A10826 Summary:

BILL NOA10826
 
SAME ASSAME AS S08802
 
SPONSORRules (Niou)
 
COSPNSRRichardson, Joyner, Carroll, Reyes, Jaffee, Simon, Gottfried, Mosley, Seawright, Barnwell, Davila, Rosenthal L, Arroyo, Dickens, Barron, De La Rosa, Kim, Fahy, Pichardo, Fernandez, Epstein, Bichotte, Perry, Frontus, Cruz, Glick, Simotas, Walker, Rivera, Taylor, McDonald, Anderson, Bronson
 
MLTSPNSR
 
 
Establishes the Rent and Mortgage Cancellation Act of 2020.
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A10826 Actions:

BILL NOA10826
 
07/16/2020referred to housing
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A10826 Committee Votes:

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A10826 Floor Votes:

There are no votes for this bill in this legislative session.
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A10826 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          10826
 
                   IN ASSEMBLY
 
                                      July 16, 2020
                                       ___________
 
        Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Niou) --
          read once and referred to the Committee on Housing
 
        AN ACT to establish the Rent and Mortgage Cancellation Act of 2020
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  This act shall be known and may be cited as the "Rent and
     2  Mortgage Cancellation Act of 2020".
     3    § 2. Legislative findings. The legislature hereby finds that a serious
     4  public emergency exists in the state of New York due to  the  impact  of
     5  the global outbreak of novel coronavirus, COVID-19, which as of the date
     6  of  this  legislation,  created destabilized housing, loss of employment
     7  and income, closure of businesses and schools, and  greatly  exacerbated
     8  financial  insecurity  in the state of New York. The legislature further
     9  finds that it is currently impossible  to  accurately  assess  the  full
    10  scope,  duration,  and  severity of impact this public emergency has and
    11  will have on the residents of New York and that,  in  response  to  this
    12  crisis,  on March 7, 2020 the executive declared a 'State Disaster Emer-
    13  gency' which has put extraordinary constraints on individuals, families,
    14  homeowners,  not-for-profits,  residential  housing  cooperatives,   and
    15  local,  state,  and federal agencies. The legislature further finds that
    16  the loss of employment,  illness  and  deaths  caused  by  the  COVID-19
    17  outbreak  have  rendered many individuals and families unable to pay for
    18  the costs of housing and other life necessities. The legislature further
    19  finds that safe and affordable housing is  a  key  measure  of  positive
    20  individual, family, and public health outcomes.  The legislature further
    21  finds that without government intervention, individuals and families who
    22  are  unable  to  pay  the costs of housing will be displaced, which will
    23  result in an increase in families who are cohabiting with  one  or  more
    24  other families and an increase in the population of unhoused individuals
    25  and  families,  both  of  which  will  accelerate the spread of COVID-19
    26  infection and, therefore, measures to prevent such individual and house-
    27  hold displacement are necessary to  prevent  increased  COVID-19  trans-
    28  mission.  The  legislature  further finds that without rent and mortgage
    29  relief, the number of eviction case filings for nonpayment of  rent  and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16807-03-0

        A. 10826                            2
 
     1  the  number of mortgage foreclosures will increase tremendously, result-
     2  ing in overburdened court systems which will not have the  resources  or
     3  space  to  operate functionally and also resulting in massive congestion
     4  and  increased  human  contact  in courthouse spaces, both of which will
     5  exacerbate the spread of COVID-19  creating  a  worsened  public  health
     6  hazard.  The  legislature  further  finds  that a tremendous increase in
     7  evictions and foreclosures will overburden social services agencies  and
     8  resources  and  that  the  shelter  system does not have the capacity to
     9  accommodate a significantly increased homeless population, both of which
    10  will also worsen the spread of COVID-19. The legislature  further  finds
    11  that  public  housing  authorities have incurred expenses resulting from
    12  the COVID-19 outbreak and have lost  rental  income  due  to  widespread
    13  financial hardship suffered by public housing tenants and occupants as a
    14  result  of  the  COVID-19  outbreak. The legislature declares that it is
    15  both in the public interest and  the  responsibility  of  government  to
    16  provide  and  secure  federal and state emergency funding to ensure that
    17  individuals and families are not rendered homeless  or  severely  finan-
    18  cially  burdened  because of an inability to pay for the cost of housing
    19  and other necessities due to the COVID-19 outbreak and  to  ensure  that
    20  public  housing entities, not-for-profits, residential cooperatives, and
    21  landlords unable to afford necessary expenses as a  result  of  COVID-19
    22  outbreak, not be encumbered with severe financial burden, and to promote
    23  the  stability  and  proper  maintenance of the housing stock and assist
    24  communities in recovering from the adverse social and  economic  impacts
    25  of  the  COVID-19 outbreak, and that, consistent with articles 17 and 18
    26  of the state constitution, it is therefore incumbent on the  legislature
    27  and the executive to implement protections and to provide rent and mort-
    28  gage  relief  so  as to reduce the harm to New York residents and ensure
    29  safe, decent,  sanitary,  affordable  housing  and  financial  stability
    30  during  the  novel  coronavirus,  COVID-19,  crisis and all other public
    31  emergencies.
    32    § 3. Definitions. (a) "Residential tenant" shall have the same meaning
    33  as in paragraph (a) of subdivision 1 of section 235-f of the real  prop-
    34  erty  law,  those who otherwise pay for the use and occupancy of a resi-
    35  dential dwelling unit, occupants as defined by paragraph (b) of subdivi-
    36  sion 1 of section  235-f  of  the  real  property  law,  or  tenants  or
    37  occupants  of  residential  dwelling  units funded pursuant to 42 U.S.C.
    38  1437g.
    39    (b) "Small homeowner" shall mean an owner of  a  dwelling  with  6  or
    40  fewer units where such owner also resides as a primary residence.
    41    (c)  "Affordable  housing operator" shall mean a not-for-profit entity
    42  as defined in the not-for-profit corporation law or a  housing  develop-
    43  ment  fund  company  as  defined  in  section 572 of the private housing
    44  finance law that owns and operates a  housing  project  for  persons  of
    45  low-income.
    46    (d)  "Rent"  shall  have the same meaning as defined in section 702 of
    47  the real property actions and proceedings law.
    48    (e) "Residential cooperative" shall mean any housing project,  of  any
    49  size,  operated  for  persons  of low income by a housing corporation as
    50  defined in section 572 of the private housing finance law, or any corpo-
    51  ration or entity owning and operating a residential cooperative with  10
    52  or fewer units.
    53    (f)  "Public  housing  authority"  shall  mean  any  municipal housing
    54  authority created under article 13 of the public housing law.
    55    (g) "Commissioner" shall mean the commissioner of housing and communi-
    56  ty renewal.

        A. 10826                            3
 
     1    § 4. Cancellation of rent in the case of residential  tenants;  fines;
     2  termination  of  tenancy and eviction proceedings; debt; consumer credit
     3  reports. (a) Notwithstanding any other provision of law, the  obligation
     4  of a residential tenant to pay rent shall be suspended for a period that
     5  shall  run  from March 7, 2020 until the expiration of 90 days after the
     6  executive declares that the state disaster emergency has ended.
     7    (b) No tenant or tenant household may be charged a  fine  or  fee  for
     8  non-payment of rent in accordance with this section.
     9    (c) The nonpayment of rent by a tenant in accordance with this section
    10  shall not be grounds for any termination of tenancy or eviction proceed-
    11  ing or civil judgment.
    12    (d)  No tenant or tenant household may be treated as accruing any debt
    13  by reason of suspension of rent under this section.
    14    (e) No tenant or tenant household may be held liable for repayment  of
    15  any amount of rent suspended under this section.
    16    (f) The nonpayment of rent by a tenant in accordance with this section
    17  shall not be reported to a tenant screening agency or a consumer report-
    18  ing agency nor shall such nonpayment adversely affect a tenant or member
    19  of  a  tenant's  household's  credit  score nor shall such nonpayment be
    20  grounds for denying any future application for rental housing made by  a
    21  tenant or a member of a tenant's household.
    22    §  5.  Mortgage payment suspension, fees and penalties, credit scores.
    23  (a) Notwithstanding any other provision of  law,  the  obligation  of  a
    24  small  homeowner to make mortgage payments of principal or interest that
    25  become due during the period running from March 7, 2020 until the  expi-
    26  ration  of  90 days after the executive declares that the state disaster
    27  emergency has ended, is hereby suspended.
    28    (b) No mortgagor who is a small homeowner may be held responsible  for
    29  payment  of mortgage payments suspended under this section or treated as
    30  accruing any debt by reason of suspension  under  this  section  of  the
    31  obligation to make mortgage payments.
    32    (c)  A  mortgagee, or servicer for such mortgagee, under a residential
    33  mortgage loan to a small homeowner may  not  commence  or  continue  any
    34  judicial  foreclosure  action or non-judicial foreclosure process or any
    35  action for failure to make a payment due under  such  mortgage  that  is
    36  suspended pursuant to this section.
    37    (d)  No  fees,  penalties,  or  additional interest beyond the amounts
    38  scheduled or  calculated  as  if  the  mortgagor  made  all  contractual
    39  payments on time and in full under the terms of the mortgage contract in
    40  effect  as  of  the commencement of the COVID-19 suspension period shall
    41  accrue.
    42    (e) The nonpayment of a mortgage payment by a  mortgagor  pursuant  to
    43  suspension  of  the  obligation  to make such payment under this section
    44  shall not be reported to a consumer  reporting  agency  nor  shall  such
    45  nonpayment adversely affect a mortgagor's credit score.
    46    (f)  Assistance may not be provided under this section with respect to
    47  any dwelling for which assistance is provided pursuant to section  seven
    48  or eight of this act.
    49    § 6. Assistance to residential housing cooperatives losing maintenance
    50  and rental income.  (a) Except as modified in this section, any residen-
    51  tial  housing cooperatives that can demonstrate they lost maintenance or
    52  rental income during the period from March 7, 2020 until the  expiration
    53  of 90 days after the executive declares that the state disaster emergen-
    54  cy has ended shall be entitled to a payment of the total amount of main-
    55  tenance or rental income lost during that period.

        A. 10826                            4
 
     1    (b) (i) The commissioner of housing and community renewal, shall issue
     2  regulations  establishing  an  application  procedure  for a residential
     3  housing cooperative  seeking  payment  of  lost  maintenance  or  rental
     4  income.
     5    (ii)  Such  regulations  shall  provide  that  as  a condition of such
     6  assistance payments, a residential housing cooperative shall  agree  and
     7  shall  be obligated, through executing an instrument in a form specified
     8  in the regulations issued hereunder to provide any tenants  residing  in
     9  the  housing cooperative with a renewal lease of at least 1 year, at the
    10  same rental amount actually charged and collected 6 months prior to  the
    11  application for relief.
    12    (iii)  Such  regulations shall further provide that any rental housing
    13  cooperative shall not be eligible for the  relief  provided  herein  for
    14  rental or maintenance income imputable to any illegal unit or unit occu-
    15  pied  in  violation  of  the  cooperative's  bylaws or for rental income
    16  imputable to a unit containing uncorrected, as of the time of the appli-
    17  cation, immediately hazardous violations of a state or local housing  or
    18  building  code  that  existed  prior  to March 7, 2020 and which are the
    19  housing cooperative's legal duty to remedy.
    20    (c) Any residential cooperative that receives payment for unpaid main-
    21  tenance under this section shall waive all rights to receive said  main-
    22  tenance  payments  from the cooperative shareholder of the dwelling unit
    23  for which payment was received.
    24    § 7. Assistance to affordable housing operators losing rental  income.
    25  (a)  Except as modified in this section, any affordable housing operator
    26  that can demonstrate they lost rental  income  during  the  period  from
    27  March  7,  2020  until  the  expiration  of  90 days after the executive
    28  declares that the state disaster emergency has ended shall  be  entitled
    29  to a payment of the total amount of rental income lost during that peri-
    30  od.
    31    (b)  The  commissioner  of  housing and community renewal, shall issue
    32  regulations establishing an  application  procedure  for  an  affordable
    33  housing operator seeking payment of lost rental income.
    34    (c)  The  commissioner  may  provide a payment under this section only
    35  with respect to rental dwellings that meet all  the  following  require-
    36  ments:
    37    (i)  The  affordable  housing operator of the rental dwelling has made
    38  such certifications to, and entered into such binding  agreements  with,
    39  the  commissioner as the commissioner considers necessary to ensure that
    40  during the five year period  beginning  upon  initial  receipt  by  such
    41  affordable  housing  operator  of  payment  under  this section for such
    42  dwelling, such dwelling shall be subject to the following requirements:
    43    (1) the monthly rental amounts for the rental units within the proper-
    44  ty may not be increased from the amount of such rent charged as  of  the
    45  date of the enactment of this act;
    46    (2)  tenants of the rental units may be evicted only for the following
    47  reasons:
    48    (A) the tenant is violating a substantial obligation of their  tenancy
    49  other than the obligation to surrender possession of such housing accom-
    50  modation  and  has failed to cure such violation after written notice by
    51  the landlord that the violation cease within 10 days, or  within  the  3
    52  month period immediately prior to the commencement of the proceeding the
    53  tenant  has willfully violated such an obligation inflicting serious and
    54  substantial injury to the landlord;
    55    (B) the tenant is committing or permitting a nuisance in such  housing
    56  accommodation  or  is  maliciously  or  by  reason  of  gross negligence

        A. 10826                            5
 
     1  substantially damaging  the  housing  accommodations,  or  the  tenant's
     2  conduct is such as to interfere substantially with the comfort or safety
     3  of  the  landlord  or of other tenants or occupants of the same or other
     4  adjacent building or structure;
     5    (C)  occupancy  of the housing accommodations by the tenant is illegal
     6  because of the requirements of law, and the landlord is subject to civil
     7  or criminal penalties therefor, or both;
     8    (D) the tenant is using or permitting such housing accommodation to be
     9  used for an illegal purpose;
    10    (E) the tenant who had a written lease or other written rental  agree-
    11  ment  which  terminates  on or after the effective date of this statute,
    12  has refused upon demand of the landlord to execute a  written  extension
    13  or  renewal thereof for a further term of like duration not in excess of
    14  one year but otherwise on the same terms and conditions as the  previous
    15  lease  except  in  so  far as such terms and conditions are inconsistent
    16  with this act; or
    17    (F) the tenant has unreasonably refused the  landlord  access  to  the
    18  housing  accommodations  for  the purpose of making necessary repairs or
    19  improvements required by law or for the  purpose  of  inspection  or  of
    20  showing  the  accommodations  to  a  prospective purchaser, mortgagee or
    21  prospective mortgagee, or other  person  having  a  legitimate  interest
    22  therein;  provided, however, that in the latter event such refusal shall
    23  not be grounds for removal or eviction if such inspection or showing  of
    24  the  accommodations  is contrary to the provisions of the tenant's lease
    25  or other rental agreement;
    26    (3) the rental dwelling shall not have any outstanding violations  for
    27  hazardous or immediately hazardous conditions;
    28    (4)  the affordable housing operator may not refuse to rent any rental
    29  dwelling unit, or discriminate in the renting  of  any  rental  dwelling
    30  unit,  to  a  household based on the source of income of such household,
    31  including income under the program under  section  8(o)  of  the  United
    32  States  Housing  Act of 1937 (42 U.S.C. 1437f(o)) or any similar tenant-
    33  based rental assistance program;
    34    (5) the affordable housing operator may not restrict  tenancy  of  the
    35  dwelling  unit  on  the  basis of sexual identity or orientation, gender
    36  identity or expression, conviction or arrest record, credit history,  or
    37  immigration status;
    38    (6)  the  affordable  housing  operator  may  not retaliate in any way
    39  against a tenant of the dwelling unit; and
    40    (7) the affordable housing operator may not report the tenant  of  the
    41  dwelling unit or provide any adverse information regarding the tenant to
    42  any credit reporting or tenant screening agency.
    43    (ii) Assistance may not be provided under this section with respect to
    44  any  dwelling  unit for which assistance is provided pursuant to section
    45  five, six or eight of this act.
    46    (d) (i) Subject to paragraph (ii) of this subdivision, the amount of a
    47  payment under this section with respect to a  rental  dwelling  may  not
    48  exceed  the  aggregate  amount of rent for the rental dwelling suspended
    49  pursuant to subdivision (a) of section four of this act and attributable
    50  only to days from March 7, 2020 until the expiration of  90  days  after
    51  the  executive  declares  that  the  state  disaster emergency has ended
    52  during which the dwelling  unit  was  occupied  by  a  tenant  otherwise
    53  required to pay rent for such occupancy.
    54    (ii)  In making payments under this section with respect to any rental
    55  dwelling unit for which a tenant made a payment of rent during the peri-
    56  od run from March 7, 2020 until the expiration  of  90  days  after  the

        A. 10826                            6

     1  executive  declares  that  the  state  disaster  emergency has ended the
     2  commissioner of housing and community renewal agency shall:
     3    (1)  reduce the amount of the payment to the affordable housing opera-
     4  tor under paragraph (i) of this subdivision by the amount  of  any  such
     5  rent paid; and
     6    (2) make a payment to such tenant in the amount of any such rent paid.
     7    (iii) In making payments under this section with respect to any dwell-
     8  ing  for which the affordable housing operator received mortgage payment
     9  relief under section five of this act the commissioner shall reduce  the
    10  amount  of  the payment to the affordable housing operator for lost rent
    11  by the amount of mortgage payment relief received under section five  of
    12  this act.
    13    (e)  If  an  affordable housing operator violates any requirement with
    14  respect to a covered rental dwelling unit  under  any  certification  or
    15  agreement  entered  into pursuant to paragraph (i) of subdivision (c) of
    16  this section, the commissioner shall recapture from the affordable hous-
    17  ing operator an amount equal to the entire amount of assistance provided
    18  under this section that is attributable to such dwelling unit and ensure
    19  that such amount is recaptured.
    20    (f) There is hereby authorized to be appropriated such sums as may  be
    21  necessary  to  reimburse  all  affordable housing operators for all rent
    22  payments suspended pursuant to subdivision (a) of section four  of  this
    23  act.
    24    (g)  (i)  Any  affordable  housing operator may apply for an exemption
    25  from one or more of the requirements set forth  in  subdivision  (c)  of
    26  this  section  and  the  commissioner  shall  grant  exemptions from the
    27  requirements set forth in subdivision (c) of this section upon determin-
    28  ing that the affordable housing operator would  otherwise  suffer  undue
    29  financial  hardship  resulting from the requirements for which exemption
    30  is sought.
    31    (ii) Any affordable housing operator aggrieved by  the  commissioner's
    32  decision  on  an  application  under  this  section  or  for  a hardship
    33  exemption pursuant to paragraph (i) of this subdivision  may  within  30
    34  days  of  the  commissioner's  decision seek judicial review pursuant to
    35  article 78 of the civil practice law and rules. In the  event  that  the
    36  court  may  find  that  the decision of the commissioner constitutes the
    37  equivalent of a taking without compensation, it may, at the election  of
    38  the  commissioner, either set aside the decision or order the payment of
    39  just compensation by the commissioner.
    40    § 8. Landlord relief  fund,  application,  fair  rental  requirements,
    41  prohibition  on duplication of assistance. (a) The commissioner of hous-
    42  ing and community renewal shall establish and manage a  landlord  relief
    43  fund,  or  in this section referred to as "the fund", to provide lessors
    44  payments under this section to reimburse such lessors for rent  payments
    45  cancelled pursuant to subdivision (a) of section four of this act.
    46    (b)  The commissioner shall provide for lessors of rental dwellings to
    47  apply for reimbursement payments from the fund, which applications shall
    48  include the certifications and binding agreements required  pursuant  to
    49  subdivision (c) of this section.
    50    (c)  The  commissioner  may  provide a payment under this section only
    51  with respect to rental dwellings that meet all of the following require-
    52  ments:
    53    (i) The lessor of the rental dwelling has made such certifications to,
    54  and entered into such binding agreements with, the commissioner  as  the
    55  commissioner  considers  necessary  to  ensure that during the five year
    56  period beginning upon initial receipt by such lessor  of  payment  under

        A. 10826                            7
 
     1  this  section  for  such dwelling, such dwelling shall be subject to the
     2  following requirements:
     3    (1) the monthly rental amounts for the rental units within the proper-
     4  ty  may  not be increased from the amount of such rent charged as of the
     5  date of the enactment of this act;
     6    (2) tenants of the rental units may be evicted only for the  following
     7  reasons:
     8    (A)  the  tenant  is violating a substantial obligation of his tenancy
     9  other than the obligation to surrender possession of such housing accom-
    10  modation and has failed to cure such violation after written  notice  by
    11  the  landlord  that the violation cease within ten days, or within the 3
    12  month period immediately prior to the commencement of the proceeding the
    13  tenant has willfully violated such an obligation inflicting serious  and
    14  substantial injury to the landlord;
    15    (B)  the tenant is committing or permitting a nuisance in such housing
    16  accommodation or  is  maliciously  or  by  reason  of  gross  negligence
    17  substantially  damaging  the  housing  accommodations; or his conduct is
    18  such as to interfere substantially with the comfort  or  safety  of  the
    19  landlord  or of other tenants or occupants of the same or other adjacent
    20  building or structure;
    21    (C) occupancy of the housing accommodations by the tenant  is  illegal
    22  because of the requirements of law, and the landlord is subject to civil
    23  or criminal penalties therefor, or both;
    24    (D) the tenant is using or permitting such housing accommodation to be
    25  used for an illegal purpose;
    26    (E)  the tenant who had a written lease or other written rental agree-
    27  ment which terminates on or after the effective date  of  this  statute,
    28  has  refused  upon demand of the landlord to execute a written extension
    29  or renewal thereof for a further term of like duration not in excess  of
    30  one  year but otherwise on the same terms and conditions as the previous
    31  lease except in so far as such terms  and  conditions  are  inconsistent
    32  with this act; or
    33    (F)  the  tenant  has  unreasonably refused the landlord access to the
    34  housing accommodations for the purpose of making  necessary  repairs  or
    35  improvements  required  by  law  or  for the purpose of inspection or of
    36  showing the accommodations to  a  prospective  purchaser,  mortgagee  or
    37  prospective  mortgagee,  or  other  person  having a legitimate interest
    38  therein; provided, however, that in the latter event such refusal  shall
    39  not  be grounds for removal or eviction if such inspection or showing of
    40  the accommodations is contrary to the provisions of the  tenant's  lease
    41  or other rental agreement;
    42    (3)  the rental dwelling shall not have any outstanding violations for
    43  hazardous or immediately hazardous conditions;
    44    (4) the lessor may not refuse to rent any  rental  dwelling  unit,  or
    45  discriminate  in the renting of any rental dwelling unit, to a household
    46  based on the source of income of such household, including income  under
    47  the  program under section 8(o) of the United States Housing Act of 1937
    48  (42 U.S.C. 1437f(o))  or  any  similar  tenant-based  rental  assistance
    49  program;
    50    (5)  the  lessor  may not restrict tenancy of the dwelling unit on the
    51  basis of sexual identity or orientation, gender identity or  expression,
    52  conviction or arrest record, credit history, or immigration status;
    53    (6)  the  lessor  may not retaliate in any way against a tenant of the
    54  dwelling unit; and

        A. 10826                            8
 
     1    (7) the lessor may not report the  tenant  of  the  dwelling  unit  or
     2  provide  any  adverse  information  regarding  the  tenant to any credit
     3  reporting or tenant screening agency.
     4    (ii) Assistance may not be provided under this section with respect to
     5  any  dwelling  unit for which assistance is provided pursuant to section
     6  five, six or seven of this act.
     7    (d) (i) Subject to paragraph (ii) of this subdivision, the amount of a
     8  payment under this section with respect to a  rental  dwelling  may  not
     9  exceed  the  aggregate  amount of rent for the rental dwelling suspended
    10  pursuant to subdivision (a) of section four of this act and attributable
    11  only to days from March 7, 2020 until the expiration of  90  days  after
    12  the  executive  declares  that  the  state  disaster emergency has ended
    13  during which the dwelling  unit  was  occupied  by  a  tenant  otherwise
    14  required to pay rent for such occupancy.
    15    (ii)  In making payments under this section with respect to any rental
    16  dwelling unit for which a tenant made a payment of rent during the peri-
    17  od run from March 7, 2020 until the expiration  of  90  days  after  the
    18  executive  declares  that  the  state  disaster  emergency has ended the
    19  commissioner shall:
    20    (1) reduce the amount of the payment to the lessor under paragraph (i)
    21  of this subdivision by the amount of any such rent paid; and
    22    (2) make a payment to such tenant in the amount of any such rent paid.
    23    (iii) In making payments under this section with respect to any dwell-
    24  ing for which the lessor received mortgage payment relief under  section
    25  five of this act the commissioner shall reduce the amount of the payment
    26  to  the  lessor  for  lost rent by the amount of mortgage payment relief
    27  received under section five of this act.
    28    (e) In making payments under  this  section,  the  commissioner  shall
    29  establish  a  tiered  system  for  priority  for  such payments based on
    30  assets, revenues, and disclosure requirements with respect  to  lessors.
    31  Such system shall provide priority for making payments to eligible small
    32  homeowners and lessors having the fewest available amount of assets.
    33    (f)  If  a  lessor  violates any requirement with respect to a covered
    34  rental dwelling unit under any certification or agreement  entered  into
    35  pursuant  to  paragraph  (i)  of  subdivision  (c)  of this section, the
    36  commissioner shall recapture from the lessor  an  amount  equal  to  the
    37  entire  amount of assistance provided under this section that is attrib-
    38  utable to such dwelling unit and ensure that such amount  is  recaptured
    39  into the fund.
    40    (g)  There  is  authorized to be appropriated for the fund established
    41  pursuant to this section such sums as may be necessary to reimburse  all
    42  lessors  for  all rent payments suspended pursuant to subdivision (a) of
    43  section four of this act.
    44    (h) (i) Any lessor may apply for an exemption from one or more of  the
    45  requirements  set  forth  in  subdivision  (c)  of  this section and the
    46  commissioner shall grant  exemptions  from  requirements  set  forth  in
    47  subdivision  (c)  of this section upon determining that the lessor would
    48  otherwise suffer undue financial hardship resulting  from  the  require-
    49  ments for which exemption is sought.
    50    (ii)  Any lessor aggrieved by the commissioner's decision on an appli-
    51  cation to the Fund or for a hardship exemption pursuant to paragraph (i)
    52  of this subdivision may within 30 days of  the  commissioner's  decision
    53  seek  judicial  review  pursuant to article 78 of the civil practice law
    54  and rules. In the event that the court may find that the decision of the
    55  commissioner constitutes the equivalent  of  a  taking  without  compen-
    56  sation,  it  may,  at the election of the commissioner, either set aside

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     1  the decision or order the payment of just compensation  by  the  commis-
     2  sioner.
     3    § 9. Assistance to public housing authorities. (a) The commissioner of
     4  housing  and community renewal shall establish and manage a public hous-
     5  ing relief fund, or in this section referred to as "the  public  housing
     6  relief  fund",  to  provide  public  housing  authorities  with funds to
     7  compensate for expenses related to COVID-19 and unpaid rent  that  would
     8  have  been  payable  by  residential tenants pursuant to 42 U.S.C. 1437a
     9  during the period from March 7, 2020 until the  expiration  of  90  days
    10  after  the  executive  declares  that  the  state disaster emergency has
    11  ended.
    12    (b) The commissioner shall provide for public housing  authorities  to
    13  apply for payments from the public housing relief fund and shall promul-
    14  gate  regulations  establishing  the  procedural  requirements  for such
    15  applications.
    16    (c) It is hereby declared to be the intent of the legislature that  to
    17  the  extent that any part of this section is inconsistent with article 4
    18  of the public housing law, this statute will prevail.
    19    § 10. Civil action. (a) Any individual aggrieved by an adverse  action
    20  taken  by a lessor, affordable housing operator, public housing authori-
    21  ty, or mortgagee for exercising rights under section  four  or  five  of
    22  this  act  may  commence  a  civil action under this section against the
    23  lessor, affordable housing operator, public housing authority, or  mort-
    24  gagee  violating  such  section in an appropriate state court or a local
    25  court of competent jurisdiction  not  later  than  2  years  after  such
    26  violation occurs for damages under subdivision (b) of this section.
    27    (b) Any lessor or mortgagee found to have taken adverse action against
    28  any lessee or mortgagor for exercising rights under section four or five
    29  of this act shall be liable:
    30    (i)  to  the  individual  aggrieved  by such violation, for any actual
    31  damages as a result of such adverse action; and
    32    (ii) for a fine in the amount of:
    33    (1) $10,000, in the case of a violation that is the first violation by
    34  such lessor or mortgagee;
    35    (2) $20,000, in the case of a violation that is the  second  violation
    36  by such lessor or mortgagee; and
    37    (3) $100,000 or forfeiture of the property, in the case of a violation
    38  that is the third or subsequent violation by such lessor or mortgagee.
    39    (c) In an action brought under this section, the court:
    40    (i)  may award preventative relief, including a permanent or temporary
    41  injunction or other order, to ensure the full rights granted by sections
    42  four and five of this act; and
    43    (ii) shall award any prevailing plaintiff reasonable  attorney's  fees
    44  and costs.
    45    (d)  The  attorney general may bring a civil action in any appropriate
    46  court against any individual or entity which violates  section  four  or
    47  five  of  this  act for fines under paragraph (ii) of subdivision (b) of
    48  this section.
    49    § 11. Non-severability clause. If section four of this act is adjudged
    50  by a court of competent jurisdiction to be invalid, then  sections  six,
    51  seven and eight of this act shall also be deemed invalid and it is here-
    52  by declared to be the intent of the legislature that sections six, seven
    53  and  eight  of  this  act would not have been enacted if section four of
    54  this act had not been included herein.
    55    § 12. Severability clause. If any clause, sentence, paragraph,  subdi-
    56  vision,  section or part of this act other than section four of this act

        A. 10826                           10
 
     1  shall be adjudged by a court of competent jurisdiction  to  be  invalid,
     2  such judgment shall not affect, impair or invalidate the remainder ther-
     3  eof,  but  shall  be  confined in its operation to the clause, sentence,
     4  paragraph, subdivision, section or part thereof directly involved in the
     5  controversy in which such judgment shall have been rendered. It is here-
     6  by declared to be the intent of the legislature that this act would have
     7  been enacted even if such invalid provisions had not been included here-
     8  in.
     9    § 13. This act shall take effect immediately.
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