Photo Courtesy of Mike Groll/Office of the Governor
“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,” Gov. Cuomo said.
By Forum Staff
Governor Andrew Cuomo on Monday signed the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020.
The legislation prevents residential evictions, foreclosure proceedings, credit discrimination and negative credit reporting related to the COVID-19 pandemic. It also extends the Senior Citizens’ Homeowner Exemption and Disabled Homeowner Exemption from 2020 to 2021.
The legislation helps tenants facing eviction and mortgagors facing foreclosure proceedings due the pandemic in five areas:
Residential Evictions
The act places a moratorium on residential evictions until May 1, 2021 for tenants who have endured COVID-related hardship. Tenants must submit a hardship declaration, or a document explaining the source of the hardship, to prevent evictions. Landlords can evict tenants that are creating safety or health hazards for other tenants, and those tenants who do not submit hardship declarations.
Residential
Foreclosure Proceedings
The act also places a moratorium on residential foreclosure proceedings until May 1, 2021. Homeowners and small landlords who own 10 or fewer residential dwellings can file hardship declarations with their mortgage lender, other foreclosing party or a court that would prevent a foreclosure.
Tax Lien Sales
The act prevents local governments from engaging in a tax lien sale or a tax foreclosure until at least May 1, 2021. Payments due to the locality are still due.
Credit Discrimination and
Negative Credit Reporting
Lending institutions are prohibited from discriminating against a property owner seeking credit 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.
Senior Citizens’
Homeowner Exemption and
Disabled Homeowner Exemption
Local governments are required to carry over SCHE and DHC exemptions from the 2020 assessment roll to the 2021 assessment roll at the same levels. They are also required to provide renewal applications for anyone who may be eligible for a larger exemption in 2021. Localities can also set procedures by which assessors can require renewal applications from people who the assessors believe may no longer be eligible for an exemption in 2021. Recipients of the exemption do not have to file renewal applications in person.
On Sept. 28, Cuomo announced the State’s Tenant Safe Harbor Act would be extended and expanded until Jan. 1, 2021 to protect additional residential tenants from eviction if they are suffering financial hardship during the COVID-19 public health emergency. The Executive Order extends the protections of the Tenant Safe Harbor Act to eviction warrants that existed prior to the start of the pandemic, and those who are facing other than nonpayment evictions but suffering the same hardship.
“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,” Cuomo said. “I want to thank the Legislature for passing this important protection for New Yorkers all across the state who need a hand. This is the kind of support that helps us stay New York Tough.”
