- Jurisdiction
- New York
As a result of New York Governor Andrew Cuomo's Executive Order in response to coronavirus are a number of renters representing that they are entitled to not paying rent until August 20th without penalty and without any remedy to the landlord whatsoever. There has been confusion generated surrounding this Order since it forbids fees for late rent payments.
There is also confusion as to how this applies to co-ops and condos, which a number of law firms state that it does. There is uncertainty as to what remedies a co-op has if co-op shareholders themselves don't pay maintenance fees to the building and whether the corporation must float their "rent" aka maintenance payments for several months. This is because co-op shareholders receive a "proprietary lease" to reside in their apartments and technically are tenants of the corporation in which they own shares. The "rent" they pay is for the "maintenance" of the premises.
None of this seems to change the fact that if a tenant does not pay rent, the landlord has a right to evict. However, the landlord might need to pay for attorneys fees and may not be able to recover them under the lease agreement , depending upon how attorneys fees may be defined. And with regard to co-ops, the "eviction" process is quite different given the impact of the equity investment.
We will also see how landlords may react once the time arrives for the tenant's lease renewal,
While there isn't movement now because of the uncertainty that exists and the courts being closed, I am watching with a careful eye what will happen once they do . Even when the primary coronavirus concern may slowly subside, I'm wondering about whether whether we'll see a wave of legal issues arise .
No. 202.28: Continuing Temporary Suspension and Modification of Laws Relating to the Disaster Emergency
Sections 7-103, 7-107 and 7-108 of the General Obligations Law to the extent necessary to provide that:
There is also confusion as to how this applies to co-ops and condos, which a number of law firms state that it does. There is uncertainty as to what remedies a co-op has if co-op shareholders themselves don't pay maintenance fees to the building and whether the corporation must float their "rent" aka maintenance payments for several months. This is because co-op shareholders receive a "proprietary lease" to reside in their apartments and technically are tenants of the corporation in which they own shares. The "rent" they pay is for the "maintenance" of the premises.
None of this seems to change the fact that if a tenant does not pay rent, the landlord has a right to evict. However, the landlord might need to pay for attorneys fees and may not be able to recover them under the lease agreement , depending upon how attorneys fees may be defined. And with regard to co-ops, the "eviction" process is quite different given the impact of the equity investment.
We will also see how landlords may react once the time arrives for the tenant's lease renewal,
While there isn't movement now because of the uncertainty that exists and the courts being closed, I am watching with a careful eye what will happen once they do . Even when the primary coronavirus concern may slowly subside, I'm wondering about whether whether we'll see a wave of legal issues arise .
No. 202.28: Continuing Temporary Suspension and Modification of Laws Relating to the Disaster Emergency
Sections 7-103, 7-107 and 7-108 of the General Obligations Law to the extent necessary to provide that:
- Landlords and tenants or licensees of residential properties may, upon the consent of the tenant or licensee, enter into a written agreement by which the security deposit and any interest accrued thereof, shall be used to pay rent that is in arrears or will become due. If the amount of the deposit represents less than a full month rent payment, this consent does not constitute a waiver of the remaining rent due and owing for that month. Execution in counterpart by email will constitute sufficient execution for consent;
- Landlords shall provide such relief to tenants or licensees who so request it that are eligible for unemployment insurance or benefits under state or federal law or are otherwise facing financial hardship due to the COVID-19 pandemic;
- It shall be at the tenant or licensee's option to enter into such an agreement and landlords shall not harass, threaten or engage in any harmful act to compel such agreement;
- Any security deposit used as a payment of rent shall be replenished by the tenant or licensee, to be paid at the rate of 1/12 the amount used as rent per month. The payments to replenish the security deposit shall become due and owing no less than 90 days from the date of the usage of the security deposit as rent. The tenant or licensee may, at their sole option, retain insurance that provides relief for the landlord in lieu of the monthly security deposit replenishment, which the landlord, must accept such insurance as replenishment.
- Subdivision 2 of section 238-a of the Real Property Law to provide that no landlord, lessor, sub-lessor or grantor shall demand or be entitled to any payment, fee or charge for late payment of rent occurring during the time period from March 20, 2020, through August 20, 2020;
- There shall be no initiation of a proceeding or enforcement of either an eviction of any residential or commercial tenant, for nonpayment of rent or a foreclosure of any residential or commercial mortgage, for nonpayment of such mortgage, owned or rented by someone that is eligible for unemployment insurance or benefits under state or federal law or otherwise facing financial hardship due to the COVID-19 pandemic for a period of sixty days beginning on June 20, 2020.
