Amd Part BB Subpart A 3, 6, 8, 9 & 11, add 9-a, Chap 56 of 2021; amd 1 & 2, Chap 127 of 2020
Relates to commercial eviction and foreclosure protections, residential eviction and foreclosure protections and open meetings; establishes a COVID-19 emergency rental assistance program (Part A); relates to commercial eviction proceedings (Subpart A); relates to commercial foreclosure proceedings (Subpart B); relates to tax sales (Subpart C); establishes hardship declarations for owners of commercial real property (Subpart D)(Part B); relates to residential eviction proceedings (Subpart A); relates to residential foreclosure proceedings (Subpart B); relates to tax sales (Subpart C); establishes hardship declarations for owners of residential real property (Subpart D)(Part C); extends the prohibition on the eviction of residential tenants who have suffered financial hardship during the COVID-19 covered period through January 15, 2022, and relates to factors to be considered by the court in determining whether a residential tenant or lawful occupant of rental property suffered a financial hardship during the COVID-19 covered period (Part D); authorizes political subdivisions to permit any public body to hold meetings remotely and without in-person access during the COVID-19 state disaster emergency (Part E).
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A40001
SPONSOR: Rules (Dinowitz) TITLE OF BILL:
An act to amend subpart A of part BB of chapter 56 of the laws of 2021,
establishing a COVID-19 emergency rental assistance program, in relation
to eligibility for the COVID-19 emergency rental assistance program
(Part A); in relation to eviction proceedings; and providing for the
repeal of certain provisions upon the expiration thereof (Subpart A);
and in relation to foreclosure proceedings; and providing for the repeal
of certain provisions upon the expiration thereof (Subpart B); in
relation to tax sales; and providing for the repeal of certain
provisions upon the expiration thereof (Subpart C); to establish hard-
ship declarations for owners of commercial real property; and providing
for the repeal of such provisions upon the expiration thereof (Subpart
D) (Part B); in relation to eviction proceedings; and to provide for the
expiration of certain provisions upon the expiration thereof (Subpart
A); in relation to foreclosure proceedings; and providing for the expi-
ration of certain provisions upon the expiration thereof (Subpart B); in
relation to tax sales; and providing for the expiration of certain
provisions upon the expiration thereof (Subpart C); and to establish
hardship declarations for owners of residential real property; and
providing for the expiration of such provisions upon the expiration
thereof (Subpart D) (Part C); in relation to extending the prohibition
on the eviction of residential tenants who have suffered financial hard-
ship during the COVID-19 covered period (Part D); and in relation to
authorizing political subdivisions to permit any public body to hold
meetings remotely and without in-person access during the COVID-19 state
disaster emergency; and provides for the repeal of such provisions upon
the expiration thereof (Part E)
PURPOSE:
This critical legislation will extend and modify protections necessary
to allow New Yorkers to stay in their homes, and provide landlords with
funding for unpaid rent for tenants that have experienced financial
hardship due to the COVID-19 pandemic. Additionally, it protects commer-
cial tenants and building owners from eviction and foreclosure. It also
allows for public bodies to continue to hold meetings remotely, so that
government business can safely and transparently continue as COVID-19
transmission rates have increased_
SUMMARY OF PROVISIONS:
*Part A amends the COVID-19 Emergency Rental Assistance Program
("ERAP"),to (i) allow residents of municipalities that elected not to
participate in the statewide emergency rental assistance program to
apply to the State program for relief after the municipality has
distributed or obligated all of the funds directly allocated to it by
the United State Department of the Treasury (the "Treasury"), (ii)
authorize OTDA to share application data with the office of court admin-
istration so that courts may determine whether litigants in eviction
proceedings may be eligible for eviction protections, (iii) extend
eviction protections, subject to certain limitations, to residents of
municipalities that opted not to participate in the statewide emergency
rental assistance program, and (iv) clarify that notwithstanding the
eviction protections afforded by ERAP, tenants may be subject to
eviction where the tenant intentionally causes significant damage to the
property or is persistently and unreasonably engaging in behavior that
substantially infringes on the use and enjoyment of other tenants or
occupants or causes a substantial safety hazard to others.
*Part B establishes an eviction moratorium for commercial tenants that
are independently owned and operated, not dominant in its field and have
one hundred (100) or fewer employees until January 15, 2022. The legis-
lation includes a definition of hardship, provides landlord due process
to challenge a hardship claim and expands the grounds under which a
lawful eviction can proceed despite a finding of hardship. It also
establishes a foreclosure moratorium for the owner or mortgagor of such
property that owns ten or fewer commercial units whether directly or
indirectly and is a business that is resident in New York State, inde-
pendently owned and operated, not dominant in its field, and employs one
hundred (100) or fewer persons until January 15, 2022. The legislation
also prevents local governments from engaging in a tax lien sale or a
tax foreclosure until at least January 15, 2022, and lending insti-
tutions are prohibited from discriminating or seeking a negative credit
report 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.
*Part C establishes an eviction moratorium for residential tenants expe-
riencing COVID related financial hardship until January 15, 2022. The
legislation includes a definition of hardship, provides landlord due
process to challenge a claim of hardship and expands the grounds under
which a lawful eviction can proceed despite a finding of hardship. It
also establishes a foreclosure moratorium for a mortgage relating to
residential real property, provided the owner or mortgagor of such prop-
erty is a natural person, regardless of how title is held, and owns ten
or fewer dwelling units whether directly or indirectly until January 15,
2022. The ten or fewer dwelling units may be in more than one property
or building as long as the total aggregate number of ten units includes
the primary residence of the natural person requesting such relief and
the remaining units are currently occupied by a tenant or are available
for rent. The legislation also prevents local governments from engaging
in a tax lien sale or a tax foreclosure until at least January 15, 2022,
and lending institutions are prohibited from discriminating or seeking a
negative credit report because the tenant or property owner has been
granted a stay of eviction, 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.
*Part D extends the Tenant Safe Harbor protections until January 15,
2022.
*Part E allows state and local government entities to meet remotely by
conference call or similar service, so long as the public has the abili-
ty to view or listen to such proceeding and provided such meetings are
recorded and later transcribed.
EXISTING LAW:
ERAP authorized the Commissioner of OTDA to administer emergency rental
assistance funding issued by the federal government. ERAP authorizes
certain households obligated to pay rent who accrued rental arrears as a
result of financial hardships caused by the COVID-19 pandemic to apply
for, and if eligible to receive, emergency rental assistance and utility
assistance. Households applying for emergency rental assistance also are
entitled to protections against eviction: after applying for emergency
rental assistance, a household cannot be evicted on the grounds of a
holdover tenancy, an expired lease, or for non-payment of rent or utili-
ties eligible for coverage under the program until such time as the
household is determined to be ineligible to receive emergency rental
assistance. The federal government made direct allocations of funding
to both the State and to municipalities with populations of over
200,000, and while most localities receiving direct allocations from the
federal government opted to transfer their funds to the State and allow
OTDA to administer the emergency rental assistance program on their
behalf, seven localities that received funding directly from the Treas-
ury opted to administer their own emergency rental assistance programs.
New York previously authorized an eviction moratorium for residential
and commercial tenants until August 31, 2021, as well as protection from
foreclosure for residents and businesses. The Supreme Court of the
United States on August 12, 2021 enjoined certain provisions of the
residential eviction moratorium statute. The Tenant Safe Harbor Act,
enacted in June of 2020, provides protection from eviction for tenants
who have experienced financial hardship during the covered period, which
expired in June of 2021.
Currently, the Open Meetings Law requires that every meeting of a public
body be open and accessible to the general public. If videoconferencing
is used to conduct business, the public body shall provide an opportu-
nity for the public to attend, listen and observe at any site at which a
member of the public body participates, even if such site is not public.
The Open Meetings Law does not currently allow business to be conducted
via telephone.
JUSTIFICATION:
This critical legislation is necessary to issue a new moratorium on
COVID-related residential and commercial evictions in effect in New York
State, until January 15, 2022. Additionally, all protections of the
Tenant Safe Harbor Act for residential tenants who are suffering finan-
cial hardship as a result of the pandemic will remain in place, along
with protections on commercial evictions and foreclosures that apply to
commercial tenants and mortgagors.
This legislation will expand ERAP to more applicants, in that it will
allow residents of a municipal corporation that opted out of the program
to apply for assistance after the municipal corporation expends or obli-
gates its own federal emergency rental assistance funding. This legis-
lation also extends eviction protections, subject to certain limita-
tions, to those residents.
It will also ensure that applicants for assistance are protected by
permitting OTDA to share data with the court system to help courts
determine whether litigants applied and are entitled to eviction
protections.
To avoid confusion of landlords as to their ability to evict tenants on
grounds other than expired lease, holdover tenancy, or non-payment of
rent, this legislation clarifies that landlords may pursue eviction
proceedings against tenants who intentionally cause damage to the prop-
erty or persistently and unreasonably engage in behavior that substan-
tially infringes on the use and enjoyment of other tenants or occupants
or causes a substantial safety hazard to others.
Additionally, a procedure is established for a landlord to challenge a
tenant's claim of hardship, provide a hearing, and if a hardship claim
is found to be invalid, to continue the eviction proceedings to a deter-
mination on the merits. Additionally, during the COVID-19 pandemic,
portions of the Open Meetings Law were modified to allow public business
to continue while protecting public health by eliminating the need for
congregation. This legislation will allow for remote public meetings to
continue to be held through January 15, 2022 in the same manner as was
allowed during the state disaster emergency.
LEGISLATIVE HISTORY:
This legislation extends and modifies provisions of law enacted during
the COVID-19 state disaster emergency.
BUDGET IMPLICATIONS:
A $250M appropriation for supplemental costs associated with Part A.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
1
Extraordinary Session
IN ASSEMBLY
September 1, 2021
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Dinowitz,
Cymbrowitz) -- (at request of the Governor) -- read once and referred
to the Committee on Ways and Means
AN ACT to amend subpart A of part BB of chapter 56 of the laws of 2021,
establishing a COVID-19 emergency rental assistance program, in
relation to eligibility for the COVID-19 emergency rental assistance
program (Part A); in relation to eviction proceedings; and providing
for the repeal of certain provisions upon the expiration thereof
(Subpart A); and in relation to foreclosure proceedings; and providing
for the repeal of certain provisions upon the expiration thereof
(Subpart B); in relation to tax sales; and providing for the repeal of
certain provisions upon the expiration thereof (Subpart C); to estab-
lish hardship declarations for owners of commercial real property; and
providing for the repeal of such provisions upon the expiration there-
of (Subpart D) (Part B); in relation to eviction proceedings; and to
provide for the expiration of certain provisions upon the expiration
thereof (Subpart A); in relation to foreclosure proceedings; and
providing for the expiration of certain provisions upon the expiration
thereof (Subpart B); in relation to tax sales; and providing for the
expiration of certain provisions upon the expiration thereof (Subpart
C); and to establish hardship declarations for owners of residential
real property; and providing for the expiration of such provisions
upon the expiration thereof (Subpart D) (Part C); in relation to
extending the prohibition on the eviction of residential tenants who
have suffered financial hardship during the COVID-19 covered period
(Part D); and in relation to authorizing political subdivisions to
permit any public body to hold meetings remotely and without in-person
access during the COVID-19 state disaster emergency; and provides for
the repeal of such provisions upon the expiration thereof (Part E)
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12031-01-1
A. 1 2
1 Section 1. This act enacts into law components of legislation relating
2 to commercial eviction and foreclosure protections, residential eviction
3 and foreclosure protections and open meetings. Each component is wholly
4 contained within a Part identified as Parts A through E. The effective
5 date for each particular provision contained within such Part is set
6 forth in the last section of such Part. Any provision in any section
7 contained within a Part, including the effective date of the Part, which
8 makes reference to a section "of this act", when used in connection with
9 that particular component, shall be deemed to mean and refer to the
10 corresponding section of the Part in which it is found. Section four of
11 this act sets forth the general effective date of this act.
12 § 2. Legislative intent. The legislature finds and declares all of the
13 following:
14 More than two million New Yorkers have been infected by the COVID-19
15 coronavirus, and the disease has killed more than 55,000 New Yorkers
16 since March 2020. Measures necessary to contain the pandemic have
17 brought about widespread economic and societal disruption. Millions of
18 residents have experienced financial hardship due to such measures,
19 which closed businesses and schools, and resulted in income losses
20 across the state.
21 The state has enacted a series of statutes that the legislature has
22 found necessary to protect the public health, safety, and general
23 welfare of the people of New York. These measures include the Tenant
24 Safe Harbor Act ("TSHA"), the COVID-19 Emergency Eviction and Foreclo-
25 sure Prevention Act ("CEEFPA"), and COVID-19 Emergency Protect Our Small
26 Businesses Act ("CEPOSBA").
27 Even as New York enters a phase of economic recovery, the need for
28 continued statutory protections and other emergency public health meas-
29 ures is demonstrated by rates of transmission in the state. Since early
30 July, cases have risen ten-fold, and 95 percent of the sequenced recent
31 positives in New York State were the Delta variant.
32 The evidence that residential eviction protections are effective
33 public health measures is especially strong. The CDC has repeatedly
34 found this to be so and has urged states to enact and keep residential
35 eviction moratoriums in place. A recent peer-reviewed study of state
36 eviction moratoriums found that "COVID-19 incidence and mortality
37 increased steadily in states after eviction moratoriums expired, and
38 were associated with doubling of COVID-19 incidence ... and a five-fold
39 increase in COVID-19 mortality ... 16 weeks after moratoriums lapsed."
40 In April 2021, the legislature passed the COVID-19 Emergency Rental
41 Assistance Program ("CERAP"), funded with $2.6 billion for residential
42 rent and utility assistance. To date, technical and administrative chal-
43 lenges, low public awareness of the program, and the slow pace of imple-
44 mentation have hampered the program's effectiveness in covering the cost
45 of rent arrears and providing widespread eviction protections.
46 On August 12, 2021, in the case Chrysafis v. Marks, the U.S. Supreme
47 Court enjoined the enforcement of CEEFPA's residential eviction morato-
48 rium, finding that provisions that provided for a tenant to self-certify
49 financial hardship and delayed a landlord from contesting the certif-
50 ication violated constitutional rights to due process.
51 Stabilizing housing and small businesses continues to be to the mutual
52 benefit of all New Yorkers in that these steps will help the state
53 address the COVID-19 pandemic, protect public health, and foster a full
54 and equitable recovery. The legislature is especially cognizant of the
55 ongoing risks posed by residential evictions stemming from non-payment
56 of rent during the height of the public health emergency, and its recov-
A. 1 3
1 ery period, such as the potential to exacerbate the resurgence of
2 COVID-19, the damage significant numbers of evictions would cause to the
3 state's economic recovery, and the deleterious social and public health
4 effects of homelessness and housing instability.
5 For all of the foregoing reasons it is necessary to modify the resi-
6 dential eviction moratorium to address the Supreme Court's due process
7 concern, and to extend and strengthen the protections in the law. In
8 addition, it is necessary to temporarily alter certain provisions of the
9 open meetings law to ensure that certain public bodies can hold meetings
10 and conduct business in a manner that balances public health and safety
11 precautions with the public's right to observe the proceedings.
12 PART A
13 Section 1. Subdivision 3 of section 3 of subpart A of part BB of chap-
14 ter 56 of the laws of 2021, establishing a COVID-19 emergency rental
15 assistance program, is amended to read as follows:
16 3. a. The commissioner shall develop and promulgate a form outlining
17 the obligations of each municipal corporation that chooses to partic-
18 ipate in the statewide program. Those municipal corporations who choose
19 to participate shall remit such form to the office of temporary and
20 disability assistance within 10 business days from the date of issuance.
21 At such time that the municipal corporation has affirmed their partic-
22 ipation, upon receipt of the completed form by the office of temporary
23 and disability assistance and the director of the budget, and the feder-
24 al department of the treasury, the municipal corporation shall remit
25 their allocation of funds to the state in such manner as determined by
26 the division of the budget. Provided, after the office has acknowledged
27 receipt of the completed form, residents of such [municipality] munici-
28 pal corporation shall be entitled to benefit from funds made available
29 for this purpose, subject to the continued availability of funds.
30 b. Residents of a municipal corporation that chooses not to partic-
31 ipate in the statewide program may submit an application to the state-
32 wide program if the municipal corporation has distributed or obligated
33 all of the municipal corporation's available federal emergency rental
34 assistance funds as certified by the chief elected official of the
35 municipal corporation and the resident is otherwise eligible for the
36 statewide program. Any municipal corporation that chooses not to
37 participate in the statewide program shall notify any applicant for
38 federal emergency rental assistance funds that is eligible for such
39 assistance but is denied due to lack of funds that such applicant may be
40 eligible to apply to the statewide program and shall provide such appli-
41 cant with information on how to apply to the statewide program. If the
42 chief elected official of a municipal corporation certifies that the
43 municipal corporation has distributed or obligated all of the municipal
44 corporation's available federal emergency rental assistance funds, the
45 municipal corporation shall provide information on its website informing
46 residents that they may be eligible to apply to the statewide program
47 and shall provide information on its website on how to apply for the
48 statewide program.
49 § 2. Subdivision 1 of section 6 of subpart A of part BB of chapter 56
50 of the laws of 2021, establishing a COVID-19 emergency rental assistance
51 program, is amended to read as follows:
52 1. As soon as practicable, the commissioner shall make an application
53 for the program available on the office of temporary and disability
54 assistance's website. The application shall be available online in
A. 1 4
1 English, Spanish, Chinese, Russian, Korean, Yiddish, Haitian (French
2 Creole), Bengali, and, to the extent practicable, other commonly used
3 languages. The commissioner shall enable application assistance to be
4 offered via telephone to landlords and tenants and make accommodations
5 for those who are hearing or visually impaired, with referral to a
6 community based organization as deemed necessary.
7 § 3. Paragraph (b) of subdivision 4 of section 6 of subpart A of part
8 BB of chapter 56 of the laws of 2021, establishing a COVID-19 emergency
9 rental assistance program, is amended to read as follows:
10 (b) Any documentation or information provided to the statewide appli-
11 cation, eligibility worker, hotline or community based organization, or
12 obtained in the course of administering the emergency rental assistance
13 program or any other assistance program shall be kept confidential and
14 shall only be used: (i) for the purposes of determining eligibility, for
15 program administration, avoiding duplication of assistance, and other
16 uses consistent with State and federal law; and (ii) by the New York
17 state office of court administration so a court may determine whether a
18 litigant in a proceeding has applied for or been granted assistance from
19 the emergency rental assistance program for the purposes of ensuring the
20 availability for the eviction protections provided by this part.
21 § 4. Section 8 of subpart A of part BB of chapter 56 of the laws of
22 2021, establishing a COVID-19 emergency rental assistance program, is
23 amended to read as follows:
24 § 8. Restrictions on eviction. [Eviction] Except as provided in
25 section nine-a of this act, eviction proceedings for a holdover or
26 expired lease, or non-payment of rent or utilities that would be eligi-
27 ble for coverage under this program shall not be commenced against a
28 household who has applied for this program or any local program adminis-
29 tering federal emergency rental assistance program funds unless or until
30 a determination of ineligibility is made. [If such eviction proceedings
31 are commenced] Except as provided in section nine-a of this act, in any
32 pending eviction proceeding, whether filed prior to, on, or after the
33 effective date of this act, against a household who has applied or
34 subsequently applies for benefits under this program or any local
35 program administering federal emergency rental assistance program funds
36 to cover all or part of the arrears claimed by the petitioner, all
37 proceedings shall be stayed pending a determination of eligibility.
38 Evidence of a payment received pursuant to this act or a local program
39 administering federal emergency rental assistance program funds may be
40 presented in such proceeding and create a presumption that the tenant's
41 or occupant's rent or utility obligation for the time period covered by
42 the payment has been fully satisfied.
43 § 5. Paragraph (d) of subdivision 2 of section 9 of subpart A of part
44 BB of chapter 56 of the laws of 2021, establishing a COVID-19 emergency
45 rental assistance program, is amended to read as follows:
46 (d) Acceptance of payment for rent or rental arrears from this program
47 or any local program administering federal emergency rental assistance
48 program funds shall constitute agreement by the recipient landlord or
49 property owner: (i) that the arrears covered by this payment are satis-
50 fied and will not be used as the basis for a non-payment eviction; (ii)
51 to waive any late fees due on any rental arrears paid pursuant to this
52 program; (iii) to not increase the monthly rent due for the dwelling
53 unit such that it shall not be greater than the amount that was due at
54 the time of application to the program for any and all months for which
55 rental assistance is received and for one year after the first rental
56 assistance payment is received; (iv) not to evict for reason of expired
A. 1 5
1 lease or holdover tenancy any household on behalf of whom rental assist-
2 ance is received for 12 months after the first rental assistance payment
3 is received, unless the dwelling unit that is the subject of the lease
4 or rental agreement is located in a building that contains 4 or fewer
5 units, in which case the landlord may decline to extend the lease or
6 tenancy if the landlord intends to immediately occupy the unit for the
7 landlord's personal use as a primary residence or the use of an immedi-
8 ate family member as a primary residence; and (v) to notify the tenant
9 of the protections established under this subdivision. Provided, howev-
10 er, that provisions of this paragraph shall not apply to the extent that
11 it conflicts with any legally binding agreement the recipient landlord
12 or property owner entered into pursuant to a local program administering
13 federal emergency rental assistance program funds prior to the effective
14 date of the chapter of the laws of two thousand twenty-one that amended
15 this paragraph, or where the recipient landlord or property owner
16 accepted payment from such local program prior to the effective date of
17 the chapter of the laws of two thousand twenty-one that amended this
18 paragraph.
19 § 6. Subpart A of part BB of chapter 56 of the laws of 2021, estab-
20 lishing a COVID-19 emergency rental assistance program, is amended by
21 adding a new section 9-a to read as follows:
22 § 9-a. Expired lease or holdover tenant. Section eight of this act
23 shall not apply, and a landlord or property owner that has agreed not to
24 evict a household for reason of expired lease or holdover tenancy pursu-
25 ant to paragraph (d) of subdivision two of section nine of this act may
26 evict such household, if a tenant intentionally causes significant
27 damage to the property or is persistently and unreasonably engaging in
28 behavior that substantially infringes on the use and enjoyment of other
29 tenants or occupants or causes a substantial safety hazard to others,
30 provided:
31 1. If an eviction proceeding is not pending on the effective date of
32 this section, the petitioner shall file an affidavit under penalty of
33 perjury with the petition attesting that the respondent intentionally
34 caused significant damage to the property or is persistently and unrea-
35 sonably engaging in such behavior, with a specific description of the
36 behavior alleged.
37 2. If an eviction proceeding is pending on the effective date of this
38 section, but the petitioner has not previously alleged that the tenant
39 intentionally caused significant damage to the property or persistently
40 and unreasonably engaged in such behavior, the petitioner shall be
41 required to submit a new petition with such allegations and comply with
42 all notice and service requirements under article 7 of the real property
43 actions and proceedings law.
44 3. If the court has awarded a judgment against a respondent prior to
45 the effective date of this section on the basis of objectionable or
46 nuisance behavior, the court shall hold a hearing to determine whether
47 the tenant is continuing to intentionally cause significant damage to
48 the property or persist in engaging in unreasonable behavior that
49 substantially infringes on the use and enjoyment of other tenants or
50 occupants or causes a substantial safety hazard to others.
51 4. For the purposes of this section, a mere allegation of the behavior
52 by the petitioner or an agent of the petitioner alleging such behavior
53 shall not be sufficient evidence to establish that the tenant has
54 engaged in such behavior.
55 5. If the petitioner fails to establish that the tenant intentionally
56 caused significant damage to the property or persistently and unreason-
A. 1 6
1 ably engaged in such behavior: (i) if the household's application is
2 still pending, the court shall stay or continue to stay any further
3 proceedings pending a determination of eligibility pursuant to section
4 eight of this act; or (ii) if the landlord has accepted payment of
5 rental arrears and agreed not to evict the tenant pursuant to paragraph
6 (d) of subdivision two of section nine of this act, the court shall
7 dismiss the proceeding with prejudice.
8 6. If the petitioner establishes that the tenant intentionally caused
9 significant damage to the property or persistently and unreasonably
10 engaged in such behavior, the proceeding may continue pursuant to arti-
11 cle 7 of the real property actions and proceedings law.
12 § 7. Section 11 of subpart A of part BB of chapter 56 of the laws of
13 2021, establishing a COVID-19 emergency rental assistance program, is
14 amended to read as follows:
15 § 11. Notice to tenants in eviction proceedings. In any eviction
16 proceeding pending as of the effective date of this article and any
17 eviction proceeding filed while applications are being accepted for
18 assistance pursuant to this article or pursuant to a local program
19 administering federal emergency rental assistance program funds in the
20 jurisdiction of the court, the court shall promptly make available to
21 the respondent information regarding how the respondent may apply for
22 such assistance in English, and, to the extent practicable, in the
23 respondent's primary language, if other than English.
24 § 8. This act shall take effect immediately.
25 PART B
26 Section 1. This Part enacts into law components of legislation relat-
27 ing to commercial eviction and foreclosure protections. Each component
28 is wholly contained within a Subpart identified as Subparts A through D.
29 The effective date for each particular provision contained within such
30 Subpart is set forth in the last section of such Subpart. Any provision
31 in any section contained within a Subpart, including the effective date
32 of the Subpart, which makes reference to a section "of this act", when
33 used in connection with that particular component, shall be deemed to
34 mean and refer to the corresponding section of the Subpart in which it
35 is found. Section three of this Part sets forth the general effective
36 date of this Part.
37 SUBPART A
38 Section 1. Definitions. For the purposes of this act: 1. "Eviction
39 proceeding" means a summary proceeding to recover possession of real
40 property under article seven of the real property actions and
41 proceedings law relating to a commercial unit or any other judicial or
42 administrative proceeding to recover possession of real property relat-
43 ing to a commercial unit.
44 2. "Landlord" includes a landlord, owner of a commercial property and
45 any other person with a legal right to pursue eviction, possessory
46 action or a money judgment for rent, including arrears, owed or that
47 becomes due during the COVID-19 covered period, as defined in section 1
48 of chapter 127 of the laws of 2020.
49 3. "Tenant" includes a commercial tenant that is a resident of the
50 state, independently owned and operated, not dominant in its field and
51 employs one hundred or fewer persons.
A. 1 7
1 4. "Hardship declaration" means a. a hardship declaration filed pursu-
2 ant to chapters 73, 104 or 154 of the laws of 2021, so long as the busi-
3 ness meets the definition of tenant in subdivision three of this
4 section, or b. the following statement, or a substantially equivalent
5 statement in the language in which the commercial lease or tenancy
6 agreement was written or negotiated, in 14-point type, published by the
7 office of court administration, whether in physical or electronic writ-
8 ten form:
9 "NOTICE TO COMMERCIAL TENANT: If you have lost significant revenue or
10 had significantly increased necessary costs during the COVID-19 pandem-
11 ic, and you sign and deliver this hardship declaration form to your
12 landlord, you may be protected from eviction until at least January 15,
13 2022 for nonpayment of rent or for holding over after the expiration of
14 your lease. If your landlord files an eviction against you and you
15 provide this form to the landlord or the court, the eviction proceedings
16 will be postponed until January 15, 2022 unless your landlord moves to
17 challenge your declaration of hardship. If the court finds your hardship
18 claim valid, the eviction proceedings will be postponed until after
19 January 15, 2022. While the eviction proceedings are postponed, you may
20 remain in possession of your unit. You may still be evicted for violat-
21 ing your lease by intentionally causing significant damage to the prop-
22 erty or persistently and unreasonably engaging in behavior that substan-
23 tially infringes on the use and enjoyment of other tenants or occupants
24 or causes a substantial safety hazard to others.
25 If your landlord has provided you with this form, your landlord must
26 also provide you with a mailing address and e-mail address to which you
27 can return this form. If your landlord has already started an eviction
28 proceeding against you, you can return this form to either your land-
29 lord, the court, or both at any time. You should keep a copy or picture
30 of the signed form for your records. You will still owe any unpaid rent
31 to your landlord. To the extent you can pay less than the full rent, it
32 is recommended you do so and keep careful track of what you have paid
33 and any amount you still owe.
34 COMMERCIAL TENANT'S DECLARATION OF HARDSHIP DURING THE
35 COVID-19 PANDEMIC
36 I am the owner, chief executive officer, president, or similar officer
37 of (name of business), in which is a commercial tenant at (address of
38 commercial unit). My business is resident in New York state, independ-
39 ently owned and operated, not dominant in its field, and employs one
40 hundred or fewer persons. My business is experiencing financial hard-
41 ship, and is unable to pay the rent in full or other financial obli-
42 gations under the lease in full or obtain an alternative suitable
43 commercial property because of one or more of the following:
44 (i) Significant loss of revenue during the COVID-19 pandemic.
45 (ii) Significant increase in necessary expenses related to providing
46 personal protective equipment to employees or purchasing and installing
47 other protective equipment to prevent the transmission of COVID-19 with-
48 in the business.
49 (iii) Moving expenses and difficulty in securing an alternative
50 commercial property make it a hardship for the business to relocate to
51 another location during the COVID-19 pandemic.
52 To the extent the business has lost revenue or had increased expenses,
53 any public assistance the business has received since the start of the
54 COVID-19 pandemic must not fully make up for the business's loss of
A. 1 8
1 revenue or increased expenses, and the business still meets the afore-
2 mentioned eligibility criteria to qualify for a financial hardship.
3 I understand that the business must comply with all other lawful terms
4 under its commercial tenancy, lease agreement or similar contract. I
5 further understand that lawful fees, penalties or interest for not
6 having paid rent in full or met other financial obligations as required
7 by the commercial tenancy, lease agreement or similar contract may still
8 be charged or collected and may result in a monetary judgment. I
9 further understand that the landlord may request a hearing to challenge
10 the certification of hardship made herein, and that I will have the
11 opportunity to participate in any proceedings regarding the tenancy. I
12 further understand that the landlord may be able to seek eviction after
13 January 15, 2022, and that the law may provide certain protections at
14 that time that are separate from those available through this declara-
15 tion. I understand that I may be eligible to receive financial assist-
16 ance from the State of New York under the Pandemic Small Business Recov-
17 ery Grant Program or similar relief program, and that I may visit
18 https://esd.ny.gov/business-pandemic-recovery-initiative to receive
19 additional information or call 877-721-0097 for assistance.
20 Signed:
21 Printed name:
22 Date signed:
23 NOTICE: You are signing and submitting this form under penalty of law.
24 That means it is against the law to make a statement on this form that
25 you know is false."
26 5. "Hardship" means a business is unable to pay the rent in full
27 or other financial obligations under the lease in full or obtain an
28 alternative suitable commercial property because of one or more of the
29 following reasons and any public assistance the business has received
30 since the start of the COVID-19 pandemic has not fully made up
31 for the business's loss of revenue or increased expenses:
32 a. Significant loss of revenue during the COVID-19 pandemic; or
33 b. Significant increase in necessary expenses related to providing
34 personal protective equipment to employees or purchasing and installing
35 other protective equipment to prevent the transmission of COVID-19 with-
36 in the business; or
37 c. Moving expenses and difficulty in securing an alternative commer-
38 cial property make it a hardship for the business to relocate to another
39 location during the COVID-19 pandemic.
40 § 2. No commercial tenant shall be removed from the possession prior
41 to January 15, 2022, except by an eviction proceeding.
42 § 3. Pre-eviction notices. A landlord shall include a "Hardship Decla-
43 ration" with every written notice required by the commercial lease or
44 tenancy agreement, law or rule to be provided prior to the commencement
45 of an eviction proceeding, and with every notice of petition or summons
46 and complaint served on a tenant. Such notice shall also include a
47 mailing address, telephone number and active email address the tenant
48 can use to contact the landlord and return the hardship declaration.
49 § 4. Required affidavit. 1. No court shall accept for filing any peti-
50 tion or other filing to commence an eviction proceeding unless the peti-
51 tioner or plaintiff or an agent of the petitioner or plaintiff files an
52 affidavit of service, under penalty of perjury, demonstrating the manner
53 in which the petitioner or plaintiff or the petitioner's or plaintiff's
A. 1 9
1 agent served a copy of the hardship declaration in English and the
2 language in which the commercial lease or tenancy agreement was written
3 or negotiated, if other than English, with any written notice required
4 by the commercial lease or tenancy agreement, law or rule to be provided
5 prior to the commencement of an eviction proceeding, and an affidavit
6 under penalty of perjury:
7 a. attesting that, at the time of filing, neither the petitioner or
8 plaintiff nor any agent of the petitioner or plaintiff has received a
9 hardship declaration from the respondent, or
10 b. attesting that the respondent or defendant has returned a hardship
11 declaration, but the respondent or defendant is intentionally causing
12 significant damage to the property or persistently and unreasonably
13 engaging in behavior that substantially infringes on the use and enjoy-
14 ment of other tenants or occupants or causes a substantial safety hazard
15 to others, with a specific description of the behavior alleged, or
16 c. attesting that the respondent or defendant has returned a hardship
17 declaration, but the petitioner or plaintiff believes in good faith that
18 the hardship certified in the hardship declaration does not exist.
19 2. Upon accepting a petition or complaint, the attorney, judge or
20 clerk of the court, as the case may be, shall determine whether a copy
21 of the hardship declaration in English and the language in which the
22 commercial lease or tenancy agreement was written or negotiated, if
23 other than English, and a copy of any affidavit filed pursuant to subdi-
24 vision 1 of this section is annexed to the served notice of petition or
25 summons and complaint and, if not, shall ensure that a copy of the hard-
26 ship declaration and any such affidavit is attached to such notice or
27 summons. If the petitioner submits an affidavit pursuant to paragraph c
28 of subdivision 1 of this section, the following notice, in at least
29 fourteen-point type, shall also be annexed as a cover page to the notice
30 of petition or summons:
31 "NOTICE TO TENANT: THIS IS A PETITION TO COMMENCE AN EVICTION PROCEED-
32 ING AGAINST YOU, BUT THE PROCEEDING WILL NOT CONTINUE UNTIL AT LEAST
33 JANUARY 15, 2022, UNLESS YOUR LANDLORD MOVES TO CHALLENGE YOUR CLAIM OF
34 AN EXEMPTION FROM EVICTION IN YOUR HARDSHIP DECLARATION FORM.
35 IF YOUR LANDLORD MOVES TO CHALLENGE YOUR HARDSHIP CLAIM, YOU ARE ENTI-
36 TLED TO A HEARING. IF THE COURT RULES YOUR HARDSHIP CLAIM INVALID AFTER
37 THE HEARING, THE LAWSUIT MAY PROCEED TOWARD POSSIBLE EVICTION, BUT
38 UNLESS AND UNTIL THE COURT ISSUES AN EVICTION WARRANT AGAINST YOU, YOU
39 ARE ENTITLED TO REMAIN IN POSSESSION OF YOUR UNIT."
40 At the earliest possible opportunity, the court shall seek confirma-
41 tion on the record or in writing from the respondent or defendant that
42 the respondent or defendant has received the hardship declaration and
43 whether the respondent or defendant has submitted a hardship declaration
44 to the petitioner or plaintiff, an agent of the petitioner or plaintiff,
45 or the court. If the court determines a respondent or defendant has not
46 received a hardship declaration, then the court shall stay the proceed-
47 ing for a reasonable period of time, which shall be no less than ten
48 business days or any longer period provided by law, and provide the
49 respondent or defendant with a copy of the hardship declaration in
50 English and, to the extent practicable, the language in which the
51 commercial lease or tenancy agreement was written or negotiated, if
52 other than English, to ensure the respondent or defendant received and
53 fully considered whether to submit the hardship declaration.
54 § 5. Pending proceedings. In any eviction proceeding in which an
55 eviction warrant or judgment of possession or ejectment has not been
56 issued, including eviction proceedings filed on or before March 7, 2020,
A. 1 10
1 if the tenant provides a hardship declaration to the petitioner or
2 plaintiff, the court, or an agent of the petitioner or plaintiff or the
3 court, the eviction proceeding shall be stayed until at least January
4 15, 2022. If such hardship declaration is provided to the petitioner or
5 plaintiff or agent, such petitioner or plaintiff or agent shall promptly
6 file it with the court, advising the court in writing the index number
7 of all relevant cases.
8 § 6. Post warrant of eviction. 1. a. In any eviction proceeding in
9 which an eviction warrant or judgment of possession or ejectment has
10 been issued prior to the effective date of this act, but has not yet
11 been executed as of the effective date of this act, including eviction
12 proceedings filed on or before March 7, 2020, the court shall stay the
13 execution of the warrant or judgment at least until the court has held a
14 status conference with the parties. b. In any eviction proceeding, if
15 the tenant provides a hardship declaration to the petitioner or plain-
16 tiff, the court, or an agent of the petitioner or plaintiff or the
17 court, prior to the execution of the warrant or judgment, the execution
18 shall be stayed until at least January 15, 2022. If such hardship decla-
19 ration is provided to the petitioner or plaintiff or agent of the peti-
20 tioner or plaintiff, such petitioner or plaintiff or agent shall prompt-
21 ly file it with the court, advising the court in writing the index
22 number of all relevant cases.
23 2. In any eviction proceeding in which a warrant or execution has been
24 issued, including eviction proceedings filed on or before March 7, 2020,
25 any warrant or execution issued shall not be effective as against the
26 occupants, unless, in addition to other requirements under law, such
27 warrant or execution states:
28 a. The tenant has not submitted the hardship declaration and the
29 tenant was properly served with a copy of the hardship declaration
30 pursuant to this section, listing dates the tenant was served with the
31 hardship declaration by the petitioner or plaintiff and the court; or
32 b. The tenant is ineligible for a stay under this act because the
33 court has found the tenant's hardship claim invalid, or that the tenant
34 intentionally caused significant damage to the property, or the tenant
35 is persistently and unreasonably engaging in behavior that substantially
36 infringes on the use and enjoyment of other tenants or occupants or
37 causes a substantial safety hazard to others, with a specific
38 description of the behavior.
39 3. No court shall issue a warrant or execution directed to the sheriff
40 of the county or to any constable or marshal of the city in which the
41 property, or a portion thereof, is situated, or, if it is not situated
42 in a city, to any constable of any town in the county, that does not
43 comply with the requirements of this section.
44 4. No officer to whom the warrant or execution is directed shall
45 execute a warrant for eviction issued that does not comply with the
46 requirements of this section.
47 5. Unless the warrant or execution contains the information contained
48 in paragraph b of subdivision 2 of this section, if any tenant delivers
49 the hardship declaration to the officer to whom the warrant or execution
50 is directed, the officer shall not execute the warrant or execution and
51 shall return the hardship form to the court indicating the appropriate
52 index/case number the form is associated with.
53 § 7. Section five and paragraph b of subdivision 1 of section six of
54 this act shall not apply if the tenant: 1. intentionally caused signif-
55 icant damage to the property; or
A. 1 11
1 2. is persistently and unreasonably engaging in behavior that substan-
2 tially infringes on the use and enjoyment of other tenants or occupants
3 or causes a substantial safety hazard to others, provided:
4 a. If an eviction proceeding is pending on the effective date of this
5 act, but the petitioner or plaintiff has not previously alleged that the
6 tenant intentionally caused a significant damage to the property or
7 persistently and unreasonably engaged in such behavior, the petitioner
8 or plaintiff shall be required to submit a new petition or an amended
9 complaint with such allegations and comply with all notice and service
10 requirements under law.
11 b. (i) If the court has awarded a judgment against a respondent or
12 defendant prior to the effective date of this act on the basis of objec-
13 tionable or nuisance behavior and the petitioner or plaintiff is alleg-
14 ing the tenant caused significant damage to the property, the court
15 shall hold a hearing to determine whether the tenant is continuing to
16 intentionally cause significant damage to the property.
17 (ii) If the court has awarded a judgment against a respondent or
18 defendant prior to the effective date of chapter 73 of the laws of 2021
19 on the basis of objectionable or nuisance behavior and the petitioner or
20 plaintiff is alleging the tenant is persistently engaging in unreason-
21 able behavior that substantially infringes on the use and enjoyment of
22 other tenants or occupants or causes a substantial safety hazard to
23 others, the court shall hold a hearing to determine whether the tenant
24 is continuing to persist in engaging in unreasonable behavior that
25 substantially infringes on the use and enjoyment of other tenants or
26 occupants or causes a substantial safety hazard to others.
27 c. For the purposes of this act, a mere allegation of the behavior by
28 the petitioner or plaintiff or an agent of the petitioner or plaintiff
29 alleging such behavior shall not be sufficient evidence to establish
30 that the tenant has engaged in such behavior.
31 d. If the petitioner or plaintiff establishes that the tenant inten-
32 tionally caused significant damage to the property, persistently and
33 unreasonably engaged in such behavior, or the tenant fails to provide a
34 hardship declaration to the petitioner or plaintiff, petitioner's or
35 plaintiff's agent or the court, the proceeding may continue pursuant to
36 law.
37 § 8. Translation of hardship declaration. The office of court adminis-
38 tration shall translate the hardship declaration, as defined in section
39 one of this act, into Spanish and, to the extent practicable, the six
40 most common languages in the city of New York, after Spanish, and shall
41 post and maintain such translations and an English language copy of the
42 hardship declaration on the website of such office beginning within
43 fifteen days of the effective date of this act. To the extent practica-
44 ble, the office of court administration shall post and maintain on its
45 website translations into such additional languages as the chief admin-
46 istrative judge shall deem appropriate to ensure that tenants have an
47 opportunity to understand and submit hardship declarations pursuant to
48 this act.
49 § 9. Rebuttable presumption. Unless a court determines a tenant's
50 hardship claim invalid pursuant to section ten of this act, a hardship
51 declaration shall create a rebuttable presumption that the tenant is
52 experiencing financial hardship, in any judicial or administrative
53 proceeding that may be brought, for the purposes of establishing a
54 defense under an executive order of the governor or any other local or
55 state law, order or regulation restricting the eviction of a tenant
56 suffering from a financial hardship during or due to COVID-19 provided
A. 1 12
1 that the absence of a hardship declaration shall not create a presump-
2 tion that a financial hardship is not present.
3 § 10. 1. Notwithstanding any other provision of this act, a stay
4 under this part shall be granted or continued unless the court finds the
5 respondent's or defendant's hardship claim invalid. A motion may be
6 made by the petitioner or plaintiff, attesting a good faith belief that
7 the respondent or defendant has not experienced a hardship, with notice
8 to the respondent or defendant, and the court shall grant a hearing to
9 determine whether to find the respondent's or defendant's hardship claim
10 invalid.
11 2. After any hearing, if the court finds the respondent's or the
12 defendant's hardship claim valid, the court shall grant a stay or
13 continue a stay pursuant to this act.
14 3. After a hearing, if the court finds the respondent's or the defend-
15 ant's hardship claim invalid, the proceedings shall continue to a deter-
16 mination on the merits.
17 § 11. This act shall take effect immediately and sections one, two,
18 three, four, five, six, seven, eight and ten of this act shall expire
19 and be deemed repealed January 15, 2022.
20 SUBPART B
21 Section 1. Application. This section shall apply to any action to
22 foreclose a mortgage relating to commercial real property, provided the
23 owner or mortgagor of such property owns ten or fewer commercial units
24 whether directly or indirectly and is a business that is resident in New
25 York State, independently owned and operated, not dominant in its field,
26 and employs one hundred or fewer persons. The ten or fewer commercial
27 units may be in more than one property or building as long as the total
28 aggregate number of ten units are currently occupied by a tenant or are
29 available for rent.
30 Notwithstanding anything to the contrary, this act shall not apply to,
31 and does not affect any mortgage loans made, insured, purchased or secu-
32 ritized by a corporate governmental agency of the state constituted as a
33 political subdivision and public benefit corporation, or the rights and
34 obligations of any lender, issuer, servicer or trustee of such obli-
35 gations.
36 § 2. Definitions. 1. For the purposes of this act, "Hardship Declara-
37 tion" means a. a hardship declaration filed pursuant to chapters 73, 104
38 or 154 of the laws of 2021, or b. the following statement in 14-point
39 type, published by the office of court administration, whether in phys-
40 ical or electronic written form:
41 "NOTICE TO COMMERCIAL MORTGAGOR: If you have lost significant revenue
42 or had significantly increased necessary costs during the COVID-19
43 pandemic, and you sign and deliver this hardship declaration form to
44 your mortgage lender or other foreclosing party, you may be protected
45 from foreclosure until at least January 15, 2022. If a foreclosure
46 action is filed against you and you provide this form to the plaintiff
47 or the court, the action will be postponed until January 15, 2022 unless
48 the plaintiff moves to challenge your declaration of hardship. If the
49 court finds your hardship claim valid, the foreclosure action will be
50 postponed until after January 15, 2022. While the action is postponed,
51 you may remain in possession.
52 If your mortgage lender or other foreclosing party provided you with
53 this form, the mortgage lender or other foreclosing party must also
54 provide you with a mailing address and e-mail address to which you can
A. 1 13
1 return this form. If you are already in foreclosure proceedings, you may
2 return this form to the court. You should keep a copy or picture of the
3 signed form for your records. You will still owe any unpaid mortgage
4 payments and lawful fees to your lender. You should also keep careful
5 track of what you have paid and any amount you still owe.
6 COMMERCIAL MORTGAGOR'S DECLARATION OF COVID-19-RELATED HARDSHIP
7 I am the owner, chief executive officer, president, or similar officer
8 of (name of the business), which is the mortgagor of the property at
9 (address of commercial unit). My business owns, whether directly or
10 indirectly, ten or fewer commercial units. My business is resident in
11 New York State, independently owned and operated, not dominant in its
12 field, and employs one hundred or fewer persons. My business is experi-
13 encing financial hardship and is unable to pay the mortgage in full
14 because of one or more of the following:
15 (i) Significant loss of revenue during the COVID-19 pandemic.
16 (ii) Significant increase in necessary expenses related to providing
17 personal protective equipment to employees or purchasing and installing
18 other protective equipment to prevent the transmission of COVID-19 with-
19 in the business.
20 (iii) Moving expenses and difficulty in securing an alternative
21 commercial property make it a hardship for the business to relocate to
22 another property during the COVID-19 pandemic.
23 (iv) One or more of the business's tenants has defaulted on a signif-
24 icant amount of their rent payments since March 1, 2020.
25 To the extent that the business has lost revenue or had increased
26 expenses, any public assistance the business has received since the
27 start of the COVID-19 pandemic does not fully make up for the business's
28 loss of revenue or increased expenses.
29 I understand that the business must comply with all other lawful terms
30 under my commercial mortgage agreement. I further understand that lawful
31 fees, penalties or interest for not having paid the mortgage in full as
32 required by the commercial mortgage agreement may still be charged or
33 collected and may result in a monetary judgment. I further understand
34 that the mortgage lender or other foreclosing party may request a hear-
35 ing to challenge the certification of hardship made herein, and that I
36 will have the opportunity to participate in any actions or proceedings
37 regarding the mortgage interest. I also understand that the mortgage
38 lender or other foreclosing party may pursue a foreclosure action
39 against the business on or after January 15, 2022, if I do not fully
40 repay any missed or partial payments and lawful fees. I understand that
41 I may be eligible to receive financial assistance from the State of New
42 York under the Pandemic Small Business Recovery Grant Program or similar
43 relief program, and that I may visit https://esd.ny.gov/business-
44 pandemic-recovery-initiative to receive additional information or call
45 877-721-0097 for assistance.
46 Signed:
47 Printed Name:
48 Date Signed:
49 NOTICE: You are signing and submitting this form under penalty of law.
50 That means it is against the law to make a statement on this form that
51 you know is false."
52 2. "Hardship" means a business is unable to pay the mortgage in full
53 because of one or more of the following reasons and any public assist-
54 ance the business has received since the start of the COVID-19 pandem-
55 ic does not fully make up for the business's loss of revenue or
56 increased expenses:
A. 1 14
1 a. Significant loss of revenue during the COVID-19 pandemic; or
2 b. Significant increase in necessary expenses related to providing
3 personal protective equipment to employees or purchasing and installing
4 other protective equipment to prevent the transmission of COVID-19 with-
5 in the business; or
6 c. Moving expenses and difficulty in securing an alternative commer-
7 cial property make it a hardship for the business to relocate to another
8 property during the COVID-19 pandemic; or
9 d. One or more of the business's tenants has defaulted on a signif-
10 icant amount of their rent payments since March 1, 2020.
11 § 3. The foreclosing party shall include a "Hardship Declaration" with
12 every notice required provided to a mortgagor prior to filing an action
13 for foreclosure. Such notice shall also include a mailing address, tele-
14 phone number and active email address the mortgagor can use to contact
15 the foreclosing party and return the hardship declaration.
16 § 4. No court shall accept for filing any action to foreclose a mort-
17 gage unless the foreclosing party or an agent of the foreclosing party
18 files an affidavit, under penalty of perjury:
19 1. of service demonstrating the manner in which the foreclosing
20 party's agent served a copy of the hardship declaration with required
21 notices, if any, provided to the mortgagor, and
22 2. a. attesting that, at the time of filing, neither the foreclosing
23 party nor any agent of the foreclosing party has received a hardship
24 declaration from the mortgagor; or
25 b. attesting that at the time of filing, the foreclosing party or an
26 agent of the foreclosing party has received a hardship declaration from
27 the mortgagor, but the foreclosing party believes in good faith that the
28 hardship certified in the hardship declaration does not exist.
29 At the earliest possible opportunity, the court shall seek confirma-
30 tion on the record or in writing that the mortgagor has received a copy
31 of the hardship declaration and whether the mortgagor has returned the
32 hardship declaration to the foreclosing party or an agent of the fore-
33 closing party. If the court determines a mortgagor has not received a
34 hardship declaration, then the court shall stay the proceeding for a
35 reasonable period of time, which shall be no less than ten business days
36 or any longer period provided by law, to ensure the mortgagor received
37 and fully considered whether to submit the hardship declaration.
38 § 5. In any action to foreclose a mortgage in which a judgment of sale
39 has not been issued, including actions filed on or before March 7, 2020,
40 if the mortgagor provides a hardship declaration to the foreclosing
41 party, the court, or an agent of the foreclosing party or the court, the
42 proceeding shall be stayed until at least January 15, 2022. If such
43 hardship declaration is provided to the foreclosing party or agent of
44 the foreclosing party, such foreclosing party or agent shall promptly
45 file it with the court, advising the court in writing the index number
46 of all relevant cases.
47 § 6. In any action to foreclose a mortgage in which a judgment of sale
48 has been issued prior to the effective date of this act but has not yet
49 been executed as of the effective date of this act, including actions
50 filed on or before March 7, 2020, the court shall stay the execution of
51 the judgment at least until the court has held a status conference with
52 the parties. In any action to foreclose a mortgage, if the mortgagor
53 provides a hardship declaration to the foreclosing party, the court, or
54 an agent of the foreclosing party or the court, prior to the execution
55 of the judgment, the execution shall be stayed until at least January
56 15, 2022. If such hardship declaration is provided to the foreclosing
A. 1 15
1 party or agent of the foreclosing party, such foreclosing party or agent
2 shall promptly file it with the court, advising the court in writing the
3 index number of all relevant cases.
4 § 7. The office of court administration shall post and maintain a copy
5 of the hardship declaration on the website of such office beginning
6 within fifteen days of the effective date of this act.
7 § 8. Unless a court determines a mortgator's hardship claim invalid
8 pursuant to section nine of this act, a hardship declaration shall
9 create a rebuttable presumption that the mortgagor is suffering finan-
10 cial hardship, in any judicial or administrative proceeding that may be
11 brought, for the purposes of establishing a defense under an executive
12 order of the governor or any other local or state law, order or regu-
13 lation restricting actions to foreclose a mortgage against a mortgagor
14 suffering from a financial hardship during or due to the COVID-19
15 pandemic provided that the absence of a hardship declaration shall not
16 create a presumption that a financial hardship is not present.
17 § 9. 1. Notwithstanding any other provision of this act, a stay under
18 this part shall be granted or continued unless the court finds the
19 defendant's hardship claim invalid. A motion may be made by the plain-
20 tiff, attesting a good faith belief that the defendant has not experi-
21 enced a hardship, with notice to the defendant, and the court shall
22 grant a hearing to determine whether to find the defendant's hardship
23 claim invalid.
24 2. After any hearing, if the court finds the defendant's hardship
25 claim valid, the court shall grant or continue a stay pursuant to this
26 act.
27 3. After a hearing, if the court finds the defendant's hardship claim
28 invalid, the action shall continue to a determination on the merits.
29 § 10. This act shall take effect immediately and sections one, two,
30 three, four, five, six, seven and nine of this act shall expire and be
31 deemed repealed January 15, 2022.
32 SUBPART C
33 Section 1. Application. This act shall apply to any action to fore-
34 close on delinquent taxes or sell a tax lien relating to commercial real
35 property, provided the owner or mortgagor of such property owns ten or
36 fewer commercial units whether directly or indirectly and is a business
37 that is resident in New York State, independently owned and operated,
38 not dominant in its field, and employs one hundred or fewer persons. The
39 ten or fewer commercial units may be in more than one property or build-
40 ing as long as the units are currently occupied by a tenant or are
41 available for rent.
42 § 2. Definitions. For purposes of this act: 1. "Tax lien" means an
43 unpaid tax, special ad valorem levy, special assessment or other charge
44 imposed upon real property by or on behalf of a municipal corporation or
45 special district or other public or private entity which is an encum-
46 brance on real property, whether or not evidenced by a written instru-
47 ment.
48 2. "Tax foreclosure and tax lien sale" shall mean any such tax lien
49 sale or tax foreclosure pursuant to article 11 of the real property tax
50 law, or any general, special or local law related to real property tax
51 lien sales or real property tax foreclosures.
52 3. "Hardship Declaration" means a. a hardship declaration filed pursu-
53 ant to chapters 73, 104 or 154 of the laws of 2021, or b. the following
A. 1 16
1 statement in 14-point type, whether in physical or electronic written
2 form:
3 "COMMERCIAL OWNER DECLARATION OF COVID-19-RELATED HARDSHIP
4 I am the owner, chief executive officer, president, or similar officer
5 of (name of the business), which is the owner of the commercial property
6 at (address). My business owns, whether directly or indirectly, ten or
7 fewer commercial units. My business is resident in New York State,
8 independently owned and operated, not dominant in its field, and employs
9 one hundred or fewer persons. My business is experiencing financial
10 hardship, and is unable to pay its full tax bill because of one or more
11 of the following:
12 (i) Significant loss of revenue during the COVID-19 pandemic.
13 (ii) Significant increase in necessary expenses related to providing
14 personal protective equipment to employees or purchasing and installing
15 other protective equipment to prevent the transmission of COVID-19 with-
16 in the business.
17 (iii) Moving expenses and difficulty in securing an alternative
18 commercial property make it a hardship for the business to relocate to
19 another property during the COVID-19 pandemic.
20 (iv) One or more of the business's tenants has defaulted on a signif-
21 icant amount of their rent payments since March 1, 2020.
22 To the extent that the business has lost revenue or had increased
23 expenses, any public assistance that the business has received since the
24 start of the COVID-19 pandemic must not fully make up for the loss of
25 revenue or increased expenses, and the business still meets the afore-
26 mentioned eligibility criteria to qualify for a financial hardship.
27 I understand that lawful fees, penalties or interest for not having
28 paid the business's taxes in full may still be charged or collected and
29 may result in a foreclosure action against the business on or after
30 January 15, 2022, if the business does not fully repay any missed or
31 partial payments and fees.
32 Signed:
33 Printed Name:
34 Date Signed:
35 NOTICE: You are signing and submitting this form under penalty of law.
36 That means it is against the law to make a statement on this form that
37 you know is false."
38 4. "Hardship" means a business is unable to pay the full tax bill
39 because of one or more of the following reasons and any public assist-
40 ance the business has received since the start of the COVID-19 pandemic
41 does not fully make up for the business's loss of revenue or increased
42 expenses:
43 a. Significant loss of revenue during the COVID-19 pandemic; or
44 b. Significant increase in necessary expenses related to providing
45 personal protective equipment to employees or purchasing and installing
46 other protective equipment to prevent the transmission of COVID-19 with-
47 in the business; or
48 c. Moving expenses and difficulty in securing an alternative commer-
49 cial property make it a hardship for the business to relocate to another
50 property during the COVID-19 pandemic; or
51 d. One or more of the business's tenants has defaulted on a signif-
52 icant amount of their rent payments since March 1, 2020.
53 § 3. 1. A commercial real property owner may submit a "Hardship Decla-
54 ration" to any village, town, city, school district, county, or other
55 entity or person which conducts tax foreclosures or tax lien sales.
A. 1 17
1 2. At least thirty days prior to the date on which a sale of a tax
2 lien is scheduled to occur, or upon the filing of a petition of foreclo-
3 sure of a tax lien, the enforcing officer or other person or entity
4 conducting such tax lien sale or tax foreclosure shall notify the owner
5 of the affected property of such owner's rights under this act and shall
6 notify the owner that a copy of the hardship declaration can be accessed
7 on the New York State Department of Tax and Finance's website and also
8 provide a link to such declaration form. For the purposes of this act,
9 "enforcing officer" shall have the same meaning as defined in subdivi-
10 sion 3 of section 1102 of the real property tax law. The New York State
11 Department of Tax and Finance shall publish a copy of the hardship
12 declaration on its website.
13 3. The submission of such a declaration, unless withdrawn by the
14 owner, shall act as a temporary stay applicable to all entities and
15 persons of all such tax lien sales and tax foreclosure actions and
16 proceedings against such owner for such property that have been
17 commenced or could have been commenced before January 15, 2022.
18 4. While such stay is in effect, no other action or proceeding shall
19 be commenced to recover any part of such delinquent taxes.
20 5. Any applicable statutes of limitation for the commencement of any
21 action or proceeding to sell a tax lien or foreclose a tax lien is
22 tolled until such stay has expired. The obligation to pay the balance of
23 such delinquent taxes is not rendered invalid, released or extinguished
24 by such stay.
25 6. Unless a court determines an owner's hardship claim invalid pursu-
26 ant to subdivision seven of this section, a hardship declaration shall
27 create a rebuttable presumption that the owner is experiencing financial
28 hardship, in any judicial or administrative proceeding that may be
29 brought, for the purposes of establishing a defense under an executive
30 order of the governor or any other local or state law, order or regu-
31 lation restricting actions to sell a tax lien or foreclose a tax lien
32 against an owner suffering from a financial hardship during or due to
33 the COVID-19 pandemic, provided that the absence of a hardship decla-
34 ration shall not create a presumption that a financial hardship is not
35 present.
36 7. a. Notwithstanding any other provision of this act, a stay under
37 this part shall be granted or continued unless the court finds the
38 defendant's hardship claim invalid. A motion may be made by the plain-
39 tiff, if the plaintiff is not a governmental entity, attesting a good
40 faith belief that the defendant has not experienced a hardship, with
41 notice to the defendant, and the court shall grant a hearing to deter-
42 mine whether to find the defendant's hardship claim invalid.
43 b. After any hearing, if the court finds the defendant's hardship
44 claim valid, the court shall grant a stay or continue a stay pursuant to
45 this act.
46 c. After a hearing, if the court finds the defendant's hardship claim
47 invalid, the action shall continue to a determination on the merits.
48 § 4. This act shall take effect immediately and sections one and two
49 and subdivisions 1, 2, 3, 4, 5 and 7 of section three of this act shall
50 expire and be deemed repealed January 15, 2022.
51 SUBPART D
52 Section 1. Application. 1. This act shall apply to an owner of commer-
53 cial real property, provided the owner or mortgagor of such property
54 owns ten or fewer commercial units whether directly or indirectly and is
A. 1 18
1 a business that is resident in New York State, independently owned and
2 operated, not dominant in its field, and employs one hundred or fewer
3 persons. The ten or fewer commercial units may be in more than one prop-
4 erty or building as long as the total aggregate number of ten units are
5 currently occupied by a tenant or are available for rent.
6 2. Hardship declaration. For purposes of this act, "hardship declara-
7 tion" shall mean a. a hardship declaration filed pursuant to chapters
8 73, 104 or 154 of the laws of 2021, or b. the following statement in
9 14-point type, whether in physical or electronic written form, and the
10 department of financial services shall publish a copy of the hardship
11 declaration on its website:
12 "NOTICE TO COMMERCIAL OWNER/MORTGAGOR: If you have lost significant
13 revenue or had significantly increased necessary costs due to the
14 COVID-19 pandemic, and you sign and deliver this hardship declaration
15 form to your lending institution, you cannot be discriminated against in
16 the determination of whether credit should be extended or reported nega-
17 tively to a credit reporting agency until at least January 15, 2022.
18 If a lending institution provided you with this form, the lending
19 institution must also provide you with a mailing address and e-mail
20 address to which you can return this form. You should keep a copy or
21 picture of the signed form for your records.
22 COMMERCIAL OWNER/MORTGAGOR DECLARATION OF COVID-19-RELATED HARDSHIP
23 I am the owner, chief executive officer, president, or similar officer
24 of (name of the business), which is the OWNER/MORTGAGOR of the property
25 at (address of commercial unit). My business owns, whether directly or
26 indirectly, ten or fewer commercial units. My business is resident in
27 New York State, independently owned and operated, not dominant in its
28 field, and employs one hundred or fewer persons. My business is experi-
29 encing financial hardship, and is unable to pay the mortgage in full
30 because of one or more of the following:
31 (i) Significant loss of revenue during the COVID-19 pandemic.
32 (ii) Significant increase in necessary out-of-pocket expenses related
33 to providing personal protective equipment to employees or purchasing
34 and installing other protective equipment to prevent the transmission of
35 COVID-19 within the business.
36 (iii) Moving expenses and difficulty in securing an alternative
37 commercial property make it a hardship for the business to relocate to
38 another commercial property during the COVID-19 pandemic.
39 (iv) One or more of my tenants has defaulted on a significant amount
40 of their rent payments since March 1, 2020.
41 To the extent that the business has lost revenue or had increased
42 expenses, any public assistance that the business has received since the
43 start of the COVID-19 pandemic must not fully make up for the loss of
44 revenue or increased expenses, and the business still meets the afore-
45 mentioned eligibility criteria to qualify for a financial hardship.
46 Signed:
47 Printed Name:
48 Date Signed:
49 NOTICE: You are signing and submitting this form under penalty of law.
50 That means it is against the law to make a statement on this form that
51 you know is false."
52 3. Discrimination in credit decisions. Notwithstanding any law to the
53 contrary, lending institutions shall not discriminate in the determi-
54 nation of whether credit should be extended to any owner of commercial
55 real property as defined in subdivision one of this section because, as
56 provided for in this act, such owner has been granted a stay of mortgage
A. 1 19
1 foreclosure proceedings, tax foreclosure proceedings or of tax lien
2 sales, or that an owner of commercial real property as defined in subdi-
3 vision one of this section is currently in arrears and has filed a hard-
4 ship declaration with such lender.
5 4. Prohibition on negative credit reporting. Notwithstanding any law
6 to the contrary, as provided for in this act, the granting of a stay of
7 mortgage foreclosure proceedings, tax foreclosure proceedings or tax
8 lien sales, or that an owner of commercial real property as defined in
9 subdivision one of this section is currently in arrears and has filed a
10 hardship declaration with their lender shall not be negatively reported
11 to any credit reporting agency.
12 § 2. This act shall take effect immediately and shall expire and be
13 deemed repealed January 15, 2022.
14 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
15 sion, section, subpart or part of this act shall be adjudged by any
16 court of competent jurisdiction to be invalid, such judgment shall not
17 affect, impair, or invalidate the remainder thereof, but shall be
18 confined in its operation to the clause, sentence, paragraph, subdivi-
19 sion, section, subpart or part thereof directly involved in the contro-
20 versy in which such judgment shall have been rendered. It is hereby
21 declared to be the intent of the legislature that this act would have
22 been enacted even if such invalid provisions had not been included here-
23 in.
24 § 3. This act shall take effect immediately provided, however, that
25 the applicable effective date of Subparts A through D of this act shall
26 be as specifically set forth in the last section of such Subparts.
27 PART C
28 Section 1. This Part enacts into law components of legislation relat-
29 ing to residential eviction and foreclosure protections. Each compo-
30 nent is wholly contained within a Subpart identified as Subparts A
31 through D. The effective date for each particular provision
32 contained within such Subpart is set forth in the last section of such
33 Subpart. Any provision in any section contained within a Subpart,
34 including the effective date of the Subpart, which makes reference to a
35 section "of this act", when used in connection with that particular
36 component, shall be deemed to mean and refer to the corresponding
37 section of the Subpart in which it is found. Section three of this Part
38 sets forth the general effective date of this Part.
39 SUBPART A
40 Section 1. Definitions. For the purposes of this act: 1. "Eviction
41 proceeding" means a summary proceeding to recover possession of real
42 property under article seven of the real property actions and
43 proceedings law relating to a residential dwelling unit or any other
44 judicial or administrative proceeding to recover possession of real
45 property relating to a residential dwelling unit.
46 2. "Landlord" includes a landlord, owner of a residential property and
47 any other person with a legal right to pursue eviction, possessory
48 action or a money judgment for rent, including arrears, owed or that
49 becomes due during the COVID-19 covered period, as defined in section 1
50 of chapter 127 of the laws of 2020.
51 3. "Tenant" includes a residential tenant, lawful occupant of a dwell-
52 ing unit, or any other person responsible for paying rent, use and occu-
A. 1 20
1 pancy, or any other financial obligation under a residential lease or
2 tenancy agreement, but does not include a residential tenant or lawful
3 occupant with a seasonal use lease where such tenant has a primary resi-
4 dence to which to return to.
5 4. "Hardship declaration" means:
6 a. a hardship declaration filed pursuant to chapter 381 of the laws of
7 2020 or chapter 104 of the laws of 2021; or
8 b. the following statement, or a substantially equivalent statement in
9 the tenant's primary language, in 14-point type, published by the office
10 of court administration, whether in physical or electronic written form:
11 "NOTICE TO TENANT: If you have lost income or had increased costs
12 during the COVID-19 pandemic, or moving would pose a significant health
13 risk for you or a member of your household due to an increased risk for
14 severe illness or death from COVID-19 due to an underlying medical
15 condition, and you sign and deliver this hardship declaration form to
16 your landlord, you may be protected from eviction until at least January
17 15, 2022 for nonpayment of rent or for holding over after the expiration
18 of your lease. If your landlord files an eviction against you and you
19 provide this form to the landlord or the court, the eviction proceedings
20 will be postponed until January 15, 2022 unless your landlord moves to
21 challenge your declaration of hardship. If the court finds your hardship
22 claim valid, the eviction proceeding will be postponed until after Janu-
23 ary 15, 2022. While the eviction proceeding is postponed, you may
24 remain in possession of your unit. You may still be evicted for violat-
25 ing your lease by intentionally causing significant damage to the prop-
26 erty or persistently and unreasonably engaging in behavior that substan-
27 tially infringes on the use and enjoyment of other tenants or occupants
28 or causes a substantial safety hazard to others.
29 If your landlord has provided you with this form, your landlord must
30 also provide you with a mailing address and e-mail address to which you
31 can return this form. If your landlord has already started an eviction
32 proceeding against you, you can return this form to either your land-
33 lord, the court, or both at any time. You should keep a copy or picture
34 of the signed form for your records. You will still owe any unpaid rent
35 to your landlord. You should also keep careful track of what you have
36 paid and any amount you still owe.
37 For more information about legal resources that may be available to
38 you, go to www.nycourts.gov/evictions/nyc/ or call 718-557-1379 if you
39 live in New York City or go to www.nycourts.gov/evictions/outside-nyc/
40 or call a local bar association or legal services provider if you live
41 outside of New York City. Financial assistance may be available to you,
42 even if you have not qualified for assistance in the past. You should
43 contact your local housing assistance office or the Office of Temporary
44 and Disability Assistance (OTDA) for application information.
45 TENANT'S DECLARATION OF HARDSHIP DURING THE COVID-19 PANDEMIC
46 I am a tenant, lawful occupant, or other person responsible for paying
47 rent, use and occupancy, or any other financial obligation under a lease
48 or tenancy agreement at (address of dwelling unit).
49 YOU MUST INDICATE BELOW YOUR QUALIFICATION FOR EVICTION PROTECTION BY
50 SELECTING OPTION "A" OR "B", OR BOTH.
51 A. ( ) I am experiencing financial hardship, and I am unable to pay my
52 rent or other financial obligations under the lease in full or obtain
A. 1 21
1 alternative suitable permanent housing because of one or more of the
2 following:
3 1. Significant loss of household income during the COVID-19 pandemic.
4 2. Increase in necessary out-of-pocket expenses related to performing
5 essential work or related to health impacts during the COVID-19 pandem-
6 ic.
7 3. Childcare responsibilities or responsibilities to care for an
8 elderly, disabled, or sick family member during the COVID-19 pandemic
9 have negatively affected my ability or the ability of someone in my
10 household to obtain meaningful employment or earn income or increased my
11 necessary out-of-pocket expenses.
12 4. Moving expenses and difficulty I have securing alternative housing
13 make it a hardship for me to relocate to another residence during the
14 COVID-19 pandemic.
15 5. Other circumstances related to the COVID-19 pandemic have negative-
16 ly affected my ability to obtain meaningful employment or earn income or
17 have significantly reduced my household income or significantly
18 increased my expenses.
19 To the extent that I have lost household income or had increased
20 expenses, any public assistance, including unemployment insurance,
21 pandemic unemployment assistance, disability insurance, or paid family
22 leave, that I have received since the start of the COVID-19 pandemic
23 does not fully make up for my loss of household income or increased
24 expenses.
25 B. ( ) Vacating the premises and moving into new permanent housing would
26 pose a significant health risk because I or one or more members of my
27 household have an increased risk for severe illness or death from
28 COVID-19 due to being over the age of sixty-five, having a disability or
29 having an underlying medical condition, which may include but is not
30 limited to being immunocompromised.
31 I understand that I must comply with all other lawful terms under my
32 tenancy, lease agreement or similar contract. I further understand that
33 lawful fees, penalties or interest for not having paid rent in full or
34 met other financial obligations as required by my tenancy, lease agree-
35 ment or similar contract may still be charged or collected and may
36 result in a monetary judgment against me. I further understand that my
37 landlord may request a hearing to challenge the certification of hard-
38 ship made herein, and that I will have the opportunity to participate in
39 any proceedings regarding my tenancy. I further understand that my
40 landlord may be able to seek eviction after January 15, 2022, and that
41 the law may provide certain protections at that time that are separate
42 from those available through this declaration.
43 Signed:
44 Printed name:
45 Date signed:
46 NOTICE: You are signing and submitting this form under penalty of law.
47 That means it is against the law to make a statement on this form that
48 you know is false."
49 5. "Hardship" means either: (a) an inability to pay rent or other
50 financial obligations due in full pursuant to a lease or rental agree-
51 ment or obtain alternative suitable permanent housing due to one or more
52 of the following reasons where public assistance, including unemployment
A. 1 22
1 insurance, pandemic unemployment assistance, disability insurance, or
2 paid family leave, does not fully make up for the loss of household
3 income or increase expenses:
4 (i) a significant loss of household income during the COVID-19 pandem-
5 ic; or
6 (ii) increase in necessary out-of-pocket expenses related to perform-
7 ance of essential work or related to health impacts during the COVID-19
8 pandemic; or
9 (iii) childcare responsibilities or responsibilities to care for an
10 elderly, disabled, or sick family member during the COVID-19 pandemic
11 have negatively affected the ability of the tenant or a household member
12 to obtain meaningful employment or earn income; or
13 (iv) increased necessary out-of-pocket expenses; or
14 (v) moving expenses and related difficulty in securing alternative
15 housing make it a hardship to relocate to another residence during
16 the COVID-19 pandemic; or
17 (vi) other circumstances related to the COVID-19 pandemic have signif-
18 icantly reduced household income or significantly increased
19 expenses; or
20 (b) an inability to vacate the premises and move into new permanent
21 housing because doing so would pose a significant risk of severe illness
22 or death from COVID-19 that a tenant or household member would face due
23 to being over the age of sixty-five, having a disability or having an
24 underlying medical condition, which may include but is not limited to
25 being immunocompromised.
26 § 2. Pre-eviction notices. A landlord shall include a "Hardship Decla-
27 ration" in 14-point type, with every written demand for rent made pursu-
28 ant to subdivision 2 of section 711 of the real property actions and
29 proceedings law, with any other written notice required by the lease or
30 tenancy agreement, law or rule to be provided prior to the commencement
31 of an eviction proceeding, and with every notice of petition served on a
32 tenant. Such notice shall also include:
33 1. a mailing address, telephone number and active email address the
34 tenant can use to contact the landlord and return the hardship declara-
35 tion; and
36 2. a list of all not-for-profit legal service providers actively
37 handling housing matters in the county where the subject premises are
38 located. Such lists shall be prepared and regularly updated, to the
39 extent practicable, for such purpose and published on the website of the
40 office of court administration.
41 § 3. Required affidavit. 1. No court shall accept for filing any peti-
42 tion or other filing to commence an eviction proceeding unless the peti-
43 tioner or an agent of the petitioner files an affidavit of service,
44 under penalty of perjury, demonstrating the manner in which the peti-
45 tioner or the petitioner's agent served a copy of the hardship declara-
46 tion in English and the tenant's primary language, if other than
47 English, with any rent demand and with any other written notice required
48 by the lease or tenancy agreement, law or rule to be provided prior to
49 the commencement of an eviction proceeding, and an affidavit under
50 penalty of perjury:
51 a. attesting that, at the time of filing, neither the petitioner nor
52 any agent of the petitioner has received a hardship declaration from the
53 respondent or any other tenant or occupant of the dwelling unit that is
54 the subject of the proceeding, or
55 b. attesting that the respondent or another tenant or occupant of the
56 dwelling unit that is the subject of the proceeding has returned a hard-
A. 1 23
1 ship declaration, but the respondent is intentionally causing signif-
2 icant damage to the property or persistently and unreasonably engaging
3 in behavior that substantially infringes on the use and enjoyment of
4 other tenants or occupants or causes a substantial safety hazard to
5 others, with a specific description of the behavior alleged, or
6 c. attesting that the respondent or another tenant or occupant of the
7 dwelling unit that is the subject of the proceeding has returned a hard-
8 ship declaration, but the petitioner believes in good faith that the
9 hardship certified in the hardship declaration does not exist.
10 2. Upon accepting a petition pursuant to article 7 of the real proper-
11 ty actions and proceedings law, the attorney, judge or clerk of the
12 court, as the case may be, shall determine whether a copy of the hard-
13 ship declaration in English and the tenant's primary language, if other
14 than English, and a copy of any affidavit filed pursuant to subdivision
15 one of this section is annexed to the served notice of petition and, if
16 not, shall ensure that a copy of the hardship declaration and any such
17 affidavit is attached to such notice. If the petitioner submits an
18 affidavit pursuant to paragraph c of subdivision 1 of this section, the
19 following notice in at least fourteen-point type shall also be annexed
20 as a cover page to the notice of petition:
21 "NOTICE TO TENANT: THIS IS A PETITION TO COMMENCE AN EVICTION PROCEED-
22 ING AGAINST YOU, BUT THE PROCEEDING WILL NOT CONTINUE UNTIL AT LEAST
23 JANUARY 15, 2022, UNLESS YOUR LANDLORD MOVES TO CHALLENGE YOUR CLAIM OF
24 AN EXEMPTION FROM EVICTION IN YOUR HARDSHIP DECLARATION FORM.
25 IF YOUR LANDLORD MOVES TO CHALLENGE YOUR HARDSHIP CLAIM, YOU ARE ENTI-
26 TLED TO A HEARING. IF THE COURT RULES YOUR HARDSHIP CLAIM INVALID AFTER
27 THE HEARING, THE LAWSUIT MAY PROCEED TOWARD POSSIBLE EVICTION, BUT
28 UNLESS AND UNTIL THE COURT ISSUES AN EVICTION WARRANT AGAINST YOU, YOU
29 MAY NOT BE EVICTED."
30 Service of the notice of petition with the attached copies of the
31 hardship declaration and affidavits shall be made by personal delivery
32 to the respondent, unless such service cannot be made with due dili-
33 gence, in which case service may be made under section 735 of the real
34 property actions and proceedings law. At the earliest possible opportu-
35 nity, the court shall seek confirmation on the record or in writing from
36 the respondent that the respondent has received the hardship declaration
37 and whether the respondent has submitted a hardship declaration to the
38 petitioner, an agent of the petitioner, or the court. If the court
39 determines a respondent has not received a hardship declaration, then
40 the court shall stay the proceeding for a reasonable period of time,
41 which shall be no less than ten business days or any longer period
42 provided by law, and provide the respondent with a copy of the hardship
43 declaration in English and the respondent's primary language, if other
44 than English, to ensure the respondent received and fully considered
45 whether to submit the hardship declaration. The court shall also advise
46 the petitioner and respondent substantially as follows: "Financial
47 assistance may be available to landlords and tenants, even if they have
48 not qualified for assistance in the past. You should contact your local
49 housing assistance office or the Office of Temporary and Disability
50 Assistance for application information." If the court is a court of
51 record, such advisory shall be given on the record.
52 § 4. Pending proceedings. In any eviction proceeding in which an
53 eviction warrant has not been issued, including eviction proceedings
54 filed on or before March 7, 2020, if the respondent provides a hardship
55 declaration to the petitioner, the court, or an agent of the petitioner
56 or the court, the eviction proceeding shall be stayed until at least
A. 1 24
1 January 15, 2022. If such hardship declaration is provided to the peti-
2 tioner or agent, such petitioner or agent shall promptly file it with
3 the court, advising the court in writing the index number of all rele-
4 vant cases.
5 § 5. Default judgments. No court shall issue a judgment in any
6 proceeding authorizing a warrant of eviction against a respondent who
7 has defaulted, or authorize the enforcement of an eviction pursuant to a
8 default judgment, prior to January 15, 2022, without first holding a
9 hearing after the effective date of this act, upon motion of the peti-
10 tioner. The petitioner or an agent of the petitioner shall file an affi-
11 davit attesting that the petitioner or the petitioner's agent has served
12 notice of the date, time, and place of such hearing on the respondent,
13 including a copy of such notice. If a default judgment has been awarded
14 at any time prior to the effective date of chapter 381 of the laws of
15 2020, including in eviction proceedings filed on or before March 7,
16 2020, or between August 13, 2021 and the effective date of this act, the
17 default judgment shall be vacated, regardless of any court proceedings
18 that occurred subsequent to entry of the default judgment and the matter
19 restored to the court calendar upon the respondent's written or oral
20 request to the court either before or during such hearing and an order
21 to show cause to vacate the default judgment shall not be required.
22 § 6. Post warrant of eviction. a. (i) In any eviction proceeding in
23 which an eviction warrant has been issued prior to the effective date of
24 this act, but has not yet been executed as of the effective date of this
25 act, including eviction proceedings filed on or before March 7, 2020,
26 the court shall stay the execution of the warrant at least until the
27 court has held a status conference with the parties. (ii) In any
28 eviction proceeding, if the respondent provides a hardship declaration
29 to the petitioner, the court, or an agent of the petitioner or the
30 court, prior to the execution of the warrant, the execution shall be
31 stayed until at least January 15, 2022. If such hardship declaration is
32 provided to the petitioner or agent of the petitioner, such petitioner
33 or agent shall promptly file it with the court, advising the court in
34 writing the index number of all relevant cases.
35 b. In any eviction proceeding in which a warrant has been issued,
36 including eviction proceedings filed on or before March 7, 2020, any
37 warrant issued shall not be effective as against the occupants, unless,
38 in addition to the requirements under section 749 of the real property
39 actions and proceedings law for warrants, such warrant states:
40 (i) The tenant has not submitted the hardship declaration and the
41 tenant was properly served with a copy of the hardship declaration
42 pursuant to this section, listing dates the tenant was served with the
43 hardship declaration by the petitioner and the court; or
44 (ii) The tenant is ineligible for a stay under this act because the
45 court has found the respondent's hardship claim invalid, or the respond-
46 ent intentionally caused significant damage to the property, or the
47 respondent is persistently and unreasonably engaging in behavior that
48 substantially infringes on the use and enjoyment of other tenants or
49 occupants or causes a substantial safety hazard to others, with a
50 specific description of the behavior.
51 c. No court shall issue a warrant directed to the sheriff of the coun-
52 ty or to any constable or marshal of the city in which the property, or
53 a portion thereof, is situated, or, if it is not situated in a city, to
54 any constable of any town in the county, that does not comply with the
55 requirements of this section.
A. 1 25
1 d. No officer to whom the warrant is directed shall execute a warrant
2 for eviction issued that does not comply with the requirements of this
3 section.
4 e. Unless the warrant contains the information contained in paragraph
5 (ii) of subdivision b of this section, if any tenant delivers the hard-
6 ship declaration to the officer to whom the warrant is directed, the
7 officer shall not execute the warrant and shall return the hardship form
8 to the court indicating the appropriate index/case number the form is
9 associated with.
10 § 7. Section four and paragraph (ii) of subdivision a of section six
11 of this act shall not apply if the tenant: (i) intentionally caused
12 significant damage to the property; or (ii) is persistently and unrea-
13 sonably engaging in behavior that substantially infringes on the use and
14 enjoyment of other tenants or occupants or causes a substantial safety
15 hazard to others, provided:
16 1. If an eviction proceeding is pending on the effective date of this
17 act, but the petitioner has not previously alleged that the tenant
18 intentionally caused significant damage to the property or persistently
19 and unreasonably engaged in such behavior, the petitioner shall be
20 required to submit a new petition with such allegations and comply with
21 all notice and service requirements under article 7 of the real property
22 actions and proceedings law and this act.
23 2. a. If the court has awarded a judgment against a respondent prior
24 to the effective date of this act on the basis of objectionable or
25 nuisance behavior and the petitioner is alleging the tenant caused
26 significant damage to the property, the court shall hold a hearing to
27 determine whether the tenant is continuing to intentionally cause
28 significant damage to the property.
29 b. If the court has awarded a judgment against a respondent prior to
30 the effective date of chapter 381 of the laws of 2020 or between August
31 13, 2021 and the effective date of this act on the basis of objectiona-
32 ble or nuisance behavior and the petitioner is alleging the tenant is
33 persistently engaging in unreasonable behavior that substantially
34 infringes on the use and enjoyment of other tenants or occupants or
35 causes a substantial safety hazard to others, the court shall hold a
36 hearing to determine whether the tenant is continuing to persist in
37 engaging in unreasonable behavior that substantially infringes on the
38 use and enjoyment of other tenants or occupants or causes a substantial
39 safety hazard to others.
40 3. For the purposes of this act, a mere allegation of the behavior by
41 the petitioner or an agent of the petitioner alleging such behavior
42 shall not be sufficient evidence to establish that the tenant has
43 engaged in such behavior.
44 4. If the petitioner establishes that the tenant intentionally caused
45 significant damage to the property or persistently and unreasonably
46 engaged in such behavior or the tenant fails to provide a hardship
47 declaration to the petitioner, petitioner's agent or the court, the
48 proceeding may continue pursuant to article 7 of the real property
49 actions and proceedings law and this act.
50 § 8. Translation of hardship declaration. The office of court adminis-
51 tration shall translate the hardship declaration, as defined in section
52 one of this act, into Spanish and the six most common languages in the
53 city of New York, after Spanish, and shall post and maintain such trans-
54 lations and an English language copy of the hardship declaration on the
55 website of such office beginning within fifteen days of the effective
56 date of this act. To the extent practicable, the office of court admin-
A. 1 26
1 istration shall post and maintain on its website translations into such
2 additional languages as the chief administrative judge shall deem appro-
3 priate to ensure that tenants have an opportunity to understand and
4 submit hardship declarations pursuant to this act.
5 § 9. Rebuttable presumption. Unless a court determines a tenant's
6 hardship claim invalid pursuant to section ten of this act, a hardship
7 declaration in which the tenant has selected the option indicating a
8 financial hardship shall create a rebuttable presumption that the tenant
9 is experiencing financial hardship, in any judicial or administrative
10 proceeding that may be brought, for the purposes of establishing a
11 defense under chapter 127 of the laws of 2020, an executive order of the
12 governor or any other local or state law, order or regulation restrict-
13 ing the eviction of a tenant suffering from a financial hardship during
14 or due to COVID-19 provided that the absence of a hardship declaration
15 shall not create a presumption that a financial hardship is not present.
16 § 10. (a) Notwithstanding any other provision of this act, a stay
17 under this act shall be granted or continued unless the court finds the
18 respondent's hardship claim invalid. A motion may be made by the peti-
19 tioner, attesting a good faith belief that the respondent has not expe-
20 rienced a hardship, with notice to the respondent, and the court shall
21 grant a hearing to determine whether to find the respondent's hardship
22 claim invalid.
23 (b) After any hearing, if the court finds the hardship claim valid,
24 the court shall grant a stay or continue a stay pursuant to this act,
25 provided that the court shall direct, if the respondent appears to be
26 eligible and has not yet applied, that the parties apply to the COVID-19
27 emergency rental assistance program of 2021, created by subpart A of
28 part BB of chapter 56 of the laws of 2021, or a locally administered
29 program to administer federal emergency rental assistance funding issued
30 pursuant to section 501 of the Consolidated Appropriations Act of 2021,
31 Pub. L. 116-260 § 501, or section 3201 of the American Rescue Plan Act
32 of 2021, Pub. L. 117-2 § 3201, so long as such program or programs are
33 accepting applications.
34 (c) After a hearing, if the court finds the respondent's hardship
35 claim invalid, the proceedings shall continue to a determination on the
36 merits.
37 § 11. This act shall take effect immediately and sections one, two,
38 three, four, five, six, seven, eight and ten of this act shall expire
39 January 15, 2022.
40 SUBPART B
41 Section 1. Application. This section shall apply to any action to
42 foreclose a mortgage relating to residential real property, provided the
43 owner or mortgagor of such property is a natural person, regardless of
44 how title is held, and owns ten or fewer dwelling units whether directly
45 or indirectly. The ten or fewer dwelling units may be in more than one
46 property or building as long as the total aggregate number of ten units
47 includes the primary residence of the natural person requesting such
48 relief and the remaining units are currently occupied by a tenant or are
49 available for rent.
50 (a) For purposes of this act, real property shall include shares
51 assigned to a unit in a residential cooperative.
52 (b) For purposes of this act, real property shall not include property
53 that is vacant and abandoned, as defined in subdivision 2 of section
54 1309 of the real property actions and proceedings law, which was listed
A. 1 27
1 on the statewide vacant and abandoned property electronic registry, as
2 defined in section 1310 of the real property actions and proceedings
3 law, prior to March 7, 2020 and that remains on such registry.
4 Notwithstanding anything to the contrary, this act shall not apply to,
5 and does not affect any mortgage loans made, insured, purchased or secu-
6 ritized by a corporate governmental agency of the state constituted as a
7 political subdivision and public benefit corporation, or the rights and
8 obligations of any lender, issuer, servicer or trustee of such obli-
9 gations.
10 § 2. Definitions. 1. For the purposes of this act, "Hardship Declara-
11 tion" means:
12 a. a hardship declaration filed pursuant to chapter 381 of the laws of
13 2020 or chapter 104 of the laws of 2021; or
14 b. the following statement, or a substantially equivalent statement in
15 the mortgagor's primary language, in 14-point type, published by the
16 office of court administration, whether in physical or electronic writ-
17 ten form:
18 "NOTICE TO MORTGAGOR: If you have lost income or had increased costs
19 during the COVID-19 pandemic, and you sign and deliver this hardship
20 declaration form to your mortgage lender or other foreclosing party, you
21 may be protected from foreclosure until at least January 15, 2022. If a
22 foreclosure action is filed against you and you provide this form to the
23 plaintiff or the court, the action will be postponed until January 15,
24 2022 unless the plaintiff moves to challenge your declaration of hard-
25 ship. If the court finds your hardship claim valid, the foreclosure
26 action will be postponed until after January 15, 2022. While the action
27 is postponed, you may remain in possession.
28 If your mortgage lender or other foreclosing party provided you with
29 this form, the mortgage lender or other foreclosing party must also
30 provide you with a mailing address and e-mail address to which you can
31 return this form. If you are already in foreclosure proceedings, you may
32 return this form to the court. You should keep a copy or picture of the
33 signed form for your records. You will still owe any unpaid mortgage
34 payments and lawful fees to your lender. You should also keep careful
35 track of what you have paid and any amount you still owe. Financial
36 assistance may be available to you, even if you have previously been
37 denied. You should contact your local housing assistance office for
38 application information.
39 MORTGAGOR'S DECLARATION OF COVID-19-RELATED HARDSHIP
40 I am the mortgagor of the property at (address of dwelling unit).
41 Including my primary residence, I own, whether directly or indirectly,
42 ten or fewer residential dwelling units. I am experiencing financial
43 hardship, and I am unable to pay my mortgage in full because of one or
44 more of the following:
45 1. Significant loss of household income during the COVID-19 pandemic.
46 2. Increase in necessary out-of-pocket expenses related to performing
47 essential work or related to health impacts during the COVID-19 pandem-
48 ic.
49 3. Childcare responsibilities or responsibilities to care for an
50 elderly, disabled, or sick family member during the COVID-19 pandemic
51 have negatively affected my ability or the ability of someone in my
52 household to obtain meaningful employment or earn income or increased my
53 necessary out-of-pocket expenses.
54 4. Moving expenses and difficulty I have securing alternative housing
55 make it a hardship for me to relocate to another residence during the
56 COVID-19 pandemic.
A. 1 28
1 5. Other circumstances related to the COVID-19 pandemic have negative-
2 ly affected my ability to obtain meaningful employment or earn income or
3 have significantly reduced my household income or significantly
4 increased my expenses.
5 6. One or more of my tenants has defaulted on a significant amount of
6 their rent payments since March 1, 2020.
7 To the extent I have lost household income or had increased expenses,
8 any public assistance, including unemployment insurance, pandemic unem-
9 ployment assistance, disability insurance, or paid family leave, that I
10 have received since the start of the COVID-19 pandemic does not fully
11 make up for my loss of household income or increased expenses.
12 I understand that I must comply with all other lawful terms under my
13 mortgage agreement. I further understand that lawful fees, penalties or
14 interest for not having paid my mortgage in full as required by my mort-
15 gage agreement may still be charged or collected and may result in a
16 monetary judgment against me. I further understand that my mortgage
17 lender, or other foreclosing party may request a hearing to challenge
18 the certification of hardship made herein, and that I will have the
19 opportunity to participate in any actions or proceedings regarding my
20 mortgage interest. I also understand that my mortgage lender or other
21 foreclosing party may pursue a foreclosure action against me on or after
22 January 15, 2022, if I do not fully repay any missed or partial payments
23 and lawful fees.
24 Signed:
25 Printed Name:
26 Date Signed:
27 NOTICE: You are signing and submitting this form under penalty of law.
28 That means it is against the law to make a statement on this form that
29 you know is false."
30 2. "Hardship" means a mortgagor is unable to pay their mortgage in
31 full because of one or more of the following reasons and any public
32 assistance, including unemployment insurance, pandemic unemployment
33 assistance, disability insurance, or paid family leave, that the mortga-
34 gor or borrower has received since the start of the COVID-19 pandemic
35 does not fully make up for their loss of household income or increased
36 expenses:
37 (i) Significant loss of household income during the COVID-19 pandemic;
38 or
39 (ii) Increase in necessary out-of-pocket expenses related to perform-
40 ing essential work or related to health impacts during the COVID-19
41 pandemic; or
42 (iii) Childcare responsibilities or responsibilities to care for
43 an elderly, disabled, or sick family member during the COVID-19
44 pandemic negatively affected the mortgagor's ability or the ability of
45 someone in their household to obtain meaningful employment or earn
46 income or increased their necessary out-of-pocket expenses; or
47 (iv) Moving expenses and difficulty the mortgagor has securing alter-
48 native housing make it a hardship for the mortgagor to relocate to
49 another residence during the COVID-19 pandemic; or
50 (v) Other circumstances related to the COVID-19 pandemic have nega-
51 tively affected the mortgagor's ability to obtain meaningful employment
52 or earn income or have significantly reduced the mortgagor's
53 household income or significantly increased the mortgagor's expenses;
54 or
55 (vi) One or more of the mortgagor's tenants has defaulted on a signif-
56 icant amount of their rent payments since March 1, 2020.
A. 1 29
1 § 3. The foreclosing party shall include a "Hardship Declaration" in
2 14-point type, with every notice provided to a mortgagor pursuant to
3 sections 1303 and 1304 of the real property actions and proceedings law.
4 Such notice shall also include a mailing address, telephone number and
5 active email address the mortgagor can use to contact the foreclosing
6 party and return the hardship declaration.
7 § 4. No court shall accept for filing any action to foreclose a mort-
8 gage unless the foreclosing party or an agent of the foreclosing party
9 files an affidavit, under penalty of perjury:
10 (i) of service demonstrating the manner in which the foreclosing
11 party's agent served a copy of the hardship declaration in English and
12 the mortgagor's primary language, if other than English, with the
13 notice, if any, provided to the mortgagor pursuant to sections 1303 and
14 1304 of the real property actions and proceedings law, and
15 (ii) a. attesting that at the time of filing, neither the foreclosing
16 party nor any agent of the foreclosing party has received a hardship
17 declaration from the mortgagor; or
18 b. attesting that at the time of filing, the foreclosing party or an
19 agent of the foreclosing party has received a hardship declaration from
20 the mortgagor, but the foreclosing party believes in good faith that the
21 hardship certified in the hardship declaration does not exist.
22 At the earliest possible opportunity, the court shall seek confirma-
23 tion on the record or in writing that the mortgagor has received a copy
24 of the hardship declaration and whether the mortgagor has returned the
25 hardship declaration to the foreclosing party or an agent of the fore-
26 closing party. If the court determines a mortgagor has not received a
27 hardship declaration, then the court shall stay the proceeding for a
28 reasonable period of time, which shall be no less than ten business days
29 or any longer period provided by law, to ensure the mortgagor received
30 and fully considered whether to submit the hardship declaration.
31 § 5. In any action to foreclose a mortgage in which a judgment of sale
32 has not been issued, including actions filed on or before March 7, 2020,
33 if the mortgagor provides a hardship declaration to the foreclosing
34 party, the court, or an agent of the foreclosing party or the court, the
35 proceeding shall be stayed until at least January 15, 2022. If such
36 hardship declaration is provided to the foreclosing party or agent of
37 the foreclosing party, such foreclosing party or agent shall promptly
38 file it with the court, advising the court in writing the index number
39 of all relevant cases.
40 § 6. In any action to foreclose a mortgage in which a judgment of sale
41 has been issued prior to the effective date of this act but has not yet
42 been executed as of the effective date of this act, including actions
43 filed on or before March 7, 2020, the court shall stay the execution of
44 the judgment at least until the court has held a status conference with
45 the parties. In any action to foreclose a mortgage, if the mortgagor
46 provides a hardship declaration to the foreclosing party, the court, or
47 an agent of the foreclosing party or the court, prior to the execution
48 of the judgment, the execution shall be stayed until at least January
49 15, 2022. If such hardship declaration is provided to the foreclosing
50 party or agent of the foreclosing party, such foreclosing party or agent
51 shall promptly file it with the court, advising the court in writing the
52 index number of all relevant cases.
53 § 7. The office of court administration shall translate the hardship
54 declaration, as defined in section one of this act, into Spanish and the
55 six most common languages in the city of New York, after Spanish, and
56 shall post and maintain such translations and an English language copy
A. 1 30
1 of the hardship declaration on the website of such office beginning
2 within fifteen days of the effective date of this act.
3 § 8. Unless a court determines a mortgagor's hardship claim invalid
4 pursuant to section nine of this act, a hardship declaration shall
5 create a rebuttable presumption that the mortgagor is suffering finan-
6 cial hardship, in any judicial or administrative proceeding that may be
7 brought, for the purposes of establishing a defense under an executive
8 order of the governor or any other local or state law, order or regu-
9 lation restricting actions to foreclose a mortgage against a mortgagor
10 suffering from a financial hardship during or due to the COVID-19
11 pandemic provided that the absence of a hardship declaration shall not
12 create a presumption that a financial hardship is not present.
13 § 9. (a) Notwithstanding any other provision of this act, a stay under
14 this part shall be granted or continued unless the court finds the
15 defendant's hardship claim invalid. A motion may be made by the fore-
16 closing party, attesting a good faith belief that the defendant has not
17 experienced a hardship, with notice to the defendant, and the court
18 shall grant a hearing to determine whether to find the defendant's hard-
19 ship claim invalid.
20 (b) After any hearing, if the court finds the defendant's hardship
21 claim valid, the court shall grant a stay or continue a stay pursuant to
22 this act.
23 (c) After a hearing, if the court finds the defendant's hardship claim
24 invalid, the action shall continue to a determination on the merits.
25 § 10. This act shall take effect immediately and sections one, two,
26 three, four, five, six, seven and nine of this act shall expire January
27 15, 2022.
28 SUBPART C
29 Section 1. Application. This act shall apply to any action to fore-
30 close on delinquent taxes or sell a tax lien relating to residential
31 real property, provided the owner or mortgagor of such property is a
32 natural person, regardless of how title is held, and owns ten or fewer
33 dwelling units whether directly or indirectly. The ten or fewer dwelling
34 units may be in more than one property or building as long as the total
35 aggregate number of ten units includes the primary residence of the
36 natural person requesting such relief and the remaining units are
37 currently occupied by a tenant or are available for rent.
38 (a) For purposes of this act, real property shall include shares in a
39 residential cooperative.
40 (b) For purposes of this act, real property shall not include property
41 that is vacant and abandoned, as defined in subdivision 2 of section
42 1309 of the real property actions and proceedings law, which was listed
43 on the statewide vacant and abandoned property electronic registry, as
44 defined in section 1310 of the real property actions and proceedings
45 law, prior to March 7, 2020 and that remains on such registry.
46 § 2. Definitions. For purposes of this act: 1. "Tax lien" means an
47 unpaid tax, special ad valorem levy, special assessment or other charge
48 imposed upon real property by or on behalf of a municipal corporation or
49 special district or other public or private entity which is an encum-
50 brance on real property, whether or not evidenced by a written instru-
51 ment.
52 2. "Tax foreclosure and tax lien sale" shall mean any such tax lien
53 sale or tax foreclosure pursuant to article 11 of the real property tax
A. 1 31
1 law, or any general, special or local law related to real property tax
2 lien sales or real property tax foreclosures.
3 3. "Hardship Declaration" means: a. a hardship declaration filed
4 pursuant to chapter 381 of the laws of 2020 or chapter 104 of the laws
5 of 2021; or
6 b. the following statement, or a substantially equivalent statement in
7 the owner's primary language, in 14-point type, whether in physical or
8 electronic written form:
9 "OWNER DECLARATION OF COVID-19-RELATED HARDSHIP
10 I am the owner of the property at (address). Including my primary
11 residence, I own, whether directly or indirectly, ten or fewer residen-
12 tial dwelling units. I am experiencing financial hardship, and I am
13 unable to pay my full tax bill because of one or more of the following:
14 1. Significant loss of household income during the COVID-19 pandemic.
15 2. Increase in necessary out-of-pocket expenses related to performing
16 essential work or related to health impacts during the COVID-19 pandem-
17 ic.
18 3. Childcare responsibilities or responsibilities to care for an
19 elderly, disabled, or sick family member during the COVID-19 pandemic
20 have negatively affected my ability or the ability of someone in my
21 household to obtain meaningful employment or earn income or increased my
22 necessary out-of-pocket expenses.
23 4. Moving expenses and difficulty I have securing alternative housing
24 make it a hardship for me to relocate to another residence during the
25 COVID-19 pandemic.
26 5. Other circumstances related to the COVID-19 pandemic have negative-
27 ly affected my ability to obtain meaningful employment or earn income or
28 have significantly reduced my household income or significantly
29 increased my expenses.
30 6. One or more of my tenants has defaulted on a significant amount of
31 their rent payments since March 1, 2020.
32 To the extent that I have lost household income or had increased
33 expenses, any public assistance, including unemployment insurance,
34 pandemic unemployment assistance, disability insurance, or paid family
35 leave, that I have received since the start of the COVID-19 pandemic
36 does not fully make up for my loss of household income or increased
37 expenses.
38 I understand that lawful fees, penalties or interest for not having
39 paid my taxes in full may still be charged or collected and may result
40 in a foreclosure action against me on or after January 15, 2022, if I do
41 not fully repay any missed or partial payments and fees.
42 Signed:
43 Printed Name:
44 Date Signed:
45 NOTICE: You are signing and submitting this form under penalty of law.
46 That means it is against the law to make a statement on this form that
47 you know is false."
48 4. "Hardship" means an owner is unable to pay their full tax bill
49 because of one or more of the following reasons and any public assist-
50 ance, including unemployment insurance, pandemic unemployment assist-
51 ance, disability insurance, or paid family leave, that the owner has
52 received since the start of the COVID-19 pandemic does not fully make up
53 for their loss of household income or increased expenses:
54 (i) Significant loss of household income during the COVID-19 pandemic;
55 or
A. 1 32
1 (ii) Increase in necessary out-of-pocket expenses related to perform-
2 ing essential work or related to health impacts during the COVID-19
3 pandemic; or
4 (iii) Childcare responsibilities or responsibilities to care for
5 an elderly, disabled, or sick family member during the COVID-19
6 pandemic negatively affected the owner's ability or the ability of
7 someone in their household to obtain meaningful employment or earn
8 income or increased their necessary out-of-pocket expenses; or
9 (iv) Moving expenses and difficulty the owner has securing alternative
10 housing make it a hardship for the owner to relocate to another resi-
11 dence during the COVID-19 pandemic; or
12 (v) Other circumstances related to the COVID-19 pandemic have nega-
13 tively affected the owner's ability to obtain meaningful employment or
14 earn income or have significantly reduced the owner's household
15 income or significantly increased the owner's expenses; or
16 (vi) One or more of the owner's tenants has defaulted on a significant
17 amount of their rent payments since March 1, 2020.
18 § 3. 1. A real property owner may submit a "Hardship Declaration" to
19 any village, town, city, school district, county, or other entity or
20 person which conducts tax foreclosures or tax lien sales.
21 2. At least thirty days prior to the date on which a sale of a tax
22 lien is scheduled to occur, or upon the filing of a petition of foreclo-
23 sure of a tax lien, the enforcing officer or other person or entity
24 conducting such tax lien sale or tax foreclosure shall notify the owner
25 of the affected property of such owner's rights under this act and shall
26 notify the owner that a copy of the hardship declaration can be accessed
27 on the New York State Department of Tax and Finance's website and also
28 provide a link to such declaration form. For the purposes of this act,
29 "enforcing officer" shall have the same meaning as defined in subdivi-
30 sion 3 of section 1102 of the real property tax law. The New York State
31 Department of Tax and Finance shall publish a copy of the hardship
32 declaration on its website.
33 3. The submission of such a declaration, unless withdrawn by the
34 owner, shall act as a temporary stay applicable to all entities and
35 persons of all such tax lien sales and tax foreclosure actions and
36 proceedings against such owner for such property that have been
37 commenced or could have been commenced before January 15, 2022.
38 4. While such stay is in effect, no other action or proceeding shall
39 be commenced to recover any part of such delinquent taxes.
40 5. Any applicable statutes of limitation for the commencement of any
41 action or proceeding to sell a tax lien or foreclose a tax lien is
42 tolled until such stay has expired. The obligation to pay the balance of
43 such delinquent taxes is not rendered invalid, released or extinguished
44 by such stay.
45 6. Unless a court determines an owner's claim of hardship invalid
46 pursuant to subdivision 7 of this section, a hardship declaration shall
47 create a rebuttable presumption that the owner is experiencing financial
48 hardship, in any judicial or administrative proceeding that may be
49 brought, for the purposes of establishing a defense under an executive
50 order of the governor or any other local or state law, order or regu-
51 lation restricting actions to sell a tax lien or foreclose a tax lien
52 against an owner suffering from a financial hardship during or due to
53 the COVID-19 pandemic, provided that the absence of a hardship decla-
54 ration shall not create a presumption that a financial hardship is not
55 present.
A. 1 33
1 7. (a) Notwithstanding any other provision of this act, a stay under
2 this part shall be granted or continued unless the court finds the
3 defendant's hardship claim invalid. A motion may be made by the fore-
4 closing party, if such party is not a governmental entity, attesting a
5 good faith belief that the defendant has not experienced a hardship,
6 with notice to the defendant, and the court shall grant a hearing to
7 determine whether to find the defendant's hardship claim invalid.
8 (b) After any hearing, if the court finds the defendant's hardship
9 claim valid, the court shall grant a stay or continue a stay pursuant to
10 this act.
11 (c) After a hearing, if the court finds the defendant's hardship claim
12 invalid, the proceedings shall continue to a determination on the
13 merits.
14 § 4. This act shall take effect immediately and sections one and two
15 and subdivisions one, two, three, four, five and seven of section three
16 shall expire January 15, 2022.
17 SUBPART D
18 Section 1. Application. 1. This act shall apply to an owner of resi-
19 dential real property, provided the owner or mortgagor of such property
20 is a natural person, regardless of how title is held, and owns ten or
21 fewer dwelling units whether directly or indirectly. The ten or fewer
22 dwelling units may be in more than one property or building as long as
23 the total aggregate number of ten units includes the primary residence
24 of the natural person requesting such relief and the remaining units are
25 currently occupied by a tenant or are available for rent.
26 (a) For purposes of this act, real property shall include shares in a
27 residential cooperative.
28 (b) For purposes of this act, real property shall not include property
29 that is vacant and abandoned, as defined in subdivision 2 of section
30 1309 of the real property actions and proceedings law, which was listed
31 on the statewide vacant and abandoned property electronic registry, as
32 defined in section 1310 of the real property actions and proceedings
33 law, prior to March 7, 2020 and that remains on such registry.
34 2. Hardship declaration. For purposes of this act, "hardship declara-
35 tion" shall mean: a. a hardship declaration filed pursuant to chapter
36 381 of the laws of 2020 or chapter 104 of the laws of 2021; or
37 b. the following statement, or a substantially equivalent statement in
38 the owner or mortgagor's primary language, in 14-point type, whether in
39 physical or electronic written form, and the department of financial
40 services shall publish a copy of the hardship declaration on its
41 website:
42 "NOTICE TO OWNER/MORTGAGOR: If you have lost income or had increased
43 costs due to the COVID-19 pandemic, and you sign and deliver this hard-
44 ship declaration form to your lending institution, you cannot be
45 discriminated against in the determination of whether credit should be
46 extended or reported negatively to a credit reporting agency until at
47 least January 15, 2022.
48 If a lending institution provided you with this form, the lending
49 institution must also provide you with a mailing address and e-mail
50 address to which you can return this form. You should keep a copy or
51 picture of the signed form for your records.
52 OWNER/MORTGAGOR DECLARATION OF COVID-19-RELATED HARDSHIP
53 I am the OWNER/MORTGAGOR of the property at (address of dwelling
54 unit). Including my primary residence, I own, whether directly or indi-
A. 1 34
1 rectly, ten or fewer residential dwelling units. I am experiencing
2 financial hardship, and I am unable to pay my mortgage in full because
3 of one or more of the following:
4 1. Significant loss of household income during the COVID-19 pandemic.
5 2. Increase in necessary out-of-pocket expenses related to performing
6 essential work or related to health impacts during the COVID-19 pandem-
7 ic.
8 3. Childcare responsibilities or responsibilities to care for an
9 elderly, disabled, or sick family member during the COVID-19 pandemic
10 have negatively affected my ability or the ability of someone in my
11 household to obtain meaningful employment or earn income or increased my
12 necessary out-of-pocket expenses.
13 4. Moving expenses and difficulty I have securing alternative housing
14 make it a hardship for me to relocate to another residence during the
15 COVID-19 pandemic.
16 5. Other circumstances related to the COVID-19 pandemic have negative-
17 ly affected my ability to obtain meaningful employment or earn income or
18 have significantly reduced my household income or significantly
19 increased my expenses.
20 6. One or more of my tenants has defaulted on a significant amount of
21 their rent payments since March 1, 2020.
22 To the extent that I have lost household income or had increased
23 expenses, any public assistance, including unemployment insurance,
24 pandemic unemployment assistance, disability insurance, or paid family
25 leave, that I have received since the start of the COVID-19 pandemic
26 does not fully make up for my loss of household income or increased
27 expenses.
28 Signed:
29 Printed Name:
30 Date Signed:
31 NOTICE: You are signing and submitting this form under penalty of law.
32 That means it is against the law to make a statement on this form that
33 you know is false."
34 3. Discrimination in credit decisions. Notwithstanding any law to the
35 contrary, lending institutions shall not discriminate in the determi-
36 nation of whether credit should be extended to any owner of residential
37 real property as defined in subdivision one of this section because, as
38 provided for in this act, such owner has been granted a stay of mortgage
39 foreclosure proceedings, tax foreclosure proceedings or of tax lien
40 sales, or that an owner of residential real property as defined in
41 subdivision one of this section is currently in arrears and has filed a
42 hardship declaration with such lender.
43 4. Prohibition on negative credit reporting. Notwithstanding any law
44 to the contrary, as provided for in this act, the granting of a stay of
45 mortgage foreclosure proceedings, tax foreclosure proceedings or tax
46 lien sales, or that an owner of residential real property as defined in
47 subdivision one of this section is currently in arrears and has filed a
48 hardship declaration with their lender shall not be negatively reported
49 to any credit reporting agency.
50 § 2. This act take effect immediately and shall expire January 15,
51 2022.
52 § 2. Severability clause. If any clause, sentence, paragraph, subdivi-
53 sion, section, subpart or part of this act shall be adjudged by any
54 court of competent jurisdiction to be invalid, such judgment shall not
55 affect, impair, or invalidate the remainder thereof, but shall be
56 confined in its operation to the clause, sentence, paragraph, subdivi-
A. 1 35
1 sion, section, subpart or part thereof directly involved in the contro-
2 versy in which such judgment shall have been rendered. It is hereby
3 declared to be the intent of the legislature that this act would have
4 been enacted even if such invalid provisions had not been included here-
5 in.
6 § 3. This act shall take effect immediately provided, however, that
7 the applicable effective date of Subparts A through D of this act shall
8 be as specifically set forth in the last section of such Subparts.
9 PART D
10 Section 1. Section 1 of chapter 127 of the laws of 2020, relating to
11 prohibiting the eviction of residential tenants who have suffered finan-
12 cial hardship during the COVID-19 covered period, is amended to read as
13 follows:
14 Section 1. For the purposes of this act, "COVID-19 covered period"
15 means March 7, 2020 until [the date on which none of the provisions that
16 closed or otherwise restricted public or private businesses or places of
17 public accommodation, or required postponement or cancellation of all
18 non-essential gatherings of individuals of any size for any reason in
19 Executive Orders 202.3, 202.4, 202.5, 202.6, 202.7, 202.8, 202.10,
20 202.11, 202.13 or 202.14, as extended by Executive Orders 202.28 and
21 202.31 and as further extended by any future Executive Order, issued in
22 response to the COVID-19 pandemic continue to apply in the county of the
23 tenant's or lawful occupant's residence] January 15, 2022.
24 § 2. Paragraph (b) of subdivision 2 of section 2 of chapter 127 of the
25 laws of 2020, relating to prohibiting the eviction of residential
26 tenants who have suffered financial hardship during the COVID-19 covered
27 period, is amended to read as follows:
28 (b) In determining whether a tenant or lawful occupant suffered a
29 financial hardship during the COVID-19 covered period, the court shall
30 consider, among other relevant factors:
31 (i) the tenant's or lawful occupant's income prior to the COVID-19
32 covered period;
33 (ii) the tenant's or lawful occupant's income during the COVID-19
34 covered period;
35 (iii) the tenant's or lawful occupant's liquid assets; and
36 (iv) the tenant's or lawful occupant's eligibility for and receipt of
37 cash assistance, supplemental nutrition assistance program, supplemental
38 security income, the New York State disability program, the home energy
39 assistance program, [or] unemployment insurance or benefits under state
40 or federal law, or the emergency rental assistance program.
41 § 3. This act shall take effect immediately and shall be deemed to
42 have been in full force and effect on and after March 7, 2020.
43 PART E
44 Section 1. Notwithstanding the provisions of article 7 of the public
45 officers law to the contrary, any state agency, department, corporation,
46 office, authority, board, or commission, as well as any local public
47 body, or public corporation as defined in section 66 of the general
48 construction law, or political subdivisions as defined in section 100 of
49 the general municipal law, or a committee or subcommittee or other simi-
50 lar body of such entity, shall be authorized to meet and take such
51 action authorized by law without permitting in public in-person access
52 to meetings and authorize such meetings to be held remotely by confer-
A. 1 36
1 ence call or similar service, provided that the public has the ability
2 to view or listen to such proceeding and that such meetings are recorded
3 and later transcribed. "Local public body" shall mean any entity for
4 which a quorum is required in order to conduct public business and which
5 consists of two or more members, performing a governmental function for
6 an entity limited in the execution of its official functions to a
7 portion only of the state, or a political subdivision of the state, or
8 for an agency or department thereof.
9 § 2. This act shall take effect immediately and shall expire and be
10 deemed repealed January 15, 2022.
11 § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
12 sion, section or part of this act shall be adjudged by any court of
13 competent jurisdiction to be invalid, such judgment shall not affect,
14 impair, or invalidate the remainder thereof, but shall be confined in
15 its operation to the clause, sentence, paragraph, subdivision, section
16 or part thereof directly involved in the controversy in which such judg-
17 ment shall have been rendered. It is hereby declared to be the intent of
18 the legislature that this act would have been enacted even if such
19 invalid provisions had not been included herein.
20 § 4. This act shall take effect immediately provided, however, that
21 the applicable effective date of Parts A through E of this act shall be
22 as specifically set forth in the last section of such Parts.
