Bill Text: NY S02151 | 2021-2022 | General Assembly | Introduced


Bill Title: Suspends rent payments for certain tenants due to the state of emergency declared by Executive Order No. 202, where they have lost earned income or were forced to close their place of business; establishes a coronavirus rental assistance fund.

Spectrum: Partisan Bill (Democrat 12-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO FINANCE [S02151 Detail]

Download: New_York-2021-S02151-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          2151

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 20, 2021
                                       ___________

        Introduced by Sens. GIANARIS, BAILEY, BIAGGI, HOYLMAN, KAPLAN, LIU, MAY,
          MYRIE,  PARKER,  RAMOS,  SANDERS,  SERRANO, STAVISKY -- read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Finance

        AN  ACT  to suspend rent payments for certain tenants in response to the
          outbreak of coronavirus; and  to  amend  the  state  finance  law,  in
          relation to establishing the COVID-19 rental assistance fund

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. For the purposes of this act:
     2    (a) "actual income" means (i) for a  residential  tenant,  all  wages,
     3  tips,  overtime, salary, recurring gifts, returns on investment, welfare
     4  assistance, social security payments, child support payments,  unemploy-
     5  ment  benefits,  emergency  federal,  state  or local assistance, or any
     6  other form of income that may be used to pay rent; and (ii) for  a  not-
     7  for-profit  corporation  or small business, all revenue, including emer-
     8  gency federal, state or local assistance, or any other  form  of  income
     9  that  may be used to pay rent, received minus the amount of any wages or
    10  salary  paid  to  employees  of  the not-for-profit corporation or small
    11  business.
    12    (b) "landlord" means the person or entity to whom a tenant owes rent;
    13    (c) "rent" means the amount charged in consideration for the  use  and
    14  occupancy  of  real property pursuant to a written or oral rental agree-
    15  ment or statute;
    16    (d) "state of emergency" means the state of emergency relating to  the
    17  novel coronavirus disease 2019 (COVID-19).
    18    (e)  "covered  tenant"  includes  a residential tenant having the same
    19  meaning as paragraph (a) or (b) of subdivision 1 of section 235-f of the
    20  real property law, or  those who otherwise pay for the use and occupancy
    21  of a residential dwelling, except for a residential tenant  receiving  a
    22  local,  state or federal income based rental subsidy, a tenant that is a

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03359-02-1

        S. 2151                             2

     1  not-for-profit corporation, or a tenant that  is  a  small  business  as
     2  defined by section 131 of the economic development law.
     3    § 2. (a) (i) Notwithstanding any other provision of law, rule or regu-
     4  lation  to  the  contrary, any covered tenant in the state that has lost
     5  earned income, has been forced to close  their  place  of  business,  or
     6  whose business activities have been substantially curtailed resulting in
     7  a  loss  of  income  as  a  result of government ordered restrictions in
     8  response to the outbreak of coronavirus disease 2019  (COVID-19),  shall
     9  be  responsible  for rent payments up to thirty percent of their current
    10  income or their contractual rent, whichever is less, per month  for  the
    11  duration of ninety days following the effective date of this act.
    12    (ii)  Where  a tenant is authorized to pay an amount that is less than
    13  their contractual or statutory rent pursuant to  this  act,  the  tenant
    14  shall provide the landlord with a written and signed statement affirming
    15  the  tenant's  aggregate  actual income for the thirty days prior to the
    16  date such rent was due. Such payment shall absolve  the  tenant  of  any
    17  further  obligation to pay rent and any difference between the rent that
    18  would have been contractually or statutorily owed and  the  amount  paid
    19  pursuant  to this paragraph shall be waived, except where a tenant later
    20  receives additional income, such rent obligations shall be recalculated.
    21    (iii) In a summary proceeding for the non-payment of rent under  arti-
    22  cle  7  of  the  real property actions and proceedings law, a tenant may
    23  raise a payment made pursuant to this act as a defense  to  non-payment.
    24  If  the  amount  of  the tenant's actual income is in dispute, the court
    25  shall review documentation of the  tenant's  income  in  camera,  unless
    26  otherwise  deemed  necessary  by  the  court.  Notwithstanding any other
    27  provision of law to the contrary, pay stubs, copies of checks and signed
    28  letters from the tenant's employer, and other customary documentation of
    29  income shall constitute prima facie  evidence  of  the  tenant's  actual
    30  income and shall be presumptively admissible in such summary proceeding.
    31    (b) Any tenant whose lease expires during the state of emergency shall
    32  have  the  option of extending such lease under the terms existing prior
    33  to the expiration of the lease for a period of up to ninety  days  after
    34  the expiration of the state of emergency.
    35    (c)  Late  fees,  interest or other penalties shall not be collectable
    36  for rent accrued during the existence of the state of emergency.
    37    § 3. Notwithstanding any other law to the contrary,  a  landlord  that
    38  has  lost  rental  income  pursuant  to  this act and has not been fully
    39  compensated by emergency federal, state or local assistance,  may  apply
    40  to the division of housing and community renewal for relief. The commis-
    41  sioner may, upon satisfaction of the veracity of the landlord's applica-
    42  tion and to the extent possible, authorize the distribution of any emer-
    43  gency aid available through the COVID-19 rental assistance fund pursuant
    44  to section 99-ii of the state finance law in response to the outbreak of
    45  the  novel  coronavirus disease 2019 (COVID-19), to any such landlord in
    46  the amount of rental income lost. The commissioner of  the  division  of
    47  housing  and community renewal shall promulgate rules and regulations to
    48  effectuate this act.
    49    § 4. Notwithstanding any other law to the  contrary,  no  court  shall
    50  accept  for  filing  a  petition to commence a new summary proceeding to
    51  recover possession of real property under article 7 of the real property
    52  actions and proceedings law for non-payment of rent for at least  thirty
    53  days  following  the  expiration of the state of emergency; provided any
    54  statute of limitations applicable to such summary proceedings  shall  be
    55  tolled for thirty days.  In no event shall late or reduced rent payments

        S. 2151                             3

     1  during  the  state of emergency constitute the basis for a summary hold-
     2  over proceeding for the chronic nonpayment of rent.
     3    § 5. The state finance law is amended by adding a new section 99-ii to
     4  read as follows:
     5    §  99-ii.  COVID-19  Rental assistance fund. 1. There is hereby estab-
     6  lished in the joint custody of the commissioner of housing and community
     7  renewal and the comptroller, a special fund to be known as the "COVID-19
     8  rental assistance fund".
     9    2. Such fund shall  consist  of  any  unrestricted  federal  emergency
    10  assistance  funding  provided  to the state that may be appropriated for
    11  such purpose, and all other moneys  appropriated,  credited,  or  trans-
    12  ferred thereto from any other fund or source pursuant to law. Nothing in
    13  this  section  shall  prevent  the  state  from soliciting and receiving
    14  grants, gifts or bequests for the purposes of the  fund  as  defined  in
    15  this section and depositing them into the fund according to law.
    16    3. Moneys of the fund shall be expended only for relief due to reduced
    17  rental  income  caused  by  outbreak  of  novel coronavirus disease 2019
    18  (COVID-19).
    19    4. Moneys shall be paid out of the fund on the audit  and  warrant  of
    20  the  comptroller  on vouchers approved and certified by the commissioner
    21  of housing and community renewal. Any interest  received  by  the  comp-
    22  troller  on  moneys  on  deposit  in the COVID-19 rental assistance fund
    23  shall be retained in and become part of such fund.
    24    § 6. This act shall take effect immediately.
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