NY Passes Law to Limit Evictions, Closures in Pandemic

New York will freeze evictions and certain foreclosures for two months under a bill that lawmakers passed Monday and the state’s governor signed into law Monday night.

“When the COVID-19 pandemic began, we asked New Yorkers to protect each other by staying at home. As we fight our way through the marathon this pandemic has become, we need to make sure New Yorkers still have homes to provide that protection,” Governor Cuomo said. “This law adds to previous executive orders by protecting the needy and vulnerable who, through no fault of their own, face eviction during an incredibly difficult period for New York. The more support we provide for tenants, mortgagors and seniors, the easier it will be for them to get back on their feet when the pandemic ends. I want to thank the legislature for passing this important protection for New Yorkers all across the state who need a hand.”

Renters who are facing pending evictions — or who face evictions in the next 30 days — will be protected from eviction for at least 60 days.

And the legislation will also suspend evictions until May 1 for renters who submit signed paperwork stating they’ve faced hardship amid the coronavirus pandemic. New Yorkers could point to hardships ranging from significant loss of household income, to increased out-of-pocket health expenses, to caregiving responsibilities, to the risk that moving itself poses for individuals with underlying medical conditions that leave them vulnerable to COVID-19.

The legislation also makes it harder for banks to foreclose on smaller landlords who say they are facing similar hardships, including having a tenant who’s defaulted on significant amount of rent payments since March 2020. The bill protects landlords who own fewer than 10 dwelling units from foreclosure or tax liens until May 1, while also protecting their credit rating.

About 20% of New York households say they’re behind on rent or mortgage payments and likely to face eviction or foreclosure in the next two months, according to data collected by the U.S. Census Bureau. The state’s unemployment rate increased to 8.1% in November, up from 3.6% in November 2019. That’s compared to a 6.4% national unemployment rate in November.

Lawmakers who support the law stressed Monday it isn’t designed to “cancel rent” but to keep people in their homes and avoid an increase in homelessness.

“People are struggling, some people are dying,” Bronx state Assembly member Jeffrey Dinowitz, a Democrat and the bill’s sponsor, said. “Tenants aren’t gaming the system, they’re desperate.”

But Republicans — and several Democrats — warned the bill could violate due process rights for landlords, and fuel a wave of foreclosures after May 1. Landlord industry groups said a blanket moratorium would push New York City into bankruptcy and destroy affordable housing infrastructure, while other critics said the lack of income restrictions could simply let wealthy residents avoid financial obligations.

“I am concerned however that this time with this bill, that safety net is now falling to landlords, particularly small landlords,” said Assembly member Patricia Fahy, a Democrat who represents parts of Albany County. “In the past, the responsibility of providing a safety net to those who need it has fallen to government.”

Meanwhile, both supporters and critics said the bill doesn’t address the looming crisis of renters and landlords facing months of unpaid bills.

President Donald Trump signed Sunday a massive COVID-19 aid bill that includes $25 billion for states and local governments to help people facing eviction, with $1.3 billion set aside for New York. Democrats in New York are pushing for higher taxes on the wealthy to help pay for more rent relief.

“There has not been nearly enough done to prevent a full-blown housing crisis from erupting as a result of the COVID-19 pandemic,” Senate Deputy Leader Michael Gianaris said in a statement. “This moratorium is a good step to ensure New Yorkers don’t get thrown out of their homes at a time when we’re asking people to stay in their homes. We must do even more to provide real relief in the months ahead.”

The state Senate, which Democrats control 40-21, passed the bill Monday along party lines. The Assembly — which Democrats control 107-43 — passed the bill with a 99-47 vote.

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Reporting by the Associated Press.