Tenants who have been financially impacted by the ongoing COVID-19 pandemic and economic crisis may soon no longer have to worry about losing their homes. State Senator Brad Hoylman and Assemblyman Jeffrey Dinowitz passed legislation on May 27, 2020 codifying the statewide eviction moratorium and extending it until the end of the COVID-19 emergency for anyone who has experienced financial hardship during this period.

 

The state legislation represents a compromise between the Assembly and State Senate with the ultimate goal of creating a bill that would be signed into law by the Governor. It is viewed as an essential first step which will keep people in their homes while financial relief for tenants is being negotiated on the federal level.

 

Following the vote, Assemblyman Jeffrey Dinowitz said, via a press release, “One of the most important things we can do is keep people in their homes and prevent them from becoming homeless. While we wait on the federal government to do their jobs, and provide disaster relief funding to people who have been impacted by COVID-19, this legislation is a life-changing protection for tenants”.

 

Under the terms of the legislation, the “COVID-19 covered period” refers to rent payments due or accrued from March 7, the date the state emergency order was declared for COVID-19, until the date on which business restrictions and non-essential gathering restrictions end, a date that is still to be announced.

 

Theoretically, the end date equates to Phase 4 of the State’s NYForward reopening guide, which will permit the resumed operation of arts, entertainment, recreation, and education sectors.

 

Functionally, tenants who experienced financial hardship during the COVID-19 pandemic will be explicitly allowed to raise it as a defense during any eviction proceedings based on four factors: tenant’s lawful income prior to, and during the COVID-19 covered period, tenant’s liquid assets, and tenant’s eligibility for, and receipt of, other benefits under state or federal law.

 

The court may also consider other relevant factors to evaluate whether financial harm has occurred.

 

If a tenant is determined to have suffered financial hardship, the court would be prohibited from issuing a warrant of eviction or judgment of possession against them. The court could instead award a money judgment for rent owed. The tenant would be financially obligated to pay the rent they owe, but it would not impact their legal right to remain in their home.

 

The legislation passed both the Assembly and the State Senate on May 27, 2020.

 

Judith Goldiner, Attorney-in-Charge of the Civil Law Reform Unit at The Legal Aid Society, an entity which advocated on behalf of tenants across the City said: “Amid the Covid-19 outbreak, we must make every attempt to protect New Yorkers from eviction and to mitigate the devastating effects caused by the crisis”.

 

She added, “We commend Senator Brad Hoylman and Assemblyman Jeffrey Dinowitz for introducing this legislation and taking a stand to prevent tenants who have experienced a Covid-related financial hardship from losing their homes during this period”.