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Sponsors
Senator · Senate District 57
No co-sponsors yet.
History
- Signed chap.48
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.427
- Substituted for A7913
- Referred to housing
- Delivered to assembly
- Passed senateVote 62–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1104
Show 1 earlier action
- Referred to housing, construction and community development
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Relates to the management of buildings for which administrators have been appointed
Assembly Floor Calendar · Sponsor Keith L.T. Wright
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S5081
Title of bill
An act to amend chapter 375 of the laws of 1999, amending the real property actions and proceedings law relating to new owners of buildings for which administrators have been appointed pursuant to article 7-A of such law, in relation to the effectiveness thereof; and to amend the real property actions and proceedings law, in relation to the costs of managing such buildings
Summary of provisions
Subdivision 10 of section 778 of the Real Property Actions and Proceedings Law (the "RPAPL") grants the City of New York ("the City") authority to "evaporate" (reduce to zero) liens on Article 7-A properties for municipally-financed repairs. This authority will expire on June 30, 2015 unless it is extended. Section one of the bill would extend this authority to June 30, 2018. Subdivision 1 of section 778 provides for appointment of an administrator by the court, and authorizes the administrator to accept and spend funds to make repairs and improvements to the building. Section two of the bill would amend this subdivision to authorize the administrator to spend funds for the purpose of managing the building as well.
Read the full memo (661 words)
Section three would provide that this act takes effect immediately.
Reasons for support
Pursuant to Article 7-A of the RPAPL, the Civil Court of the City of New York appoints administrators to operate privately-owned buildings that have been effectively abandoned by their owners and have created conditions dangerous to the life, health and safety of tenants still living in such buildings. Administrators act under court order to collect rents, which are used for providing essential services to tenants and for making necessary repairs. In many instances, City capital funds are utilized to repair or replace major systems or to make other necessary improvements.
All money expended by the City for such purposes becomes a lien on the property. Subdivision 10 of section 778 of the RPAPL provides that a new owner of an Article 7-A property may take advantage of lien evaporation only if he or she enters into a regulatory agreement with the New York City Department of Housing Preservation and Development ("HPD"). This regulatory agreement may provide that, upon transfer of the property to the new owner, any outstanding liens filed with and recorded by the City pursuant to RPAPL section 778 or Multiple Dwelling Law section 309 shall immediately be reduced to zero provided that the new owner provide adequate, safe and sanitary housing accommodations for persons of low income for a period of not less than thirty years. The regulatory agreement also requires that the new owner certify that the prior owner of the property has no direct or indirect interest in the property and that the prior owner has no direct or indirect interest in the new owner.
Article 7-A has enabled the City to encourage not-for-profit and for-profit entities to purchase 7-A buildings, allowing such properties to be developed into a source of permanent affordable housing for families and individuals. The Article 7-A evaporation is limited exclusively to the transfer of a building to a new owner who has no business or other interests with the original owner. This will prevent a prior owner of an Article 7-A administered building from
benefiting from lien evaporation. New owners must comply with all provisions of the regulatory agreement entered into with HPD in order for lien evaporation to be utilized.
Section 778 of the RPAPL authorizes the administrator to accept and spend money on repairing and maintaining the building. The amendment in section two of the bill clarifies that the administrator is authorized to accept funds to manage the building, and that funds provided by the City for that purpose are recoverable through the lien provided for in the law.
This legislation will allow the City to continue to transform effectively-abandoned buildings, often in dangerous disrepair, into a source of permanent affordable housing.
Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.