NYSmallLandlords.com: Press Release – Statement and Update on the Proposed Rent Suspension in New York State
Released on 2020.05.28
Based on our anonymous sources, New York State Governor Andrew Cuomo would not consider any rent relief proposal until after August 20th when the current moratorium expires.
Senate Bill S8125A, sponsored by Senator Michael Gianaris and its matching Assembly Bill A10224A, sponsored by Assemblywoman Yuh Line Niou, are both currently tabled and are not to be voted on. The bills seek to suspend rent payments for residential tenants and commercial tenants and certain mortgage payment for 90 days in response to the outbreak of Covid-19. Although with well intentions, passing such a bill would cause catastrophic chain reaction to property owners, real estate market, lending industry, mortgage backed securities industry and fiscal revenues at all levels. We understand that Covid 19 has wrecked havoc to too many families, rendering loss of income, ruining their financial security and lives.
Instead, the NYS Senate and the NYS Assembly will be focusing on Senate bill S8140, sponsored by Senator Brian Kavanagh, and Assembly bill A10248, sponsored by Assembly Member Steven Cymbrowitz. The bills propose:
- Provide emergency rental assistance to tenants suffering a substantial loss of income due to COVID – 19 via the Housing Trust Fund Corp (a state authority) and in conjunction with the NYS Division of Housing and Community Renewal and the NYS Department of Labor.
- Use $100 million dollars from the CARES ACT and requesting another $10 billion in assistance from the federal government.
- Provide housing vouchers to tenants that are rent burdened by 30% of their income, covering 3 months rents, both due and in arrears, and can be extended.
- Provide payment directly to landlords.
- Housing voucher will cover full rent (not more than 250% of fair market rent for the rental area) deducting 30% of the tenant’s current income.
- Housing voucher also provides for full payment of utilities for the eligible time period directly to the utility provider.
- Once passed by the state legislature and signed by the Governor, the bills will be effective immediately.
“It provides imperfect but temporal and immediate relief to both property owners and their tenants,” Roy Ho says. “However, the most critical issue is contract enforceability, which has started to affect the supply of rental units.”
Please stay tune to our latest updates as we are continuously advocating for the needs of our members as well as all property owners.
Property Owners Association of Greater New York advocates on behalf of property and homeowners and provides resources, services and best practices.