Bill Text: NY A10901 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to suspending 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; requires landlords to accept 20 percent or one-third of contractual rent each month; requires the superintendent of the department of financial services to establish and implement an interim commercial rent relief program to support covered tenants and landlords impacted by the COVID-19 pandemic.

Spectrum: Partisan Bill (Democrat 22-0)

Status: (Introduced - Dead) 2020-08-17 - referred to small business [A10901 Detail]

Download: New_York-2019-A10901-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          10901

                   IN ASSEMBLY

                                     August 17, 2020
                                       ___________

        Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Epstein) --
          read once and referred to the Committee on Small Business

        AN ACT to suspend rent payments for certain tenants in response  to  the
          outbreak of coronavirus

          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 for a not-for-profit  corporation  employing
     3  twenty-five  or less full-time employees or full-time equivalent employ-
     4  ees or for a small business incorporated and  resident  in  this  state,
     5  independently owned and operated, not dominant in its field, and employs
     6  twenty-five  or less full-time employees or full-time equivalent employ-
     7  ees, all revenue, including emergency federal, state  or  local  assist-
     8  ance,  or  any  other  form of income that  may be used to pay rent, but
     9  excluding restricted grants;
    10    (b) "landlord" means the person or entity to  whom  a  covered  tenant
    11  owes rent;
    12    (c)  "rent"  means the amount charged in consideration for the use and
    13  occupancy of real property pursuant to a written or oral  rental  agree-
    14  ment or statute;
    15    (d)  "state  of  emergency"  means  the state of emergency declared by
    16  executive order 202 that began on March 7, 2020 and any  further  amend-
    17  ments  or  modifications,  and  as  may  be further extended pursuant to
    18  section 28 of the executive law;
    19    (e) "covered tenant" includes a tenant that is a not-for-profit corpo-
    20  ration employing twenty-five or less full-time  employees  or  full-time
    21  equivalent  employees, or a tenant that is a small business incorporated
    22  and resident in this state, independently owned and operated, not  domi-
    23  nant  in  its field, and employs twenty-five or less full-time employees
    24  or full-time equivalent employees; and
    25    (f) "covered period" means March 7, 2020 until the date on which  none
    26  of  the provisions that closed or otherwise restricted public or private
    27  businesses or places of public accommodation, or  required  postponement
    28  or  cancellation of all non-essential gatherings of individuals  of  any

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16906-05-0

        A. 10901                            2

     1  size, for any reason in Executive Orders  202.3,  202.4,  202.5,  202.6,
     2  202.7, 202.8, 202.10, 202.11, 202.13 or 202.14, as extended by Executive
     3  Orders 202.28 and 202.31 and as further extended by any future Executive
     4  Order,  issued in response to the COVID-19 pandemic continue to apply in
     5  the county in which the covered tenant is located.
     6    § 2. (a) (i) Notwithstanding any other provision of law, rule or regu-
     7  lation to the contrary, any covered tenant in the state  that  has  been
     8  forced  to  close  their place of business, or whose business activities
     9  have been substantially curtailed resulting in a loss  of  income  as  a
    10  result of government ordered restrictions in response to the outbreak of
    11  coronavirus  disease  2019  (COVID-19),  shall  be  responsible for rent
    12  payments up to twenty percent of the covered tenant's actual income  for
    13  the  thirty  days  prior  to  the date such rent was due or one-third of
    14  their contractual rent, whichever is less, per month for the duration of
    15  the covered period through one hundred eighty days following  the  final
    16  day  of  the covered period.  A landlord of a covered tenant shall waive
    17  twenty percent of the contractual rent per month for the duration of one
    18  hundred eighty days following the final day of the covered period.
    19    (ii) Where a covered tenant is authorized to pay  an  amount  that  is
    20  less  than their contractual or statutory rent pursuant to this act, the
    21  covered tenant shall provide the landlord and the department  of  finan-
    22  cial  services  with  a  sworn  affidavit affirming the covered tenant's
    23  actual income for the thirty days prior to the date such  rent  was  due
    24  for each month for which the tenant is seeking a reduced payment of rent
    25  due  to loss of income as a result of government ordered restrictions in
    26  response to the outbreak of coronavirus disease  2019  (COVID-19).  Upon
    27  the  verification of such statement by the superintendent of the depart-
    28  ment of financial services or his  or  her  agent,  such  payment  shall
    29  absolve the covered tenant of any further obligation to pay rent and any
    30  difference between the rent that would have been contractually or statu-
    31  torily  owed  and  the  amount  paid pursuant to this paragraph shall be
    32  waived, except where a covered tenant later receives additional  income,
    33  such rent obligations shall be recalculated.
    34    (iii)  In a summary proceeding for the non-payment of rent under arti-
    35  cle 7 of the real property actions and proceedings law, a covered tenant
    36  may raise a payment made pursuant to this act as a defense  to  non-pay-
    37  ment. If the amount of the covered tenant's actual income is in dispute,
    38  the  court  shall review documentation of the covered tenant's income in
    39  camera, unless otherwise deemed necessary by the court.  Notwithstanding
    40  any  other  provision  of law to the contrary customary documentation of
    41  income shall constitute prima facie evidence  of  the  covered  tenant's
    42  actual  income  and  shall  be  presumptively admissible in such summary
    43  proceeding.
    44    (b) Any covered tenant whose lease expires during the  covered  period
    45  shall  have  the option of extending such lease under the terms existing
    46  prior to the expiration of the lease for a period of up to  one  hundred
    47  eighty days after the expiration of the state of emergency.
    48    (c)  Late  fees,  interest or other penalties shall not be collectable
    49  for rent accrued during the existence of the state of emergency.
    50    § 3. (a) The superintendent of the department of financial services is
    51  hereby authorized and directed to establish  and  implement  an  interim
    52  commercial  rent relief program to support covered tenants and landlords
    53  impacted by the COVID-19 pandemic. Such program shall be provided up  to
    54  $500,000,000   of   monies that have  been allocated to the state of New
    55  York by the federal government.

        A. 10901                            3

     1    (b) Notwithstanding any other law to the contrary, a landlord that has
     2  lost rental income pursuant to this act and has not been  fully  compen-
     3  sated  by emergency federal, state or local assistance, may apply to the
     4  department of financial services for relief. The superintendent  of  the
     5  department  of financial services may, upon satisfaction of the veracity
     6  of the landlord's application and to the extent possible, authorize  the
     7  distribution  of  any  unrestricted  federal emergency assistance monies
     8  provided to the state that have not otherwise  been  obligated,  to  any
     9  such  landlord  in the amount of the balance of rental income lost after
    10  the twenty percent of the contractual rent waived by  the  landlord  and
    11  any amount paid by a covered tenant pursuant to section two of this act.
    12  The superintendent of the department of financial services shall promul-
    13  gate rules and regulations to effectuate the provisions of this act.
    14    §  4.  Notwithstanding  any  other law to the contrary, no court shall
    15  accept for filing a petition to commence a  new  summary  proceeding  to
    16  recover possession of real property under article 7 of the real property
    17  actions  and  proceedings  law  for  non-payment  of rent due to loss of
    18  income as a result of government ordered restrictions in response to the
    19  outbreak of coronavirus disease 2019 (COVID-19) for at least thirty days
    20  following the expiration of the state of emergency; provided any statute
    21  of limitations applicable to such summary proceedings  shall  be  tolled
    22  for  thirty  days;  provided  further,  however,  that  the tenant shall
    23  provide a sworn affidavit affirming the covered tenant's loss of  income
    24  as  a  result  of  government  ordered  restrictions  in response to the
    25  outbreak of coronavirus disease 2019 (COVID-19).  In no event shall late
    26  or reduced rent payments during the state of  emergency  constitute  the
    27  basis  for  a  summary holdover proceeding for the chronic nonpayment of
    28  rent.
    29    § 5. This act shall take effect immediately and  shall  be  deemed  to
    30  have been in full force and effect on and after March 7, 2020.
feedback