Article 8 - RECOVERY OF EXPENSES

Section 27-2143

Section 27-2143

  §  27-2143  Action  against  the  owner  for recovery of expenses. The
department may bring an action against the owner of a dwelling  for  the
recovery  of  any costs, expenses and disbursements incurred by it under
any provision of the administrative code making  such  expenses  a  debt
recoverable from the owner. The institution of any such action shall not
suspend  or bar the right to pursue any other remedy provided by law for
the  recovery  of  such  expenses,  and  such  action  may,  subject  to
jurisdictional  limitations,  be joined with the enforcement of any such
other remedy or any other claim against the owner relating to  the  same
premises.

Section 27-2144

Section 27-2144

  §  27-2144  Lien on premises. a. There shall be filed in the office of
the department a record of all work caused to  be  performed  by  or  on
behalf   of   the   department.   Such   records  shall  be  kept  on  a
building-by-building basis and shall be accessible to the public  during
business  hours.  Such record may be made and maintained electronically.
Within thirty days after the issuance of a purchase  or  work  order  to
cause  a  repair  to be made by or on behalf of the department, entry of
such order shall be made on the records of the department.  Such  record
may  be  made and maintained electronically. Such record shall be deemed
to be entered on the date that such record is entered electronically  on
the records of the department. Such entry shall constitute notice to all
parties.
  b.  All  expenses  incurred  by  the  department for the repair or the
elimination of any dangerous or unlawful conditions therein, pursuant to
this chapter or any other applicable provision of law, shall  constitute
a  lien  upon  the  premises when such charge is due and payable, which,
notwithstanding any other provision of law, shall be the due and payable
date for such  charge  provided  on  the  second  statement  of  account
containing  such  charge. Such lien shall have a priority over all other
liens and encumbrances on the premises except for the lien of taxes  and
assessments.  However, no lien created pursuant to this chapter shall be
enforced against a subsequent purchaser in good faith  or  mortgagee  in
good  faith unless the requirements of subdivision a of this section are
satisfied; this limitation shall only apply  to  transactions  occurring
after  the  date  such  record  should  have  been  entered  pursuant to
subdivision a and the date such entry was made.
  c. A notice thereof, stating the amount due  and  the  nature  of  the
charge,  shall  be  sent by the department of finance in accordance with
section 11-129 of the administrative code, and such charge shall be  due
and  payable, notwithstanding any other provision of law, on the due and
payable date provided on the second statement of account containing such
charge.
  d. If such charge is not paid by the date when such charge is due  and
payable  in  accordance  with subdivision c of this section, it shall be
the duty of the department of finance to receive interest thereon at the
rate of seven percent per annum, to be calculated to the date of payment
from the due and payable date.
  e. Such charge and the interest thereon shall continue  to  be,  until
paid,  a  lien on the premises. Such lien shall be a tax lien within the
meaning of sections 11-319 and 11-401 of the administrative code and may
be sold, enforced or foreclosed in the manner provided in chapters three
and four of title eleven of the administrative code or may be  satisfied
in accordance with the provisions of section thirteen hundred fifty-four
of the real property actions and proceedings law.
  f.  Any  statement  sent by the department of finance pursuant to this
section shall have included thereon a reference to article eight of this
subchapter.

Section 27-2145

Section 27-2145

  §  27-2145  Establishment  of lien. The department shall include among
its records a statement that such expenses were necessary and proper  in
the  exercise  of  its  lawful  powers.  Such  statement may be made and
maintained electronically.

Section 27-2146

Section 27-2146

  §  27-2146  Validity  of  lien;  grounds  for  challenge.  a.  In  any
proceedings to enforce or discharge the lien, the validity of  the  lien
shall not be subject to challenge based on:
  (1) The lawfulness of the repair or other work done; or
  (2)  The  propriety  and  accuracy  of the expense for which a lien is
claimed, except as provided in this section.
  b. No challenge may be made except by (1) the owner of  the  property,
or  (2)  a mortgagee or lienor whose mortgage or lien would, but for the
provisions of section 27-2144 of this article, have  priority  over  the
department's lien.
  c.  An  issue  specified  in subdivision a which was decided, or could
have been contested, in a prior court proceeding to secure a court order
to repair under article  five  of  this  subchapter  or  to  secure  the
appointment  or  the  discharge  of a receiver under article six of this
subchapter, shall not be open to reexamination, but if any mortgagee  or
lienor  entitled  to  notice of such prior proceeding was not served and
did not appear therein, his or her mortgage or lien shall have  priority
over  the  lien  of  the  department. In addition to this limitation, an
owner who has been served with a statement pursuant to  section  27-2129
of  article  five  of this subchapter, or his successor in interest, may
not subsequently contest the expense contained therein unless such owner
or successor in interest notified the department in writing  of  his  or
her  objection  to the statement of account in the manner and within the
time period  provided  in  section  27-2129  of  article  five  of  this
subchapter.
  d.  With  respect to any issue specified in subdivision a which is not
subject to subdivision c, the statement of the department made  pursuant
to  section 27-2145 of this article shall be presumptive evidence of the
facts stated therein.

Section 27-2147

Section 27-2147

  §  27-2147  Levy on rents. a. The department may serve upon any person
liable for rent or other compensation  for  the  occupancy  of  premises
subject to this article a notice containing:
  (1)  a  statement of the contents of the certificate filed pursuant to
section 27-2145 of this article, or of a judgment  in  an  action  under
section  27-2116 of article two of this subchapter or section 27-2143 of
this article or in an action to enforce a lien under this article;
  (2) a statement of the amount remaining due under such certificate  or
judgment; and
  (3)  a  demand  that  rent  thereafter be paid to the department as it
comes due. Service of the notice shall be made by personal delivery of a
copy thereof, or by certified mail.
  b. Upon receipt of such notice, the person  to  whom  it  is  directed
shall  pay  any  rent  due,  and  future  rent  as  it comes due, to the
department in the manner set forth in the demand.  The  department  may,
upon  failure  to  pay,  sue for rent due. In such suit, the validity of
proceedings prior to the issuance of the notice under subdivision  a  of
this section shall not be subject to question.
  c.  The  department shall issue a receipt for each sum paid under this
section. Such payment and receipt shall for all purposes have  the  same
legal  effect  as payment to or a receipt from the owner or other person
authorized  to  collect  rent.  No  person  shall  be  subject  to   any
proceedings  for  the  recovery  of  possession  or other relief, or any
penalty or forfeiture, arising out of his or her failure to pay  to  any
person any sum paid to the department under this section.
  d.  The  department  shall, at the time of service of any notice under
subdivision a, give the owner and agent  notice  by  certified  mail  at
their  last  registered  address,  or  other  address, if known, of such
action.  Unless  within  twelve  days  of  such  notice  suit  has  been
instituted  by  or  on  behalf  of  the owner to restrain such action or
recover from the department  any  sums  collected,  the  action  of  the
department shall not be subject to challenge.
  e.  Upon collection of the total sum owing to the department, it shall
forthwith serve, upon each person served with a demand under subdivision
a of this section, a notice cancelling such demand.

Section 27-2148

Section 27-2148

  §  27-2148 Appointment of receiver. a. Whenever the sum of any lien or
liens established by this chapter, plus any lien  or  liens  established
pursuant  to  any  other  section  of  the  administrative  code for the
expenses of repairs  made  by  the  department,  shall  amount  to  five
thousand  dollars  or more, the department may issue an order appointing
the  commissioner  of  the  department  of  housing   preservation   and
development  receiver  of  the  rent  and  profits of the premises. Such
receiver may be  appointed  upon  thirty  days'  notice  to  the  owner,
mortgagees  and  lienors  of  record of such premises. Such notice shall
contain the amounts of such lien or liens and give the owner, mortgagees
and lienors of record an opportunity to either pay the outstanding liens
or to contract in writing with the department on terms  satisfactory  to
the  department  for  such payment. Any mortgagee or lienor who pays the
department shall be assigned the department's lien.
  b. A receiver appointed pursuant to this section shall have all of the
powers and duties of a receiver appointed in an action  to  foreclose  a
mortgage  on  real property. Such receiver shall not be required to file
any bond.
  c. 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.
  d. Such receivership shall continue until the amount of such liens and
the  commissions  have  been  fully  paid.  Upon the termination of such
receivership, an accounting shall be given to the  owner  together  with
any  moneys  collected  in  excess  of  the  lien and commission and the
department shall, within twenty-one days, file a satisfaction of any and
all liens filed by the department against such premises.