Suspends all rent payments for certain residential tenants and small business commercial tenants if such tenant has lost employment or was forced to close their place of business and certain mortgage payments for landlords of such tenants in the state for ninety days following the effective date of this act in response to the outbreak of coronavirus disease 2019 (COVID-19).
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10224A
SPONSOR: Niou TITLE OF BILL:
An act to suspend rent payments for certain residential tenants and
small business commercial tenants and to suspend certain mortgage
payments for ninety days in response to the outbreak of coronavirus
PURPOSE:
To waive small business commercial and residential rent for 90 days for
tenants that have lost income or been forced to close their place of
business as a result of government ordered restrictions in response to
COVID-19, and waive certain mortgage payments for 90 days for mortgagors
who experience financial hardship due to COVID-19.
SUMMARY OF PROVISIONS:
Section one waives small business commercial and residential rent for 90
days for tenants that have lost income or been forced to close their
place of business in response to COVID-19, and waives certain mortgage
payments for 90 days in an amount consistent with lost rent for persons
or entities experiencing financial hardship due to the virus.
Section two defines residential and commercial tenants, covered proper-
ty, and small business.
Section three sets the effective date.
EXISTING LAW:
JUSTIFICATION:
With non-essential businesses shutting down in New York State to prevent
the spread of COVID-19, workers and employers alike will face difficult
economic times. Businesses across the state are forced to lay off
employees or shut down their businesses due to an inability to afford
their numerous expenses. These tenants should not be held responsible
for paying money into rent while their income is being interrupted by
this pandemic. Additionally, mortgagors experiencing financial hardships
because of the virus should also receive relief All New Yorkers are
sacrificing as a result of this crisis and government must do what it
can to help. It would be harmful to our entire society to expect tenants
without income to continue to take on financial liabilities.
LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS:
None to the state.
LOCAL FISCAL IMPLICATIONS:
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
10224--A
IN ASSEMBLY
March 24, 2020
___________
Introduced by M. of A. NIOU, EPSTEIN, DenDEKKER, SIMOTAS, TAYLOR, GLICK,
HEVESI, REYES, FRONTUS, L. ROSENTHAL -- read once and referred to the
Committee on Judiciary -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to suspend rent payments for certain residential tenants and
small business commercial tenants and to suspend certain mortgage
payments for ninety days in response to the outbreak of coronavirus
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. (a) Notwithstanding any other provision of law, rule or
2 regulation to the contrary, any residential tenant or small business
3 commercial tenant in the state that has lost income or has been forced
4 to close their place of business as a result of government ordered
5 restrictions in response to the outbreak of coronavirus disease 2019
6 (COVID-19), shall have all rent payments suspended for ninety days
7 following the effective date of this act. Such residential tenant or
8 small business commercial tenant shall not and shall never be required
9 to pay any rent waived during such time period. Every residential
10 tenant or small business commercial tenant whose lease expires during
11 this time period shall be subject to an automatic renewal lease at the
12 current rent charged. Late fees shall not be collectable for rent
13 accrued during this time period.
14 (b) (i) Any person or entity who faces a financial hardship as a
15 result of being deprived rent payments for property pursuant to this
16 section shall receive forgiveness on any mortgage payments for such
17 property for ninety days, in an amount determined by the following frac-
18 tion multiplied by such mortgage payment, up to the total dollar amount
19 of lost rent:
20 (A) The numerator shall be the total amount of rent payments suspended
21 for his or her tenants over the ninety day period laid out in this
22 section; and
23 (B) The denominator shall be the total amount of rent payments typi-
24 cally owed for such entire property over the ninety day period laid out
25 in this section.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16024-17-0
A. 10224--A 2
1 (ii) Any person or entity qualifying for mortgage payment forgiveness
2 under this subdivision shall not and shall never be required to pay any
3 mortgage waived during such time period.
4 § 2. For the purposes of this act, the following terms shall have the
5 following meanings:
6 (a) "Residential tenant" shall have the same meaning as paragraph (a)
7 of subdivision 1 of section 235-f of the real property law, those who
8 otherwise pay for the use and occupancy of a residential dwelling, or
9 occupants as defined by paragraph (b) of subdivision 1 of section 235-f
10 of the real property law.
11 (b) "Commercial tenant" shall mean a person or entity lawfully occupy-
12 ing a covered property pursuant to a lease or other rental agreement.
13 (c) "Covered property" shall mean any building or portion of a build-
14 ing:
15 i. that is lawfully used for buying, selling or otherwise providing
16 goods or services, or for other lawful business, commercial or profes-
17 sional services, or manufacturing activities; and
18 ii. for which a certificate of occupancy authorizing residential use
19 of such building or such portion of a building has not been issued.
20 (d) "Small business" shall have the same meaning as section 131 of the
21 economic development law.
22 § 3. This act shall take effect immediately.
