Cal. Civ. Code § 796-I

Application by mortgagee or lienor of record or other person having an interest in the property

In Force
Verified 9/13/2026 · Next check 9/20/2026
effective 6/16/2023New YorkHabitability & Repair

Operative Text

Cal. Civ. Code § 796-I
  § 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.
Source: Legislative text reproduced verbatim
Plain English

N.Y. Real Prop. Acts & Proc. Law § 796-I establishes a process by which an owner, mortgagee, lienor of record, or other interested party can step in after a court trial to personally correct the housing conditions identified in a petition, rather than having a court-appointed administrator take over immediately. To take advantage of this option, the interested party must show the court they can act promptly and must post security — essentially a financial guarantee — for completing the required work. If the party later fails to proceed with due diligence or does not finish the work on time, the court moves to appoint an administrator, applying the posted security (and, if needed, collected rents) toward fixing the conditions.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 13, 2026

Plain English — not legal advice.

For Property Managers

Under N.Y. Real Prop. Acts & Proc. Law § 796-I, a property owner or other interested party who wants to avoid the appointment of an administrator generally demonstrates to the court both the practical capacity to complete the required repairs promptly and the financial ability to post adequate security. Compliant operators who take this route typically proceed with visible, documented diligence throughout the court-ordered timeframe, since a showing of insufficient progress can trigger a hearing that leads directly to administrator appointment. Keeping thorough records of contractor agreements, work schedules, and expenditures supports a showing of due diligence if the matter returns to court.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

N.Y. Real Prop. Acts & Proc. Law § 796-I gives tenants and petitioners an active role even after a court allows an owner or lienor to self-correct: if it appears that the permitted party is not proceeding with due diligence, petitioners have the right to return to court and request a hearing on whether an administrator should be appointed immediately. If the court ultimately appoints an administrator, the security posted by the owner or lienor — and potentially collected rents — must be directed toward remedying the very conditions raised in the petition. Tenants who believe work is stalling may want to consult a tenant-rights organization or legal aid provider familiar with Article 7-A proceedings to understand the options available under this provision.

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

Current
Jun 16, 2023
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Related Rules

§ 8.60.130
Severability
§ 15.12.010
Definitions
§ 15.12.240
Temporary housing

Source Information

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