Governor Andrew M. Cuomo recently signed the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020. The Act prevents residential evictions, foreclosure proceedings, credit discrimination and negative credit reporting related to the COVID-19 pandemic. The Act also extends the Senior Citizens’ Homeowner Exemption and Disabled Homeowner Exemption and adds to New York State’s efforts to protect tenants and homeowners from the economic hardship incurred as a result of the COVID-19 pandemic. Here is a brief summary of what the Act includes:
(ALL OF THE BELOW EXPIRES MAY 1, 2021)
Residential Evictions
• Stays all residential eviction proceedings for 60 days for implementation purposes.
• Residential tenants suffering financial or health-related hardship related to COVID can file a hardship declaration with their landlord or the court. This declaration must contain an explanation of the circumstances and be executed under penalty of perjury. This declaration will prevent the filing of an eviction or stay any extant eviction proceeding.
Landlords can still evict “objectionable” tenants that are creating health or safety hazards to other tenants and tenants that do not submit a hardship declaration.
Residential Foreclosures
• Stays residential foreclosure proceedings for 60 days for implementation purposes.
• Allows mortgagors that own 10 or fewer residential dwellings including their primary residence to file a hardship declaration with their mortgagor, other foreclosing party, or the court.
This declaration must contain an explanation of the circumstances and be executed under penalty of perjury. This declaration will prevent the filing of a foreclosure proceeding or stay any extant foreclosure proceeding.
Tax Lien Sales
• Prevents local governments from engaging in any tax lien sale or tax foreclosure against any property owner that files a declaration of hardship.
• Property owners are still liable for the amounts due and will have to pay the amounts due to avoid a foreclosure/sale after the emergency period ends.
Credit Discrimination and Credit Reporting
• Prevents lenders from discriminating against a property owner seeking credit on account of the property owner having obtained a stay of foreclosure/tax foreclosure/tax lien sale proceedings.
• Prevents lenders from discriminating against a property owner seeking credit on account of the property owner being in arrears if the property owner has filed a hardship declaration.
• Prevents negative credit reporting against a property owner seeking credit on account of the property owner having obtained a stay of foreclosure/tax foreclosure/tax lien sale proceedings
• Prevents negative credit reporting against a property owner seeking credit on account of the property owner being in arrears if the property owner has filed a hardship declaration.
Senior Citizens‘ Homeowner Exemption (SCHE) and Disabled Homeowner Exemption (DHE)
• Requires local governments to carry over SCHE and DHE exemptions from the 2020 assessment roll to the 2021 assessment roll at the same levels.
• Requires localities to provide renewal applications, via electronic or postal mail, for those individuals who may be eligible for a larger exemption in 2021.
• Allows localities to specify procedures wherein local assessors may require renewal applications from recipients they believe may no longer be eligible for the exemption in 2021.
• In no event may recipients be required to show up in person to file their renewal, if a renewal is required.
If you have any questions or concerns regarding the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020, please do not hesitate to contact our office at 718-402-2240.