2023 New York Laws › RPA - Real Property Actions and Proceedings › Article 7-A - Special Proceedings by Tenants of Dwellings in the City of New York and the Counties of Nassau, Suffolk, Rockland and Westchester for Judg › 778 - Appointment of Administrator.

§  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
article, 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 or the commissioner's designee as such administrator, provided
that  the  commissioner 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  judgment,  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 commercial 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 department charged with
enforcement of the housing maintenance code of the city of New York  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 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. 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.
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
administrator, including reimbursement of any  legal  fees  incurred  by
such administrator in connection with management of the building.
(c) Payment of outstanding real property tax liens claimed by the city
of New York.
(d)  Payment  of outstanding emergency repair liens filed and recorded
by the city of New York and outstanding liens filed and recorded by  the
city pursuant to this section.
(e)  Payment  to  the owner of any surplus remaining after payments of
paragraphs (a) through (d) of this subdivision have been made.
2. Unless the administrator is the city of New  York,  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,   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
appointing him  with  the  county  clerk  within  fifteen  days  of  his
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)  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
duties as administrator pursuant to this article.
6. 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.
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 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 administrator, except
that when the city of New York  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
establish and maintain a list of persons approved  by  such  department.
Unless  the  administrator is the city of New York, any person appointed
as an administrator within such city shall be selected  from  among  the
persons approved as administrators pursuant to such list.
9.  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 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.  (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  department
charged  with enforcement of the housing maintenance code of the city of
New York may enter into a regulatory agreement with such new owner. Such
regulatory agreement may impose  such  terms  and  conditions  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 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 and for every  three
years  thereafter  for as long as the program continues to be in effect,
the city 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.
* NB Repealed June 30, 2024
11. 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 the city of New York, all
outstanding emergency repair liens filed and recorded by the city of New
York, 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 pursuant to this  section.  The  provisions  of
this  subdivision  shall  not apply to buildings transferred pursuant to
subdivision ten of this section.