§ 778 — Appointment of administrator

§ 778. Appointment of administrator. 1. The court is authorized and\nempowered, in implementation of a judgment rendered pursuant to section\nseven hundred seventy-six or seven hundred seventy-seven of this\narticle, to appoint a person other than the owner, a mortgagee or\nlienor, to receive and administer the rent moneys or security deposited\nwith such owner, mortgagee or lienor, subject to the court's direction.\nThe court may appoint the commissioner of the department of the city of\nNew York charged with enforcement of the housing maintenance code of\nsuch city or the commissioner's designee as such administrator, provided\nthat the commissioner or the commissioner's designee shall consent, in\nwriting, to such appointment. Any administrator is authorized and\nempowered in accordance with the direction of the court, to order the\nnecessary materials, labor and services to remove or remedy the\nconditions specified in the judgment, and to make disbursements in\npayment thereof; and to demand, collect and receive the rents from the\ntenants; and to institute all necessary legal proceedings including, but\nnot limited to, summary proceedings for the removal of any tenant or\ntenants; and to rent or lease for terms not exceeding three years any\npart of said premises, however, the court may direct the administrator\nto rent or lease commercial parts of said premises for terms that the\ncourt may approve. In addition, such administrator is authorized and\nempowered in accordance with the direction of the court to accept and\nrepay such moneys as may be received from the department charged with\nenforcement of the housing maintenance code of the city of New York for\nthe purpose of managing the premises, replacing or substantially\nrehabilitating systems or making other repairs or capital improvements\nauthorized by the court. All moneys expended by the department pursuant\nto the foregoing shall constitute a debt recoverable from the owner and\na lien upon the building and lot, and upon the rents and other income\nthereof. Such lien shall be enforced in accordance with the provisions\nof article eight of subchapter five of the housing maintenance code of\nthe city of New York. Such administrator, shall, upon completion of the\nwork prescribed in such judgment, file with the court a full accounting\nof all receipts and expenditures for such work. Such administrator shall\ndispose of the rents and other monies deposited with such administrator\naccording to the following order of priority:\n (a) Payment in full for all of the work specified in the judgment.\nUntil all of the work specified in the judgment has been completed and\npayment for such work has been made, no other disbursements shall be\npermitted, except for fuel bills, fire and liability insurance, and\nbills for ordinary repairs and maintenance.\n (b) Payment of a reasonable amount for the services of such\nadministrator, including reimbursement of any legal fees incurred by\nsuch administrator in connection with management of the building.\n (c) Payment of outstanding real property tax liens claimed by the city\nof New York.\n (d) Payment of outstanding emergency repair liens filed and recorded\nby the city of New York and outstanding liens filed and recorded by the\ncity pursuant to this section.\n (e) Payment to the owner of any surplus remaining after payments of\nparagraphs (a) through (d) of this subdivision have been made.\n 2. Unless the administrator is the city of New York, the court may\nallow from the rent moneys or security on deposit a reasonable amount\nfor services of such administrator.\n 3. Unless such administrator is the city of New York, the\nadministrator so appointed shall furnish a bond, the amount and form of\nwhich shall be approved by the court. In its discretion and for good\ncause shown, the court may dispense with the necessity for a bond. The\ncost of a required bond shall be paid from the moneys so deposited.\n 4. Such administrator shall file a transcript of the judgment\nappointing him with the county clerk within fifteen days of his\nappointment.\n 5. The duties of such administrator shall not be affected by the\nappointment of a receiver in an action to foreclose a mortgage on the\npremises, except that the rights of the owner, including the right to\nany surplus, pursuant to paragraph (e) of subdivision one of this\nsection, shall pass to the receiver. The court in which the action to\nforeclose a mortgage on the premises is pending may appoint such\nadministrator to serve as receiver in that action in addition to his\nduties as administrator pursuant to this article.\n 6. Such administrator shall be liable only in his or her official\ncapacity for injury to persons and property by reason of conditions of\nthe premises in a case where an owner would have been liable; he or she\nshall not have any liability in his or her personal capacity.\nAppointment of an administrator pursuant to subdivision one of this\nsection shall not relieve an owner of liability for injury to persons\nand property in such case.\n 7. No city or county specified in section seven hundred sixty-nine of\nthis article shall be liable to any party, including such administrator\nor the owner, for injury to persons or property by reason of conditions\nof the premises or the acts or omissions of such administrator, except\nthat when the city of New York is appointed administrator, liability\nshall be determined in accordance with subdivision six of this section.\n 8. The commissioner of the department of the city of New York charged\nwith the enforcement of the housing maintenance code of such city shall\npromulgate rules and regulations regarding criteria for the selection of\nadministrators to be appointed pursuant to this section and shall\nestablish and maintain a list of persons approved by such department.\nUnless the administrator is the city of New York, any person appointed\nas an administrator within such city shall be selected from among the\npersons approved as administrators pursuant to such list.\n 9. Such administrator shall, within thirty days of appointment, file\nwith the court a plan for the provision of essential services and for\nthe correction of such other hazardous conditions as may exist at the\npremises, specifying dates by which such services shall be provided and\nsuch conditions corrected. If such administrator cannot provide such\nservices and correct such conditions by the dates specified in the plan,\nhe shall be required to file with the court an amendment to the plan\nsetting forth the reasons why such services and corrections could not be\nprovided by such date and specifying new dates for such services and\ncorrections. Such plan and any amendments to such plan shall be provided\nto the tenants by mail or by posting in a common area of the building\nand to the owner of record by mail.\n * 10. (a) Where a building for which an administrator has been\nappointed pursuant to this section is transferred to a new owner at any\ntime following the appointment of such administrator, whether or not\nsuch building remains subject to such administrator, the department\ncharged with enforcement of the housing maintenance code of the city of\nNew York may enter into a regulatory agreement with such new owner. Such\nregulatory agreement may impose such terms and conditions upon the\noperation and repair of such building as such department may determine.\nNotwithstanding any general, special or local law to the contrary, such\nregulatory agreement may provide that, upon transfer of such building to\nthe new owner, any outstanding liens filed with and recorded by the city\npursuant to this section or pursuant to section three hundred nine of\nthe multiple dwelling law shall immediately be reduced to zero, provided\nthat such regulatory agreement shall require, in consideration for such\nreduction to zero, the provision of adequate, safe and sanitary housing\naccommodations for persons of low income for a period of not less than\nthirty years. Any regulatory agreement pursuant to this subdivision\nshall include a certification by the new owner of the real property that\n(i) the prior owner has no direct or indirect interest in such real\nproperty, and (ii) the prior owner has no direct or indirect interest in\nsuch new owner.\n (b) On or about June thirtieth, two thousand nine and for every three\nyears thereafter for as long as the program continues to be in effect,\nthe city shall submit a report to the governor, the temporary president\nof the senate, the speaker of the assembly, the minority leader of the\nsenate and the minority leader of the assembly. Each report following\nthe initial report shall describe the program activities carried out\nduring the three prior calendar years pursuant to this subdivision.\n * NB Repealed June 30, 2027\n 11. The court may only discharge an administrator if the owner has\npaid in full or entered into a payment agreement to pay in full all\noutstanding real property tax liens claimed by the city of New York, all\noutstanding emergency repair liens filed and recorded by the city of New\nYork, all outstanding charges and liens assessed in connection to the\nalternative enforcement program authorized by section 27-2153 of the\nadministrative code of the city of New York, and outstanding liens filed\nand recorded by the city pursuant to this section. The provisions of\nthis subdivision shall not apply to buildings transferred pursuant to\nsubdivision ten of this section.\n