2006 New York Code - Responsibility Of Stockholders Of Corporations Owning Multiple Dwellings Declared Nuisances.

 
    §  27-2114  Responsibility  of  stockholders  of  corporations  owning
  multiple dwellings declared nuisances. a. The term "nuisance"  shall  be
  held  to  embrace  public  nuisance  as known at common law or in equity
  jurisprudence. Whatever is dangerous to human  life  or  detrimental  to
  health,  and  whatever  dwelling is overcrowded with occupants or is not
  provided  with  adequate  ingress  or  egress  or  is  not  sufficiently
  supported, ventilated, sewered, drained, cleaned or lighted in reference
  to  its  intended  or  actual use, and whatever renders the air or human
  food or drink unwholesome, are also severally, in contemplation of  this
  section, nuisances. All such nuisances are unlawful.
    b.  Whenever  the department shall certify that any multiple dwelling,
  or any part of  its  premises,  or  the  plumbing,  sewerage,  drainage,
  lighting  or  ventilation  thereof,  is  in  a  condition  or  in effect
  dangerous to life or detrimental to health, the  department  may,  after
  giving  notice  to the owner and an opportunity to be heard at a hearing
  held for such purpose, declare the same, to the extent it may specify, a
  public  nuisance.  Such  declaration  shall  be  filed  in  the  central
  violation  bureau  as  provided by section three hundred twenty-eight of
  the multiple dwelling law, if applicable, or as a public record  in  the
  department.  The  officers  of  a  corporation upon which notice of such
  hearing has been served, other than a banking organization as defined in
  section two of the  banking  law,  a  national  banking  association,  a
  federal   savings   and   loan   association,  the  mortgage  facilities
  corporation, savings  banks  life  insurance  fund,  the  savings  banks
  retirement  system,  an  authorized  insurer  as  defined in section one
  hundred seven of  the  insurance  law,  or  a  trust  company  or  other
  corporation organized under the laws of this state all the capital stock
  of which is owned by at least twenty savings banks or by at least twenty
  savings  and  loan  associations  or a subsidiary corporation all of the
  capital stock  of  which  is  owned  by  such  trust  company  or  other
  corporation, shall serve similar notice on all stockholders of record of
  the corporation and other persons known to be stockholders or beneficial
  owners  of  the  stock  of the corporation. A stockholder upon whom such
  notice has been served shall  serve  similar  notice  upon  any  persons
  holding a beneficial interest in such stockholder's stock.
    c.  The department may order such nuisance to be removed in accordance
  with the provisions of article five of this subchapter, and if any order
  of the department is not complied  with,  then,  as  an  alternative  to
  proceeding  under  the provisions of article five of this subchapter, if
  the multiple dwelling involved shall have been declared to be  a  public
  nuisance pursuant to subdivision b of this section, and such declaration
  shall  have been filed as therein provided, the department or a receiver
  appointed pursuant to article six of this subchapter  or  section  three
  hundred nine of the multiple dwelling law or any tenant of such multiple
  dwelling may institute and maintain an action in the supreme court or in
  the  housing  part  of the New York city civil court in the county where
  the multiple dwelling is located against any owner or owners to whom the
  order was issued pursuant to section 27-2125 of  article  five  of  this
  subchapter  for  an order compelling such owner or owners to comply with
  the department's order and, if such action be brought by  such  receiver
  or  tenant,  for  payment  of  the costs and disbursements of the action
  including legal fees. Except as owners may have  otherwise  agreed,  any
  owner  who  removes or remedies the nuisance in compliance with an order
  of the department or court shall be entitled to recover a  proportionate
  share  of  the total expense of such compliance from all other owners to
  whom the department's order was issued or to whom such owner sent a copy
  of the department's order within thirty  days  of  receipt  of  same  by
  registered mail.


    d.  Whenever  a  multiple  dwelling  shall have been declared a public
  nuisance to any extent pursuant to subdivision b  of  this  section  and
  such  declaration  shall  have  been filed as therein provided, the term
  "owner" shall be deemed to include, in addition to persons mentioned  in
  the definition of the term in section four of the multiple dwelling law,
  all  the officers, directors and persons having an interest in more than
  ten percent of the issued and outstanding stock of the owner  as  herein
  defined,  as  holder  or  beneficial  owner  thereof, if such owner be a
  corporation other than a banking organization as defined in section  two
  of  the  banking  law, a national banking association, a federal savings
  and loan association, the mortgage facilities corporation, savings banks
  life insurance fund, the savings banks retirement system, an  authorized
  insurer as defined in section one hundred seven of the insurance law, or
  a  trust  company  or other corporation organized under the laws of this
  state all the capital stock of which is owned by at least twenty savings
  banks or  by  at  least  twenty  savings  and  loan  associations  or  a
  subsidiary  corporation  all  of  the capital stock of which is owned by
  such trust company or other corporation, and thereupon  any  corporation
  which  is included in the term "owner" as provided in this subdivision d
  shall file an additional statement of registration within ten days which
  shall contain the name  and  residence  and  business  address  of  each
  director  and stockholder of the corporation and of each person known to
  have any beneficial interest in such stock.
    e. Whenever a multiple dwelling shall  have  been  declared  a  public
  nuisance  to  any  extent pursuant to subdivision b of this section, and
  such  declaration  shall  have  been  filed  as  therein  provided,  all
  officers,  directors  and  persons  having  an  interest,  as  holder or
  beneficial owner thereof, in more than ten percent  of  the  issued  and
  outstanding  stock  of any corporation other than a banking organization
  as defined in section  two  of  the  banking  law,  a  national  banking
  association,  a  federal  savings  and  loan  association,  the mortgage
  facilities corporation, savings banks life insurance fund,  the  savings
  banks retirement system, an authorized insurer as defined in section one
  hundred  seven  of  the  insurance  law,  or  a  trust  company or other
  corporation organized under the laws of this state all the capital stock
  of which is owned by at least twenty savings banks or by at least twenty
  savings and loan associations or a subsidiary  corporation  all  of  the
  capital  stock  of  which  is  owned  by  such  trust  company  or other
  corporation, then in operation and control of  such  multiple  dwelling,
  shall,  in  addition  to all other liabilities and penalties provided in
  this code and elsewhere, be jointly and severally liable for all  injury
  to  person  or  property  thereafter  sustained  by  any  tenant of such
  multiple dwelling or  any  other  person  by  reason  of  the  condition
  constituting  such  public  nuisance and for all costs and disbursements
  including attorney's fees of any suit brought by such  tenant  or  other
  person.
    f.  No  civil  or  criminal  liability  or penalty shall attach to any
  person by reason of such person's ownership or beneficial  ownership  of
  stock  in  a  corporation  owning  a  multiple dwelling declared to be a
  public nuisance pursuant to subdivision b of this section because of his
  or her failure to comply with any of the provisions of this code,  whose
  interest  in  such  corporation is less than twenty-five per cent of the
  issued and outstanding stock  thereof,  as  owner  or  beneficial  owner
  thereof,  and who has sustained the burden of proving that he or she has
  not participated directly or indirectly in the management, operation  or
  control of such multiple dwelling.
    g.  No  civil  or  criminal  liability  or penalty shall attach to any
  person by reason of such person's ownership or beneficial  ownership  of


  stock  in  a  corporation  owning  a  multiple dwelling declared to be a
  public nuisance pursuant to subdivision b of this section because of his
  or her failure to comply with any of the provisions of this code  unless
  and  until  such  person  has  had a reasonable period of time to comply
  following his or her having become an owner as defined in this code.
    h. No civil or criminal liability  or  penalty  shall  attach  to  any
  person  who  shall  by  operation  of  law become an owner of a multiple
  dwelling then or thereafter certified and declared a public nuisance  to
  any  extent  pursuant to subdivision b of this section, or the holder or
  beneficial owner of stock in such owner, if a  corporation,  because  of
  his or her failure to comply with any of the provisions of this code and
  of  the multiple dwelling law for a period of six months after he or she
  acquired ownership of said multiple dwelling or the stock or  beneficial
  interest in the stock of a corporation which is the owner.