Last March, Governor Cuomo protected residential tenants and homeowners suffering from COVID-19 economic hardship by prohibiting the filing and enforcement of evictions against residential tenants, and the foreclosure of residential mortgages1. On December 28, 2020, New York enacted the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 which, among other things, prevents residential evictions, foreclosure proceedings, credit discrimination and negative credit reporting related to the pandemic. The act suspends residential eviction and foreclosure proceedings for 60 days to give residential tenants and homeowners the opportunity to submit a hardship declaration. Here's a rundown of the changes.
Residential Evictions
- Residential eviction proceedings pending on December 28, 2020, including those filed on or before, March 7, 2020, and any residential proceedings commenced by January 27, 2021, are stayed for 60 days.
- Residential Tenants who have lost income, are unable to pay increased costs or are unable to move without significant risk to their, or their family member's, health, can protect themselves against eviction for nonpayment of rent or holding over in their property after the lease expiration date until May 1, 2021 by submitting a Hardship Declaration to their landlord.
- Until May 1, 2021, courts may not issue or enforce a default judgment in a residential eviction proceeding without first holding a hearing regarding the tenant's/mortgagor's potential COVID-19 hardship.
Residential Foreclosures
- Applicable residential foreclosure proceedings pending on December 28, 2020, including those filed on or before, March 7, 2020, and all actions commenced by January 27, 2021, are stayed for 60 days.
- Homeowners who have lost income, or are unable to pay increased costs because of COVID-19, can protect themselves against foreclosure until at least May 1, 2021 by submitting a Hardship Declaration to their mortgage lender or other foreclosing party.
Credit Discrimination and Negative Credit Reporting
- Lenders are prohibited from discriminating against any residential property owner because such owner has been granted a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or tax lien sales; or because the owner is currently in arrears and has filed a hardship declaration with the lender.
- Lenders may not negatively report to any credit reporting agency the granting of a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or tax lien sales, or that a residential property owner is currently in arrears and has filed a hardship declaration.
Footnote
1. New York State Executive Order 202.8
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