Cal. Civ. Code § 796-H
Judgment
Operative Text
§ 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.
Under N.Y. Real Prop. Acts & Proc. Law § 796-H, a court handling a tenant-initiated dwelling-conditions case must issue a final judgment that either dismisses the petition or redirects rent payments away from the owner and into the hands of a court-appointed administrator. When a judgment is entered against the owner, all rents owed by petitioning tenants as of that date—and by all other tenants once the judgment is served on them—must flow to the administrator rather than the owner, and those funds are used to correct the conditions identified in the petition. Any surplus remaining after the remediation work is completed is returned to the owner along with a full accounting.
Plain English — not legal advice.
Under § 796-H, once a judgment is entered and served, an owner's contractual or legal right to collect rent directly from tenants is suspended to the extent those tenants are depositing rent with the court-appointed administrator. Compliant operators in this posture typically track the administrator's accounting carefully, cooperate with the remediation work directed by the court, and position themselves to receive any surplus funds and accounting upon completion. Because the judgment must be personally served on each non-petitioning tenant—or served by posting and registered mail if personal service cannot be accomplished with due diligence—operators generally ensure that service is documented precisely to establish when each tenant's deposit obligation begins.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 796-H provides tenants with a meaningful protection: once a judgment is entered under this provision, depositing rent with the court-appointed administrator in accordance with the judgment's terms satisfies a tenant's rent obligation, and the owner's right to collect that same money directly becomes void and unenforceable. Critically, proof that rent was deposited with the administrator as directed by a § 796-H judgment constitutes a valid defense against any eviction or possession proceeding brought for nonpayment of that rent. Tenants who want to understand how this protection applies to their building's judgment, or who need help navigating the deposit process, may find guidance through local tenant-rights organizations or a rent board if one has jurisdiction over their unit.
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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