§ 26-305 Expenses of relocation.
AC § 26-305
1.Whenever the department of housing preservation and development has incurred expenses in providing relocation services, including, but not limited to, expenses incurred in the provision of temporary housing, for tenants pursuant to subparagraph (v) of paragraph (a) of subdivision one of section 26-301 of this chapter, the department shall be entitled to reimbursement of such expenses from the owner of the building from which such tenants were relocated, if the conditions giving rise to the need for such relocation arose as a result of the negligent or intentional acts of such owner, or as a result of the failure of such owner to maintain or repair such building in accordance with the standards prescribed by the housing maintenance code, building code, health code, or any other applicable law governing such building. The department shall recover such expenses from such owner. "Owner" for purposes of this section shall mean and include the owner or owners of the freehold of the premises or lesser estate therein, or any successor in interest of such owner or owners, a mortgagee or vendee in possession, a lienholder, assignee of rents, receiver, executor, trustee, lessee, agent, or any other person, firm or corporation, in whole or partial possession, or directly or indirectly in control of a building.
2.The expenses incurred for which payment to the department is due under the provisions of this section shall include but not be limited to departmental costs, all expenses incurred in the provision of temporary housing, bonuses, moving expenses and any allowances given to induce tenants to relocate voluntarily, as authorized by rules of the department.
3.The department may bring an action against the owner for the recovery of such expenses. The institution of such action shall not suspend or bar the right to pursue any other remedy provided by this section or any other law for the recovery of such expenses.
4.To the extent that such expenses arise from any vacate order issued prior to the effective date of the local law that added paragraph d of this subdivision, they shall, unless fully recovered by the department, and except as herein provided, constitute a lien or liens upon such building and the lot upon which it stands, with the effect and enforcement of such lien or liens governed by the provisions of law regulating mechanics liens and by the provisions of paragraphs (a), (b) and (c) of this subdivision. To the extent that such expenses arise from a vacate order issued on and after the effective date of the local law that added paragraph d of this subdivision, they shall constitute a debt recoverable from the owner of the building at which the vacate order was issued with the effect and enforcement of such debt governed by paragraph (d) of this subdivision.
(a)No such lien shall be valid for any purpose until the department shall file a notice of lien containing the same particulars as are required to be stated with reference to mechanics liens, with the further statement that the expenses had been incurred for relocation services provided pursuant to subparagraph (v) of paragraph (a) of subdivision one of section 26-301 of this chapter together with a statement of such expenses. The department may file one or more such liens for relocation expenses incurred with respect to any building within one year of incurring any such expenses. In computing such one year period, the latest date on which any expense in relation to which such notice was filed has been incurred shall be deemed the date on which all of the expenses stated in such notice were incurred.
(b)Such lien or liens shall continue for a period of ten years from the time of filing of notice thereof, unless proceedings are in the meantime taken to enforce or discharge such lien or liens, which proceedings may be taken at any time during the continuance of such lien or liens or unless an order is granted within ten years from the time of the filing of any such lien or liens by a court of record or a judge or justice thereof continuing such lien or liens, in which case such lien or liens shall be redocketed as of the date of granting such order and a statement made continuing such lien or liens by virtue of such order. No lien shall be continued by such order for more than ten years from the granting thereof, but a new order and entry may be made in each successive ten-year period. Any judgment in a proceeding to enforce or discharge such lien shall constitute a lien in the same manner and from the same date as the original lien. The initiation of any such proceedings shall not suspend or bar the right to pursue any other remedy provided by this section or any other law for the recovery of such expenses.
(c)Notwithstanding anything to the contrary in paragraph b of this subdivision, a lien which already exists and is currently docketed on the effective date of the local law that added this paragraph shall be deemed continued for a period of ten years commencing from the date of the last renewal or docketing of said lien, whichever is later.
(d)Tax lien.
(1)To the extent the department incurs any expenses in providing relocation services for tenants pursuant to subparagraph (v) of paragraph (a) of subdivision 1 of section 26-301 of this chapter, as described by subdivision 2 of this section, the department may record the charge for such expenses within 30 days of each and every payment to the provider of such services. The department may record and maintain the charges for such expenses on its records electronically.
(2)A notice thereof, stating the amount due and the nature of the charge for the first payment made by the department to the provider of such services, shall be sent by the department of finance in accordance with section 11-129 of this code, and such charge shall be due and payable, notwithstanding any other provision of law, on the due and payable date provided on the statement of account containing such charge. Such notice shall constitute a final determination that: (A) the dwelling unit or, as applicable, the building, of the tenants who have been relocated was the subject of a vacate order; (B) the owner of such dwelling unit, or, as applicable, such building, is liable for expenses incurred by the department for the provision of relocation services for such tenants; and (C) such owner is liable for such expenses until the department terminates the provision of relocation services to such tenants. Such notice shall also constitute a final determination of the amount of such charge for the first payment made by the department to the provider of such services.
(3)A notice of any subsequent charge for any additional payment made by the department to the provider of such services shall be sent by the department of finance in accordance with section 11-129 of this code, and such charge shall be due and payable, notwithstanding any other provision of law, on the due and payable date provided on the statement of account containing such charge. Such notice shall constitute a final determination of the amount of any such charge and shall not constitute a new determination of the provisions described in clauses (A), (B) and (C) of subparagraph 2 of this paragraph.
(4)An owner, as defined in subdivision 1 of this section, may seek judicial review of such charge through a proceeding under article seventy-eight of the civil practice law and rules as of the date the department of finance sent the notice described in subparagraph (2) or (3) of this paragraph. In any such proceeding, the validity of the lien shall not be subject to review based on the lawfulness of the order for such building or part thereof to be vacated.
(5)All expenses incurred by the department for the provision of relocation services shall constitute a lien upon the building and the lot upon which it stands, when the charge for such expenses is not paid as of the due and payable date provided on the statement of account containing such charge. Such lien shall have a priority over all other liens and encumbrances on the building and the lot upon which it stands except for the lien of taxes and assessments.
(6)If such charge is not paid by the date when such charge is due and payable in accordance with subparagraph (2) or (3) of this paragraph, it shall be the duty of the department of finance to receive interest thereon, to be calculated to the date of payment from the due and payable date. The rate of interest applied to such unpaid charge shall be the rate applicable to such building for nonpayment of taxes on real property pursuant to subdivision (e) of section 11-224.1.
(7)Such charge and the interest thereon shall continue to be, until paid, a lien upon the building and the lot upon which it stands. Such lien shall be a tax lien within the meaning of sections 11-319 and 11-401 of this code and may be sold, enforced or foreclosed in the manner provided in chapters 3 and 4 of title 11 of this code. (Am. L.L. 2019/159, 9/14/2019, eff. 9/14/2021) Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 1997/065.
