2023 New York Laws › RPA - Real Property Actions and Proceedings › Article 7-C - Special Proceedings by Tenants of Dwellings for Judgment Directing Deposit of Rents and the Use Thereof for the Purpose of Remedying Conditions Dangerous to Life, Health or Safety › 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.