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
 
MLTSPNSR
 
 
Establishes the Rent and Mortgage Cancellation Act of 2020.
Go to top    

A10826 Actions:

BILL NOA10826
 
07/16/2020referred to housing
Go to top

A10826 Committee Votes:

Go to top

A10826 Floor Votes:

There are no votes for this bill in this legislative session.
Go to top

A10826 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A10826
 
SPONSOR: Rules (Niou)
  TITLE OF BILL: An act to establish the Rent and Mortgage Cancellation Act of 2020   PURPOSE OR GENERAL IDEA OF BILL: This bill provides a universal right to relief from housing payments for renters and small homeowners during the COVID-19 public state emergency designated by the executive of New York State, and establishes protections for individuals exercising that right. This bill also authorizes financial assistance for residential co-ops, affordable hous- ing providers, landlords that can demonstrate hardship resulting from payments cancelled pursuant to this act, and for public housing authori- ties.   SUMMARY OF SPECIFIC PROVISIONS: Section 1 This act shall be known as the "Rent and Mortgage Cancellation Act of 2020." Section 2 States legislative findings, including, in summary, that a serious public emergency exists in the state of New York due to the impact of the global outbreak of novel coronavirus, COVID-19, which as of the date of this legislation, created widespread destabilized hous- ing, loss of employment and income, closure of businesses and schools, and greatly exacerbated financial insecurity in the state of New York, and, further, that government intervention is required to protect indi- viduals and families unable to pay the costs of housing, that the resulting loss of safe and affordable housing will result in severe public health outcomes, including further spread of COVID-19, and that, consistent with articles 17 and 18 of the state constitution, it is therefore incumbent on the legislature and the executive to implement protections and to provide rent and mortgage relief so as to reduce the harm to New York residents and ensure safe, decent, sanitary, affordable housing and financial stability during the novel coronavirus, COVID-19, crisis and all other public emergencies. Section 3 Defines "residential tenant," "small homeowner," "affordable housing operator," "rent," "residential cooperative," "and "public hous- ing authority." Section 4 Cancels rent for all residential tenants for the duration of the COVID-19 state disaster emergency and for 90 days after it ends. This section also provides protection for tenants exercising their right to relief, including prohibitions against fines, fees, termination of tenancy, or eviction for non-payment of canceled rent; removes liability for repayment of cancelled rent; and prohibits adverse consumer credit reporting and denial of future rental applications. Section 5 Suspends mortgage payments for all small homeowners for the duration of the COVID-19 state disaster emergency and for 90 days after it ends. This section also provides protections for mortgagors exercis- ing their right to relief, by prohibiting the accrual of suspended payments as debt, any judicial or non-judicial foreclosure brought by the mortgagee, fees, penalties, or additional interest beyond those scheduled or calculated prior to the suspension period, and adverse consumer credit reporting. This section prevents double-dipping by disallowing landlords from receiving both mortgage relief and financial assistance under sections 7 or 8. Section 6 Provides assistance to residential housing cooperatives that can demonstrate lost maintenance or rental income during the COVID-19 state disaster emergency and for 90 days after it ends. Application processes to demonstrate financial loss shall be determined by the commissioner of housing and community renewal. Housing cooperatives seeking relief must grant one-year lease renewals to any tenants resid- ing therein, and are prohibited from gaining relief for illegal units, units in violation of the cooperative's bylaws, or units that have class B or C violations at the time of application. Section 7 Provides financial assistance to affordable housing operators that can demonstrate lost rental income during the COVID-19 state disas- ter emergency and for 90 days after it ends. Application processes to demonstrate financial loss shall be determined by the commissioner of housing and community renewal. To be eligible for relief, affordable housing operators shall, for a period of five years, freeze rents; evict only for good cause; maintain no outstanding hazardous or immediately hazardous; agree to a suite of non-discrimination provisions; not retal- iate against tenants; and not use or contribute to tenant blacklists. Financial assistance is limited to the reimbursement of rent payments cancelled or reduced pursuant to this act and may be recaptured where housing operators violate regulatory agreements made under this section. Operators that demonstrate hardship may apply for regulatory relief. Section 8 Authorizes the creation of a housing "Landlord Relief Fund" to provide financial assistance to landlords that can demonstrate lost rental income during the COVID-19 state emergency and up until 90 days after the executive declares it ended. Application processes to demon- strate financial loss shall be determined by the commissioner of housing and community renewal. Such agency shall establish a tiered priority system for the grants of assistance and give preference to small land- lords and those with the smallest available assets. To be eligible for relief, landlords shall, for a period of five years, freeze rents; evict only for good cause; maintain no outstanding hazardous or immediately hazardous conditions; agree to a suite of non-discrimination provisions; not retaliate against tenants; and not use or contribute to tenant blacklists. Financial assistance is limited to the reimbursement of rent payments cancelled or reduced pursuant to this act and may be recaptured where landlords violate regulatory agreements made under this section. Landlords that can demonstrate hardship may apply for exemption from the regulatory requirements of this section. Section 9 Authorizes the creation of a "Public Housing Relief Fund" to provide financial assistance to public housing authorities that suffered expenses and lost rental income during the COVID-19 state disaster emer- gency and for 90 days after it ends. Application processes to demon- strate financial loss shall be determined by the commissioner of housing and community renewal. Section 10 Provides a private right of action for individuals exercising their right to rent or mortgage payment relief pursuant to sections 4 of 5 of this act, and establishes liability and a fine schedule for any lessor, affordable housing operator, public housing authority, or mort- gagee that acts in contravention of this act. It also provides a right of action for the Attorney General against any individual or entity that violates sections 4 or 5 of this act. Section 11 Establishes a condition of non-severability between sections 4, 6, 7 and 8 of this act, such that if section 4 is adjudged to be invalid, sections 6, 7 and 8 shall also be deemed invalid. Section 12 Establishes the severability of any part or sub-part of this act other than section 4. Section 13 Sets out that the act shall take effect immediately.   JUSTIFICATION: A serious public health emergency exists in New York State as a result of COVID-19. This emergency has rendered many individuals.and families unable to pay the costs of housing and other necessities and exacerbated existing financial insecurities. Safe and affordable housing remain essential to positive life outcomes and a necessary part of facilitating the policy designed to lessen the impact of COVID-19. Without government intervention many persons will be unable make rent or mortgage payments and will be evicted, foreclosed upon, or otherwise displaced. Such displacement will increase homelessness, cohabiting, overburden the shelter system, and accelerate the spread of COVID-19. At the same time, affordable housing operators and public housing authorities have incurred expenses and financial losses resulting from the COVID-19 outbreak. It is in the public interest to maintain safe, affordable housing by securing and providing emergency funding to ensure that indi- viduals and families are not rendered homeless and that public housing entities, not-for-profits, residential cooperatives, and landlords unable to afford necessary expenses will not be encumbered with severe financial burden.   PRIOR LEGISLATIVE HISTORY: None.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: Immediately upon enactment.
Go to top