Sec.
[D26-55.01] 27-2130 Grounds for appointment of
receiver
Whenever the department
certifies that any condition in violation of this chapter or other applicable
law in any multiple dwelling or any part of its premises constitutes a serious
fire hazard or is a serious threat to life, health or safety it may, upon failure
of the owner to comply with an order to correct such conditions issued pursuant
to section 27-2125 of article five of this subchapter, apply for the appointment
of a receiver to repair and correct the violations.
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Sec.
[D26-55.03] 27-2131 Notice to owner, mortgagees
and lienors
a. If the department
intends to seek the appointment of a receiver to remove or remedy a condition
described in the preceding section, it shall serve upon the owner, along with
the order pursuant to section D27-2125 of article five of this subchapter, a
notice stating that in the event the violations covered by the order are not
removed or remedied in the manner and within the time specified therein, the
department may apply for the appointment of a receiver of the rents, issues
and profits of the property with rights superior to those of the owner and any
mortgagee or lienor.
b. Within five
days after service of the order and notice upon the owner, the department shall
serve a copy of the order and notice upon every mortgagee and lienor of record,
personally or by registered or certified mail, at the address set forth in the
recorded mortgage or lien. If no address appears therein, a copy shall be sent
by registered mail to the person at whose request the instrument was recorded.
c. The department
shall file a copy of the notice and order in the office of the county clerk
in which mechanics liens affecting the property would be filed.
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Sec.
[D26-55.05] 27-2132 Order to show cause
a. The department
upon failure of the owner to comply with an order [under]* section 27-2131 of
this article within the time provided therein may thereafter apply to a court
of competent jurisdiction in the county where the property is situated for an
order directing the owner and any mortgagees or lienors of record to show cause
why the commissioner of housing preservation and development should not be appointed
receiver of the rents, issues and profits of the property and why the receiver
should not remove or remedy such condition and obtain a lien in favor of the
department of housing preservation and development against the property having
the priority provided in Article 8 of this subchapter to secure repayment of
the costs incurred by the receiver in removing such conditions. Such application
shall contain (a) proof by affidavit that an order of the department has been
issued, served on the owner, mortgagees and lienors, and filed, in accordance
with section 27-2131 of this article (b) a statement that a serious fire hazard
or a serious threat to life, health or safety continued to exist in said dwelling
after the time fixed in the department order for correction of the condition
and a description of the dwelling and conditions involved; (c) a brief description
of the nature of the work required to remove or remedy the condition and an
estimate as to the cost thereof.
b. The order to
show cause shall be returnable not less than five days after service is completed.
c. A copy of the
order to show cause, and the papers on which it is based, shall be served on
the owner, mortgagees of record and lienors. If any such persons cannot with
due diligence be served personally within the city within the time fixed in
the order, then service may be made by posting a copy of the order in a conspicuous
place on the premises, and by sending a copy thereof by registered mail to the
owner at the last address, if any, registered by such owner with the department,
or to his or her last address, if any, known to the department, or, in the case
of a mortgagee or lienor to the address set forth in the recorded mortgage or
lien, and by publication in a newspaper of general circulation in the county
where such premises are located. Service shall he deemed complete on filing
proof thereof in the office of the clerk of the court in which application for
such order is
made.
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Sec.
[D26-55.07] 27-2133 Temporary appointment of receiver
a. If the condition
of the premises is such that unless immediately cured irreparable damage may
be caused to the building or it constitutes an imminent danger to its occupants
or the occupants of adjoining properties, then the order to show cause may be
returnable in the discretion of the court in less than five days, and in such
case, service may be made by posting a copy of the order in a conspicuous place
on the premises and by mailing a copy to the owner at the address registered
with the department and to the mortgagees and lienors at their respective addresses.
But any appointment of a receiver without service pursuant to subdivision c
of section 27-2132 of this article shall be temporary only and expire not more
than 30 days thereafter unless, prior to the expiration of the 30 days, the
department shall serve notice on the owner, mortgagee and lienors in the manner
provided for in subdivision c of section 27-2132 of this article of intention
to apply to the court at a date fixed in such notice and not less than five
days after the service of such notice, for an extension of the receivership.
Upon such service the period of the appointment of the temporary receiver shall
be automatically extended for a further period of 15 days. The notice shall
also contain, in addition to the order to show cause and the papers on which
it is based, a statement of any expenditures made or obligations incurred by
the receiver during the period of his or her temporary appointment. On the date
fixed in the notice, the court shall determine whether or not to extend the
period of receivership. Such determination shall be made as if the application
were an original one for the appointment of a receiver.
b. A temporary
receiver shall have the powers and duties provided in section 27-2135 of this
article, except that he or she shall not, without express order of the court,
make any repairs or improvements to the property or incur any expenses in the
operation thereof during the period of his or her temporary appointment except
such as may be necessary (1) to remedy or remove the immediate condition or
conditions, which called for his or her appointment, and (2) to the ordinary
operation and maintenance of the property. For such specific purpose the receiver
shall be entitled to let such contracts and undertake such expenses as may be
necessary to accomplish the specific results without advertisements and without
procuring competitive bids.
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Sec.
[D26-55.09] 27-2134 Proceedings on return of order
to show cause
a. On the return
of the order to show cause, determination thereof shall have precedence over
every other business of the court unless the court shall find that some other
pending proceeding, having a similar statutory preference, has priority.
b. If the court
finds that the facts stated in the application warrant the granting thereof,
then it shall appoint the commissioner of housing preservation and development
receiver of the rents, issues and profits of the property.
c. Notwithstanding
subdivision (b) of this section, if, after determination of the issue, the owner,
or any mortgagee or lienor or other person having an interest in the property,
shall apply to the court to be permitted to remove or remedy the conditions
set forth in the department's application and shall (1) demonstrate the ability
promptly to undertake the work required; and (2) post security for the performance
thereof within the time, and in the amount and manner, deemed necessary by the
court, then the court may in lieu of appointing a receiver issue an order permitting
such person to perform the work within a time fixed by the court. If at the
time fixed in the order the work has not been satisfactorily done, the court
shall appoint such receiver. If after the granting of an order permitting a
person to perform the work but before the time fixed by the court for the completion
thereof it shall appear to the department that the person permitted to do the
same is not proceeding with due diligence, then the department may apply to
the court, on notice to those persons who have appeared in the proceeding, for
a hearing to determine whether a receiver shall be appointed immediately. On
the failure of any person to complete the work in accordance with the provisions
of an order under this subdivision, the department, or any receiver thereafter
appointed shall be reimbursed for costs incurred by him or her in removing or
remedying the condition and other charges herein provided for out of the security
posted by such person.
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Sec.
[D26-55.11] 27-2135 Powers and duties of receiver
a. A receiver appointed
pursuant to this article shall have all of the powers and duties of a receiver
appointed in an action to foreclose a mortgage on real property, together with
such additional powers and duties as herein granted and imposed. Such receiver
shall not be required to file any bond.
b. The receiver
shall with all reasonable speed remove violations in the dwelling and its premises,
including those constituting a fire hazard or a threat to life, health or safety.
He or she may also, in addition to ordinary repairs, maintenance and replacement
make other improvements to effect a rehabilitation of the property, in such
fashion as is consistent with maintaining safe and habitable conditions over
the remaining useful life of the dwelling. He or she shall have the power to
let contracts or incur expenses therefor in accordance with the provisions of
law applicable to contracts for public works except that advertisement shall
not be required for each such contract. Notwithstanding any provision of law,
the receiver may let contracts or incur expenses for individual items of repairs,
improvements, or supplies without the procurement of competitive bids where
the total amount of any such individual item does not exceed twenty-five hundred
dollars.
c. The receiver
shall collect the accrued and accruing rents, issues and profits of the dwelling
and apply the same to the cost of the repairs and improvements authorized in
subdivision (b) of this section, to the payment of expenses reasonably necessary
to the proper operation and management of the property, including insurance
and the fees of the managing agent, and the necessary expenses of his or her
office as receiver, the repayment of all monies advanced to the receiver by
the department of housing preservation and development to cover the costs incurred
by the receiver and interest thereon; and then, if there be a surplus, to unpaid
taxes, assessments, water rents, sewer rents, and penalties and interest thereon,
and then to sums due to mortgagees or lienors. If the income of the property
shall be insufficient to cover the cost of repairs and improvements or the expenses
reasonably necessary to the proper operation and management of the property
and other necessary expenses of the receiver, the department of housing preservation
and development shall advance to the receiver any sums required to cover such
cost and expense and thereupon shall have a lien against the property having
the priority provided in Article 8 of this subchapter for any such sums so advanced
with interest thereon.
d. The receiver
shall be entitled to the same fees, commissions and necessary expenses as receivers
in actions to foreclose mortgages. Such fees and commissions shall be paid into
the fund created pursuant to section 27-2111 of this article one of this subchapter.
The receiver shall be liable only in his official capacity for injury to person
and property by reason of conditions of the premises in a case where an owner
would have been liable; such receiver shall not have any liability in his or
her personal capacity. The personnel and facilities of the department of housing
preservation and development and the corporation counsel shall be availed of
by the receiver for the purpose of carrying out his or her duties as receiver
and the costs of such services shall be deemed a necessary expense of the receiver.
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Sec. [D26-55. 13] 27-2136
Discharge of receiver
The receiver shall
be discharged upon rendering a full and complete accounting to the court when
the repairs and improvements herein authorized are completed and the cost thereof
and all other costs authorized herein have been paid or reimbursed from the
rents and income of the dwelling and the surplus money, if any, has been paid
over to the owner or the mortgagee or lienor as the court may direct. However,
at any time, the receiver may be discharged upon filing his or her account as
receiver without affecting the right of the department of housing preservation
and development to its lien. Upon the completion of the repairs and improvements,
the owner, the mortgagee or any lienor may apply for the discharge of the receiver
upon payment to the receiver of all moneys expended by him therefor and all
other costs authorized by section 27-2135 of this article which have not been
paid or reimbursed from the rents and income of the dwelling.
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Sec.
[D26-55.15] 27-2137 Recovery of expenses of receivership;
lien of receiver
a. The expenditures
made by the receiver pursuant to section 27-2135 of this article shall, to the
extent that they are not recovered from the rents and income of the property
collected by the receiver, constitute a debt of the owner and a lien upon the
building and lot, and upon the rents and income thereof. Except as otherwise
provided in this section, the provisions of article 8 of this subchapter shall
govern the effect and enforcement of such debt and lien; references therein
to the department shall, for purposes of this article be deemed to refer to
the receiver and, after such receiver's discharge, the department of housing
preservation and development.
b. Failure to
serve a copy of the order and notice required in the manner specified by section
27 2131 of this article, or failure to serve any mortgagee or lienor with a
copy of the order to show cause as required by subdivision c of section 27-2132
of this article, shall not affect the validity of the proceeding or the appointment
of a receiver, but the rights of the department of housing preservation and
development or of the receiver shall not in such event be superior to the rights
of any mortgagee or lienor who has not been served as provided therein.
c. Any mortgagee
or lienor who at his or her expense remedies or removes the conditions to the
satisfaction of the court pursuant to the provisions of subdivision c of section
27-2134 of this article shall have and be entitled to enforce a lien equivalent
to the lien granted to the receiver in favor of the department of housing preservation
and development hereunder. Any mortgagee or lienor who, following the appointment
of a receiver by the court, shall reimburse the receiver and the department
of housing preservation and development for all costs and changes as hereinabove
provided shall be entitled to an assignment of the lien granted to the receiver
in favor of the department of housing and development preservation.
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Sec.
[D26-55.17] 27-2138 Obligations of owner not affected
Nothing herein
contained shall be deemed to relieve the owner of any civil or criminal liability
incurred or any duty imposed by law by reason of acts or omissions of the owner
prior to the appointment of a receiver, nor shall anything contained herein
be construed to suspend during the receivership any obligation of the owner
for the payment of taxes or other operating and maintenance expenses of the
dwelling nor of the owner or any other person for the payment of mortgages or
liens.
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