N.Y. Public Housing Law Section 50
Foreclosure and other remedies against an authority


1.

In an action or proceeding to foreclose a mortgage on property of an authority, the authority and the municipality, in addition to all other necessary parties, shall be made parties defendant and shall take such steps in said action as may be necessary to protect the public interest therein and no costs shall be awarded against them. Wherever under the instrument creating a lien a notice of default in writing is required to be served upon an authority before the institution of a foreclosure action or proceeding, a copy of such notice shall be served upon the municipality at least five days before the institution of such proceedings. At such a sale of the property of the authority pursuant to foreclosure or other proceedings, the municipality may purchase the property affected; or, it may, prior to the institution of a foreclosure action or proceeding, or during such action or proceeding, make such payment or take such other steps as may be necessary to cure any defaults that may have occurred and such steps as may be necessary to protect the property of an authority and the public interest.

2.

In addition to any other rights and remedies, but subject to such limitations as may be made by contract, any obligee, lessor or mortgagee, or any trustee or agent designated in the bonds of an authority or under a resolution, mortgage or indenture executed by an authority as security for its bonds may:

(a)

by mandamus or other suit, action or proceeding at law or in equity compel the authority to perform each and every term, provision and covenant contained in any agreement of the authority with an obligee, trustee, mortgagee or lessor and require the performance of any or all such covenants and agreements of the authority and of the duties imposed upon the authority by this article;

(b)

by action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of such obligee, trustee, mortgagee or lessor;

(c)

by suit, action or proceeding in any court of competent jurisdiction compel possession of any project or any part thereof to be surrendered to such obligee, trustee, mortgagee, agent or lessor having the right to such possession under any agreement with the authority;

(d)

by suit, action or proceeding in any court of competent jurisdiction obtain the appointment of a receiver of any project of the authority or any part thereof and of the rents and profits therefrom. If such receiver be appointed, he may enter and take possession of such project or any part or parts thereof and operate and maintain the same, and collect and receive all fees, rents, revenues, or other charges thereafter arising therefrom in the same manner as the authority itself might do, and shall keep such moneys in a separate account or accounts and apply the same in accordance with the obligations of the authority as the court shall direct;

(e)

by action or suit in equity require an authority to account as if it were the trustee of an express trust.

Source: Section 50 — Foreclosure and other remedies against an authority, https://www.­nysenate.­gov/legislation/laws/PBG/50 (updated Sep. 22, 2014; accessed Jun. 8, 2024).

30
Organization of authorities
31
Scope of authority’s jurisdiction
32
Officers and employees
33
Transfer of officers and employees
34
Vacancies and removals
35
Non-liability of authority members
36
Disqualification of members and employees of authorities
37
Powers of authority
38
An authority shall file with the commissioner a copy of each proposed project embodying the plans, layout, estimated costs and proposed m...
39
Projects financed solely by authorities
40
Aid from and cooperation with federal government
41
Power to issue authority bonds
42
Provisions of authority bonds
44
Signature on authority bonds
45
Repurchase of authority bonds
46
Suit on authority bonds
47
Bond covenants of an authority
48
Guaranteed indebtedness of an authority
49
Authority obligations as legal investments and legal security for deposits by public officers
50
Foreclosure and other remedies against an authority
51
Liability of state or municipality
52
Tax exemptions of an authority
53
Depositories of authority funds
54
Filing by authority of by-laws, rules and regulations
55
Projects undertaken by municipalities
55‑A
Facilities incidental or appurtenant to a project
56
Authorities created prior to the enactment of this chapter
57
Dissolution of authorities
58
Sale or lease of municipal projects by authorities
58‑A
Sale of dwelling units by authorities
58‑B
Sale or lease of project in connection with federal program of assistance for low income housing
59
Disposal of records
60
Reproduction of records
61
Tenant meetings in common areas

Accessed:
Jun. 8, 2024

Last modified:
Sep. 22, 2014

§ 50’s source at nysenate​.gov

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