2023 New York Laws › MDW - Multiple Dwelling › Article 8 - Requirements and Remedies › 309 - Repairs, Vacation and Demolition of Buildings.

§  309.  Repairs, vacation and demolition of buildings. 1. a. The term
  "nuisance" shall be held to embrace public nuisance as known  at  common
  law  or  in equity jurisprudence. Whatever is dangerous to human life or
  detrimental  to  health,  and  whatever  dwelling  is  overcrowded  with
  occupants  or is not provided with adequate ingress and egress or is not
  sufficiently  supported,  ventilated,  sewered,  drained,  cleaned,   or
  lighted in reference to its intended or actual use, and whatever renders
  the  air  or  human  food  or  drink unwholesome, are also severally, in
  contemplation of this law, nuisances. All such nuisances are unlawful.
b. Whenever the department shall certify that any  multiple  dwelling,
  or  any  part  of  its  premises,  or  the plumbing, sewerage, drainage,
  lighting or  ventilation  thereof,  is  in  a  condition  or  in  effect
  dangerous  to life or health, the department may, after giving notice to
  the owner and an opportunity to be heard at  a  hearing  held  for  such
  purpose  declare  the  same,  to  the  extent  it  may specify, a public
  nuisance. Such declaration shall be filed as provided by  section  three
  hundred  twenty-eight  of  this  chapter,  if applicable, or as a public
  record in the department. The  officers  of  a  corporation  upon  which
  notice of such hearing has been served other than a banking organization
  as  defined  in  section  two  of  the  banking  law, a national banking
  association, a  federal  savings  and  loan  association,  The  Mortgage
  Facilities  Corporation,  Savings Banks Life Insurance Fund, The Savings
  Banks Retirement System, an authorized insurer as defined in section one
  hundred seven of  the  insurance  law,  or  a  trust  company  or  other
  corporation organized under the laws of this state all the capital stock
  of  which  is  owned  by  at  least twenty savings banks or a subsidiary
  corporation all of the capital stock of which is  owned  by  such  trust
  company  or  other  corporation,  shall  serve  similar  notice  on  all
  stockholders of record of the corporation and other persons known to  be
  stockholders  or  beneficial  owners  of the stock of the corporation. A
  stockholder upon whom such notice has been served  shall  serve  similar
  notice upon any persons holding a beneficial interest in his stock.
c.  The  department  may  order  or cause such nuisance to be removed,
  abated, suspended, purified, altered, repaired or otherwise improved  as
  the order shall specify.
d. The department may order or cause any multiple dwelling or any part
  of  its  premises,  or any excavation, structure, sewer, plumbing, pipe,
  passage, matter or thing in or  about  such  premises  to  be  purified,
  cleansed, disinfected, removed, altered, repaired or improved.
e.  Whenever  the department shall certify that a nuisance exists in a
  multiple dwelling, or any part of  its  premises,  which  constitutes  a
  serious  fire  hazard  or is a serious threat to life, health or safety,
  the department may issue a written order  to  the  owner  directing  the
  removal  or remedying of such nuisance in the manner and within the time
  specified in such order which shall be not  less  than  twenty-one  days
  after  the  service  thereof  on  the  owner  in the manner specified in
  subdivision one of section three  hundred  twenty-six  of  this  chapter
  except that if the department shall determine that the condition is such
  that  a  delay  of twenty-one days in remedying or removing the same may
  cause irreparable harm to the building or constitutes an imminent danger
  to its occupants, or the occupants of adjoining property or the  general
  public,  then  the time specified for such remedy or removal may be less
  than twenty-one days.
f. If any order of the department is not complied with or not  so  far
  complied  with  as  the  department may regard as reasonable, within the
  time therein  designated,  then  such  order  may  be  executed  by  the
  department,  its  agents  or  contractors, or, as an alternative, if the
  multiple dwelling involved shall have  been  declared  to  be  a  public

  nuisance  pursuant  to  paragraph  b of subdivision one of section three
  hundred nine of this chapter and such declaration shall have been  filed
  as  therein provided, the department or a receiver appointed pursuant to
  subdivision five of this section or any tenant of such multiple dwelling
  may  institute and maintain an action in the supreme court in the county
  where the multiple dwelling is located, or in the housing  part  of  the
  New  York  city  civil court, if the multiple dwelling is located in the
  city of New York, against any owner or owners  to  whom  the  order  was
  issued pursuant to paragraph e of subdivision one of this section for an
  order  compelling  such  owner of owners to comply with the department's
  order and, if such action be brought by such  receiver  or  tenant,  for
  payment  of  the  costs  and disbursements of the action including legal
  fees. Except as owners may have otherwise agreed, any owner who  removes
  or  remedies  the nuisance in compliance with an order of the department
  or court shall de entitled to recover a proportionate share of the total
  expense  of  such  compliance  from  all  other  owners  to   whom   the
  department's  order  was issued or to whom such owner sent a copy of the
  department's order within thirty days of receipt of same  by  registered
  mail.
g.  The  department  may  in  its discretion let out contracts for the
  repairs to be done pursuant to  this  section  in  accordance  with  the
  provisions  of local laws, ordinances, rules and regulations of the city
  applicable to the letting of contracts for public works.
2. a. An "untenanted hazard"  is  a  multiple  dwelling  or  any  part
  thereof, or any structure on the same premises with a multiple dwelling,
  which  has been untenanted for a period of sixty days or more and either
  is not guarded continuously by a resident caretaker or has any  exterior
  openings which are not sealed in a manner approved by the department and
  is  a  fire  hazard  or in a condition dangerous or detrimental to human
  life, health or morals.
b. Whenever an officer  of  the  department  shall  certify  that  any
  multiple   dwelling  or  part  thereof  is  an  untenanted  hazard,  the
  department shall so  notify  the  owner  by  attaching  a  notice  in  a
  conspicuous  place  on  the  premises  to  such  effect,  and sending by
  registered mail a copy of such notice to such owner, at the  address  or
  addresses   registered  with  the  department,  or,  if  no  address  is
  registered with the department and such owner cannot with due  diligence
  be  served  personally,  by  sending a copy of such notice by registered
  mail to the last known address of such owner. The department shall  also
  send  a  copy of such notice by registered mail to every owner of record
  of a mortgage upon such premises, at the address of such owner appearing
  in the record of such mortgage in the  office  in  which  mortgages  are
  registered  in  the  county in which such premises are located or, if no
  address appear therein, by sending such notice by registered mail to the
  person at whose request such instrument was recorded.
c. Such notice shall contain a description  of  the  dwelling,  and  a
  statement  of  the  particulars in which the dwelling is deemed to be an
  untenanted hazard, and the order that the dwelling or  part  thereof  be
  demolished.  Such  notice and order shall require the person thus served
  to certify within ten days thereafter to the department  his  assent  or
  refusal to demolish the same.
d.  If  such  demolition is not commenced within twenty-one days after
  the mailing and posting of such notice and order, such department  shall
  then  serve all such aforementioned persons further notice to the effect
  that on a certain day it will apply to the special term of  the  supreme
  court  for  the hearing of motions for the county in which such premises
  are located, or to the housing part of the New York city civil court, if
  the premises are located in the city of New York, for an order declaring

  such untenanted hazard to exist and directing  the  demolition  of  such
  premises or part thereof.
e.  Such  court  shall, if it finds the statements in the notice to be
  true, direct that, if within five days after the order is entered it  is
  not complied with, the department may proceed with the execution of such
  order  through  contractors  in  accordance with the provisions of local
  laws, ordinances, rules and regulations of the city  applicable  to  the
  letting  of  contracts  for  public  works, or through its own officers,
  agents or employees.
f. The expenses  and  disbursements  incurred  by  the  department  in
  carrying  out  such  orders shall be met from any appropriation for such
  purpose or, to the extent that no such appropriation has  been  made  or
  that  any  such  appropriation is insufficient, from the proceeds of the
  sale of obligations pursuant to the local finance law.
3. Whenever the department has incurred any expense for which  payment
  is  due  under  the  provisions  of  this  section,  the  department may
  institute and maintain a suit against  the  owner  of  the  dwelling  in
  respect  to  which such expense shall have been incurred and may recover
  the amount of such expense as in this  section  provided.  In  any  case
  where  expenditures made or obligations incurred by a receiver appointed
  pursuant to subdivision five of this section in remedying a nuisance are
  not paid or reimbursed from the rents and  income  of  the  dwelling  or
  where  the  receivership  expenses, fees and commissions are not paid or
  reimbursed from the rents and income of the dwelling, the  receiver  may
  institute  and  maintain  a  suit  against  the owner of the dwelling to
  recover such deficiency.
4. a. The department or a receiver appointed pursuant  to  subdivision
  five  of  this  section  shall have a lien, for the expenses necessarily
  incurred in the execution of an order, upon  the  premises  upon  or  in
  respect  of  which  the  work  required  by  said order has been done or
  expenses incurred,  which  lien  shall  have  priority  over  all  other
  mortgages,liens and encumbrances of record, except taxes and assessments
  levied  pursuant  to law. In the event that a receiver having a lien, in
  favor of the department of real estate, is discharged and such  lien  is
  in  effect  at  the  time of such discharge, such lien shall continue to
  vest in the department of real estate.
b. No such lien shall be valid for any purpose until the department or
  receiver, as the case may be, shall file  where  notices  of  mechanics'
  liens are required to be filed, a notice containing the same particulars
  as  required  to  be stated with reference to mechanics' liens, with the
  further statement that the expense has been incurred in pursuance of the
  order of the department, and  giving  the  date  of  the  order,  or  in
  performance  by  the receiver of the work required to remedy a condition
  pursuant to an order of the  court  establishing  the  receivership  and
  giving  the  date  of  the  order, or that a deficiency has accrued with
  respect to the receivership established pursuant  to  an  order  of  the
  court  and giving the date of the order, as the case may be. Such notice
  shall be filed at any time during the progress of the work  required  by
  such  order  or  undertaken by the receiver, or within four months after
  the completion of the contract, or the final performance of the work  or
  the final furnishing of the materials, dating from the last item of work
  performed or materials furnished or, in the case of a deficiency, at any
  time before the discharge of the receiver.
c.  The  officer  with  whom  such notice is filed shall make the same
  entry on the book or index in which mechanics' liens are entered  as  he
  is  required  to  enter  in  cases  of mechanics' liens, together with a
  reference to such order by date; and thereafter such lien shall,  except
  as herein otherwise provided, have the same effect in all respects as to

  all  persons as a mechanics' lien; and all proceedings with reference to
  such lien, its enforcement and discharge, shall be  carried  on  in  the
  same  manner  as  similar proceedings with reference to other mechanics'
  liens.
d.  Unless,  within  six  months  after  actual notice of such filing,
  proceedings are taken by the party against whom or whose premises a lien
  is claimed, to discharge such lien, the filing shall, as to all  persons
  having  such  actual  notice, become conclusive evidence that the amount
  claimed in the notice of lien, with interest, is due, and is a just lien
  upon the premises.
e. Such lien shall continue to be a lien for a period of one year from
  the time of its filing unless proceedings are in the meantime  taken  to
  enforce  or  discharge  it,  which  may  be  done at any time during its
  continuance. In case proceedings are so taken, the lien shall remain  in
  effect  until  the  final  termination  of such proceedings; and if such
  proceedings shall result in a judgment for the  amount  claimed  or  any
  portion  thereof,  such judgment shall, to such extent, be a lien in the
  same manner and from the same time as the original lien.
5. a. If the department shall desire that a receiver be  appointed  as
  herein  after  provided  to  remove  or  remedy  a nuisance described in
  paragraph e of subdivision one of this section and  that  such  receiver
  shall  obtain a lien for costs incurred in connection therewith in favor
  of the department of real estate, which shall  have  the  priority  with
  respect  to  existing mortgages or liens provided in paragraph e of this
  subdivision, it shall within five days after the service  of  the  order
  upon  the  owner  serve  a  copy  of such order upon every mortgagee and
  lienor of record  personally  or  by  registered  mail,  return  receipt
  requested,  at  the  address set forth in the recorded mortgage or lien.
  Appended to the copy of such order shall be a notice addressed  to  such
  mortgagee  and  lienor  stating  that  in  the event the nuisance is not
  removed or remedied in the manner and within the time specified  in  the
  order,  the department may apply to the supreme court, or to the housing
  part of the New York city civil court, if the premises  are  located  in
  the  city  of  New  York, or, to the district court, if the premises are
  located in whole or in part within a district of the court, or,  to  the
  city  court  of a city outside the city of New York, if the premises are
  located in whole or in part within such city, for an order to show cause
  why a receiver of the rents, issues and profits of  the  property  shall
  not  be  appointed  with rights therein superior to those of such owner,
  mortgagee or lienor.
b. The department shall file a copy of such notice and  order  in  the
  office  of  the  county  clerk  in  which  mechanics liens affecting the
  property would be filed.
c. 1. The department may thereafter apply to the supreme court in  the
  county  where  the  property  is situated, or to the housing part of the
  civil court of the city of New York, if the property is situated in  the
  city  of New York, by verified petition for an order directing the owner
  and  any  mortgagees  or  lienors  of  record  to  show  cause  why  the
  commissioner  or  chief  executive  of  the bureau or department of real
  estate of the municipality should  not  be  appointed  receiver  of  the
  rents,  issues  and profits of the property and why said receiver should
  not remove or remedy such condition and obtain a lien in  favor  of  the
  department  of  real  estate  against  the  property having the priority
  provided in paragraph e of this subdivision to secure repayment  of  the
  costs  incurred by the receiver in removing or remedying such condition.
  Such application shall contain (a) proof by affidavit that an  order  of
  the  department  has been issued and served on the owner, mortgagees and
  lienors in accordance with and within the periods specified in paragraph

  e of subdivision one of this section and paragraph a of this subdivision
  and filed in accordance with the  provisions  of  paragraph  b  of  this
  subdivision; (b) a statement that a nuisance which constitutes a serious
  fire  hazard or is a serious threat to life, health, or safety continued
  to exist in said property after the time fixed for the  removal  thereof
  in the department order and a description of the property and conditions
  constituting such nuisance; (c) a brief description of the nature of the
  work  required  to  remove or remedy the condition and an estimate as to
  the cost thereof. Such order to show cause shall be returnable not  less
  than five days after service is completed and shall provide for personal
  service  of  a  copy  thereof and the papers on which it is based on the
  owners and  mortgagees  of  record  and  lienors.  If  any  such  owner,
  mortgagee  or  lienor  cannot  with  due  diligence be served personally
  within the city where the property is located and within the time  fixed
  in  such  order,  then  service may be made on such persons by posting a
  copy thereof in a conspicuous place on the premises where  the  nuisance
  exists, and by sending a copy thereof by registered mail, return receipt
  requested,  to  the owner at the last address registered by him with the
  department, or in the absence of such registration, to the  address  set
  forth  in  the  last recorded deed with respect to said premises, or, in
  the case of a mortgagee or lienor, to  the  address  set  forth  in  the
  recorded  mortgage  or lien and by publication in a newspaper of general
  circulation in  the  county  where  such  premises  are  located,  which
  newspaper,  if  there is an official law paper for such county, shall be
  such official law paper. Service shall  be  deemed  complete  on  filing
  proof  of  service  thereof  in  the office of the clerk of the court in
  which such application is made.
2. If the condition constituting the  nuisance  is  such  that  unless
  immediately cured irreparable damage may be caused to the building or it
  constitutes  an  imminent  danger  to its occupants, or the occupants of
  adjoining properties then the order to show cause may be  returnable  in
  the  discretion  of  the court in less than five days, and in such case,
  service may be made on the owner, mortgagee and lienor by posting a copy
  thereof in a conspicuous place on the premises where the nuisance exists
  and by mailing a copy in the case of the owner to the address filed with
  the department and in the case  of  the  mortgagee  and  lienor  to  the
  address  recorded.  If  a receiver be appointed as hereinafter provided,
  and service shall not have been made  in  accordance  with  subparagraph
  one,  then  his  appointment shall be temporary only and expire not more
  than thirty days thereafter unless, prior  to  the  expiration  of  such
  thirty  days, the department shall serve notice on the owner, mortgagees
  and lienors in the manner provided for in  subparagraph  one  hereof  of
  intention  to  apply to the court at a date fixed in such notice and not
  less than five days after the service of such notice, for  an  extension
  of said receivership. In such event the period of the appointment of the
  temporary  receiver  shall be deemed to be extended for a further period
  of  fifteen  days.  In  addition  to  the  requirements  set  forth   in
  subparagraph  one,  such  notice  shall  also contain a statement of any
  expenditures made or obligations incurred by  the  receiver  during  the
  period  of  his temporary appointment. On the date fixed in such notice,
  the court shall determine  whether  or  not  to  extend  the  period  of
  receivership  and such determination shall be made as if the application
  were an original one for the appointment  of  a  receiver,  pursuant  to
  subparagraph one.
3. On the return of said order to show cause, determination shall have
  precedence over every other business of the court unless the court shall
  find  that  some  other  pending  proceeding, having a similar statutory
  precedence, shall have priority. If the court shall find that the  facts

  stated  in  such  application  warrant  the  granting  thereof, then the
  commissioner or chief executive of the  bureau  or  department  of  real
  estate  of  the  municipality  shall be appointed receiver of the rents,
  issues  and  profits of the property. However after determination of the
  issue if the owner or any mortgagee or lienor or other person having  an
  interest  in  the  property  shall apply to the court to be permitted to
  remove or remedy the conditions constituting the nuisance and shall  (1)
  demonstrate the ability promptly to undertake the work required; and (2)
  post  security  for  the performance thereof within the time, and in the
  amount and manner, deemed necessary by the court, then the court may  in
  lieu  of  appointing such receiver issue an order permitting such person
  to perform the work within a time fixed by the court.  If  at  the  time
  fixed  in  the  order  the conditions constituting the nuisance have not
  been satisfactorily remedied or removed, then the  court  shall  appoint
  such  receiver. If after the granting of an order permitting a person to
  perform the work but  before  the  time  fixed  by  the  court  for  the
  completion  thereof  it  shall  appear to the department that the person
  permitted to do the same is not proceeding with due diligence, then  the
  department  may  apply  to the court on notice to those persons who have
  appeared in the proceeding for  a  hearing  to  determine  whether  such
  receiver  shall  be  appointed  immediately.  On the failure of any such
  owner, mortgagee, lienor or other  person  having  an  interest  in  the
  property  to complete the work in accordance with the provisions of said
  order, the department, or any such receiver thereafter  appointed  shall
  be  reimbursed  for  costs  incurred by him in removing or remedying the
  condition and other charges herein provided for out of such security.
d. 1. Any receiver appointed pursuant to this subdivision  shall  have
  all  of  the  powers  and duties of a receiver appointed in an action to
  foreclose a mortgage on real property,  together  with  such  additional
  powers and duties as herein granted and imposed. The receiver shall with
  all  reasonable  speed remedy the nuisance and remove all the delinquent
  matters and deficiencies in the dwelling including those constituting  a
  fire  hazard  or a threat to life, health or safety and may, in addition
  to  ordinary  repairs,   maintenance   and   replacement,   make   other
  improvements to effect a rehabilitation of the property, in such fashion
  as is consistent with maintaining safe and habitable conditions over the
  remaining  useful  life  of the dwelling. He shall have the power to let
  contracts therefor or incur expenses in accordance with  the  provisions
  of local laws, ordinances, rules and regulations applicable to contracts
  for  public  works  except  that advertisement shall not be required for
  each such contract. Notwithstanding any such laws, ordinances, rules  or
  regulations,  the  receiver  may  let  contracts  or  incur expenses for
  individual items  of  repairs,  improvements  or  supplies  without  the
  procurement  of  competitive  bids  where  the  total amount of any such
  individual  item  does  not  exceed  twenty-five  hundred  dollars.  The
  receiver  shall  not  be required to file any bond. He shall collect the
  accrued and accruing rents, issues and profits of the dwelling and apply
  the same to the cost of removing or  remedying  such  nuisance,  to  the
  making  of  such  other  improvements  as aforestated, to the payment of
  expenses reasonably necessary to the proper operation and management  of
  the  property,  including  insurance and the fees of the managing agent,
  and the necessary expenses of his office as receiver, the  repayment  of
  all  monies advanced to the receiver by the department of real estate to
  cover the costs incurred by the receiver and interest thereon; and then,
  if there be a surplus, to unpaid taxes, assessments, water rents,  sewer
  rents  and  penalties  and  interest  thereon,  and  then to sums due to
  mortgagees  or  lienors.  If  the  income  of  the  property  shall   be
  insufficient  to  cover the cost of remedying or removing such nuisance,

  or to making of such  other  improvements  as  aforestated,  or  of  the
  expenses  reasonably necessary to the proper operation and management of
  the  property  and  other  necessary  expenses  of  the  receiver,   the
  department  of  real  estate  shall  advance  to  the  receiver any sums
  required to cover such cost and expenses and thereupon shall have a lien
  against the property having the priority provided in paragraph e for any
  such sums so advanced with interest thereon.
2. Nothing herein contained shall be deemed to relieve  the  owner  of
  any  civil  or  criminal  liability incurred or any duty imposed by this
  chapter by reason of acts  or  omissions  of  the  owner  prior  to  the
  appointment  of  any  receiver  hereunder,  nor shall anything contained
  herein be construed to suspend during the receivership any obligation of
  the owner for the payment of taxes or other  operating  and  maintenance
  expenses  of  the  dwelling nor of the owner or any other person for the
  payment of mortgages or liens.
3. The receiver shall be entitled to the same  fees,  commissions  and
  necessary  expenses as receivers in actions to foreclose mortgages. Such
  fees and commissions shall be paid into the  fund  created  pursuant  to
  subdivision  nine  of this section. The receiver shall be liable only in
  his official capacity for injury to person and  property  by  reason  of
  conditions  of  the  premises  in  a case where an owner would have been
  liable; he shall not have any liability in his  personal  capacity.  The
  personnel  and facilities of the bureau or department of real estate and
  the corporation counsel shall be availed of  by  the  receiver  for  the
  purpose of carrying out his duties as such receiver and the cost of such
  services shall be deemed a necessary expense of the receiver.
4. The receiver shall be discharged upon rendering a full and complete
  accounting  to  the  court  when such condition has been removed and the
  cost thereof and all other costs authorized by this paragraph have  been
  paid  or  reimbursed  from  the rents and income of the dwelling and the
  surplus money, if any, has been paid over to the owner or the  mortgagee
  or  lienor  as  the court may direct. However, at any time, the receiver
  may be discharged upon filing his account as receiver without  affecting
  the right of the department of real estate to its lien. Upon the removal
  of  such condition, the owner, the mortgagee or any lienor may apply for
  the discharge of the receiver upon payment to the receiver of all moneys
  expended by the receiver for removal of such  condition  and  all  other
  costs  authorized  by  this  paragraph  which  have  not  been  paid  or
  reimbursed from the rents and income of the dwelling.
5. Anything  herein  contained  to  the  contrary  notwithstanding,  a
  temporary  receiver  appointed  on  the return of an order to show cause
  served only in accordance with subparagraph two of paragraph c  of  this
  subdivision  shall  not,  without  express  order of the court, make any
  repairs or improvements to the property or incur  any  expenses  in  the
  operation  thereof during the period of his temporary appointment except
  such as may be necessary to remedy or  remove  the  immediate  condition
  which  called  for  his  appointment  and  to the ordinary operation and
  maintenance of the property. For  such  specific  purpose  the  receiver
  shall  be  entitled to let such contracts and undertake such expenses as
  may  be  necessary  to   accomplish   the   specific   results   without
  advertisements and without procuring competitive bids.
e.  Any lien of a receiver, in favor of the department of real estate,
  arising under this section shall have priority over all other mortgages,
  liens and encumbrances of record except  taxes  and  assessments  levied
  pursuant to law.
f.  Failure  to  serve  a copy of the order and notice required in the
  manner specified by paragraph e of subdivision one and  paragraph  a  of
  this  subdivision,  or  failure  to serve any mortgagee or lienor with a

  copy of the order to show cause  as  required  by  subparagraph  one  of
  paragraph  c  of  this  subdivision shall not affect the validity of the
  proceeding or the appointment of a  receiver,  but  the  rights  of  the
  department  of real estate or of the receiver shall not in such event be
  superior in any way to the rights of any mortgagee or lienor  who  shall
  not have been served as provided herein.
g.  Any mortgagee or lienor who at his expense remedies or removes the
  nuisance to the satisfaction of the court pursuant to the provisions  of
  subparagraph  three of paragraph c of this subdivision shall have and be
  entitled to enforce a  lien  equivalent  to  the  lien  granted  to  the
  receiver  in  favor  of  the  department  of  real estate hereunder. Any
  mortgagee or lienor who, following the appointment of a receiver by  the
  court,  shall  reimburse  the receiver and the department of real estate
  for all costs and charges as hereinabove provided shall be  entitled  to
  an  assignment  of  the  lien  granted  to  the receiver in favor of the
  department of real estate.
6. When the department shall have executed any order so far as it  may
  require,  the  department shall file among its records such order and an
  affidavit stating with fairness and accuracy in general terms the  items
  of expense and the date of execution of such order. When it shall appear
  that  such  execution,  or  the  expenses  thereof,  related  to several
  premises belonging to different persons, such affidavit shall state what
  part belongs to or arose in respect to  each  of  the  premises  as  the
  department may direct. The department may revise the correctness of such
  apportionment of expenses as truth and justice may require.
7.  a.  Whenever the department shall sue for the expenses involved in
  the execution of any order, it may join in the same suit any  claim  for
  any  penalty  for the violation of any provisions of this chapter. Joint
  or several judgments may be had against one or more of the defendants in
  the suit, as they or any of them may be liable in respect of all or  any
  of  such  claims.  The  expenses  of  executing  such  an order, and any
  judgment in any abatement suit provided for in  this  chapter,  and  the
  several  judgments  that  may  be  recovered  for any such penalties and
  expenses, until the same are paid or discharged shall  be  a  lien  like
  other  judgments,  and also a lien and charge upon rent and compensation
  due or then maturing from any tenant or occupant  of  the  dwelling  and
  premises  or  parts thereof to which any such order or judgment relates,
  or in respect of which any such expenses were incurred.
b. The department may serve a copy of an order or a  transcript  of  a
  judgment  and  any  affidavit  showing the expense of execution upon any
  person who owes or is about to owe any  rent  or  compensation  for  the
  occupancy  of  any premises to which such order or judgment relates, and
  in respect of which such expenses were incurred. The department may,  at
  any  time  after  such  service,  demand  in  writing  that such rent or
  compensation to the extent of  such  claim  shall,  when  such  rent  or
  compensation becomes due and payable, be paid to the department and such
  person shall thereupon become obligated to pay the same. A receipt shall
  be  given  for  each  such  payment  stating on account of what order or
  judgment and expenses it has been received. The amount so received shall
  be deposited wherever other funds of  the  department  are  kept.  If  a
  special  fund  has  been  created and maintained, as provided in section
  three hundred four, such payments shall be deposited to  the  credit  of
  such fund.
c.  Any  person refusing or omitting to make such a payment after such
  service and demand may be sued therefor by the department.  Such  person
  shall  not in such suit dispute the authority of the department to incur
  or order such expenses or the validity or correctness of  such  expenses
  or  judgment  in  any particular, or the right of the department to have

  the same paid from  such  rent  or  compensation.  The  receipt  of  the
  department  for  any sum so paid shall, in all suits and proceedings and
  for every purpose, be as effectual in favor of any  person  holding  the
  same  as  actual  payment  of  the  amount thereof to the owner or other
  person on persons who would, but for the provisions of this section  and
  of such demand, have been entitled to receive the sum so paid. No tenant
  or  occupant  of  any  premises  shall be dispossessed or disturbed, nor
  shall any lease or contract or rights be forfeited or impaired, nor  any
  forfeiture or liability be incurred, by reason of any omission to pay to
  any owner, contractor or other person any sum so paid to the department.
8.  The  department  shall  retain any money so paid until twelve days
  after it has received evidence by satisfactory affidavit that the  party
  or  parties,  or  his  or their agent, who but for the provisions hereof
  would have been entitled to receive the same, has had written notice  of
  such  payment  being  made,  which  notice shall be served in the manner
  provided by this chapter for the service of an order. If at the  end  of
  such  twelve  days  the party or parties so notified have not instituted
  suit to recover such money the department shall pay  it  to  the  fiscal
  officer  of  the city. If a special fund has been created and maintained
  as provided in section three hundred  four,  the  fiscal  officer  shall
  deposit such money to the credit of such fund.
9.  The  expenses  incurred by the receiver in removing or remedying a
  condition pursuant to the provisions of this section shall be met from a
  fund to be known as the multiple dwelling  section  three  hundred  nine
  operating  fund.  Such  fund  shall  consist  of  such amounts as may be
  appropriated by the board of estimate or other  analogous  appropriating
  body of the city. Such fund shall be maintained in a separate account by
  the  department of real estate and expenditures therefrom may be made by
  the receiver to meet the costs of removing or remedying such conditions,
  subject to audit by the comptroller or chief fiscal officer of the city.
  The receiver shall repay the amounts so expended to such fund  from  the
  proceeds  of  any  amounts  recovered pursuant to the provisions of this
  section. In the event that the amount in such fund is  insufficient  for
  such  purposes  and if no appropriation or an insufficient appropriation
  has been made  therefor,  the  expenses  incurred  by  the  receiver  in
  removing  or  remedying  such conditions may be met from the proceeds of
  the sale of bonds issued in accordance with the provisions of the  local
  finance law.
In  the  event  that the amounts from time to time in such fund exceed
  two hundred thousand dollars ($200,000), such excess may be  applied  to
  the  payment  of  the  principal  and interest due upon any bonds issued
  pursuant to this subdivision, or, if no such bonds are outstanding,  any
  such excess may be transferred to the general fund of the city.
10. Reference in this section to a bureau or department of real estate
  or  to  a  commissioner  or chief executive of a bureau or department of
  real estate of a municipality, when used in connection with or affecting
  either a receiver or a multiple dwelling in the city of New York,  shall
  be   construed  to  mean  the  department  or  commissioner  of  housing
  preservation and  development  or  the  department  or  commissioner  of
  buildings,  or  both  such departments or commissioners, as the case may
  be, of the city of New York.
11. a. Notwithstanding any other provision of law, where a repair  has
  been  made by the department pursuant to this section, or any other law,
  to abate a hazardous condition or correct any violation of this chapter,
  or any other state or local law, which arises from the existence of lead
  based paint, the department may, in whole or in part, waive its right to
  a lien on the affected premises  and  repayment  of  such  expenses  and
  disbursements  as  were  necessary to abate such hazardous conditions or

  correct such violation of law. The  department  shall  promulgate  rules
  setting forth the standards for such waivers.
b.  Notwithstanding  any  other  provision  of  law,  where there is a
  hazardous condition or violation of this chapter or other state or local
  law which arises from the existence of lead based paint, the  department
  may  make  grants  or  loans  to owners for the expenses, in whole or in
  part, of abating such hazardous condition or correcting  such  violation
  of  law.  The  department  shall  promulgate  rules  setting  forth  the
  standards for such grants or loans.