On May 7th, Gov. Andrew Cuomo extended New York’s eviction moratorium that was supposed to expire on June 20, 2020 to August 20, 2020. The Order which was originally signed in March halts evictions of commercial and residential tenants during the period with caveats.
The original order stated that a landlord cannot legally evict a tenant until the Order expired. It specifically renters who are suffering a sudden financial hardship from being evicted during the period. The moratorium does not cancel rent payments but it did cancel any late payment penalties associated with non-payment of rent. Tenants would be responsible for the missed payments during the period. The new executive Order signed by the Governor only affects tenants who can’t pay rent due to COVID-19 or who qualify for unemployment benefits. The burden would shift onto the tenants to show that they qualify in order to qualify for the moratorium.
Another important aspect of the extension of the moratorium is now renters are able to use their security deposits to pay for rent. The option is one that the renters can choose however, the security must be replenished within ninety (90) days. If the tenant’s security deposit is less than the rent, they are still responsible for the balance.
Gov. Cuomo elaborated on the extension by stating “I hope it gives families a deep breath. We just want to make sure those people who are most vulnerable are protected.” He also said that he expects relief for landlords whose mortgage payments and utility bills continues to mount. To date, nothing has been extended to landlords however he says there are talks between banks for relief for landlords.
The Order also addresses the initiation of Housing Court cases. The Order prohibits the “initiation of a proceeding or enforcement” of evictions or a foreclosure from June 20 to August 20. This only applies to those who are eligible for unemployment benefits under state or federal law or for those “otherwise facing financial hardship due to the COVID-19 pandemic.” The Courts have stated that they will elaborate on the Order as attorneys have asked for guidance on how the executive Order should be interpreted. We will update once there is guidance from the Court. Until then, landlords should contact their attorneys for legal advice.
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