Cal. Civ. Code § 359
Receivership
Operative Text
§ 359. Receivership. Whenever the lien or liens established by judgment pursuant to this article shall amount to one thousand dollars or more, and there be no stay pending appeal, the department shall appoint a receiver of the rents and profits of such premises. Such receiver shall give security for the performance of his duties in the manner and form fixed by the department. He shall have the powers and duties of a receiver of rents and profits of real estate appointed by the supreme court; provided, that the corporation counsel shall act as his counsel and the receiver shall not be allowed any expenditure for counsel fees, and his commissions shall be ten per centum of his collections, which sum shall be full compensation for his services and those of any agent or agents whom he may employ. Such receivership shall continue until the amount of such liens with interest thereon at the rate of six per centum, and of the commissions, have been fully paid; provided, that nothing in this section shall be construed to prevent any prior lienor from applying to the court in a proper case for a receiver of the premises.
Under N.Y. Mult. Dwell. Law § 359, when court-established liens on a multiple dwelling reach at least one thousand dollars and no appeal stay is in place, the department is empowered to appoint a receiver to collect the rents and profits from that property. The receiver operates under duties similar to those of a court-appointed receiver, with the corporation counsel serving as legal counsel and the receiver's compensation capped at ten percent of collections. The receivership remains in effect until the full lien amounts, plus six percent interest and the receiver's commissions, have been paid off, though prior lienors retain the right to seek their own court-appointed receiver.
Plain English — not legal advice.
Property owners subject to N.Y. Mult. Dwell. Law § 359 should be aware that once judgment liens on a multiple dwelling reach the one-thousand-dollar threshold without an active appeal stay, the department moves to place a receiver in control of the property's rental income. A compliant operator generally works to resolve outstanding violations and satisfy judgment liens before they accumulate to that threshold, since receivership transfers rent-collection authority away from the owner until all liens, accrued interest at six percent, and receiver commissions are fully satisfied. Keeping records of lien payments and monitoring the status of any appeals are practices commonly associated with avoiding or exiting a receivership under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under N.Y. Mult. Dwell. Law § 359, when a receiver is appointed for a property, tenants' rent payments are directed to that receiver rather than to the landlord, and this arrangement continues until the underlying judgment liens and associated costs are fully cleared. Tenants in a building under receivership may want to confirm in writing where and to whom rent should be paid, and can contact the relevant city or state housing department to verify the receiver's appointment and authority. Tenant-rights organizations can help residents understand how § 359 receivership affects their obligations and what protections remain in place during the receivership period.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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