CONDITIONS AND  COURSE  OF  CONDUCT
 WHICH REQUIRED THE APPOINTMENT OF THE ARTICLE SEVEN-A ADMINISTRATOR HAVE
 BEEN  CURED  AND  THAT  THE  OWNER HAS A DETAILED PLAN FOR THE CONTINUED
 MAINTENANCE AND OPERATION OF THE DWELLING, THE OWNER has paid in full or
 entered into a payment agreement to pay in  full  all  outstanding  real
 property tax liens claimed by [the city of New York] ANY MUNICIPALITY OR
 COUNTY  IN  WHICH  THE  DWELLING  IS  LOCATED, all outstanding emergency
 repair liens filed and recorded by [the city of New  York]  ANY  MUNICI-
 PALITY  OR  COUNTY  IN  WHICH  THE  DWELLING IS LOCATED, all outstanding
 charges and liens assessed in connection to the alternative  enforcement
 program  authorized by section 27-2153 of the administrative code of the
 city of New York, and outstanding liens filed and recorded by [the city]
 SUCH MUNICIPALITY OR COUNTY pursuant to this section. The provisions  of
 this  subdivision  shall  not apply to buildings transferred pursuant to
 subdivision ten of this section.
   (B) A DETAILED PLAN FOR THE CONTINUED MAINTENANCE OF THE OPERATIONS OF
 THE DWELLING SHALL INCLUDE SUFFICIENT SUBMISSIONS FOR THE COURT TO EVAL-
 UATE THE OWNER'S WILLINGNESS AND  ABILITY  TO  MAKE  REPAIRS,  INCLUDING
 SPECIFYING THE REPAIRS THEY WILL UNDERTAKE, AN ESTIMATED BUDGET, A TIME-
 TABLE  FOR  DOING SO, IDENTIFYING THE SOURCE OF FUNDS FOR THOSE EXPENDI-
 TURES, AND BALANCE SHEETS OR INCOME STATEMENTS.
 S. 8117                            12
 
   (C) IN ASSESSING AN OWNER'S FITNESS FOR THE CONTINUED MAINTENANCE  AND
 OPERATION  OF  THE  DWELLING, THE COURT SHALL CONSIDER THE CONDITIONS OF
 OTHER PROPERTIES OWNED OR MANAGED BY THE OWNER AND SHALL  NOT  DISCHARGE
 THE ARTICLE SEVEN-A ADMINISTRATOR WHERE IT IS FOUND THAT THE OWNER OPER-
 ATES  A  SEPARATE PROPERTY OR SEPARATE PROPERTIES AT A STANDARD WHICH IS
 CONTRARY TO PUBLIC HEALTH AND SAFETY. THE COURT MAY RELY ON THE VISUALLY
 DISPLAYED OR THE PRINTED COMPUTERIZED VIOLATION FILES OF THE  DEPARTMENT
 RESPONSIBLE  FOR  MAINTAINING SUCH FILES AND ALL OTHER COMPUTERIZED DATA
 AS SHALL BE RELEVANT TO THE ENFORCEMENT OF STATE AND LOCAL LAWS FOR  THE
 ESTABLISHMENT AND MAINTENANCE OF HOUSING STANDARDS.
   12.  (A)  WHERE  A JUDGMENT HAS BEEN ENTERED PURSUANT TO SECTION SEVEN
 HUNDRED SEVENTY-EIGHT OF THIS ARTICLE, THE MUNICIPALITY MUST, WITHIN SIX
 MONTHS OF SUCH A JUDGMENT, CERTIFY A FINDING PURSUANT TO  PARAGRAPH  (C)
 OF SUBDIVISION ONE OF SECTION NINETEEN HUNDRED SEVENTY-ONE OF THIS CHAP-
 TER.
   (B)  WHERE  A  FINDING  OF ABANDONMENT HAS BEEN CERTIFIED, THE MUNICI-
 PALITY MAY COMMENCE A PROCEEDING PURSUANT TO  SECTION  NINETEEN  HUNDRED
 SEVENTY-THREE  OF  THIS  CHAPTER,  OR, IN THE ALTERNATIVE, AUTHORIZE THE
 COURT-APPOINTED ADMINISTRATOR  TO  SELL  THE  PROPERTY  TO  A  PURCHASER
 APPROVED  BY  THE COURT PURSUANT TO SECTION SEVEN HUNDRED EIGHTY-FOUR OF
 THIS ARTICLE.
   (C) NOTICE OF SUCH AUTHORIZATION MUST BE ISSUED TO ALL OWNERS, MORTGA-
 GORS, LIENORS AND LESSEES OF RECORD PURSUANT TO SECTION NINETEEN HUNDRED
 SEVENTY-TWO OF THIS CHAPTER, AS WELL AS TO ALL TENANTS  OF  THE  SUBJECT
 BUILDING.
   (D)  ANY OWNER, MORTGAGOR, LIENOR OR LESSEE MAY CHALLENGE THE AUTHORI-
 ZATION OF SALE, PROVIDED THAT THE BURDEN OF PROOF IS ON THE  CHALLENGING
 PARTY  TO  DEMONSTRATE  ITS  CAPACITY  TO RESUME CONTROL OF THE PREMISES
 PURSUANT TO SUBDIVISION ELEVEN OF THIS SECTION.
   § 10. Section 779 of the real property actions and proceedings law, as
 amended by chapter 95 of the  laws  of  1989,  is  amended  to  read  as
 follows:
   §  779.  Presentation  or  settlement  of  accounts.   The court shall
 require the keeping of  written  accounts  itemizing  the  receipts  and
 expenditures  under  an  order  issued pursuant to section seven hundred
 seventy-six [or seven hundred  seventy-seven]  of  this  article,  which
 shall be open to inspection by the owner, any mortgagee or lienor or any
 other  person  having  an  interest  in  such  receipts  or expenditures
 provided, however, notwithstanding any other provision  of  law  to  the
 contrary,  such  information as may be in the possession of the [city of
 New York with the department charged with the enforcement of the housing
 maintenance code of such city] HOUSING  STANDARDS  DEPARTMENT  shall  be
 available  from such department for inspection only by the owner, tenant
 of such property, or person having a recorded interest in the  property.
 Upon motion of the court or the administrator or of the owner, any mort-
 gagee  or  lienor  of record or of any person having an interest, OR THE
 PETITIONING TENANTS, the court may require a presentation or  settlement
 of  the  accounts with respect thereto. Notice of a motion for presenta-
 tion or settlement of 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]  THE
 PETITIONING TENANTS.
   § 11. Section 782 of the real property actions and proceedings law, as
 amended  by  chapter  877  of  the  laws  of 1982, is amended to read as
 follows:
 S. 8117                            13
 
   § 782. "Dwelling" defined.  As used in this article, the term  "dwell-
 ing"  shall  mean  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, or is occupied as the residence or home of [three] ONE
 or more families [living independently of each other]; or is  a  garden-
 type maisonette dwelling project as defined in the multiple dwelling law
 or  other  similar  dwellings  which  in their aggregate are arranged or
 designed to provide three or more  apartments,  have  common  facilities
 such  as  but  not limited to a sewer line, water main, or heating plant
 and are operated as a unit under common ownership, notwithstanding  that
 certificates of occupancy were issued for portions thereof as one or two
 family  dwellings  or  that the dwellings are not a multiple dwelling as
 defined in the multiple dwelling law.   "DWELLING"  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.
   § 12. Section 783 of the real property actions and proceedings law, as
 added by chapter 95 of the laws of 1989, is amended to read as follows:
   § 783. 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
 duties  in  a  reasonable  manner.  THE BURDEN OF SHOWING PERFORMANCE OF
 DUTIES IN A REASONABLE MANNER SHALL BE MADE BY THE ADMINISTRATOR IN SUCH
 SUMMARY PROCEEDING.
   § 13. The real property actions and  proceedings  law  is  amended  by
 adding a new section 784 to read as follows:
   §  784.  SALE  OF  PREMISES;  COURT REVIEW. PRIOR TO ENTERING INTO ANY
 CONTRACT OF SALE OF THE PREMISES SUBJECT TO JUDGMENT, AN OWNER, ADMINIS-
 TRATOR, MORTGAGOR, OR LIENOR SHALL SUBMIT THE PROPOSED CONTRACT OF  SALE
 FOR REVIEW BEFORE THE COURT.
   §  14.  The  real  property  actions and proceedings law is amended by
 adding a new section 785 to read as follows:
   § 785. WAIVER VOID. ANY PROVISION OF A LEASE OR OTHER AGREEMENT WHERE-
 BY ANY PROVISION OF THIS ARTICLE FOR THE BENEFIT OF A  TENANT,  RESIDENT
 OR  OCCUPANT  OF  A  DWELLING  IS WAIVED, SHALL BE DEEMED AGAINST PUBLIC
 POLICY AND SHALL BE VOID.
   § 15. Paragraph 5 of subdivision (a) of section 110 of  the  New  York
 city  civil court act, as amended by chapter 849 of the laws of 1977, is
 amended to read as follows:
   (5) Actions and proceedings under article seven-A of the real property
 actions and proceedings law, and  all  summary  proceedings  to  recover
 possession  of  residential premises to remove tenants therefrom, and to
 render judgment for rent due, including without limitation  those  cases
 in  which  a tenant alleges a defense under section seven hundred fifty-
 five of the real property actions and proceedings law, relating to  stay
 or  proceedings or action for rent upon failure to make repairs, section
 three hundred two-a of the multiple dwelling law, relating to the abate-
 ment of rent in case of certain violations of section D26-41.21 of  such
 housing maintenance code. WHERE ONE OR MULTIPLE PARTS WITHIN THE HOUSING
 S. 8117                            14

 PART  HAVE BEEN DESIGNATED TO HEAR TRIALS, ACTIONS AND PROCEEDINGS UNDER
 ARTICLE SEVEN-A OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS  LAW,  SUCH
 PROCEEDINGS  SHALL  BE  HELD BEFORE THOSE TRIAL PARTS AND NOT BEFORE THE
 PART WITHIN THE HOUSING PART.
   §  16.  Subdivision  (e)  of section 202 of chapter 570 of the laws of
 1909, relating to the establishment of the city  court  of  Buffalo,  as
 added by chapter 516 of the laws of 1978, is amended to read as follows:
   (e)  [All]  ACTIONS  AND PROCEEDINGS UNDER ARTICLE SEVEN-A OF THE REAL
 PROPERTY ACTIONS AND PROCEEDINGS LAW, AND  ALL  summary  proceedings  to
 recover  possession of residential premises to remove tenants therefrom,
 and to render judgment for rent due, in which a tenant alleges a defense
 under section seven hundred fifty-five of the real property actions  and
 proceedings law, relating to stay or proceedings or action for rent upon
 failure  to  make  repairs,  section three hundred two-a of the multiple
 dwelling law, relating to the abatement  of  rent  in  case  of  certain
 violations  of  any housing codes, and section two hundred thirty-five-b
 of the real property law, relating to  a  landlord's  duty  to  maintain
 habitable premises, or any other law involving housing code enforcement.
 The  administrative  judge  of  Buffalo  city  court may, in [his] THEIR
 discretion, empower the housing part to hear all summary proceedings  to
 recover  possession  of  residential  premises,  regardless of whether a
 tenant alleges a defense, at any time when [he] THE ADMINISTRATIVE JUDGE
 feels that  housing  part  is  capable  of  handling  all  such  summary
 proceedings.
   §  17. Subdivision (e) of section 3 of chapter 464 of the laws of 2021
 relating to enacting the Rochester housing court act, is amended to read
 as follows:
   (e) [All] ACTIONS AND PROCEEDINGS UNDER ARTICLE SEVEN-A  OF  THE  REAL
 PROPERTY  ACTIONS  AND  PROCEEDINGS  LAW, AND ALL summary proceedings to
 recover possession of residential premises to remove tenants  therefrom,
 and to render judgment for rent due, in which a tenant alleges a defense
 under  section seven hundred fifty-five of the real property actions and
 proceedings law, relating to stay or proceedings or action for rent upon
 failure to make repairs, section three hundred five-a  of  the  multiple
 residence  law,  relating  to  the  abatement of rent in case of certain
 violations of any housing codes, and section two  hundred  thirty-five-b
 of  the  real  property  law,  relating to a landlord's duty to maintain
 habitable premises, or any other law involving housing code enforcement.
 The administrative judge of Rochester city court  may,  in  his  or  her
 discretion,  empower the housing part to hear all summary proceedings to
 recover possession of residential  premises,  regardless  of  whether  a
 tenant  alleges a defense, at any time when he or she feels that housing
 part is capable of handling all such summary proceedings.
   § 18. 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.