New York Consolidated Laws, Private Housing Finance Law - PVH § 91. Proceedings against housing companies

1. Whenever the commissioner shall be of the opinion that a housing company is failing or omitting, or is about to fail or omit to do anything required of it by law or by order of the commissioner or is doing or is about to do anything, or permitting anything, or is about to permit anything to be done, contrary to and in violation of law or of any order of the commissioner, or which is improvident or prejudicial to the interest of the public, the lienholders, the shareholders, partners, beneficiaries or the tenants, the commissioner shall commence an action or proceeding in the supreme court of the state of New York in the name of the commissioner, in accordance with the provisions of the civil practice law and rules for the purpose of having such violations or threatened violations stopped and prevented, and in such action or proceeding, the court may appoint a temporary or permanent receiver or both.  Such action or proceeding shall be commenced by a petition to the supreme court, alleging the violation complained of and praying for appropriate relief.  It shall thereupon be the duty of the court to specify the time, not exceeding twenty days after service of a copy of the petition, within which the housing company complained of must answer the petition.  In case of default in answer or after answer the court shall immediately inquire into the facts and circumstances in such manner as the court shall direct without other or formal pleadings, and without respect to any technical requirements.  Such other persons or corporations as it shall seem to the court necessary or proper to join as parties in order to make its order or judgment effective, may be joined as parties.  The final judgment in any such action or proceeding shall either dismiss the action or proceeding or direct that an order or an injunction, or both, issue, or provide for the appointment of a receiver as prayed for in the petition, or grant such other relief as the court may deem appropriate.

2. In the event that a municipality shall make a loan to a housing company, the municipality, as well as the commissioner, shall have the powers enumerated in subdivision one of this section.