Section 27-2130
§ 27-2130 Grounds for appointment of receiver. Whenever the department
certifies that any condition in violation of this chapter or other
applicable law in any multiple dwelling or any part of its premises
constitutes a serious fire hazard or is a serious threat to life, health
or safety, it may, upon failure of the owner to comply with an order to
correct such conditions issued pursuant to section 27-2125 of article
five of this subchapter, apply for the appointment of a receiver to
repair and correct the violations.
Section 27-2131
§ 27-2131 Notice to owner, mortgagees and lienors. a. If the
department intends to seek the appointment of a receiver to remove or
remedy a condition described in the preceding section, it shall serve
upon the owner, along with the order pursuant to section 27-2125 of
article five of this subchapter, a notice stating that in the event the
violations covered by the order are not removed or remedied in the
manner and within the time specified therein, the department may apply
for the appointment of a receiver of the rents, issues and profits of
the property with rights superior to those of the owner and any
mortgagee or lienor.
b. Within five days after service of the order and notice upon the
owner, the department shall serve a copy of the order and notice upon
every mortgagee and lienor of record, personally or by registered or
certified mail, at the address set forth in the recorded mortgage or
lien. If no address appears therein, a copy shall be sent by registered
mail to the person at whose request the instrument was recorded.
c. The department shall file a copy of the notice and order in the
office of the county clerk in which mechanics liens affecting the
property would be filed.
Section 27-2132
§ 27-2132 Order to show cause. a. The department, upon failure of the
owner to comply with an order 27-2131 of this article within the time
provided therein, may thereafter apply to a court of competent
jurisdiction in the county where the property is situated for an order
directing the owner and any mortgagees or lienors of record to show
cause why the commissioner of housing preservation and development
should not be appointed receiver of the rents, issues and profits of the
property and why the receiver should not remove or remedy such condition
and obtain a lien in favor of the department of housing preservation and
development against the property having the priority provided in article
eight of this subchapter to secure repayment of the costs incurred by
the receiver in removing such conditions. Such application shall contain
(a) proof by affidavit that an order of the department has been issued,
served on the owner, mortgagees and lienors, and filed, in accordance
with section 27-2131 of this article; (b) a statement that a serious
fire hazard or a serious threat to life, health, or safety continued to
exist in said dwelling after the time fixed in the department order for
correction of the condition, and a description of the dwelling and
conditions involved; (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.
b. The order to show cause shall be returnable not less than five days
after service is completed.
c. A copy of the order to show cause, and the papers on which it is
based, shall be served on the owner, mortgagees of record, and lienors.
If any such persons cannot with due diligence be served personally
within the city within the time fixed in the order, then service may be
made by posting a copy of the order in a conspicuous place on the
premises, and by sending a copy thereof by registered mail to the owner
at the last address, if any, registered by such owner with the
department, or to his or her last address, if any, known to the
department, 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. Service shall be deemed complete on filing proof thereof in the
office of the clerk of the court in which application for such order is
made.
Section 27-2133
§ 27-2133 Temporary appointment of receiver. a. If the condition of
the premises 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 by posting a copy
of the order in a conspicuous place on the premises and by mailing a
copy to the owner at the address registered with the department and to
the mortgagees and lienors at their respective addresses. But any
appointment of a receiver without service pursuant to subdivision c of
section 27-2132 of this article shall be temporary only and expire not
more than thirty days thereafter unless, prior to the expiration of the
thirty days, the department shall serve notice on the owner, mortgagee
and lienors in the manner provided for in subdivision c of section
27-2132 of this article 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 the receivership. Upon such service the
period of the appointment of the temporary receiver shall be
automatically extended for a further period of fifteen days. The notice
shall also contain, in addition to the order to show cause and the
papers on which it is based, a statement of any expenditures made or
obligations incurred by the receiver during the period of his or her
temporary appointment. On the date fixed in the notice, the court shall
determine whether or not to extend the period of receivership. Such
determination shall be made as if the application were an original one
for the appointment of a receiver.
b. A temporary receiver shall have the powers and duties provided in
section 27-2135 of this article, except that he or she 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 or her temporary appointment except such as may be
necessary (1) to remedy or remove the immediate condition or conditions
which called for his or her appointment, and (2) 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 necesssary to accomplish the specific results without
advertisements and without procuring competitive bids.
Section 27-2134
§ 27-2134 Proceedings on return of order to show cause. a. On the
return of the order to show cause, determination thereof shall have
precedence over every other business of the court unless the court shall
find that some other pending proceeding, having a similar statutory
preference, has priority.
b. If the court finds that the facts stated in the application warrant
the granting thereof, then it shall appoint the commissioner of housing
preservation and development receiver of the rents, issues and profits
of the property.
c. Notwithstanding subdivision b of this section, if, after
determination of the issue, 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 set forth in
the department's application 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
a 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
work has not been satisfactorily done, 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 a
receiver shall be appointed immediately. On the failure of any person to
complete the work in accordance with the provisions of an order under
this subdivision, the department, or any receiver thereafter appointed
shall be reimbursed for costs incurred by him or her in removing or
remedying the condition and other charges herein provided for out of the
security posted by such person.
Section 27-2135
§ 27-2135 Powers and duties of receiver. a. A receiver appointed
pursuant to this article 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. Such receiver shall not be required to file any
bond.
b. The receiver shall with all reasonable speed remove violations in
the dwelling and its premises, including those constituting a fire
hazard or a threat to life, health or safety. He or she may also, 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 or she shall have the power to
let contracts or incur expenses therefor in accordance with the
provisions of law applicable to contracts for public works except that
advertisement shall not be required for each such contract.
Notwithstanding any provision of law, 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.
c. The receiver shall collect the accrued and accruing rents, issues
and profits of the dwelling and apply the same to the cost of the
repairs and improvements authorized in subdivision (b) of this section,
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 or her office as
receiver, the repayment of all moneys advanced to the receiver by the
department of housing preservation and development 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 the repairs and improvements or the expenses reasonably
necessary to the proper operation and management of the property and
other necessary expenses of the receiver, the department of housing
preservation and development shall advance to the receiver any sums
required to cover such cost and expense and thereupon shall have a lien
against the property having the priority provided in article eight of
this subchapter for any such sums so advanced with interest thereon.
d. 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
section 27-2111 of article one of this subchapter. The receiver shall be
liable only in his or her 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; such receiver shall not have any liability
in his or her personal capacity. The personnel and facilities of the
department of housing preservation and development and the corporation
counsel shall be availed of by the receiver for the purpose of carrying
out his or her duties as receiver, and the costs of such services shall
be deemed a necessary expense of the receiver.
Section 27-2136
§ 27-2136 Discharge of receiver. The receiver shall be discharged upon
rendering a full and complete accounting to the court when the repairs
and improvements herein authorized are completed and the cost thereof
and all other costs authorized herein 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 or her account as receiver without affecting the right of the
department of housing preservation and development to its lien. Upon the
completion of the repairs and improvements, 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 him or her therefor and all other
costs authorized by section 27-2135 of this article which have not been
paid or reimbursed from the rents and income of the dwelling.
Section 27-2137
§ 27-2137 Recovery of expenses of receivership; lien of receiver. a.
The expenditures made by the receiver pursuant to section 27-2135 of
this article shall, to the extent that they are not recovered from the
rents and income of the property collected by the receiver, constitute a
debt of the owner and a lien upon the building and lot, and upon the
rents and income thereof. Except as otherwise provided in this section,
the provisions of article eight of this subchapter shall govern the
effect and enforcement of such debt and lien; references therein to the
department shall, for purposes of this article be deemed to refer to the
receiver and, after such receiver's discharge, the department of housing
preservation and development.
b. Failure to serve a copy of the order and notice required in the
manner specified by section 27-2131 of this article, or failure to serve
any mortgagee or lienor with a copy of the order to show cause as
required by subdivision c of section 27-2132 of this article, shall not
affect the validity of the proceeding or the appointment of a receiver,
but the rights of the department of housing preservation and development
or of the receiver shall not in such event be superior to the rights of
any mortgagee or lienor who has not been served as provided therein.
c. Any mortgagee or lienor who at his or her expense remedies or
removes the conditions to the satisfaction of the court pursuant to the
provisions of subdivision c of section 27-2134 of this article shall
have and be entitled to enforce a lien equivalent to the lien granted to
the receiver in favor of the department of housing preservation and
development hereunder. Any mortgagee or lienor who, following the
appointment of a receiver by the court, shall reimburse the receiver and
the department of housing preservation and development 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 housing
preservation and development.
Section 27-2138
§ 27-2138 Obligations of owner not affected. Nothing herein contained
shall be deemed to relieve the owner of any civil or criminal liability
incurred or any duty imposed by law by reason of acts or omissions of
the owner prior to the appointment of a receiver, 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.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
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