New York State Bill A6831

Text of New York State Bill A06813


                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                         6813

                              1997-1998 Regular Sessions

                                 I N  A S S E M B L Y

                                    March 25, 1997
                                      ___________

       Introduced  by M. of A. DINOWITZ, COLTON, DIAZ -- read once and referred
         to the Committee on Judiciary

       AN ACT to amend the  real  property  actions  and  proceedings  law,  in
         relation to the deposit of monies by a landlord in certain actions and
         proceedings and the application of interest earned on such deposits

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:

    1    Section 1. Section 731 of the real property  actions  and  proceedings
    2  law is amended by adding a new subdivision 3 to read as follows:
    3    3.  (A) (1) THE PROVISIONS OF THIS SUBDIVISION SHALL APPLY TO ANY CITY
    4  HAVING A POPULATION OF ONE MILLION OR MORE.
    5    (2) ANY SUMMONS OR NOTICE OF  PETITION  IN  AN  ACTION  OR  PROCEEDING
    6  SUBJECT TO THE PROVISIONS OF THIS SUBDIVISION SHALL STATE THAT A DEFEND-
    7  ANT  OR  RESPONDENT  MAY  BE  REQUIRED  TO PAY OR DEPOSIT WITH THE COURT
    8  AMOUNTS SO ORDERED PREVIOUSLY BY THE DIVISION OF HOUSING  AND  COMMUNITY
    9  RENEWAL.
   10    (B)  (1) THE COURT SHALL IN NO CASE GRANT A STAY WHERE IT APPEARS THAT
   11  THE CONDITION AGAINST WHICH THE NOTICE OR ORDER  IS  DIRECTED  HAS  BEEN
   12  CREATED BY THE WILFUL OR NEGLIGENT ACT OF THE TENANT OR HIS AGENT.  SUCH
   13  STAY  SHALL CONTINUE IN FORCE, UNTIL AN ORDER SHALL BE MADE BY THE COURT
   14  VACATING IT, BUT NO ORDER VACATING SUCH STAY SHALL BE MADE, EXCEPT  UPON
   15  THREE  DAYS`  NOTICE OF THE HEARING TO THE TENANT, OR RESPONDENT, OR HIS
   16  ATTORNEY, AND PROOF THAT SUCH NOTICE OR ORDER HAS BEEN COMPLIED WITH.
   17    (2) IN ANY ACTION BROUGHT AGAINST A LANDLORD, THE  COURT  SHALL,  UPON
   18  THE  LANDLORD`S FIRST APPEARANCE IN COURT OR UPON THE DATE SET THEREFOR,
   19  IF THE LANDLORD SHALL FAIL TO APPEAR IN COURT, REQUIRE THAT THE LANDLORD
   20  DEPOSIT WITH THE CLERK OF THE COURT THE AMOUNT CLAIMED TO BE  DUE  BASED
   21  UPON THE ORDER OF THE DIVISION OF HOUSING AND COMMUNITY RENEWAL.
   22    (C)  IF  THE LANDLORD FAILS TO MAKE THE INITIAL PAYMENT OR DEPOSIT, OR
   23  ANY SUBSEQUENT PAYMENT OR DEPOSIT, ANY STAY ISSUED  SHALL  THEREUPON  BE
   24  CANCELLED, IMMEDIATE TRIAL OF THE UNDERLYING ISSUE SHALL BE HAD, AND THE

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             { } is old law to be omitted.
                                                                  LBD03042-05-7

       A. 6813                            2

    1  LANDLORD  SHALL BE ENTITLED TO INTERPOSE NO DEFENSE OR COUNTERCLAIM. THE
    2  PROVISIONS OF THIS PARAGRAPH SHALL NOT BE CONSTRUED TO BAR THE  INTERPO-
    3  SITION  OF  SUCH  A  DEFENSE  OR  COUNTERCLAIM IN A SUBSEQUENT ACTION OR
    4  PROCEEDING.
    5    (D)  THE  PROVISIONS  OF THIS SUBDIVISION SHALL BE ADMINISTERED BY THE
    6  OFFICE OF COURT ADMINISTRATION. FUNDS DEPOSITED WITH THE COURT  PURSUANT
    7  TO THIS SUBDIVISION SHALL BE DEPOSITED INTO AN INTEREST-BEARING ACCOUNT.
    8  THE  INTEREST  ACCRUING ON SUCH FUNDS SHALL BE USED TO FUND THE EXPENSES
    9  OF THE ADMINISTRATION OF THIS SUBDIVISION.  THE BALANCE OF SUCH INTEREST
   10  SHALL BE DEPOSITED TO THE CREDIT OF THE TENANT.
   11    S 2. This act shall take effect on the one hundred twentieth day after
   12  it shall have become a  law.  The  office  of  court  administration  is
   13  authorized  to promulgate any and all rules and regulations and take any
   14  other measures necessary to implement this act on its effective date  on
   15  or before such date.