NYS Moratorium on Evictions

NYHA News ,

The New York State legislature will enact new legislation later today providing for a moratorium on rent payments until at least May 1, 2021 for New York State tenants who have been negatively affected by the COVID-19 crisis.   Small landlords (10 units or less where the landlord’s primary residence is one of the 10 units) are provided with protection against foreclosure and there are other provisions, as well. This bill is quite complicated, so we are providing the enclosed memorandum describing the provisions of the bill in detail and pointing out some of the pitfalls.  The Governor has announced that he will approve this legislation.    

SUMMARY OF THE COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020:  

  • Moratorium on evictions of residential tenants until May 1, 2021. Tenant must submit a “Declaration” that the tenant has experienced a hardship that interferes with the ability to pay rent;
  • Moratorium on mortgage foreclosures for owners of rental property where the landlord owns 10 units or less and the landlord resides in one of the units; Landlords must submit a Declaration similar to the declaration required for residential tenants.
  • Stay of Foreclosure on Delinquent Taxes. Owners of residential property that is leased can also avoid foreclosure if their ability to pay the mortgage has been adversely affected, but this is available only to small landlords (10 units or less, and the owner of the property resides in one of the units); 
  • Protects a covered property owner from credit discrimination if the property owner has fallen behind on mortgage payments on the property at which they reside or because they have received a stay of mortgage foreclosure, tax foreclosure, or tax lien sales on the property; and,
  • Requires local governments to automatically renew Senior Citizens’ Homeowner Extension (SCHE) and Disabled Homeowner Exemption (DHE) benefits for 2021. The requirement for submission of renewal applications is eliminated for 2021.