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.
