N.Y. RPA Law § 796-H

§ 796-h. Judgment. 1. The court shall render a final judgment either:\n (a) Dismissing the petition for failure to affirmatively establish the\nallegations thereof or because of the affirmative establishment by the\nowner or a mortgagee or lienor of record of a defense or defenses\nspecified in section seven hundred ninety-six-g of this article; or\n (b)(i) Directing that:\n (A) the rents due on the date of the entry of such judgment from the\npetitioning tenants and the rents due on the dates of service of the\njudgment on all other residential and non-residential tenants occupying\nsuch dwelling from such other tenants, shall be deposited with the\nadministrator appointed by the court, pursuant to section seven hundred\nninety-six-j of this article;\n (B) any rents to become due in the future from all tenants occupying\nsuch dwelling shall be deposited with such administrator as they come\ndue;\n (C) such deposited rents shall be used, subject to the court's\ndirection, to the extent necessary to remedy the condition or conditions\nalleged in the petition; and\n (D) upon the completion of such work in accordance with such judgment,\nany remaining surplus shall be turned over to the owner, together with a\ncomplete accounting of the rents deposited and the costs incurred; and\n (ii) granting such other and further relief as to the court may seem\njust and proper.\n 2. (a) A certified copy of such judgment shall be served personally\nupon each non-petitioning tenant occupying such dwelling. If personal\nservice on any such non-petitioning tenant cannot be made with due\ndiligence, service on such tenant shall be made by affixing a certified\ncopy of such judgment on the entrance door of such tenant's apartment or\nother unit and, in addition, within one day after such affixing, by\nsending a certified copy thereof by registered mail, return receipt\nrequested, to such tenant.\n (b) Any right of the owner of such dwelling to collect such rent\nmoneys from any petitioning tenant of such dwelling on or after the date\nof entry of such judgment, and from any non-petitioning tenant of such\ndwelling on or after the date of service of such judgment on such\nnon-petitioning tenant as herein provided, shall be void and\nunenforceable to the extent that such petitioning or non-petitioning\ntenant, as the case may be, has deposited such moneys with the\nadministrator in accordance with the terms of such judgment, regardless\nof whether such right of the owner arises from a lease, contract,\nagreement or understanding heretofore or hereafter made or entered into\nor arises as a matter of law from the relationship of the parties or\notherwise. It shall be a valid defense in any action or proceeding\nagainst any such tenant to recover possession of real property for the\nnon-payment of rent or for use or occupation to prove that the rent\nalleged to be unpaid was deposited with the administrator in accordance\nwith the terms of a judgment entered under this section.\n