I’m just a bill; yes I’m only a bill… For now.
To Our Valued Clients:
I hope this update finds everyone healthy and safe. I just wanted to share with you two developments since our last update: the two bills that were introduced at both the national and local levels which would affect the New York rental market if passed.
I'm just a bill; Yes, I'm only a bill…
For Now.
On the National Level:
Democratic Rep. Ilhan Omar, along with the rest of “The Squad,” last Friday proposed a bill that would cancel rent and mortgage payments starting April 1 until 30 days after the end of the federal state of emergency.
The measure would create a landlord and lender relief fund to make up for the rent and mortgage forgiveness through the period. But landlords who apply for relief must agree to freeze rents for five years, abide by “just cause” eviction rules (a familiar tune from tenant advocates in New York), offer vacant units to public housing tenants receiving rental assistance and follow other fair housing guidelines.
For those who wish read the bill in its entirety may click the below link:
https://www.congress.gov/116/bills/hr6515/BILLS-116hr6515ih.pdf
On the New York City Front:
The City Council is considering legislation that prevents marshals and the City’s sheriffs from the taking and restitution of property or the execution of money judgments. This means that evictions and the collection of debt would be paused for all NYC renters, including residential and commercial tenants. Such a law would give renters additional time to repay their rent. This bar would apply to actions against all New Yorkers through the duration of this crisis. Further, for New Yorkers impacted by COVID-19, marshals and sheriffs would be barred from collecting debts and performing evictions until April 2021.
For those who wish to read the bill in its entirety may click the below link:
https://legistar.council.nyc.gov/ViewReport.ashx?M=R&N=Text&GID=61&ID=3923655&GUID=36A35CF5-FA45-4DF0-AE64-DA49DBA546E3&Title=Legislation+Text
So while these are only bills at this point, one must consider that at the national level, any bill of this type (assuming it leaves committee and the House in this form) must still pass in the Senate which is controlled by the Republicans majority and if this bill somehow survived the Senate in this form, it still must get past the desk of the President Trump, an experienced landlord and developer. While on the local level, there are no such checks, as real estate sympathetic councilmembers are few and Mayor De Blasio, while rejecting the May rent strike, is no friend to the real property owners of New York City. Thus, at the local level, the importance of the coming public hearings to educate the Council on the devastating effect of such a lengthy moratorium on the real estate economic cycle, and thus the City at large, cannot be stressed enough.
Should you have any questions, do not hesitate to contact Jamie at jamie@heibergerlaw.com or 917 697-5853; or Frank at frank@hapclaw.com or 917 734-6031.
Stay well - Stay safe - Stay home,
