NY to Enact Sweeping Eviction, Foreclosure Protections as COVID-19 Continues

New York plans to enact sweeping protections against evictions and foreclosures for tenants and small property owners who can’t afford to pay their rent or mortgage due to financial insecurity caused by the COVID-19 pandemic.

Democrats were set to reconvene in Albany Monday to approve legislation codifying those protections; Gov. Andrew Cuomo said he would approve the bill when it comes to his desk.

"We want to protect tenants; we want to make it simple,” Cuomo said. “We don't want them to be evicted. We don't want them to have to go to court."

The legislation, called the COVID-19 Emergency Eviction and Foreclosure Prevention Act, has been negotiated between the State Senate, Assembly, and Cuomo’s office in recent weeks as a way to codify and expand the state’s existing protections for tenants and property owners.

“The bill advanced by the Senate Majority will help ensure New York tenants, homeowners, and small landlords will not have to fear being kicked out of their homes if they’ve been impacted by this pandemic and economic crisis,” said Senate Majority Leader Andrea Stewart-Cousins.

Assembly Speaker Carl Heastie said in a statement over the weekend that the Legislature will continue to work with members of Congress moving forward to provide more relief for tenants and property owners.

“Enacting these critical protections will give us the opportunity to work with our federal congressional delegation -- and with the incoming Biden Administration -- to continue to craft policy and direct critical federal funding to help tenants, homeowners and especially small landlords,” Heastie said.

Under the bill, tenants would be able to submit a form to their landlord stating that they’re unable to pay rent because of a financial hardship caused by the COVID-19 pandemic, either through lost income, unemployment or increased expenses, like health care or child care.

If an eviction case is already open against the tenant, they would have the option to submit the same form, called a Standardized Hardship Declaration Form, to the court as a defense.

Under the state’s current protections, tenants have to provide proof that the pandemic has caused them a financial hardship to avoid eviction. The new bill appears to remove that requirement, instead creating a system where the hardship is presumed.

Small property owners would be provided with a similar avenue for avoiding foreclosure under the bill. Those protections would only apply to property owners with less than 11 dwelling units, including their own.

Property owners would be allowed to submit the same Standardized Hardship Declaration Form to their mortgage lender, a local assessor, or to the court if a foreclosure proceeding has already been opened.

On the form, property owners would be required to declare a financial hardship due to reduced rent collections, loss of employment, or increased expenses.

Small property owners would also be protected from negative credit reporting and discrimination if they’ve been grated a stay on foreclosure proceedings or tax lien sales, or fallen behind on mortgage payments, according to the legislation.

The new protections for tenants and small property owners would be in effect through the start of May, according to the legislation.

The legislation would also require local governments to automatically renew the Senior Citizens’ Homeowner Extension (SCHE) and Disabled Homeowner Exemption (DHE) for eligible recipients. Individuals usually have to request a renewal.