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This entry was published on 2023-06-16
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Real Property Actions & Proceedings (RPA) CHAPTER 81, ARTICLE 7-C
§ 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

(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.