N.Y.C. Admin. Code § 26-405

Citation
N.Y.C. Admin. Code § 26-405
Source
Official source
Original Source
https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCadmin/0-0-0-206052 ↗

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(b) Notwithstanding any provision of this chapter to the contrary, whenever in the judgment of the city rent agency action as provided in paragraph two or three of this subdivision h is necessary or proper in order to effectuate the purposes of this chapter, such agency may in lieu of decreasing the maximum rents thereof issue orders adjusting all controlled rents and directing that rents be paid into an escrow account for the uses stated in subparagraph (a) of this paragraph four where:

(1) The landlord fails to take corrective action after notice by the city rent agency of proposed action to decrease the maximum rents pursuant to paragraph two or three of this subdivision h, and,

(2) The city rent agency has notified all mortgagees who have filed with the city rent agency a declaration of interest in such property and in such proposed action, and,

(3) The landlord has failed for three consecutive months to collect any controlled rents or to commence court proceedings for their collection or if such proceedings have been commenced, the landlord has not diligently prosecuted them or such proceedings have not resulted in judgment in favor of such landlord.

(c) The city rent agency shall promulgate rules and regulations for the administration of escrow and trust accounts set forth in this paragraph four. Any person serving as escrow agent or trustee shall not be liable except for fraud, breach of fiduciary duties or misfeasance.