Senate Bill S5622A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5622--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 26, 2025
                                ___________
 
 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  --  committee  discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee
 
 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 to tenants and
   local governments throughout the state and to repeal sections 777  and
   796-i of the real property actions and proceedings law relating there-
   to
 
   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 RESPONSIBLE FOR THE ENFORCEMENT OF THE MULTIPLE
 DWELLING LAW, THE MULTIPLE RESIDENCE LAW, THE  UNIFORM  FIRE  PREVENTION
 AND  BUILDING  CODE,  OR  ANY OTHER LAW, CODE OR ORDINANCE GOVERNING THE
 OCCUPANCY AND MAINTENANCE OF RESIDENTIAL PROPERTY OR  ADDRESSING  CONDI-
 TIONS DANGEROUS TO HEALTH, LIFE, AND SAFETY IN THE MUNICIPALITY OR COUN-
 TY  WHERE  THE DWELLING IS LOCATED (HEREINAFTER IN THIS ARTICLE REFERRED
 TO AS "THE HOUSING STANDARDS DEPARTMENT") for a 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 court of the counties
 of Suffolk and Nassau and the county courts or city courts in the  coun-
 ties of Rockland and Westchester.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07373-02-5
 S. 5622--A                          2
 
              

   §  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 commissioner
 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 may maintain 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 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 by rodents, or any  combination
 of  such  conditions;  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, INTERFER-
 ENCE WITH THE RIGHT OF TENANTS TO FORM, JOIN OR 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 SUBDI-
 VISION  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, 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 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
   (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
 S. 5622--A                          3
 
 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
 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:
 S. 5622--A                          4

   (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.
   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,
 S. 5622--A                          5
 
 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] THE OWNER'S agents of harassment, ille-
 gal  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 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  BUSI-
 NESS  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
 S. 5622--A                          6
 
 DEPARTMENT  OF THE CITY OF NEW YORK PURSUANT TO THE ALTERNATIVE ENFORCE-
 MENT 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] THE OWNER'S 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 RESIDENT'S DOOR  AT  A
 REASONABLE  TIME  WHEN  SUCH  TENANT OR RESIDENT 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
   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
 S. 5622--A                          7
 
   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
 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.
 S. 5622--A                          8
 
   §  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
 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
 S. 5622--A                          9
 
 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] SUCH ADMIN-
 ISTRATOR'S  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] SUCH ADMINISTRATOR shall not have any liability
 in [his or her] SUCH ADMINISTRATOR'S personal capacity.  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 [city] MUNICIPALITY or county specified in section seven hundred
 sixty-nine of this article shall be liable to any party, including  such
 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
 S. 5622--A                         10
 
 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.
   (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
 S. 5622--A                         11
 
 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.
   (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
 S. 5622--A                         12
 
 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  THIS  SECTION,
 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 CHAPTER.
   (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:
   §  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
 S. 5622--A                         13
 
 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]  SUCH ADMINISTRATOR'S 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
 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.
 S. 5622--A                         14
 
   §  16. Section 796-b of the real property actions and proceedings law,
 as added by chapter 677 of the laws of  2022,  is  amended  to  read  as
 follows:
   §  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:
   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[.];
   3. RETALIATION AS DEFINED BY SECTION TWO HUNDRED TWENTY-THREE-B OF THE
 REAL PROPERTY LAW;
   4. INTERFERENCE WITH THE RIGHT OF TENANTS TO FORM, JOIN OR PARTICIPATE
 IN  TENANTS'  GROUPS  PURSUANT TO SECTION TWO HUNDRED THIRTY OF THE REAL
 PROPERTY LAW; OR
   5. A BUSINESS PRACTICE OF NEGLECT, 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 QUALIFYING CONDITION  FOR  PURPOSES  OF
 THIS  ARTICLE  IS  A  CONDITION  DANGEROUS TO HEALTH, LIFE, OR SAFETY. A
 CLEAR AND CONVINCING PATTERN OF RECURRENT QUALIFYING  CONDITIONS  AND/OR
 CODE  VIOLATIONS EXISTS WHEN WITHIN THE TWELVE MONTHS PRECEDING THE DATE
 OF THE FILING OF THE PETITION:
   (A) FOR AT LEAST ONE-THIRD OF THE DWELLING UNITS  WITHIN  THE  SUBJECT
 DWELLING,  THERE  HAVE EXISTED AT LEAST TWO QUALIFYING CONDITIONS AND/OR
 CODE VIOLATIONS FOR A QUALIFYING CONDITION; OR
   (B) THE SUM OF QUALIFYING CONDITIONS  AND/OR  CODE  VIOLATIONS  FOR  A
 QUALIFYING  CONDITION  WHICH HAVE EXISTED WITHIN THE SUBJECT DWELLING OR
 DWELLING UNITS THEREIN EQUALS OR EXCEEDS TWICE THE  NUMBER  OF  DWELLING
 UNITS; OR
   (C)  THE SUM OF QUALIFYING CONDITIONS AND/OR VIOLATIONS FOR QUALIFYING
 CONDITIONS WHICH THE OWNER HAS FAILED TO  PROMPTLY  CORRECT  WITHIN  THE
 SUBJECT  DWELLING OR DWELLING UNITS THEREIN EQUALS OR EXCEEDS THE NUMBER
 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.
   § 17. Subdivision 1 of section 796-c of the real property actions  and
 proceedings law, as added by chapter 677 of the laws of 2022, is amended
 and three new subdivisions 7, 8 and 9 are added to read as follows:
   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.]
 S. 5622--A                         15
 
   7. 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.
   8. FOR THE PURPOSES OF THIS ARTICLE, A "MORTGAGEE OR LIENOR OF RECORD"
 SHALL  INCLUDE  ONLY  THOSE  MORTGAGEES OR LIENHOLDERS WHOSE INTEREST 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.
   9. 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.
   § 18. Subdivision 1 of section 796-d of the real property actions  and
 proceedings law, as added by chapter 677 of the laws of 2022, is 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) 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] 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
 safety; OR A BUSINESS PRACTICE OF NEGLECT AS DEFINED IN SUBDIVISION FIVE
 OF SECTION SEVEN HUNDRED NINETY-SIX-B OF THIS ARTICLE.
   § 19. Section 796-f of the real property actions and proceedings  law,
 as  added  by  chapter  677  of  the laws of 2022, is amended to read as
 follows:
   § 796-f. 1. 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] A
 SINGLE  adjournment  of such trial [at] UPON THE request of [either] ANY
 party WHO APPEARS, if [it determines] THE REQUESTING PARTY SHOWS 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.
   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.
 S. 5622--A                         16
 
   §  20. Section 796-h of the real property actions and proceedings law,
 as added by chapter 677 of the laws of  2022,  is  amended  to  read  as
 follows:
   § 796-h. Judgment. 1. The court shall render a final judgment either:
   (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  OR
 COURSE OF CONDUCT 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]  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; AND
   (III) 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,
 BY THE ADMINISTRATOR APPOINTED BY THE COURT PURSUANT  TO  SECTION  SEVEN
 HUNDRED  SEVENTY-EIGHT OF THIS ARTICLE, upon each non-petitioning tenant
 occupying such dwelling. If personal service on any such non-petitioning
 tenant cannot be made with due diligence, 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
 CERTIFIED OR 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.
 S. 5622--A                         17
 
   3. 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
 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.
   § 21. Section 796-i of the real property actions and  proceedings  law
 is REPEALED.
   §  22. Section 796-j of the real property actions and proceedings law,
 as added by chapter 677 of the laws of  2022,  is  amended  to  read  as
 follows:
   §  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;
   (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:
 S. 5622--A                         18
 
   (i)  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].
   (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) 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.
   (VI)  payment  to  the  owner of the dwelling of any surplus remaining
 after payments of subparagraphs (i), (ii), (iii) [and], (iv) AND (V)  of
 this paragraph 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] THEM with the clerk of the county in which the  subject
 premises  is  located within fifteen days of [his or her] THEIR appoint-
 ment.
   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)] (VI) of paragraph (d) 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 administrator to serve as receiver in  that  action  in
 addition  to [his or her] THEIR duties as administrator pursuant to this
 article.
   6.(a) Such administrator shall be liable only in [his  or  her]  THEIR
 official capacity for injury to persons and property by reason of condi-
 tions  of  the premises in a case where an owner would have been liable;
 [he or she] THE ADMINISTRATOR shall not have any liability  in  [his  or
 her] SUCH ADMINISTRATOR'S 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.
 S. 5622--A                         19
 
   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 ORGANIZATIONS AND persons
 approved by such department. Any person appointed  as  an  administrator
 within  such municipality shall be selected from among the ORGANIZATIONS
 AND persons approved as administrators pursuant to such list, ANY ORGAN-
 IZATIONS OR INDIVIDUALS SUBMITTED TO THE COURT FOR CONSIDERATION BY  THE
 PETITIONING  TENANTS  PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION, AND
 THE PETITIONING TENANTS DEEMED TO HAVE SUFFICIENT KNOWLEDGE  AND  EXPER-
 TISE  TO SERVE AS THE ADMINISTRATOR.  A city, town or village may estab-
 lish and maintain such list itself or elect to  have  such  list  estab-
 lished and maintained by the commissioner of the department charged with
 enforcement  of  the  housing  maintenance code in the county in which a
 dwelling is located.
   (A) WHERE A PROCEEDING UNDER THIS ARTICLE 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)  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] THE ADMINISTRATOR 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.
   (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) 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 ADMINISTRATOR UNDER  THIS  ARTICLE
 S. 5622--A                         20
 
 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 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 municipalities pursuant
 to this section.
    (B) A DETAILED PLAN FOR THE CONTINUED MAINTENANCE OF  THE  OPERATIONS
 OF  THE  DWELLING  SHALL INCLUDE SUFFICIENT SUBMISSIONS FOR THE COURT TO
 EVALUATE 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.
   (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  ADMINISTRATOR  WHERE IT IS FOUND THAT THE OWNER OPERATES 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  RESPONSI-
 BLE  FOR MAINTAINING SUCH FILES AND ALL OTHER COMPUTERIZED DATA AS SHALL
 BE RELEVANT TO THE ENFORCEMENT OF STATE AND LOCAL LAWS  FOR  THE  ESTAB-
 LISHMENT AND MAINTENANCE OF HOUSING STANDARDS.
   11.  (A)  WHERE  A JUDGMENT HAS BEEN ENTERED PURSUANT TO THIS SECTION,
 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 CHAPTER.
   (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 THIS SUBDIVISION.
   § 23. Section 796-k of the real property actions and proceedings  law,
 as  amended  by  chapter  24  of the laws of 2023, is amended to read as
 follows:
   § 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 infor-
 mation as may be in the possession of the department  charged  with  the
 enforcement of the housing maintenance code of the municipality shall be
 available  from  such department for inspection only by the owner of the
 S. 5622--A                         21
 
 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, OR THE PETITIONING TENANTS, the court may require a
 presentation or settlement of the accounts with respect thereto.  Notice
 of  a  motion  for  presentation 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.
   § 24. Section 796-m of the real property actions and proceedings  law,
 as  added  by  chapter  677  of  the laws of 2022, is amended to read as
 follows:
   § 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] THE ADMINISTRATOR'S 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.
   § 25. The real property actions and  proceedings  law  is  amended  by
 adding a new section 796-n to read as follows:
   §  796-N.  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.
   § 26. 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.