Bank Must Maintain Building in Foreclosure

HPD brought two HP proceedings against Deutsche Bank, which held the mortgage for landlord's building and was in the process of foreclosing on the property. HPD claimed that the bank was responsible for maintaining the building, had failed to do so, and should be fined. The court ruled for HPD in part. The bank was subject to Real Property Actions and Proceedings Law Section 1307 and must maintain the building. HPD could submit a sworn statement to show how much money it had spent on maintaining the building on behalf of the bank from November 2012 to August 2013 and was entitled to a money judgment in that amount. HPD also could seek future judgments in this proceeding by submitting additional statements to the court if it continued to make repairs. But HPD couldn't collect on the judgments now. It could only place the judgments as liens against the building. And although the building qualified for the Alternate Enforcement Program under NYCAC Section 2153, that program was available only against the property "owner," and the bank wasn't the building owner. 

HPD v. Deutsche Bank National Trust Company: 2013 NY Slip Op 51554(U), 2013 WL 5336761 (Civ. Ct. NY; 9/12/13; Straniere, J)