Bill Text: NY S00471 | 2021-2022 | General Assembly | Introduced
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Bill Title: Establishes the COVID-19 Emergency Protect Our Small Businesses Act of 2021; relates to eviction proceedings (Part A); relates to foreclosure proceedings (Subpart A); relates to tax sales (Subpart B); establishes hardship declarations for owners of commercial real property (Subpart C) (Part B).
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Passed) 2021-03-09 - SIGNED CHAP.73 [S00471 Detail]
Download: New_York-2021-S00471-Introduced.html
Bill Title: Establishes the COVID-19 Emergency Protect Our Small Businesses Act of 2021; relates to eviction proceedings (Part A); relates to foreclosure proceedings (Subpart A); relates to tax sales (Subpart B); establishes hardship declarations for owners of commercial real property (Subpart C) (Part B).
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Passed) 2021-03-09 - SIGNED CHAP.73 [S00471 Detail]
Download: New_York-2021-S00471-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 471 2021-2022 Regular Sessions IN SENATE (Prefiled) January 6, 2021 ___________ Introduced by Sen. KAPLAN -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT establishing the "COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2021"; in relation to eviction proceedings; and to provide for the expiration of certain provisions upon the expiration thereof (Part A); and in relation to foreclosure proceedings; and providing for the expiration of certain provisions upon the expiration thereof (Subpart A); in relation to tax sales; and providing for the expiration of certain provisions upon the expiration thereof (Subpart B); to establish hardship declarations for owners of commercial real property; and providing for the expiration of such provisions upon the expiration thereof (Subpart C); and to authorize every governing body of an assessing unit and local assessor to extend to the 2021 assess- ment roll, the renewal of the exemptions received on the 2020 assess- ment roll; and to provide for the expiration of such provisions upon the expiration thereof (Subpart D) (Part B) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law components of legislation relating 2 to eviction and foreclosure protections. Each component is wholly 3 contained within a Part identified as Parts A through B. The effective 4 date for each particular provision contained within such Part is set 5 forth in the last section of such Part. Any provision in any section 6 contained within a Part, including the effective date of the Part, which 7 makes reference to a section "of this act", when used in connection with 8 that particular component, shall be deemed to mean and refer to the 9 corresponding section of the Part in which it is found. Section four of 10 this act sets forth the general effective date of this act. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07084-01-1S. 471 2 1 § 2. Short title. This act shall be known and may be cited as the 2 "COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2021". 3 § 3. Legislative intent. The Legislature finds and declares all of the 4 following: 5 On March 7, 2020, Governor Andrew Cuomo proclaimed a state of emergen- 6 cy in response to the Coronavirus disease (COVID-19) pandemic. Measures 7 necessary to contain the spread of COVID-19 have brought about wide- 8 spread economic and societal disruption, placing the state of New York 9 in unprecedented circumstances. 10 COVID-19 presents a historic threat to public health. Hundreds of 11 thousands of residents are facing eviction or foreclosure due to neces- 12 sary disease control measures that closed businesses and schools, and 13 triggered mass-unemployment across the state. The pandemic has further 14 interrupted court operations, the availability of counsel, the ability 15 for parties to pay for counsel, and the ability to safely commute and 16 enter a courtroom, settlement conference and the like. 17 Stabilizing the housing situation for tenants, landlords, and homeown- 18 ers is to the mutual benefit of all New Yorkers and will help the state 19 address the pandemic, protect public health, and set the stage for 20 recovery. It is, therefore, the intent of this legislation to avoid as 21 many evictions and foreclosures as possible for people experiencing a 22 financial hardship during the COVID-19 pandemic or who cannot move due 23 to an increased risk of severe illness or death from COVID-19. 24 As such, it is necessary to temporarily allow people impacted by 25 COVID-19 to remain in their homes. A limited, temporary stay is neces- 26 sary to protect the public health, safety and morals of the people the 27 Legislature represents from the dangers of the COVID-19 emergency 28 pandemic. 29 PART A 30 Section 1. Definitions. For the purposes of this act: 1. "Eviction 31 proceeding" means a summary proceeding to recover possession of real 32 property under article seven of the real property actions and 33 proceedings law relating to a commercial unit or any other judicial or 34 administrative proceeding to recover possession of real property relat- 35 ing to a commercial unit. 36 2. "Landlord" includes a landlord, owner of a commercial property and 37 any other person with a legal right to pursue eviction, possessory 38 action or a money judgment for rent, including arrears, owed or that 39 becomes due during the COVID-19 covered period, as defined in section 1 40 of chapter 127 of the laws of 2020. 41 3. "Tenant" includes a commercial small business tenant, as defined in 42 section 131 of the economic development law, lawful occupant of a 43 commercial unit, or any other person responsible for paying rent, use 44 and occupancy, or any other financial obligation under a commercial 45 lease or tenancy agreement, but does not include a commercial tenant or 46 lawful occupant with a seasonal use lease where such tenant has a prima- 47 ry residence to which to return to. 48 4. "Hardship declaration" means the following statement, or a substan- 49 tially equivalent statement in the tenant's primary language, in 50 14-point type, published by the office of court administration, whether 51 in physical or electronic written form: 52 "NOTICE TO TENANT: If you have lost income or had increased costs 53 during the COVID-19 pandemic, or moving would pose a significant health 54 risk for you or a member of your household due to an increased risk forS. 471 3 1 severe illness or death from COVID-19 due to an underlying medical 2 condition, and you sign and deliver this hardship declaration form to 3 your landlord, you cannot be evicted until at least May 1, 2021 for 4 nonpayment of rent or for holding over after the expiration of your 5 lease. You may still be evicted for violating your lease by persistently 6 and unreasonably engaging in behavior that substantially infringes on 7 the use and enjoyment of other tenants or occupants or causes a substan- 8 tial safety hazard to others. 9 If your landlord has provided you with this form, your landlord must 10 also provide you with a mailing address and e-mail address to which you 11 can return this form. If your landlord has already started an eviction 12 proceeding against you, you can return this form to either your land- 13 lord, the court, or both at any time. You should keep a copy or picture 14 of the signed form for your records. You will still owe any unpaid rent 15 to your landlord. You should also keep careful track of what you have 16 paid and any amount you still owe. 17 For more information about legal resources that may be available to 18 you, go to www.nycourts.gov/evictions/nyc/ or call 718-557-1379 if you 19 live in New York City or go to www.nycourts.gov/evictions/outside-nyc/ 20 or call a local bar association or legal services provider if you live 21 outside of New York City. Rent relief may be available to you, and you 22 should contact your local housing assistance office. 23 TENANT'S DECLARATION OF HARDSHIP DURING THE COVID-19 PANDEMIC 24 I am a tenant, lawful occupant, or other person responsible for paying 25 rent, use and occupancy, or any other financial obligation under a lease 26 or tenancy agreement at (address of commercial unit). 27 YOU MUST INDICATE BELOW YOUR QUALIFICATION FOR EVICTION PROTECTION BY 28 SELECTING OPTION "A" OR "B", OR BOTH. 29 A. ( ) I am experiencing financial hardship, and I am unable to pay my 30 rent or other financial obligations under the lease in full or obtain an 31 alternative suitable commercial property because of one or more of the 32 following: 33 1. Significant loss of household income during the COVID-19 pandemic. 34 2. Increase in necessary out-of-pocket expenses related to performing 35 essential work or related to health impacts during the COVID-19 pandem- 36 ic. 37 3. Childcare responsibilities or responsibilities to care for an 38 elderly, disabled, or sick family member during the COVID-19 pandemic 39 have negatively affected my ability or the ability of someone in my 40 household to obtain meaningful employment or earn income or increased my 41 necessary out-of-pocket expenses. 42 4. Moving expenses and difficulty I have securing an alternative 43 commercial property make it a hardship for me to relocate to another 44 residence during the COVID-19 pandemic. 45 5. Other circumstances related to the COVID-19 pandemic have negative- 46 ly affected my ability to obtain meaningful employment or earn income or 47 have significantly reduced my household income or significantly 48 increased my expenses. 49 To the extent that I have lost household income or had increased 50 expenses, any public assistance, including unemployment insurance, 51 pandemic unemployment assistance, disability insurance, or paid family 52 leave, that I have received since the start of the COVID-19 pandemicS. 471 4 1 does not fully make up for my loss of household income or increased 2 expenses. 3 B. ( ) Vacating the premises and moving into a new commercial property 4 would pose a significant health risk because I or one or more members of 5 my household have an increased risk for severe illness or death from 6 COVID-19 due to being over the age of sixty-five, having a disability or 7 having an underlying medical condition, which may include but is not 8 limited to being immunocompromised. 9 I understand that I must comply with all other lawful terms under my 10 commercial tenancy, lease agreement or similar contract. I further 11 understand that lawful fees, penalties or interest for not having paid 12 rent in full or met other financial obligations as required by my 13 commercial tenancy, lease agreement or similar contract may still be 14 charged or collected and may result in a monetary judgment against me. 15 I further understand that my landlord may be able to seek eviction after 16 May 1, 2021, and that the law may provide certain protections at that 17 time that are separate from those available through this declaration. 18 Signed: 19 Printed name: 20 Date signed: 21 NOTICE: You are signing and submitting this form under penalty of law. 22 That means it is against the law to make a statement on this form that 23 you know is false." 24 § 2. Pending eviction proceedings. Any eviction proceeding pending on 25 the effective date of this act, including eviction proceedings filed on 26 or before March 7, 2020, or commenced within thirty days of the effec- 27 tive date of this act shall be stayed for at least sixty days, or to 28 such later date that the chief administrative judge shall determine is 29 necessary to ensure that courts are prepared to conduct proceedings in 30 compliance with this act and to give tenants an opportunity to submit 31 the hardship declaration pursuant to this act. The court in each case 32 shall promptly issue an order directing such stay and promptly mail the 33 respondent a copy of the hardship declaration in English, and, to the 34 extent practicable, the tenant's primary language, if other than 35 English. 36 § 3. Pre-eviction notices. A landlord shall include a "Hardship Decla- 37 ration" in 14-point type, with every written demand for rent made pursu- 38 ant to subdivision 2 of section 711 of the real property actions and 39 proceedings law, with any other written notice required by the commer- 40 cial lease or tenancy agreement, law or rule to be provided prior to the 41 commencement of an eviction proceeding, and with every notice of peti- 42 tion served on a tenant. If the translation of the hardship declaration 43 in the tenant's primary language is not available on the office of court 44 administration's public website, as provided by section ten of this act, 45 it shall be the landlord's responsibility to obtain a suitable trans- 46 lation of the hardship declaration in the tenant's primary language. 47 Such notice shall also include: 48 1. a mailing address, telephone number and active email address the 49 tenant can use to contact the landlord and return the hardship declara- 50 tion; and 51 2. a list of all not-for-profit legal service providers actively 52 handling housing matters in the county where the subject premises areS. 471 5 1 located. Such lists shall be prepared and regularly updated, to the 2 extent practicable, for such purpose and published on the website of the 3 office of court administration. 4 § 4. Prohibition on initiation of eviction proceeding. If there is no 5 pending eviction proceeding and a tenant provides a hardship declaration 6 to the landlord or an agent of the landlord, there shall be no initi- 7 ation of an eviction proceeding against the tenant until at least May 1, 8 2021, and in such event any specific time limit for the commencement of 9 an eviction proceeding shall be tolled until May 1, 2021. 10 § 5. Required affidavit. 1. No court shall accept for filing any peti- 11 tion or other filing to commence an eviction proceeding unless the peti- 12 tioner or an agent of the petitioner files an affidavit of service, 13 under penalty of perjury, demonstrating the manner in which the peti- 14 tioner or the petitioner's agent served a copy of the hardship declara- 15 tion in English and the tenant's primary language, if other than 16 English, with any rent demand and with any other written notice required 17 by the commercial lease or tenancy agreement, law or rule to be provided 18 prior to the commencement of an eviction proceeding, and an affidavit 19 under penalty of perjury: 20 a. attesting that at the time of filing, neither the petitioner nor 21 any agent of the petitioner has received a hardship declaration from the 22 respondent or any other tenant or occupant of the commercial unit that 23 is the subject of the proceeding, or 24 b. attesting that the respondent or another tenant or occupant of the 25 commercial unit that is the subject of the proceeding has returned a 26 hardship declaration, but the respondent is persistently and unreason- 27 ably engaging in behavior that substantially infringes on the use and 28 enjoyment of other tenants or occupants or causes a substantial safety 29 hazard to others, with a specific description of the behavior alleged. 30 2. Upon accepting a petition pursuant to article 7 of the real proper- 31 ty actions and proceedings law, the attorney, judge or clerk of the 32 court, as the case may be, shall determine whether a copy of the hard- 33 ship declaration in English and the tenant's primary language, if other 34 than English, is annexed to the served notice of petition and, if not, 35 shall ensure that the hardship declaration is attached to such notice. 36 Service of the notice of petition with the attached hardship declaration 37 shall be made by personal delivery to the respondent, unless such 38 service cannot be made with due diligence, in which case service may be 39 made under section 735 of the real property actions and proceedings law. 40 At the earliest possible opportunity, the court shall seek confirmation 41 on the record or in writing from the respondent that the respondent has 42 received the hardship declaration and that the respondent has not 43 submitted a hardship declaration to the petitioner, an agent of the 44 petitioner, or the court. If the court determines a respondent has not 45 received a hardship declaration, then the court shall stay the proceed- 46 ing for a reasonable period of time, which shall be no less than ten 47 business days or any longer period provided by law, and provide the 48 respondent with a copy of the hardship declaration in English and the 49 respondent's primary language, if other than English, to ensure the 50 respondent received and fully considered whether to submit the hardship 51 declaration. 52 § 6. Pending proceedings. In any eviction proceeding in which an 53 eviction warrant has not been issued, including eviction proceedings 54 filed on or before March 7, 2020, if the tenant provides a hardship 55 declaration to the petitioner, the court, or an agent of the petitioner 56 or the court, the eviction proceeding shall be stayed until at least MayS. 471 6 1 1, 2021. If such hardship declaration is provided to the petitioner or 2 agent, such petitioner or agent shall promptly file it with the court, 3 advising the court in writing the index number of all relevant cases. 4 § 7. Default judgments. No court shall issue a judgment in any 5 proceeding authorizing a warrant of eviction against a respondent who 6 has defaulted, or authorize the enforcement of an eviction pursuant to a 7 default judgment, prior to May 1, 2021, without first holding a hearing 8 after the effective date of this act upon motion of the petitioner. The 9 petitioner or an agent of the petitioner shall file an affidavit attest- 10 ing that the petitioner or the petitioner's agent has served notice of 11 the date, time, and place of such hearing on the respondent, including a 12 copy of such notice. If a default judgment has been awarded prior to the 13 effective date of this act, the default judgment shall be removed and 14 the matter restored to the court calendar upon the respondent's written 15 or oral request to the court either before or during such hearing and an 16 order to show cause to vacate the default judgment shall not be 17 required. 18 § 8. Post warrant of eviction. a. (i) In any eviction proceeding in 19 which an eviction warrant has been issued prior to the effective date of 20 this act, but has not yet been executed as of the effective date of this 21 act, including eviction proceedings filed on or before March 7, 2020, 22 the court shall stay the execution of the warrant at least until the 23 court has held a status conference with the parties. (ii) In any 24 eviction proceeding, if the tenant provides a hardship declaration to 25 the petitioner, the court, or an agent of the petitioner or the court, 26 prior to the execution of the warrant, the execution shall be stayed 27 until at least May 1, 2021. If such hardship declaration is provided to 28 the petitioner or agent of the petitioner, such petitioner or agent 29 shall promptly file it with the court, advising the court in writing the 30 index number of all relevant cases. 31 b. In any eviction proceeding in which a warrant has been issued, 32 including eviction proceedings filed on or before March 7, 2020, any 33 warrant issued shall not be effective as against the occupants, unless, 34 in addition to the requirements under section 749 of the real property 35 actions and proceedings law for warrants, such warrant states: 36 (i) The tenant has not submitted the hardship declaration and the 37 tenant was properly served with a copy of the hardship declaration 38 pursuant to this section, listing dates the tenant was served with the 39 hardship declaration by the petitioner and the court; or 40 (ii) The tenant is ineligible for a stay under this act because the 41 court has found that the tenant is persistently and unreasonably engag- 42 ing in behavior that substantially infringes on the use and enjoyment of 43 other tenants or occupants or causes a substantial safety hazard to 44 others, with a specific description of the behavior. 45 c. No court shall issue a warrant directed to the sheriff of the coun- 46 ty or to any constable or marshal of the city in which the property, or 47 a portion thereof, is situated, or, if it is not situated in a city, to 48 any constable of any town in the county, that does not comply with the 49 requirements of this section. 50 d. No officer to whom the warrant is directed shall execute a warrant 51 for eviction issued that does not comply with the requirements of this 52 section. 53 e. Unless the warrant contains the information contained in paragraph 54 (ii) of subdivision b of this section, if any tenant delivers the 55 hardship declaration to the officer to whom the warrant is directed, the 56 officer shall not execute the warrant and shall return the hardship formS. 471 7 1 to the court indicating the appropriate index/case number the form is 2 associated with. 3 § 9. Sections two, four, six and paragraph (ii) of subdivision a of 4 section eight of this act shall not apply if the tenant is persistently 5 and unreasonably engaging in behavior that substantially infringes on 6 the use and enjoyment of other tenants or occupants or causes a substan- 7 tial safety hazard to others, provided: 8 1. If an eviction proceeding is pending on the effective date of this 9 act, but the petitioner has not previously alleged that the tenant 10 persistently and unreasonably engaged in such behavior, the petitioner 11 shall be required to submit a new petition with such allegations and 12 comply with all notice and service requirements under article 7 of the 13 real property actions and proceedings law and this act. 14 2. If the court has awarded a judgment against a respondent prior to 15 the effective date of this act on the basis of objectionable or nuisance 16 behavior, the court shall hold a hearing to determine whether the tenant 17 is continuing to persist in engaging in unreasonable behavior that 18 substantially infringes on the use and enjoyment of other tenants or 19 occupants or causes a substantial safety hazard to others. 20 3. For the purposes of this act, a mere allegation of the behavior by 21 the petitioner or an agent of the petitioner alleging such behavior 22 shall not be sufficient evidence to establish that the tenant has 23 engaged in such behavior. 24 4. If the petitioner fails to establish that the tenant persistently 25 and unreasonably engaged in such behavior and the tenant provides or has 26 provided a hardship declaration to the petitioner, petitioner's agent or 27 the court, the court shall stay or continue to stay any further 28 proceedings until at least May 1, 2021. 29 5. If the petitioner establishes that the tenant persistently and 30 unreasonably engaged in such behavior or the tenant fails to provide a 31 hardship declaration to the petitioner, petitioner's agent or the court, 32 the proceeding may continue pursuant to article 7 of the real property 33 actions and proceedings law and this act. 34 § 10. Translation of hardship declaration. The office of court admin- 35 istration shall translate the hardship declaration, as defined in 36 section one of this act, into Spanish and the six most common languages 37 in the city of New York, after Spanish, and shall post and maintain such 38 translations and an English language copy of the hardship declaration on 39 the website of such office beginning within fifteen days of the effec- 40 tive date of this act. To the extent practicable, the office of court 41 administration shall post and maintain on its website translations into 42 such additional languages as the chief administrative judge shall deem 43 appropriate to ensure that tenants have an opportunity to understand and 44 submit hardship declarations pursuant to this act. 45 § 11. Rebuttable presumption. A hardship declaration in which the 46 tenant has selected the option indicating a financial hardship shall 47 create a rebuttable presumption that the tenant is experiencing finan- 48 cial hardship, in any judicial or administrative proceeding that may be 49 brought, for the purposes of establishing a defense under chapter 127 of 50 the laws of 2020, an executive order of the governor or any other local 51 or state law, order or regulation restricting the eviction of a tenant 52 suffering from a financial hardship during or due to COVID-19 provided 53 that the absence of a hardship declaration shall not create a presump- 54 tion that a financial hardship is not present. 55 § 12. If any clause, sentence, paragraph, section or part of this act 56 shall be adjudged by any court of competent jurisdiction to be invalidS. 471 8 1 and after exhaustion of all further judicial review, the judgment shall 2 not affect, impair or invalidate the remainder thereof, but shall be 3 confined in its operation to the clause, sentence, paragraph, section or 4 part of this act directly involved in the controversy in which the judg- 5 ment shall have been rendered. 6 § 13. This act shall take effect immediately and sections one, two, 7 three, four, five, six, seven, eight, nine, ten and twelve of this act 8 shall expire May 1, 2021. 9 PART B 10 Section 1. This Part enacts into law components of legislation relat- 11 ing to mortgage foreclosure, tax foreclosure, credit discrimination and 12 tax renewal exemption protections. Each component is wholly contained 13 within a Subpart identified as Subparts A through D. The effective date 14 for each particular provision contained within such Subpart is set forth 15 in the last section of such Subpart. Any provision in any section 16 contained within a Subpart, including the effective date of the Subpart, 17 which makes reference to a section "of this act", when used in 18 connection with that particular component, shall be deemed to mean and 19 refer to the corresponding section of the Subpart in which it is found. 20 Section three of this Part sets forth the general effective date of this 21 Part. 22 SUBPART A 23 Section 1. Application. This section shall apply to any action to 24 foreclose a mortgage relating to commercial real property, provided the 25 owner or mortgagor of such property is a natural person, regardless of 26 how title is held, and owns ten or fewer commercial units whether 27 directly or indirectly. The ten or fewer commercial units may be in more 28 than one property or building as long as the total aggregate number of 29 ten units includes the primary commercial property of the natural person 30 requesting such relief and the remaining units are currently occupied by 31 a tenant or are available for rent. 32 For purposes of this act, real property shall not include property 33 that is vacant and abandoned, as defined in subdivision 2 of section 34 1309 of the real property actions and proceedings law, which was listed 35 on the statewide vacant and abandoned property electronic registry, as 36 defined in section 1310 of the real property actions and proceedings 37 law, prior to March 7, 2020 and that remains on such registry. 38 Notwithstanding anything to the contrary, this act shall not apply to, 39 and does not affect any mortgage loans made, insured, purchased or secu- 40 ritized by a corporate governmental agency of the state constituted as a 41 political subdivision and public benefit corporation, or the rights and 42 obligations of any lender, issuer, servicer or trustee of such obli- 43 gations. 44 § 2. Definitions. For the purposes of this act, "Hardship Declaration" 45 means the following statement, or a substantially equivalent statement 46 in the mortagor's primary language, in 14-point type, published by the 47 office of court administration, whether in physical or electronic writ- 48 ten form: 49 "NOTICE TO MORTGAGOR: If you have lost income or had increased costs 50 during the COVID-19 pandemic, and you sign and deliver this hardship 51 declaration form to your mortgage lender or other foreclosing party, you 52 cannot be foreclosed on until at least May 1, 2021.S. 471 9 1 If your mortgage lender or other foreclosing party provided you with 2 this form, the mortgage lender or other foreclosing party must also 3 provide you with a mailing address and e-mail address to which you can 4 return this form. If you are already in foreclosure proceedings, you may 5 return this form to the court. You should keep a copy or picture of the 6 signed form for your records. You will still owe any unpaid mortgage 7 payments and lawful fees to your lender. You should also keep careful 8 track of what you have paid and any amount you still owe. 9 MORTGAGOR'S DECLARATION OF COVID-19-RELATED HARDSHIP 10 I am the mortgagor of the property at (address of commercial unit). 11 Including my primary residence, I own, whether directly or indirectly, 12 ten or fewer commercial units. I am experiencing financial hardship, and 13 I am unable to pay my mortgage in full because of one or more of the 14 following: 15 1. Significant loss of household income during the COVID-19 pandemic. 16 2. Increase in necessary out-of-pocket expenses related to performing 17 essential work or related to health impacts during the COVID-19 pandem- 18 ic. 19 3. Childcare responsibilities or responsibilities to care for an 20 elderly, disabled, or sick family member during the COVID-19 pandemic 21 have negatively affected my ability or the ability of someone in my 22 household to obtain meaningful employment or earn income or increased my 23 necessary out-of-pocket expenses. 24 4. Moving expenses and difficulty I have securing an alternative 25 commercial property make it a hardship for me to relocate to another 26 property during the COVID-19 pandemic. 27 5. Other circumstances related to the COVID-19 pandemic have negative- 28 ly affected my ability to obtain meaningful employment or earn income or 29 have significantly reduced my household income or significantly 30 increased my expenses. 31 6. One or more of my tenants has defaulted on a significant amount of 32 their rent payments since March 1, 2020. 33 To the extent I have lost household income or had increased expenses, 34 any public assistance, including unemployment insurance, pandemic unem- 35 ployment assistance, disability insurance, or paid family leave, that I 36 have received since the start of the COVID-19 pandemic does not fully 37 make up for my loss of household income or increased expenses. 38 I understand that I must comply with all other lawful terms under my 39 commercial mortgage agreement. I further understand that lawful fees, 40 penalties or interest for not having paid my mortgage in full as 41 required by my commercial mortgage agreement may still be charged or 42 collected and may result in a monetary judgment against me. I also 43 understand that my mortgage lender or other foreclosing party may pursue 44 a foreclosure action against me on or after May 1, 2021, if I do not 45 fully repay any missed or partial payments and lawful fees. 46 Signed: 47 Printed Name: 48 Date Signed: 49 NOTICE: You are signing and submitting this form under penalty of law. 50 That means it is against the law to make a statement on this form that 51 you know is false." 52 § 3. Any action to foreclose a mortgage pending on the effective date 53 of this act, including actions filed on or before March 7, 2020, or 54 commenced within thirty days of the effective date of this act shall be 55 stayed for at least sixty days, or to such later date that the chief 56 administrative judge shall determine is necessary to ensure that courtsS. 471 10 1 are prepared to conduct proceedings in compliance with this act and to 2 give mortgagors an opportunity to submit the hardship declaration pursu- 3 ant to this act. The court in each case shall promptly issue an order 4 directing such stay and promptly mail the mortgagor a copy of the hard- 5 ship declaration in English, and, to the extent practicable, the 6 mortgagor's primary language, if other than English. 7 § 4. The foreclosing party shall include a "Hardship Declaration" in 8 14-point type, with every notice provided to a mortgagor. If the trans- 9 lation of the hardship declaration in the mortgagor's primary language 10 is not available on the office of court administration's public website, 11 as provided by section nine of this act, it shall be the foreclosing 12 party's responsibility to obtain a suitable translation of the hardship 13 declaration in the mortgagor's primary language. Such notice shall also 14 include a mailing address, telephone number and active email address the 15 mortgagor can use to contact the foreclosing party and return the hard- 16 ship declaration. 17 § 5. If a mortgagor provides a hardship declaration to the foreclosing 18 party or an agent of the foreclosing party, there shall be no initiation 19 of an action to foreclose a mortgage against the mortgagor until at 20 least May 1, 2021, and in such event any specific time limit for the 21 commencement of an action to foreclose a mortgage shall be tolled until 22 May 1, 2021. 23 § 6. No court shall accept for filing any action to foreclose a mort- 24 gage unless the foreclosing party or an agent of the foreclosing party 25 files an affidavit, under penalty of perjury: 26 (i) of service demonstrating the manner in which the foreclosing 27 party's agent served a copy of the hardship declaration in English and 28 the mortgagor's primary language, if other than English, with the 29 notice, if any, provided to the mortgagor, and 30 (ii) attesting that at the time of filing, neither the foreclosing 31 party nor any agent of the foreclosing party has received a hardship 32 declaration from the mortgagor. 33 At the earliest possible opportunity, the court shall seek confirma- 34 tion on the record or in writing that the mortgagor has received a copy 35 of the hardship declaration and that the mortgagor has not returned the 36 hardship declaration to the foreclosing party or an agent of the fore- 37 closing party. If the court determines a mortgagor has not received a 38 hardship declaration, then the court shall stay the proceeding for a 39 reasonable period of time, which shall be no less than ten business days 40 or any longer period provided by law, to ensure the mortgagor received 41 and fully considered whether to submit the hardship declaration. 42 § 7. In any action to foreclose a mortgage in which a judgment of sale 43 has not been issued, including actions filed on or before March 7, 2020, 44 if the mortgagor provides a hardship declaration to the foreclosing 45 party, the court, or an agent of the foreclosing party or the court, the 46 proceeding shall be stayed until at least May 1, 2021. If such hardship 47 declaration is provided to the foreclosing party or agent of the fore- 48 closing party, such foreclosing party or agent shall promptly file it 49 with the court, advising the court in writing the index number of all 50 relevant cases. 51 § 8. In any action to foreclose a mortgage in which a judgment of sale 52 has been issued prior to the effective date of this act but has not yet 53 been executed as of the effective date of this act, including actions 54 filed on or before March 7, 2020, the court shall stay the execution of 55 the judgment at least until the court has held a status conference with 56 the parties. In any action to foreclose a mortgage, if the mortgagorS. 471 11 1 provides a hardship declaration to the foreclosing party, the court, or 2 an agent of the foreclosing party or the court, prior to the execution 3 of the judgment, the execution shall be stayed until at least May 1, 4 2021. If such hardship declaration is provided to the foreclosing party 5 or agent of the foreclosing party, such foreclosing party or agent shall 6 promptly file it with the court, advising the court in writing the index 7 number of all relevant cases. 8 § 9. The office of court administration shall translate the hardship 9 declaration, as defined in section one of this act, into Spanish and the 10 six most common languages in the city of New York, after Spanish, and 11 shall post and maintain such translations and an English language copy 12 of the hardship declaration on the website of such office beginning 13 within fifteen days of the effective date of this act. 14 § 10. A hardship declaration shall create a rebuttable presumption 15 that the mortgagor is suffering financial hardship, in any judicial or 16 administrative proceeding that may be brought, for the purposes of 17 establishing a defense under an executive order of the governor or any 18 other local or state law, order or regulation restricting actions to 19 foreclose a mortgage against a mortgagor suffering from a financial 20 hardship during or due to the COVID-19 pandemic provided that the 21 absence of a hardship declaration shall not create a presumption that a 22 financial hardship is not present. 23 § 11. If any clause, sentence, paragraph, section or part of this act 24 shall be adjudged by any court of competent jurisdiction to be invalid 25 and after exhaustion of all further judicial review, the judgment shall 26 not affect, impair or invalidate the remainder thereof, but shall be 27 confined in its operation to the clause, sentence, paragraph, section or 28 part of this act directly involved in the controversy in which the judg- 29 ment shall have been rendered. 30 § 12. This act shall take effect immediately and sections one, two, 31 three, four, five, six, seven, eight, nine and eleven of this act shall 32 expire May 1, 2021. 33 SUBPART B 34 Section 1. Application. This act shall apply to any action to fore- 35 close on delinquent taxes or sell a tax lien relating to commercial real 36 property, provided the owner or mortgagor of such property is a natural 37 person, regardless of how title is held, and owns ten or fewer commer- 38 cial units whether directly or indirectly. The ten or fewer commercial 39 units may be in more than one property or building as long as the total 40 aggregate number of ten units includes the primary commercial property 41 of the natural person requesting such relief and the remaining units are 42 currently occupied by a tenant or are available for rent. 43 For purposes of this act, real property shall not include property 44 that is vacant and abandoned, as defined in subdivision 2 of section 45 1309 of the real property actions and proceedings law, which was listed 46 on the statewide vacant and abandoned property electronic registry, as 47 defined in section 1310 of the real property actions and proceedings 48 law, prior to March 7, 2020 and that remains on such registry. 49 § 2. Definitions. For purposes of this act: 1. "Tax lien" means an 50 unpaid tax, special ad valorem levy, special assessment or other charge 51 imposed upon real property by or on behalf of a municipal corporation or 52 special district or other public or private entity which is an encum- 53 brance on real property, whether or not evidenced by a written instru- 54 ment.S. 471 12 1 2. "Tax foreclosure and tax lien sale" shall mean any such tax lien 2 sale or tax foreclosure pursuant to article 11 of the real property tax 3 law, or any general, special or local law related to real property tax 4 lien sales or real property tax foreclosures. 5 3. "Hardship Declaration" means the following statement, or a substan- 6 tially equivalent statement in the owner's primary language, in 14-point 7 type, whether in physical or electronic written form: 8 "OWNER DECLARATION OF COVID-19-RELATED HARDSHIP 9 I am the owner of the commercial property at (address). Including my 10 primary commercial property, I own, whether directly or indirectly, ten 11 or fewer commercial units. I am experiencing financial hardship, and I 12 am unable to pay my full tax bill because of one or more of the follow- 13 ing: 14 1. Significant loss of household income during the COVID-19 pandemic. 15 2. Increase in necessary out-of-pocket expenses related to performing 16 essential work or related to health impacts during the COVID-19 pandem- 17 ic. 18 3. Childcare responsibilities or responsibilities to care for an 19 elderly, disabled, or sick family member during the COVID-19 pandemic 20 have negatively affected my ability or the ability of someone in my 21 household to obtain meaningful employment or earn income or increased my 22 necessary out-of-pocket expenses. 23 4. Moving expenses and difficulty I have securing an alternative 24 commercial property make it a hardship for me to relocate to another 25 property during the COVID-19 pandemic. 26 5. Other circumstances related to the COVID-19 pandemic have negative- 27 ly affected my ability to obtain meaningful employment or earn income or 28 have significantly reduced my household income or significantly 29 increased my expenses. 30 6. One or more of my tenants has defaulted on a significant amount of 31 their rent payments since March 1, 2020. 32 To the extent that I have lost household income or had increased 33 expenses, any public assistance, including unemployment insurance, 34 pandemic unemployment assistance, disability insurance, or paid family 35 leave, that I have received since the start of the COVID-19 pandemic 36 does not fully make up for my loss of household income or increased 37 expenses. 38 I understand that lawful fees, penalties or interest for not having 39 paid my taxes in full may still be charged or collected and may result 40 in a foreclosure action against me on or after May 1, 2021, if I do not 41 fully repay any missed or partial payments and fees. 42 Signed: 43 Printed Name: 44 Date Signed: 45 NOTICE: You are signing and submitting this form under penalty of law. 46 That means it is against the law to make a statement on this form that 47 you know is false." 48 § 3. 1. A commercial real property owner may submit a "Hardship Decla- 49 ration" to any village, town, city, school district, county, or other 50 entity or person which conducts tax foreclosures or tax lien sales. 51 2. At least thirty days prior to the date on which a sale of a tax 52 lien is scheduled to occur, or upon the filing of a petition of foreclo- 53 sure of a tax lien, the enforcing officer or other person or entity 54 conducting such tax lien sale or tax foreclosure shall notify the owner 55 of the affected property of such owner's rights under this act and shall 56 notify the owner that a copy of the hardship declaration can be accessedS. 471 13 1 on the New York State Department of Tax and Finance's website and also 2 provide a link to such declaration form. For the purposes of this act, 3 "enforcing officer" shall have the same meaning as defined in subdivi- 4 sion 3 of section 1102 of the real property tax law. The New York State 5 Department of Tax and Finance shall publish a copy of the hardship 6 declaration on its website. 7 3. The submission of such a declaration, unless withdrawn by the 8 owner, shall act as a temporary stay applicable to all entities and 9 persons of all such tax lien sales and tax foreclosure actions and 10 proceedings against such owner for such property that have been 11 commenced or could have been commenced before May 1, 2021. 12 4. While such stay is in effect, no other action or proceeding shall 13 be commenced to recover any part of such delinquent taxes. 14 5. Any applicable statutes of limitation for the commencement of any 15 action or proceeding to sell a tax lien or foreclose a tax lien is 16 tolled until such stay has expired. The obligation to pay the balance of 17 such delinquent taxes is not rendered invalid, released or extinguished 18 by such stay. 19 6. A hardship declaration shall create a rebuttable presumption that 20 the owner is experiencing financial hardship, in any judicial or admin- 21 istrative proceeding that may be brought, for the purposes of establish- 22 ing a defense under an executive order of the governor or any other 23 local or state law, order or regulation restricting actions to sell a 24 tax lien or foreclose a tax lien against an owner suffering from a 25 financial hardship during or due to the COVID-19 pandemic, provided 26 that the absence of a hardship declaration shall not create a presump- 27 tion that a financial hardship is not present. 28 § 4. This act shall take effect immediately and sections one and two 29 and subdivisions one, two, three, four and five of section three shall 30 expire May 1, 2021. 31 SUBPART C 32 Section 1. Application. 1. This act shall apply to an owner of commer- 33 cial real property, provided the owner or mortgagor of such property is 34 a natural person, regardless of how title is held, and owns ten or fewer 35 commercial units whether directly or indirectly. The ten or fewer 36 commercial units may be in more than one property or building as long as 37 the total aggregate number of ten units includes the primary commercial 38 property of the natural person requesting such relief and the remaining 39 units are currently occupied by a tenant or are available for rent. 40 For purposes of this act, real property shall not include property 41 that is vacant and abandoned, as defined in subdivision 2 of section 42 1309 of the real property actions and proceedings law, which was listed 43 on the statewide vacant and abandoned property electronic registry, as 44 defined in section 1310 of the real property actions and proceedings 45 law, prior to March 7, 2020 and that remains on such registry. 46 2. Hardship declaration. For purposes of this act, "hardship declara- 47 tion" shall mean the following statement, or a substantially equivalent 48 statement in the owner or mortgagor's primary language, in 14-point 49 type, whether in physical or electronic written form, and the department 50 of financial services shall publish a copy of the hardship declaration 51 on its website: 52 "NOTICE TO OWNER/MORTGAGOR: If you have lost income or had increased 53 costs due to the COVID-19 pandemic, and you sign and deliver this hard- 54 ship declaration form to your lending institution, you cannot beS. 471 14 1 discriminated against in the determination of whether credit should be 2 extended or reported negatively to a credit reporting agency until at 3 least May 1, 2021. 4 If a lending institution provided you with this form, the lending 5 institution must also provide you with a mailing address and e-mail 6 address to which you can return this form. You should keep a copy or 7 picture of the signed form for your records. 8 OWNER/MORTGAGOR DECLARATION OF COVID-19-RELATED HARDSHIP 9 I am the OWNER/MORTGAGOR of the property at (address of commercial 10 unit). Including my primary commercial property, I own, whether direct- 11 ly or indirectly, ten or fewer commercial units. I am experiencing 12 financial hardship, and I am unable to pay my mortgage in full because 13 of one or more of the following: 14 1. Significant loss of household income during the COVID-19 pandemic. 15 2. Increase in necessary out-of-pocket expenses related to performing 16 essential work or related to health impacts during the COVID-19 pandem- 17 ic. 18 3. Childcare responsibilities or responsibilities to care for an 19 elderly, disabled, or sick family member during the COVID-19 pandemic 20 have negatively affected my ability or the ability of someone in my 21 household to obtain meaningful employment or earn income or increased my 22 necessary out-of-pocket expenses. 23 4. Moving expenses and difficulty I have securing an alternative 24 commercial property make it a hardship for me to relocate to another 25 commercial property during the COVID-19 pandemic. 26 5. Other circumstances related to the COVID-19 pandemic have negative- 27 ly affected my ability to obtain meaningful employment or earn income or 28 have significantly reduced my household income or significantly 29 increased my expenses. 30 6. One or more of my tenants has defaulted on a significant amount of 31 their rent payments since March 1, 2020. 32 To the extent that I have lost household income or had increased 33 expenses, any public assistance, including unemployment insurance, 34 pandemic unemployment assistance, disability insurance, or paid family 35 leave, that I have received since the start of the COVID-19 pandemic 36 does not fully make up for my loss of household income or increased 37 expenses. 38 Signed: 39 Printed Name: 40 Date Signed: 41 NOTICE: You are signing and submitting this form under penalty of law. 42 That means it is against the law to make a statement on this form that 43 you know is false." 44 3. Discrimination in credit decisions. Notwithstanding any law to the 45 contrary, lending institutions shall not discriminate in the determi- 46 nation of whether credit should be extended to any owner of commercial 47 real property as defined in subdivision one of this section because, as 48 provided for in this act, such owner has been granted a stay of mortgage 49 foreclosure proceedings, tax foreclosure proceedings or of tax lien 50 sales, or that an owner of commercial real property as defined in subdi- 51 vision one of this section is currently in arrears and has filed a hard- 52 ship declaration with such lender. 53 4. Prohibition on negative credit reporting. Notwithstanding any law 54 to the contrary, as provided for in this act, the granting of a stay of 55 mortgage foreclosure proceedings, tax foreclosure proceedings or tax 56 lien sales, or that an owner of commercial real property as defined inS. 471 15 1 subdivision one of this section is currently in arrears and has filed a 2 hardship declaration with their lender shall not be negatively reported 3 to any credit reporting agency. 4 § 2. This act take effect immediately and shall expire May 1, 2021. 5 SUBPART D 6 Section 1. Notwithstanding any other provision of law, in the interest 7 of the health and safety of the public due to the novel coronavirus, 8 COVID-19 pandemic, every governing body of an assessing unit and local 9 assessor shall extend to the 2021 assessment roll, the renewal of the 10 exemptions received on the 2020 assessment roll pursuant to sections 467 11 and 459-c of the real property tax law, relating to persons age sixty- 12 five and older and for certain persons with disabilities and limited 13 income, and no renewal application shall be required of any eligible 14 recipient who received either exemption on the 2020 assessment roll in 15 order for such eligible recipient to continue receiving such exemption 16 at the same amount received on the 2020 assessment roll, except as here- 17 in provided. Provided however, that the local assessor shall make avail- 18 able renewal applications through postal mail or electronic means in 19 order for eligible recipients to file renewal applications in the event 20 that such eligible recipient determines his or her income has changed in 21 a manner that would grant him or her a greater exemption than what was 22 present on the 2020 assessment roll; and provided further that such 23 governing body may adopt a local law or resolution which includes proce- 24 dures by which the assessor may require a renewal application to be 25 filed when he or she has reason to believe that an owner who qualified 26 for the exemption on the 2020 assessment roll may have since changed his 27 or her primary residence, added another owner to the deed, transferred 28 the property to a new owner, or died; and provided further that no 29 governing body of an assessing unit or local assessor may require eligi- 30 ble recipients to appear in person to file a renewal application for any 31 reason. 32 § 2. This act shall take effect immediately and shall expire May 1, 33 2021. This act shall be deemed to have been in full force and effect on 34 and after March 7, 2020. 35 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 36 sion, section, item, subpart or part of this act shall be adjudged by 37 any court of competent jurisdiction to be invalid, such judgment shall 38 not affect, impair, or invalidate the remainder thereof, but shall be 39 confined in its operation to the clause, sentence, paragraph, subdivi- 40 sion, section, item, subpart or part thereof directly involved in the 41 controversy in which such judgment shall have been rendered. It is here- 42 by declared to be the intent of the legislature that this act would have 43 been enacted even if such invalid provisions had not been included here- 44 in. 45 § 3. This act shall take effect immediately provided, however, that 46 the applicable effective date of Subparts A through D of this act shall 47 be as specifically set forth in the last section of such Subparts. 48 § 4. Severability clause. If any clause, sentence, paragraph, subdivi- 49 sion, section or part of this act shall be adjudged by any court of 50 competent jurisdiction to be invalid, such judgment shall not affect, 51 impair, or invalidate the remainder thereof, but shall be confined in 52 its operation to the clause, sentence, paragraph, subdivision, section 53 or part thereof directly involved in the controversy in which such judg- 54 ment shall have been rendered. It is hereby declared to be the intent ofS. 471 16 1 the legislature that this act would have been enacted even if such 2 invalid provisions had not been included herein. 3 § 5. This act shall take effect immediately provided, however, that 4 the applicable effective date of Parts A through B of this act shall be 5 as specifically set forth in the last section of such Parts.
