Section 778. Appointment of administrator

1. The court is authorized and
  empowered, in implementation of a judgment rendered pursuant to  section
  seven  hundred  seventy-six  or  seven  hundred  seventy-seven  of  this
  article, to appoint a person  other  than  the  owner,  a  mortgagee  or
  lienor,  to receive and administer the rent moneys or security deposited
  with him subject to the court's direction. The  court  may  appoint  the
  commissioner  of  the  department  of  the city of New York charged with
  enforcement of the housing maintenance code of such city or his designee
  as such administrator, provided that he shall consent,  in  writing,  to
  such  appointment.  Any  administrator  is  authorized  and empowered in
  accordance with the direction of  the  court,  to  order  the  necessary
  materials,  labor  and  services  to  remove  or  remedy  the conditions
  specified in the judgment, and to make disbursements in payment thereof;
  and to demand, collect and receive the rents from the  tenants;  and  to
  institute all necessary legal proceedings including, but not limited to,
  summary  proceedings  for  the  removal of any tenant or tenants; and 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 parts of said premises for terms  that  the  court  may
  approve.  In addition, such administrator is authorized and empowered in
  accordance with the direction of the court  to  accept  and  repay  such
  moneys  as  may be received from the department charged with enforcement
  of the housing maintenance code of the city of New York for the  purpose
  of  replacing  or  substantially  rehabilitating systems or making other
  repairs or capital improvements authorized  by  the  court.  All  moneys
  expended  by the department 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. Such lien shall be enforced
  in accordance with the provisions of article eight of subchapter five of
  the   housing   maintenance   code   of  the  city  of  New  York.  Such
  administrator, shall, upon completion of the  work  prescribed  in  such
  judgment,  file  with  the  court  a full accounting of all receipts and
  expenditures for such work. Such  administrator  shall  dispose  of  the
  rents  and  other  monies  deposited with him according to the following
  order of priority:
    (a) 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.
    (b)  Payment  of  a  reasonable  amount  for  the  services  of   such
  administrator.
    (c) Payment of outstanding real property tax liens claimed by the city
  of New York.
    (d)  Payment  of outstanding emergency repair liens filed and recorded
  by the city of New York and outstanding liens filed and recorded by  the
  city pursuant to this section.
    (e)  Payment  to  the owner of any surplus remaining after payments of
  paragraphs (a) through (d) of this subdivision have been made.
    2. Unless the administrator is the city of New  York,  the  court  may
  allow  from  the  rent moneys or security on deposit a reasonable amount
  for services of such administrator.
    3.  Unless  such  administrator  is  the  city  of   New   York,   the
  administrator  so appointed 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.  Such  administrator  shall  file  a  transcript  of  the  judgment
  appointing  him  with  the  county  clerk  within  fifteen  days  of his
  appointment.
    5.  The  duties  of  such  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  paragraph  (e)  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
  duties as administrator pursuant to this article.
    6. Such administrator shall be liable only in  his  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  shall  not
  have any liability in his personal capacity.
    7.  No city or county specified in section seven hundred sixty-nine of
  this article shall be liable to any party, including such  administrator
  or  the owner, for injury to persons or property by reason of conditions
  of the premises or the acts or omissions of such  administrator,  except
  that  when  the  city  of New York is appointed administrator, liability
  shall be determined in accordance with subdivision six of this section.
    8. The commissioner of the department of the city of New York  charged
  with  the enforcement of the housing maintenance code of such city 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.
  Unless the administrator is the city of New York, any  person  appointed
  as  an  administrator  within such city shall be selected from among the
  persons approved as administrators pursuant to such list.
    9. Such 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  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. (a) Where  a  building  for  which  an  administrator  has  been
  appointed  pursuant to this section is transferred to a new owner at any
  time following the appointment of such  administrator,  whether  or  not
  such  building  remains  subject  to  such administrator, the department
  charged with enforcement of the housing maintenance code of the city  of
  New York may enter into a regulatory agreement with such new owner. Such
  regulatory  agreement  may  impose  such  terms  and conditions upon the
  operation and repair of such building as such department may  determine.
  Notwithstanding  any general, special or local law to the contrary, such
  regulatory agreement may provide that, upon transfer of such building to
  the new owner, any outstanding liens filed with and recorded by the city
  pursuant to this section or pursuant to section three  hundred  nine  of
  the multiple dwelling law shall immediately be reduced to zero, provided
  that  such regulatory agreement shall require, in consideration for such
  reduction to zero, the provision of adequate, safe and sanitary  housing
  accommodations  for  persons of low income for a period of not less than
  thirty years. Any regulatory  agreement  pursuant  to  this  subdivision

  shall include a certification by the new owner of the real property that
  (i)  the  prior  owner  has  no direct or indirect interest in such real
  property, and (ii) the prior owner has no direct or indirect interest in
  such new owner.
    (b)  On or about June thirtieth, two thousand nine and for every three
  years thereafter for as long as the program continues to be  in  effect,
  the  city shall submit a report to the governor, the temporary president
  of the senate, the speaker of the assembly, the minority leader  of  the
  senate  and  the  minority leader of the assembly. Each report following
  the initial report shall describe the  program  activities  carried  out
  during the three prior calendar years pursuant to this subdivision.
    * NB Repealed June 30, 2012