BILL NUMBER: S5622A
SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:
An act to amend the real property actions and proceedings law and the
New York city civil court act, in relation to expanding the right to
seek the appointment of administrators of buildings to tenants and local
governments throughout the state and to repeal sections 777 and 796-i of
the real property actions and proceedings law relating thereto
 
PURPOSE:
This legislation expands the right to seek the appointment of adminis-
trators of buildings, pursuant to article 7-A, to tenants and local
governments throughout to make procedures conform with realities of
housing stock.
 
SUMMARY OF PROVISIONS:
Section 1 adds retaliation, interference with a tenants' rights to form
or participate in a tenant association, inclusion in the AEP program in
NYC, or a business practice of neglect to the grounds for initiating a
7-A proceeding.
Section 2 defines a business practice of neglect.
Section 3 amends the service requirements to initiate a 7-A proceeding.
Section 4 amends the requirements for contents to be included in a 7-A
proceeding to reflect the expanded grounds for bringing such a proceed-
ing.
Section 5 limits the amount of adjournments that can be granted to
respondents and establishes a timeline for the 7-A proceeding.
Section 6 amends the defenses available to repsondents to a 7-A proceed-
ing.
Section 7 establishes post-judgement requirements on the 7-A administra-
tor and the building owner.
Section 8 repeals Section 777 of the RPAPL.
Section 9 requires a 7-A administrator to use collected rent to fund a
rent abatement for tenants, should certain other costs be covered,
revises the criteria for selection of an administrator, limits the
circumstances upon which a court may discharge an administrator, and
requires municipalities to issue a finding of abandonment within a
certain timeframe.
Section 10 permits tenants to a 7-A proceeding to view certain accounts
and expenditures upon a motion to the court.
Section 11 expands the definition of "dwelling" to include mixed-use
premises.
Section 12 requires an administrator to show that they performed their
duties in a reasonable manner should a respondent to a summary proceed-
ing raise a warranty of habitability defense.
Section 13 requires a contract for sale of a building under a 7-A admin-
istrator to be reviewed by a court for final approval.
Section 14 voids any provision of a lease or contract that would waive a
tenants' right granted to them under Article 7-A.
Section 15 requires that 7-A proceedings be heard before any part of the
Housing Court designated to hear such proceedings.
Sections 16-25 amend Section 7-C of the RPAPL as applicable to reflect
changes to Section 7-A.
Section 26 establishes the effective date.
 
JUSTIFICATION:
Tenants need improved living conditions and to create a path to not-for-
profit or tenant/community ownership through reform of the outdated "7A"
program, a program which currently allows tenants in New York City to
seek court administrators in properties that are extremely physically
distressed.
The statute - which has not changed since the 1970s - is no longer work-
ing well for the housing market of 2021. 7A and 7C court administrators
are not held to high standards for maintaining and operating buildings -
in fact, the standards are practically non-existent - and there are
insufficient financial and other resources to support administrators in
doing an effective job. We are proposing key changes to the 7A and 7C
statute to make it easier for tenants to seek repairs/safe living condi-
tions; make it easier for buildings with persistent neglect to be trans-
ferred to nonprofit ownership. Major parts of this reform include, (i)
creating new grounds for action/appointment of 7A and 7C administrators:
a "business practice of neglect" statute, (ii) giving tenants more of a
say over who can be the administrator, and (iii) limiting the pathways
to remove an administrator.
 
LEGISLATIVE HISTORY:
S8117 of 2023-24:Died
A2194 of 2023-24:Died
A10407 of 21-22:Died in Housing in Judiciary in Judiciary
 
FISCAL IMPLICATION:
None
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law; provided, however, that the amendments to
subdivision 10 of section 778 of the real property actions and
proceedings law made by section nine of this act shall not affect the
repeal of such subdivision and shall be deemed repealed therewith.

Statutes affected:
S5622: 769 real property actions and proceedings law, 769(1) real property actions and proceedings law, 771 real property actions and proceedings law, 774 real property actions and proceedings law, 775 real property actions and proceedings law, 775(c) real property actions and proceedings law, 777 real property actions and proceedings law, 779 real property actions and proceedings law, 782 real property actions and proceedings law, 783 real property actions and proceedings law
S5622A: 769 real property actions and proceedings law, 769(1) real property actions and proceedings law, 771 real property actions and proceedings law, 774 real property actions and proceedings law, 775 real property actions and proceedings law, 775(c) real property actions and proceedings law, 777 real property actions and proceedings law, 779 real property actions and proceedings law, 782 real property actions and proceedings law, 783 real property actions and proceedings law, 796-b real property actions and proceedings law, 796-c real property actions and proceedings law, 796-c(1) real property actions and proceedings law, 796-d real property actions and proceedings law, 796-d(1) real property actions and proceedings law, 796-f real property actions and proceedings law, 796-h real property actions and proceedings law, 796-i real property actions and proceedings law, 796-j real property actions and proceedings law, 796-k real property actions and proceedings law, 796-m real property actions and proceedings law