N.Y. Real Property Actions & Proceedings Law § 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.