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-I - Application by Mortgagee or Lienor of Record or Other Person Having an Interest in the Property.

§  796-i. Application by mortgagee or lienor of record or other person
  having an interest in the property. 1. If,  after  a  trial,  the  court
  shall  determine  that  the  facts  alleged  in  the  petition have been
  affirmatively established by the petitioners, that  no  defense  thereto
  specified in section seven hundred ninety-six-g of this article has been
  affirmatively  established  by  the  owner  or  a mortgagee or lienor of
  record, and that the facts alleged in the petition warrant the  granting
  of  the  relief  sought,  and if the owner or any mortgagee or lienor of
  record or other person having an interest in the property,  shall  apply
  to  the  court  to  be  permitted  to  remove  or  remedy the conditions
  specified in  such  petition  and  shall  (i)  demonstrate  the  ability
  promptly  to  undertake the work required and (ii) post security for the
  performance of such work within the time, and in the amount and  manner,
  deemed  necessary  by  the  court,  then the court, in lieu of rendering
  judgment as provided in  section  seven  hundred  ninety-six-h  of  this
  article,  may  issue an order permitting such person to perform the work
  within a time fixed by the court.
2. If, after the issuance of an order pursuant to subdivision  one  of
  this section, but before the time fixed in such order for the completion
  of  the work prescribed therein, it shall appear to the petitioners that
  the person  permitted  to  do  the  same  is  not  proceeding  with  due
  diligence,  the  petitions  may  apply  to  the court on notice to those
  persons who have appeared in the proceeding for a hearing  to  determine
  whether   judgment   should  be  rendered  immediately  as  provided  in
  subdivision three of this section.
3. If, upon a hearing authorized in subdivision two of  this  section,
  the  court  shall  determine  that the owner, mortgagee, lienor or other
  person is not proceeding with due diligence, or upon the failure of  the
  owner,  mortgagee,  lienor  or  other  person  to  complete  the work in
  accordance with the provisions of the order, the court  shall  render  a
  final  judgment  appointing  an  administrator  as authorized in section
  seven hundred ninety-six-j of this article. Such judgment  shall  direct
  the  administrator  to  apply  the security posted by such person to the
  removing or remedying of the condition or conditions  specified  in  the
  petition.  In  the  event  that  the  amount  of such security should be
  insufficient for such purpose, such judgment shall direct the deposit of
  rents with the administrator, as authorized  by  section  seven  hundred
  ninety-six-h  of  this article, to the extent of such deficiency. In the
  event that such security should exceed the amount required to remove  or
  remedy  such  condition  or  conditions,  such judgment shall direct the
  administrator to file with  the  court,  upon  completion  of  the  work
  prescribed therein, a full accounting of the amount of such security and
  the  expenditures  made pursuant to such judgment, and to turn over such
  surplus to the person who posted such security, together with a copy  of
  such accounting.