| Date of Action |
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|---|---|
| Apr 17, 2026 |
referred to housing, construction and community development |
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Senate Bill S9956
2025-2026 Legislative Session
Expands the right to seek the appointment of administrators of buildings to tenants and local governments throughout to make procedures conform with realities of housing stock; repealer
download bill text pdfSponsored By
(D) 47th Senate District
Current Bill Status - In Senate Committee Housing, Construction And Community Development Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2025-S9956 (ACTIVE) - Details
- Current Committee:
- Senate Housing, Construction And Community Development
- Law Section:
- Real Property Actions and Proceedings Law
- Laws Affected:
- Rpld §§777 & 796-i, amd RPAP L, generally; amd §110, NYC Civ Ct Act
- Versions Introduced in 2023-2024 Legislative Session:
-
S8117
2025-S9956 (ACTIVE) - Summary
Expands the right to seek the appointment of administrators of buildings to tenants and local governments throughout the state and to make procedures conform with realities of housing stock throughout the state; repeals certain provisions of the real property actions and proceedings law relating thereto.
2025-S9956 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
9956
I N S E N A T E
April 17, 2026
___________
Introduced by Sen. BOTTCHER -- 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 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.
§ 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07373-04-6
S. 9956 2
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
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
S. 9956 3
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:
(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
S. 9956 4
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,
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
S. 9956 5
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
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
S. 9956 6
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
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
S. 9956 7
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.
§ 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-
S. 9956 8
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
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.
S. 9956 9
(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
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,
S. 9956 10
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
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
S. 9956 11
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
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.
S. 9956 12
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
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
S. 9956 13
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.
§ 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
S. 9956 14
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.]
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
S. 9956 15
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. 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; 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.
§ 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
S. 9956 16
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.
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.
S. 9956 17
§ 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:
(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.
S. 9956 18
(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.
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
S. 9956 19
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
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
S. 9956 20
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
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.
S. 9956 21
§ 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.
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