Relates to the enforcement and collection of judgments for civil penalties in an action in the housing part

Title of bill

An act to amend the New York city civil court act and the administrative code of the city of New York, in relation to enforcement and collection of judgments for civil penalties in an action in the housing part of the New York city civil court

Summary of provisions

The proposed legislation amends the New York City Civil Court Act and the New York City Administrative Code to authorize housing court civil penalty judgments to become tax liens against the real property where the violations occurred, if the judgments remain unpaid for a period of one year after filing. Section 1505 of the New York City Civil Court Act and Section 27-2116 of the Administrative Code are amended to provide that such judgments may become tax liens against the property, and will be created and enforced pursuant to article eight of subchapter five of Chapter two of Title 27 of the Administrative Code. The judgment would be reduced to a charge, which would be billed by the City and appear on the owner's property tax statement of account. If it remained unpaid, it would begin to accrue interest and would be a tax lien against the property, subject to enforcement for collection like other City property taxes and charges. Owners would be precluded from administratively challenging the charge since it is the result of a judicial finding and there would be no further basis for such challenge at the time that it would be billed to the owner.

Reasons for support

The New York City Department of Housing Preservation and Development (HPD) brings cases in the New York City Civil Court Housing Part to enforce compliance with the New York State Multiple Dwelling Law and the New York City Housing Maintenance Code. HPD may seek correction of conditions and civil penalties in addition to contempt sanctions, where necessary. For example, HPD brings heat and hot water cases seeking orders directing that heat and/or hot water be provided and maintained. HPD also brings comprehensive cases seeking the correction of all outstanding violations in a building, along with actions seeking compliance with vacate orders/orders to repair and with the Alternative Enforcement Program's orders to correct and/or for failure to file a proper property registration with HPD.

HPD seeks to collect money judgments resulting from these enforcement actions from owners who fail to timely pay civil penalties that have been agreed to or imposed by judgments from the court. In many cases, collection entails locating responsible individuals or companies and taking various steps, such as seizure of accounts and property, to enforce money judgments. The collection process is time consuming and many owners attempt to avoid paying the judgments for years. In addition, judgments may be wiped out if a property is foreclosed. The proposed legislation would convert these judgments, after they have remained unpaid for one year, into tax liens against the property and would allow the City to foreclose or sell these liens if they remain unpaid for five years. The tax liens would be subject to enforcement like other City property taxes, enhancing the City's ability to collect and providing a greater incentive to owners to maintain their properties.

Fiscal impact

None to state

Effective date

Immediately