Cal. Civ. Code § 777
Application by mortgagee or lienor of record or other person having an interest in the property
Operative Text
§ 777. Application by mortgagee or lienor of record or other person having an interest in the property. a. 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 seventy-five 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 (1) demonstrate the ability promptly to undertake the work required; and (2) post security for the performance thereof 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 seventy-six of this article, may issue an order permitting such person to perform the work within a time fixed by the court but in no event more than sixty days from the date of the order of the court unless the court grants an extension of time for good cause shown. The provisions of this subdivision shall only be available to the mortgagee or lienor once with respect to any petition filed pursuant to this article. b. If, after the issuance of an order pursuant to subdivision a 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 c of this section. c. If, upon a hearing authorized in subdivision b hereof, the court shall determine that such owner, mortgagee, lienor or other person is not proceeding with due diligence, or upon the failure of such owner, mortgagee, lienor or other person to complete the work in accordance with the provisions of said order, the court shall render a final judgment appointing an administrator as authorized in section seven hundred seventy-eight 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 seventy-six 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.
N.Y. Real Prop. Acts & Proc. Law § 777 establishes a process by which a property owner, mortgagee, lienor of record, or other interested party may step in after trial findings and ask the court for a chance to fix the conditions identified in a housing petition themselves, rather than having a court-appointed administrator take over. To receive this opportunity, the applicant must show the ability to act promptly and post court-approved security guaranteeing the work will be completed, generally within sixty days. If the work stalls or is never finished, the court can convert the arrangement into a full administrator judgment under § 778, applying the posted security—and if needed, collected rents—toward remedying the conditions.
Plain English — not legal advice.
Under N.Y. Real Prop. Acts & Proc. Law § 777, a property owner who faces an adverse trial finding in a housing-conditions proceeding can preserve control of remediation by promptly applying to the court, demonstrating a concrete capacity to perform the required repairs, and posting adequate security within the timeframe the court sets. Compliant operators typically document their financial capacity and a realistic work plan before making this application, since the statute makes this option available to a mortgagee or lienor only once per petition. Owners who obtain a § 777 order generally maintain active, documented progress on repairs to avoid a diligence challenge that could trigger immediate appointment of an administrator.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
N.Y. Real Prop. Acts & Proc. Law § 777 preserves tenant-side protections even when an owner, mortgagee, or lienor obtains court permission to handle repairs directly: if that party fails to proceed with due diligence, tenants or petitioners may return to court to request a hearing and seek immediate appointment of an administrator under § 778. Tenants involved in such proceedings have the right to receive notice of any diligence hearing, and the posted security—along with deposited rents if necessary—is directed by the court toward actually fixing the conditions. Tenants who believe repairs are stalling may consult a tenant-rights organization or local housing court resources to understand the procedural options available under this section.
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.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.