N.Y. Real Property Actions & Proceedings Law § 796-h: Judgment

§ 796-h. Judgment. 1. The court shall render a final judgment either:

(a) Dismissing the petition for failure to affirmatively establish the

allegations thereof or because of the affirmative establishment by the

owner or a mortgagee or lienor of record of a defense or defenses

specified in section seven hundred ninety-six-g of this article; or

(b)(i) Directing that:

(A) the rents due on the date of the entry of such judgment from the

petitioning tenants and the rents due on the dates of service of the

judgment on all other residential and non-residential tenants occupying

such dwelling from such other tenants, shall be deposited with the

administrator appointed by the court, pursuant to section seven hundred

ninety-six-j of this article;

(B) any rents to become due in the future from all tenants occupying

such dwelling shall be deposited with such administrator as they come

due;

(C) such deposited rents shall be used, subject to the court's

direction, to the extent necessary to remedy the condition or conditions

alleged in the petition; and

(D) upon the completion of such work in accordance with such judgment,

any remaining surplus shall be turned over to the owner, together with a

complete accounting of the rents deposited and the costs incurred; and

(ii) granting such other and further relief as to the court may seem

just and proper.

2. (a) A certified copy of such judgment shall be served personally

upon each non-petitioning tenant occupying such dwelling. If personal

service on any such non-petitioning tenant cannot be made with due

diligence, service on such tenant shall be made by affixing a certified

copy of such judgment on the entrance door of such tenant's apartment or

other unit and, in addition, within one day after such affixing, by

sending a certified copy thereof by registered mail, return receipt

requested, to such tenant.

(b) Any right of the owner of such dwelling to collect such rent

moneys from any petitioning tenant of such dwelling on or after the date

of entry of such judgment, and from any non-petitioning tenant of such

dwelling on or after the date of service of such judgment on such

non-petitioning tenant as herein provided, shall be void and

unenforceable to the extent that such petitioning or non-petitioning

tenant, as the case may be, has deposited such moneys with the

administrator in accordance with the terms of such judgment, regardless

of whether such right of the owner arises from a lease, contract,

agreement or understanding heretofore or hereafter made or entered into

or arises as a matter of law from the relationship of the parties or

otherwise. It shall be a valid defense in any action or proceeding

against any such tenant to recover possession of real property for the

non-payment of rent or for use or occupation to prove that the rent

alleged to be unpaid was deposited with the administrator in accordance

with the terms of a judgment entered under this section.