2023 New York Laws › RPA - Real Property Actions and Proceedings › Article 7-C - Special Proceedings by Tenants of Dwellings for Judgment Directing Deposit of Rents and the Use Thereof for the Purpose of Remedying Conditions Dangerous to Life, Health or Safety › 796-J - Appointment of Administrator.

§  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
disbursements 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
municipality 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  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.
(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
according to the following order of priority:
(i)  payment  in  full  for all of the work specified in the judgment;
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
administrator, including reimbursement of any legal fees incurred by the
administrator in connection with management of the building.
(iii) payment of outstanding real property tax liens  claimed  by  any
municipality in which the dwelling is located.
(iv)  payment of outstanding emergency repair liens filed and recorded
by any municipality in which the dwelling  is  located  and  outstanding
liens filed and recorded by such municipality or municipalities pursuant
to this section.
(v)  payment  to  the  owner  of the dwelling of any surplus remaining
after payments of subparagraphs  (i),  (ii),  (iii)  and  (iv)  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
appointing  him or her with the clerk of the county in which the subject
premises is located within fifteen days of his or her appointment.
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)  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 duties as administrator pursuant to this article.
6.(a)  Such  administrator shall be liable only in his or her official
capacity for injury to persons and property by reason of  conditions  of
the  premises in a case where an owner would have been liable; he or she
shall not have any liability in his or her personal capacity.
(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
administrator  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  persons  approved  by  such
department.  Any  person  appointed  as  an  administrator  within  such
municipality shall be  selected  from  among  the  persons  approved  as
administrators  pursuant  to  such  list.  A  city,  town or village may
establish and maintain such list itself  or  elect  to  have  such  list
established 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.
9. 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 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.
10. The court may only discharge an administrator  if  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.