HPD Can Issue Loan to 7A Administrator

LVT Number: #24470

Tenants sued landlord, seeking repairs. HPD was joined in the case, and an Article 7A Administrator appointed to manage the buildings sought a loan from HPD for repairs. The court ruled that HPD had the authority to issue loans to the Article 7A Administrator for repair of the buildings and to place liens against the buildings in connection with the loans without prior court approval. Landlord appealed and lost, then appealed to a higher court, which again ruled against landlord. Although landlord claimed that the 7A Administrator misinterpreted the housing court's order, it clearly authorized the 7A Administrator to obtain loans from HPD and for HPD to place liens on the buildings in connection with those loans without court approval. In contrast, the court required the Administrator to obtain prior court approval if he sought a loan from another lending institution. Landlord also claimed that the court's order denied him due process. But landlord didn't raise this issue before the lower court and was, in any event, given a full opportunity to participate in the housing court proceeding.

Gonzales v. Zinner: 2012 NY Slip Op 08070, 2012 WL 5907216 (App. Div. 1 Dept.; 11/27/12; Tom, JP, Saxe, Richter, Abdus-Salaam, Feinman, JJ)