New York Governor Andrew M. Cuomo signed the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 (the”Act”) on December 28, 2020. The Act prevents residential evictions, foreclosure proceedings, credit discrimination and negative credit reporting related to the COVID-19 pandemic. It also extends the Senior Citizens’ Homeowner Exemption and Disabled Homeowner Exemption from 2020 to 2021. The Act adds to New York State’s efforts to protect tenants and homeowners from the economic hardship incurred as a result of the COVID-19 pandemic.
Governor Cuomo said “This law adds to previous executive orders by protecting the needy and vulnerable who, through no fault of their own, face eviction during an incredibly difficult period for New York. The more support we provide for tenants, mortgagors and seniors, the easier it will be for them to get back on their feet when the pandemic ends…h.” The Act helps tenants facing eviction and mortgagors facing foreclosure proceedings due the pandemic in five areas:
When Can NY Landlords Evict Residential Tenants?
The Act places a moratorium on residential evictions until May 1, 2021 for tenants who have endured COVID-related hardship. Tenants must submit a hardship declaration, or a document explaining the source of the hardship, to prevent evictions. Landlords can still evict tenants that are creating safety or health hazards for other tenants, who do not submit hardship declarations or are holdovers We have been providing eviction updates on our New York Landlord Legal Survival During the Covid-19 Crisis page.
Governor Cuomo first announced a State moratorium on residential and commercial evictions on March 20,2020 to ensure no tenant was evicted during the height of the public health emergency. The Governor signed the Tenant Safe Harbor Act on June 30, 2020 which became effective immediately as well as additional legislation providing financial assistance to residential renters and landlords. Previous New York Executive Orders have prohibited charges or fees for late rent payments, and tenants facing financial hardship can still use their security deposit as payment and repay their security deposit over time.
On September 28, 2020 New York Governor Cuomo announced the New York Tenant Safe Harbor Act would be extended and expanded until January 1, 2021 to protect additional residential tenants from eviction if they are suffering financial hardship during the COVID-19 public health emergency. The Executive Order extends the protections of the Tenant Safe Harbor Act to eviction warrants that existed prior to the start of the pandemic, and those who are facing other than nonpayment evictions but suffering the same hardship.
Residential Foreclosure Proceedings
The Act also places a moratorium on residential foreclosure proceedings until May 1, 2021. Homeowners and small landlords who own ten or fewer residential dwellings can file hardship declarations with their mortgage lender, other foreclosing party or a court to prevent a foreclosure.
Tax Lien Sales
The Act prevents local governments from engaging in property tax lien sales or a tax foreclosures until at least May 1, 2021. Payments owed to the locality are still due.
Credit Discrimination and Negative Credit Reporting
Lending institutions are prohibited from discriminating against property owners seeking credit because the property owner has been granted a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or tax lien sales. They are also prohibited from discriminating because the owner is in arrears and has filed a hardship declaration with the lender.
Senior Citizens’ Homeowner Exemption (“SCHE”) and Disabled Homeowner Exemption (“DHE”)
Local governments are required to carry over SCHE and DHC exemptions from the 2020 assessment roll to the 2021 assessment roll at the same levels. They are also required to provide renewal applications for anyone who may be eligible for a larger exemption in 2021. Localities can also set procedures by which assessors can require renewal applications from people who the assessors believe may no longer be eligible for an exemption in 2021. Recipients of the exemption do not have to file renewal applications in person.
For information on how to evict residential tenants during the Covid-19 pandemic, see NY LANDLORD LEGAL SURVIVAL DURING THE COVID-19 CRISIS and contact landlord attorneys Robert Friedman or Justin Friedman at (716) 333-5144.