EVICTIONS AND FORECLOSURE MORATORIUM TO AUGUST 31

Not yet signed by the Governor, but here is the information from the NYS Senate:

"BILL NUMBER: S6362A

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend chapter 381 of the laws of 2020 establishing the
"COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020", in
relation to extending the effectiveness thereof; and to amend chapter 73
of the laws of 2021 relating  to  establishing the  "COVID-19 Emergency
Protect Our Small Businesses Act of 2021", in relation to extending the
effectiveness thereof

 
PURPOSE:

Extends through August 31, 2021 the effectiveness of the statutory limi-
tations on eviction of residential and certain commercial tenants expe-
riencing financial hardship, limitations on certain foreclosures and tax
sales, and related provisions, which may otherwise expire after May 1,
2021.

 
SUMMARY OF PROVISIONS:

The bill would amend various provisions of Chapter 381 of the Laws of
2020 and Chapter 73 of the Laws of 2021, to extend various provisions
through August 31, 2021. The provisions that are extended include those
that:

*Allow residential tenants suffering a financial or health-related hard-
ship to file a hardship declaration, under penalty of perjury, with
their landlord or a court to prevent the filing of an eviction or stay
any eviction proceeding in progress, with exceptions for tenants who
persistently and unreasonably engage in behavior that substantially
infringes on the use and enjoyment of other tenants or occupants or
causes a substantial safety hazard to others;

*Allow mortgagors who own ten or fewer residential dwellings to file a
hardship declaration with their mortgage lender, other foreclosing
party, or a court to prevent the filing of a foreclosure action or stay
any foreclosure action in progress;

*Allow property owners who own ten or fewer residential dwellings to
file a hardship declaration to prevent local governments from engaging
in any tax lien sale or tax foreclosure;

*Allow commercial tenants that are residents of the state, independently
owned and operated, and not dominant in their field, and employ 50 or
fewer persons, to file a hardship declaration to prevent the filing of
any eviction or stay any eviction proceeding in progress;

*Allow mortgagors for properties where the owner or mortgagor owns ten
or fewer commercial units, is a business that is resident of the state,
independently owned and operated, and not dominant in its field, and
employs 50 or fewer persons to file a hardship declaration with their
mortgage lender, other foreclosing party, or the court to prevent the
filing of a foreclosure action or stay any foreclosure action in
progress; and

- Allow an eligible commercial property owner to file a hardship decla-
ration with any village, town, city, school district, county, or other
entity or person that conducts tax foreclosures or tax lien sales, to
stay such foreclosure or lien sale.

 
JUSTIFICATION:

Measures necessary to contain the spread of COVID-19 have brought about
widespread economic and societal disruption, placing the state in
unprecedented circumstances. Millions of residents have experienced
financial hardship due to such measures, which closed businesses and
schools and triggered high levels of unemployment and reductions of
income across the state. The pandemic has also interrupted court oper-
ations, and hampered the ability of parties to litigation to safely
travel to and enter a courtroom, retain and pay for counsel, participate
in settlement conferences, and engage in other activities that enable
New Yorkers to protect their rights and settle disputes.

On December 28, 2020, the legislature found that absent statutory action
to restrict residential evictions and foreclosures, hundreds of thou-
sands of residents would be at risk of losing their homes and that such
housing instability would exacerbate the already severe negative effects
of the COVID-19 pandemic, threatening the wellbeing of all New Yorkers.
In response, the legislature passed and the governor signed into law
chapter 381 of the laws of 2020, establishing the COVID-19 Emergency
Eviction and Foreclosure Prevention Act of 2020, to prevent residential
evictions among those who have experienced financial hardship during the
COVID-19 pandemic and those who cannot move due to an increased risk of
severe illness or death. That act also prevented residential foreclo-
sures among homeowners and small landlords who have experienced such
financial hardship. The eviction restrictions do not apply if a tenant
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.

In January of 2021, the Legislature found similarly that absent legisla-
tive action thousands of small businesses would also face eviction or
mortgage or tax foreclosure due to measures necessary to contain the
spread of COVID-19. The legislature further found that ensuring small
businesses can survive in this unprecedented time is to the mutual bene-
fit of all New Yorkers and will help the state address the pandemic,
protect public health, and set the stage for recovery. To avoid mass
evictions and foreclosures of small businesses, the legislature passed
the COVID-19 Emergency Protect our Small Businesses Act of 2021 in Janu-
ary and the Governor signed the bill into law on March 9, 2021.

Most of the provisions of the COVID-19 Emergency Eviction and Foreclo-
sure Prevention Act of 2020 and the COVID-19 Emergency Protect our Small
Businesses Act of 2021 expire on May 1, 2021. On March 28, 2021, the
U.S. Centers for Disease Control and Prevention (CDC) issued an Order
extending through June 30, 2021 restrictions on residential evictions
that had been in place pursuant to prior CDC Orders issued on September
4, 2020 and January 29, 2021. In the March 28, 2021 Order, the CDC stat-
ed that the national rate of new COVID-19 cases "remains almost twice as
high as the initial peak in April of 2020 and transmission rates are
similar to the second peak in July 2020." The CDC further noted that
preliminary research in "states that implemented and lifted eviction
moratoria" has indicated "that evictions substantially contribute to
COVID-19 transmission." The CDC found that "the fundamental public
health threat that existed on September 4, 2020, and January 29, 2021
-the risk of large numbers of residential evictions contributing to the
spread of COVID-19 throughout the United States -- continues to exist.
It is imperative that public health authorities act quickly to ward off
an unprecedented wave of evictions, which would threaten new spikes" in
transmission "at a critical juncture in the fight against COVID-19."
The March 28, 2021 CDC Order explicitly provided that it does not
preclude states from "imposing additional requirements that provide
greater public health protections and are more restrictive" than the
CDC's requirements. Restrictions in New York and other states apply to
residential foreclosures as well as evictions, and many states, includ-
ing Connecticut, Hawaii, Illinois, Minnesota, Oregon, and Washington
have joined New York in enacting restrictions on filings of eviction
cases against tenants experiencing a hardship during the pandemic, as
well as restricting the actual execution of evictions.  As noted above,
New York has also enacted similar restrictions on commercial evictions
and foreclosures.

Current data demonstrates the need for continuing emergency public
health measures in New York. According to the CDC, New York's current
rates of COVID-19 transmission are among the highest in the nation.  In
its weekly data summaries, the CDC classifies transmission rates as
"high" if there are 100 or more new cases per 100,000 people. As of
April 15, 2021, the statewide rate in New York was 233 per 100,000
people. In its March 28, 2021 Order, the CDC stated that 37% of counties
nationally had a high rate of transmission and an additional 30% had a
"substantial" rate (50-99.9 cases per 100,000 people). As of April 15,
2021, CDC data show that 87% of counties in New York -- 54 of 62 coun-
ties, including all of the state's most populous counties -- had a high
rate of transmission and all of the other eight counties had a substan-
tial rate of transmission. No county in New York had a "moderate" or
"low" rate.

In April of 2021, the legislature passed and the governor signed into
law budget legislation directing the commissioner of the state office of
temporary and disability assistance to implement, as soon as practica-
ble, the COVID-19 Emergency Rental Assistance Program (CERAP). The
program will provide rental and utility assistance for households obli-
gated to pay rent on their primary residence who have experienced finan-
cial hardship due directly or indirectly to the COVID-19 pandemic. Such
assistance will cover up to twelve months of rent and utility arrears
and, for rent-burdened households, up to three additional months of
prospective rent. The budget authorized spending more than $2.4 billion
for CERAP, including federal relief funds and additional state funds.
The State budget also allocated $600 million for the Homeownership
Relief and Protection Program to provide assistance with mortgage, util-
ity, home energy, and other homeownership expenses during the pandemic.
To assist small businesses, the budget also included a historic $1
billion investment of state assistance to supplement federal aid,
providing $800 million for small business grants and $200 million in
small business tax credits. These programs and the federal and state
funds that support them will mitigate the adverse effects of the pandem-
ic on residential and commercial tenants and landlords.  Stabilizing
housing and small businesses, and minimizing court proceedings, continue
to be to the mutual benefit of all New Yorkers in that these steps will
help the state address the COVID-19 pandemic, protect public health, and
foster a full and equitable recovery. As such, an extension of approxi-
mately four months of the provisions of the COVID-19 Emergency Eviction
and Foreclosure Prevention Act of 2020 and the COVID-19 Emergency
Protect our Small Businesses Act of 2021 are necessary to protect the
public health, safety, and general welfare of the people of the state of
New York.

 
LEGISLATIVE HISTORY:

This is a new bill. It amends the effective dates of Chapter 381 of the
Laws of 2020 and Chapter 73 of the Laws of 2021.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

No direct, additional costs.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall be deemed to have been
in full force and effect on May 1, 2021; provided, however, that the
amendments to parts A and B of chapter 381 of the laws of 2020 made by
this act shall not affect the expiration of such parts and shall be
repealed therewith; and provided further, that the amendments to parts A
and B of chapter 73 of the laws of 2021 made by this act shall not
affect the expiration of such parts and shall be deemed to expire there-
with."