N.Y. MDW Law § 309 — New York Code / Act MDW / Article 8 / Section 309
Repairs, vacation and demolition of buildings
Status: in_force

§ 309. Repairs, vacation and demolition of buildings. 1. a. The term\n"nuisance" shall be held to embrace public nuisance as known at common\nlaw or in equity jurisprudence. Whatever is dangerous to human life or\ndetrimental to health, and whatever dwelling is overcrowded with\noccupants or is not provided with adequate ingress and egress or is not\nsufficiently supported, ventilated, sewered, drained, cleaned, or\nlighted in reference to its intended or actual use, and whatever renders\nthe air or human food or drink unwholesome, are also severally, in\ncontemplation of this law, nuisances. All such nuisances are unlawful.\n  b. Whenever the department shall certify that any multiple dwelling,\nor any part of its premises, or the plumbing, sewerage, drainage,\nlighting or ventilation thereof, is in a condition or in effect\ndangerous to life or health, the department may, after giving notice to\nthe owner and an opportunity to be heard at a hearing held for such\npurpose declare the same, to the extent it may specify, a public\nnuisance. Such declaration shall be filed as provided by section three\nhundred twenty-eight of this chapter, if applicable, or as a public\nrecord in the department. The officers of a corporation upon which\nnotice of such hearing has been served other than a banking organization\nas defined in section two of the banking law, a national banking\nassociation, a federal savings and loan association, The Mortgage\nFacilities Corporation, Savings Banks Life Insurance Fund, The Savings\nBanks Retirement System, an authorized insurer as defined in section one\nhundred seven of the insurance law, or a trust company or other\ncorporation organized under the laws of this state all the capital stock\nof which is owned by at least twenty savings banks or a subsidiary\ncorporation all of the capital stock of which is owned by such trust\ncompany or other corporation, shall serve similar notice on all\nstockholders of record of the corporation and other persons known to be\nstockholders or beneficial owners of the stock of the corporation. A\nstockholder upon whom such notice has been served shall serve similar\nnotice upon any persons holding a beneficial interest in his stock.\n  c. The department may order or cause such nuisance to be removed,\nabated, suspended, purified, altered, repaired or otherwise improved as\nthe order shall specify.\n  d. The department may order or cause any multiple dwelling or any part\nof its premises, or any excavation, structure, sewer, plumbing, pipe,\npassage, matter or thing in or about such premises to be purified,\ncleansed, disinfected, removed, altered, repaired or improved.\n  e. Whenever the department shall certify that a nuisance exists in a\nmultiple dwelling, or any part of its premises, which constitutes a\nserious fire hazard or is a serious threat to life, health or safety,\nthe department may issue a written order to the owner directing the\nremoval or remedying of such nuisance in the manner and within the time\nspecified in such order which shall be not less than twenty-one days\nafter the service thereof on the owner in the manner specified in\nsubdivision one of section three hundred twenty-six of this chapter\nexcept that if the department shall determine that the condition is such\nthat a delay of twenty-one days in remedying or removing the same may\ncause irreparable harm to the building or constitutes an imminent danger\nto its occupants, or the occupants of adjoining property or the general\npublic, then the time specified for such remedy or removal may be less\nthan twenty-one days.\n  f. If any order of the department is not complied with or not so far\ncomplied with as the department may regard as reasonable, within the\ntime therein designated, then such order may be executed by the\ndepartment, its agents or contractors, or, as an alternative, if the\nmultiple dwelling involved shall have been declared to be a public\nnuisance pursuant to paragraph b of subdivision one of section three\nhundred nine of this chapter and such declaration shall have been filed\nas therein provided, the department or a receiver appointed pursuant to\nsubdivision five of this section or any tenant of such multiple dwelling\nmay institute and maintain an action in the supreme court in the county\nwhere the multiple dwelling is located, or in the housing part of the\nNew York city civil court, if the multiple dwelling is located in the\ncity of New York, against any owner or owners to whom the order was\nissued pursuant to paragraph e of subdivision one of this section for an\norder compelling such owner of owners to comply with the department's\norder and, if such action be brought by such receiver or tenant, for\npayment of the costs and disbursements of the action including legal\nfees. Except as owners may have otherwise agreed, any owner who removes\nor remedies the nuisance in compliance with an order of the department\nor court shall de entitled to recover a proportionate share of the total\nexpense of such compliance from all other owners to whom the\ndepartment's order was issued or to whom such owner sent a copy of the\ndepartment's order within thirty days of receipt of same by registered\nmail.\n  g. The department may in its discretion let out contracts for the\nrepairs to be done pursuant to this section in accordance with the\nprovisions of local laws, ordinances, rules and regulations of the city\napplicable to the letting of contracts for public works.\n  2. a. An "untenanted hazard" is a multiple dwelling or any part\nthereof, or any structure on the same premises with a multiple dwelling,\nwhich has been untenanted for a period of sixty days or more and either\nis not guarded continuously by a resident caretaker or has any exterior\nopenings which are not sealed in a manner approved by the department and\nis a fire hazard or in a condition dangerous or detrimental to human\nlife, health or morals.\n  b. Whenever an officer of the department shall certify that any\nmultiple dwelling or part thereof is an untenanted hazard, the\ndepartment shall so notify the owner by attaching a notice in a\nconspicuous place on the premises to such effect, and sending by\nregistered mail a copy of such notice to such owner, at the address or\naddresses registered with the department, or, if no address is\nregistered with the department and such owner cannot with due diligence\nbe served personally, by sending a copy of such notice by registered\nmail to the last known address of such owner. The department shall also\nsend a copy of such notice by registered mail to every owner of record\nof a mortgage upon such premises, at the address of such owner appearing\nin the record of such mortgage in the office in which mortgages are\nregistered in the county in which such premises are located or, if no\naddress appear therein, by sending such notice by registered mail to the\nperson at whose request such instrument was recorded.\n  c. Such notice shall contain a description of the dwelling, and a\nstatement of the particulars in which the dwelling is deemed to be an\nuntenanted hazard, and the order that the dwelling or part thereof be\ndemolished. Such notice and order shall require the person thus served\nto certify within ten days thereafter to the department his assent or\nrefusal to demolish the same.\n  d. If such demolition is not commenced within twenty-one days after\nthe mailing and posting of such notice and order, such department shall\nthen serve all such aforementioned persons further notice to the effect\nthat on a certain day it will apply to the special term of the supreme\ncourt for the hearing of motions for the county in which such premises\nare located, or to the housing part of the New York city civil court, if\nthe premises are located in the city of New York, for an order declaring\nsuch untenanted hazard to exist and directing the demolition of such\npremises or part thereof.\n  e. Such court shall, if it finds the statements in the notice to be\ntrue, direct that, if within five days after the order is entered it is\nnot complied with, the department may proceed with the execution of such\norder through contractors in accordance with the provisions of local\nlaws, ordinances, rules and regulations of the city applicable to the\nletting of contracts for public works, or through its own officers,\nagents or employees.\n  f. The expenses and disbursements incurred by the department in\ncarrying out such orders shall be met from any appropriation for such\npurpose or, to the extent that no such appropriation has been made or\nthat any such appropriation is insufficient, from the proceeds of the\nsale of obligations pursuant to the local finance law.\n  3. Whenever the department has incurred any expense for which payment\nis due under the provisions of this section, the department may\ninstitute and maintain a suit against the owner of the dwelling in\nrespect to which such expense shall have been incurred and may recover\nthe amount of such expense as in this section provided. In any case\nwhere expenditures made or obligations incurred by a receiver appointed\npursuant to subdivision five of this section in remedying a nuisance are\nnot paid or reimbursed from the rents and income of the dwelling or\nwhere the receivership expenses, fees and commissions are not paid or\nreimbursed from the rents and income of the dwelling, the receiver may\ninstitute and maintain a suit against the owner of the dwelling to\nrecover such deficiency.\n  4. a. The department or a receiver appointed pursuant to subdivision\nfive of this section shall have a lien, for the expenses necessarily\nincurred in the execution of an order, upon the premises upon or in\nrespect of which the work required by said order has been done or\nexpenses incurred, which lien shall have priority over all other\nmortgages,liens and encumbrances of record, except taxes and assessments\nlevied pursuant to law. In the event that a receiver having a lien, in\nfavor of the department of real estate, is discharged and such lien is\nin effect at the time of such discharge, such lien shall continue to\nvest in the department of real estate.\n  b. No such lien shall be valid for any purpose until the department or\nreceiver, as the case may be, shall file where notices of mechanics'\nliens are required to be filed, a notice containing the same particulars\nas required to be stated with reference to mechanics' liens, with the\nfurther statement that the expense has been incurred in pursuance of the\norder of the department, and giving the date of the order, or in\nperformance by the receiver of the work required to remedy a condition\npursuant to an order of the court establishing the receivership and\ngiving the date of the order, or that a deficiency has accrued with\nrespect to the receivership established pursuant to an order of the\ncourt and giving the date of the order, as the case may be. Such notice\nshall be filed at any time during the progress of the work required by\nsuch order or undertaken by the receiver, or within four months after\nthe completion of the contract, or the final performance of the work or\nthe final furnishing of the materials, dating from the last item of work\nperformed or materials furnished or, in the case of a deficiency, at any\ntime before the discharge of the receiver.\n  c. The officer with whom such notice is filed shall make the same\nentry on the book or index in which mechanics' liens are entered as he\nis required to enter in cases of mechanics' liens, together with a\nreference to such order by date; and thereafter such lien shall, except\nas herein otherwise provided, have the same effect in all respects as to\nall persons as a mechanics' lien; and all proceedings with reference to\nsuch lien, its enforcement and discharge, shall be carried on in the\nsame manner as similar proceedings with reference to other mechanics'\nliens.\n  d. Unless, within six months after actual notice of such filing,\nproceedings are taken by the party against whom or whose premises a lien\nis claimed, to discharge such lien, the filing shall, as to all persons\nhaving such actual notice, become conclusive evidence that the amount\nclaimed in the notice of lien, with interest, is due, and is a just lien\nupon the premises.\n  e. Such lien shall continue to be a lien for a period of one year from\nthe time of its filing unless proceedings are in the meantime taken to\nenforce or discharge it, which may be done at any time during its\ncontinuance. In case proceedings are so taken, the lien shall remain in\neffect until the final termination of such proceedings; and if such\nproceedings shall result in a judgment for the amount claimed or any\nportion thereof, such judgment shall, to such extent, be a lien in the\nsame manner and from the same time as the original lien.\n  5. a. If the department shall desire that a receiver be appointed as\nherein after provided to remove or remedy a nuisance described in\nparagraph e of subdivision one of this section and that such receiver\nshall obtain a lien for costs incurred in connection therewith in favor\nof the department of real estate, which shall have the priority with\nrespect to existing mortgages or liens provided in paragraph e of this\nsubdivision, it shall within five days after the service of the order\nupon the owner serve a copy of such order upon every mortgagee and\nlienor of record personally or by registered mail, return receipt\nrequested, at the address set forth in the recorded mortgage or lien.\nAppended to the copy of such order shall be a notice addressed to such\nmortgagee and lienor stating that in the event the nuisance is not\nremoved or remedied in the manner and within the time specified in the\norder, the department may apply to the supreme court, or to the housing\npart of the New York city civil court, if the premises are located in\nthe city of New York, or, to the district court, if the premises are\nlocated in whole or in part within a district of the court, or, to the\ncity court of a city outside the city of New York, if the premises are\nlocated in whole or in part within such city, for an order to show cause\nwhy a receiver of the rents, issues and profits of the property shall\nnot be appointed with rights therein superior to those of such owner,\nmortgagee or lienor.\n  b. The department shall file a copy of such notice and order in the\noffice of the county clerk in which mechanics liens affecting the\nproperty would be filed.\n  c. 1. The department may thereafter apply to the supreme court in the\ncounty where the property is situated, or to the housing part of the\ncivil court of the city of New York, if the property is situated in the\ncity of New York, by verified petition for an order directing the owner\nand any mortgagees or lienors of record to show cause why the\ncommissioner or chief executive of the bureau or department of real\nestate of the municipality should not be appointed receiver of the\nrents, issues and profits of the property and why said receiver should\nnot remove or remedy such condition and obtain a lien in favor of the\ndepartment of real estate against the property having the priority\nprovided in paragraph e of this subdivision to secure repayment of the\ncosts incurred by the receiver in removing or remedying such condition.\nSuch application shall contain (a) proof by affidavit that an order of\nthe department has been issued and served on the owner, mortgagees and\nlienors in accordance with and within the periods specified in paragraph\ne of subdivision one of this section and paragraph a of this subdivision\nand filed in accordance with the provisions of paragraph b of this\nsubdivision; (b) a statement that a nuisance which constitutes a serious\nfire hazard or is a serious threat to life, health, or safety continued\nto exist in said property after the time fixed for the removal thereof\nin the department order and a description of the property and conditions\nconstituting such nuisance; (c) a brief description of the nature of the\nwork required to remove or remedy the condition and an estimate as to\nthe cost thereof. Such order to show cause shall be returnable not less\nthan five days after service is completed and shall provide for personal\nservice of a copy thereof and the papers on which it is based on the\nowners and mortgagees of record and lienors. If any such owner,\nmortgagee or lienor cannot with due diligence be served personally\nwithin the city where the property is located and within the time fixed\nin such order, then service may be made on such persons by posting a\ncopy thereof in a conspicuous place on the premises where the nuisance\nexists, and by sending a copy thereof by registered mail, return receipt\nrequested, to the owner at the last address registered by him with the\ndepartment, or in the absence of such registration, to the address set\nforth in the last recorded deed with respect to said premises, or, in\nthe case of a mortgagee or lienor, to the address set forth in the\nrecorded mortgage or lien and by publication in a newspaper of general\ncirculation in the county where such premises are located, which\nnewspaper, if there is an official law paper for such county, shall be\nsuch official law paper. Service shall be deemed complete on filing\nproof of service thereof in the office of the clerk of the court in\nwhich such application is made.\n  2. If the condition constituting the nuisance is such that unless\nimmediately cured irreparable damage may be caused to the building or it\nconstitutes an imminent danger to its occupants, or the occupants of\nadjoining properties then the order to show cause may be returnable in\nthe discretion of the court in less than five days, and in such case,\nservice may be made on the owner, mortgagee and lienor by posting a copy\nthereof in a conspicuous place on the premises where the nuisance exists\nand by mailing a copy in the case of the owner to the address filed with\nthe department and in the case of the mortgagee and lienor to the\naddress recorded. If a receiver be appointed as hereinafter provided,\nand service shall not have been made in accordance with subparagraph\none, then his appointment shall be temporary only and expire not more\nthan thirty days thereafter unless, prior to the expiration of such\nthirty days, the department shall serve notice on the owner, mortgagees\nand lienors in the manner provided for in subparagraph one hereof of\nintention to apply to the court at a date fixed in such notice and not\nless than five days after the service of such notice, for an extension\nof said receivership. In such event the period of the appointment of the\ntemporary receiver shall be deemed to be extended for a further period\nof fifteen days. In addition to the requirements set forth in\nsubparagraph one, such notice shall also contain a statement of any\nexpenditures made or obligations incurred by the receiver during the\nperiod of his temporary appointment. On the date fixed in such notice,\nthe court shall determine whether or not to extend the period of\nreceivership and such determination shall be made as if the application\nwere an original one for the appointment of a receiver, pursuant to\nsubparagraph one.\n  3. On the return of said order to show cause, determination shall have\nprecedence over every other business of the court unless the court shall\nfind that some other pending proceeding, having a similar statutory\nprecedence, shall have priority. If the court shall find that the facts\nstated in such application warrant the granting thereof, then the\ncommissioner or chief executive of the bureau or department of real\nestate of the municipality shall be appointed receiver of the rents,\nissues and profits of the property. However after determination of the\nissue if the owner or any mortgagee or lienor or other person having an\ninterest in the property shall apply to the court to be permitted to\nremove or remedy the conditions constituting the nuisance and shall (1)\ndemonstrate the ability promptly to undertake the work required; and (2)\npost security for the performance thereof within the time, and in the\namount and manner, deemed necessary by the court, then the court may in\nlieu of appointing such receiver issue an order permitting such person\nto perform the work within a time fixed by the court. If at the time\nfixed in the order the conditions constituting the nuisance have not\nbeen satisfactorily remedied or removed, then the court shall appoint\nsuch receiver. If after the granting of an order permitting a person to\nperform the work but before the time fixed by the court for the\ncompletion thereof it shall appear to the department that the person\npermitted to do the same is not proceeding with due diligence, then the\ndepartment may apply to the court on notice to those persons who have\nappeared in the proceeding for a hearing to determine whether such\nreceiver shall be appointed immediately. On the failure of any such\nowner, mortgagee, lienor or other person having an interest in the\nproperty to complete the work in accordance with the provisions of said\norder, the department, or any such receiver thereafter appointed shall\nbe reimbursed for costs incurred by him in removing or remedying the\ncondition and other charges herein provided for out of such security.\n  d. 1. Any receiver appointed pursuant to this subdivision shall have\nall of the powers and duties of a receiver appointed in an action to\nforeclose a mortgage on real property, together with such additional\npowers and duties as herein granted and imposed. The receiver shall with\nall reasonable speed remedy the nuisance and remove all the delinquent\nmatters and deficiencies in the dwelling including those constituting a\nfire hazard or a threat to life, health or safety and may, in addition\nto ordinary repairs, maintenance and replacement, make other\nimprovements to effect a rehabilitation of the property, in such fashion\nas is consistent with maintaining safe and habitable conditions over the\nremaining useful life of the dwelling. He shall have the power to let\ncontracts therefor or incur expenses in accordance with the provisions\nof local laws, ordinances, rules and regulations applicable to contracts\nfor public works except that advertisement shall not be required for\neach such contract. Notwithstanding any such laws, ordinances, rules or\nregulations, the receiver may let contracts or incur expenses for\nindividual items of repairs, improvements or supplies without the\nprocurement of competitive bids where the total amount of any such\nindividual item does not exceed twenty-five hundred dollars. The\nreceiver shall not be required to file any bond. He shall collect the\naccrued and accruing rents, issues and profits of the dwelling and apply\nthe same to the cost of removing or remedying such nuisance, to the\nmaking of such other improvements as aforestated, to the payment of\nexpenses reasonably necessary to the proper operation and management of\nthe property, including insurance and the fees of the managing agent,\nand the necessary expenses of his office as receiver, the repayment of\nall monies advanced to the receiver by the department of real estate to\ncover the costs incurred by the receiver and interest thereon; and then,\nif there be a surplus, to unpaid taxes, assessments, water rents, sewer\nrents and penalties and interest thereon, and then to sums due to\nmortgagees or lienors. If the income of the property shall be\ninsufficient to cover the cost of remedying or removing such nuisance,\nor to making of such other improvements as aforestated, or of the\nexpenses reasonably necessary to the proper operation and management of\nthe property and other necessary expenses of the receiver, the\ndepartment of real estate shall advance to the receiver any sums\nrequired to cover such cost and expenses and thereupon shall have a lien\nagainst the property having the priority provided in paragraph e for any\nsuch sums so advanced with interest thereon.\n  2. Nothing herein contained shall be deemed to relieve the owner of\nany civil or criminal liability incurred or any duty imposed by this\nchapter by reason of acts or omissions of the owner prior to the\nappointment of any receiver hereunder, nor shall anything contained\nherein be construed to suspend during the receivership any obligation of\nthe owner for the payment of taxes or other operating and maintenance\nexpenses of the dwelling nor of the owner or any other person for the\npayment of mortgages or liens.\n  3. The receiver shall be entitled to the same fees, commissions and\nnecessary expenses as receivers in actions to foreclose mortgages. Such\nfees and commissions shall be paid into the fund created pursuant to\nsubdivision nine of this section. The receiver shall be liable only in\nhis official capacity for injury to person and property by reason of\nconditions of the premises in a case where an owner would have been\nliable; he shall not have any liability in his personal capacity. The\npersonnel and facilities of the bureau or department of real estate and\nthe corporation counsel shall be availed of by the receiver for the\npurpose of carrying out his duties as such receiver and the cost of such\nservices shall be deemed a necessary expense of the receiver.\n  4. The receiver shall be discharged upon rendering a full and complete\naccounting to the court when such condition has been removed and the\ncost thereof and all other costs authorized by this paragraph have been\npaid or reimbursed from the rents and income of the dwelling and the\nsurplus money, if any, has been paid over to the owner or the mortgagee\nor lienor as the court may direct. However, at any time, the receiver\nmay be discharged upon filing his account as receiver without affecting\nthe right of the department of real estate to its lien. Upon the removal\nof such condition, the owner, the mortgagee or any lienor may apply for\nthe discharge of the receiver upon payment to the receiver of all moneys\nexpended by the receiver for removal of such condition and all other\ncosts authorized by this paragraph which have not been paid or\nreimbursed from the rents and income of the dwelling.\n  5. Anything herein contained to the contrary notwithstanding, a\ntemporary receiver appointed on the return of an order to show cause\nserved only in accordance with subparagraph two of paragraph c of this\nsubdivision shall not, without express order of the court, make any\nrepairs or improvements to the property or incur any expenses in the\noperation thereof during the period of his temporary appointment except\nsuch as may be necessary to remedy or remove the immediate condition\nwhich called for his appointment and to the ordinary operation and\nmaintenance of the property. For such specific purpose the receiver\nshall be entitled to let such contracts and undertake such expenses as\nmay be necessary to accomplish the specific results without\nadvertisements and without procuring competitive bids.\n  e. Any lien of a receiver, in favor of the department of real estate,\narising under this section shall have priority over all other mortgages,\nliens and encumbrances of record except taxes and assessments levied\npursuant to law.\n  f. Failure to serve a copy of the order and notice required in the\nmanner specified by paragraph e of subdivision one and paragraph a of\nthis subdivision, or failure to serve any mortgagee or lienor with a\ncopy of the order to show cause as required by subparagraph one of\nparagraph c of this subdivision shall not affect the validity of the\nproceeding or the appointment of a receiver, but the rights of the\ndepartment of real estate or of the receiver shall not in such event be\nsuperior in any way to the rights of any mortgagee or lienor who shall\nnot have been served as provided herein.\n  g. Any mortgagee or lienor who at his expense remedies or removes the\nnuisance to the satisfaction of the court pursuant to the provisions of\nsubparagraph three of paragraph c of this subdivision shall have and be\nentitled to enforce a lien equivalent to the lien granted to the\nreceiver in favor of the department of real estate hereunder. Any\nmortgagee or lienor who, following the appointment of a receiver by the\ncourt, shall reimburse the receiver and the department of real estate\nfor all costs and charges as hereinabove provided shall be entitled to\nan assignment of the lien granted to the receiver in favor of the\ndepartment of real estate.\n  6. When the department shall have executed any order so far as it may\nrequire, the department shall file among its records such order and an\naffidavit stating with fairness and accuracy in general terms the items\nof expense and the date of execution of such order. When it shall appear\nthat such execution, or the expenses thereof, related to several\npremises belonging to different persons, such affidavit shall state what\npart belongs to or arose in respect to each of the premises as the\ndepartment may direct. The department may revise the correctness of such\napportionment of expenses as truth and justice may require.\n  7. a. Whenever the department shall sue for the expenses involved in\nthe execution of any order, it may join in the same suit any claim for\nany penalty for the violation of any provisions of this chapter. Joint\nor several judgments may be had against one or more of the defendants in\nthe suit, as they or any of them may be liable in respect of all or any\nof such claims. The expenses of executing such an order, and any\njudgment in any abatement suit provided for in this chapter, and the\nseveral judgments that may be recovered for any such penalties and\nexpenses, until the same are paid or discharged shall be a lien like\nother judgments, and also a lien and charge upon rent and compensation\ndue or then maturing from any tenant or occupant of the dwelling and\npremises or parts thereof to which any such order or judgment relates,\nor in respect of which any such expenses were incurred.\n  b. The department may serve a copy of an order or a transcript of a\njudgment and any affidavit showing the expense of execution upon any\nperson who owes or is about to owe any rent or compensation for the\noccupancy of any premises to which such order or judgment relates, and\nin respect of which such expenses were incurred. The department may, at\nany time after such service, demand in writing that such rent or\ncompensation to the extent of such claim shall, when such rent or\ncompensation becomes due and payable, be paid to the department and such\nperson shall thereupon become obligated to pay the same. A receipt shall\nbe given for each such payment stating on account of what order or\njudgment and expenses it has been received. The amount so received shall\nbe deposited wherever other funds of the department are kept. If a\nspecial fund has been created and maintained, as provided in section\nthree hundred four, such payments shall be deposited to the credit of\nsuch fund.\n  c. Any person refusing or omitting to make such a payment after such\nservice and demand may be sued therefor by the department. Such person\nshall not in such suit dispute the authority of the department to incur\nor order such expenses or the validity or correctness of such expenses\nor judgment in any particular, or the right of the department to have\nthe same paid from such rent or compensation. The receipt of the\ndepartment for any sum so paid shall, in all suits and proceedings and\nfor every purpose, be as effectual in favor of any person holding the\nsame as actual payment of the amount thereof to the owner or other\nperson on persons who would, but for the provisions of this section and\nof such demand, have been entitled to receive the sum so paid. No tenant\nor occupant of any premises shall be dispossessed or disturbed, nor\nshall any lease or contract or rights be forfeited or impaired, nor any\nforfeiture or liability be incurred, by reason of any omission to pay to\nany owner, contractor or other person any sum so paid to the department.\n  8. The department shall retain any money so paid until twelve days\nafter it has received evidence by satisfactory affidavit that the party\nor parties, or his or their agent, who but for the provisions hereof\nwould have been entitled to receive the same, has had written notice of\nsuch payment being made, which notice shall be served in the manner\nprovided by this chapter for the service of an order. If at the end of\nsuch twelve days the party or parties so notified have not instituted\nsuit to recover such money the department shall pay it to the fiscal\nofficer of the city. If a special fund has been created and maintained\nas provided in section three hundred four, the fiscal officer shall\ndeposit such money to the credit of such fund.\n  9. The expenses incurred by the receiver in removing or remedying a\ncondition pursuant to the provisions of this section shall be met from a\nfund to be known as the multiple dwelling section three hundred nine\noperating fund. Such fund shall consist of such amounts as may be\nappropriated by the board of estimate or other analogous appropriating\nbody of the city. Such fund shall be maintained in a separate account by\nthe department of real estate and expenditures therefrom may be made by\nthe receiver to meet the costs of removing or remedying such conditions,\nsubject to audit by the comptroller or chief fiscal officer of the city.\nThe receiver shall repay the amounts so expended to such fund from the\nproceeds of any amounts recovered pursuant to the provisions of this\nsection. In the event that the amount in such fund is insufficient for\nsuch purposes and if no appropriation or an insufficient appropriation\nhas been made therefor, the expenses incurred by the receiver in\nremoving or remedying such conditions may be met from the proceeds of\nthe sale of bonds issued in accordance with the provisions of the local\nfinance law.\n  In the event that the amounts from time to time in such fund exceed\ntwo hundred thousand dollars ($200,000), such excess may be applied to\nthe payment of the principal and interest due upon any bonds issued\npursuant to this subdivision, or, if no such bonds are outstanding, any\nsuch excess may be transferred to the general fund of the city.\n  10. Reference in this section to a bureau or department of real estate\nor to a commissioner or chief executive of a bureau or department of\nreal estate of a municipality, when used in connection with or affecting\neither a receiver or a multiple dwelling in the city of New York, shall\nbe construed to mean the department or commissioner of housing\npreservation and development or the department or commissioner of\nbuildings, or both such departments or commissioners, as the case may\nbe, of the city of New York.\n  11. a. Notwithstanding any other provision of law, where a repair has\nbeen made by the department pursuant to this section, or any other law,\nto abate a hazardous condition or correct any violation of this chapter,\nor any other state or local law, which arises from the existence of lead\nbased paint, the department may, in whole or in part, waive its right to\na lien on the affected premises and repayment of such expenses and\ndisbursements as were necessary to abate such hazardous conditions or\ncorrect such violation of law. The department shall promulgate rules\nsetting forth the standards for such waivers.\n  b. Notwithstanding any other provision of law, where there is a\nhazardous condition or violation of this chapter or other state or local\nlaw which arises from the existence of lead based paint, the department\nmay make grants or loans to owners for the expenses, in whole or in\npart, of abating such hazardous condition or correcting such violation\nof law. The department shall promulgate rules setting forth the\nstandards for such grants or loans.\n