No Evictions. What are the Options?
By Jamie Heiberger Harrison
We hope everyone had a wonderful holiday. We need to share a couple of important updates.
First, looks like Freddy Mac is extending the Multi-Family Forbearance Program. We encourage all qualified borrowers to look into and avail themselves as necessary.
Please follow the link below for more information.
https://www.globest.com/2020/12/28/freddie-mac-extends-multifamily-forbearance-program
Second, the more troubling news for Property Owners is the currently pending legislation which pertains to evictions and eviction proceeding. The proposals seek to stay evictions or some proceedings until 5/1/21 which will include newly filed matters and those filed within 30 days of the effective date of the legislation if passed.
More information regarding these proposals may be found at the following link
https://www.nysenate.gov/newsroom/press-releases/senate-will-pass-strongest-eviction-moratorium-nation
It is unknown what the final legislation will ultimately contain when passed but, if it is signed into law as proposed, all tenants can notify the Courts either orally or in writing or the Owners in writing that they have a COVID related hardship which will place a stay of any pending cases or case to be filed into effect. We can assume that every Tenant can satisfy the very low threshold required for a stay.
Once notified, a landlord who has a pending case filed prior to the 30 days before the effective date will be stopped or put on hold for at least 60 days or, in certain instances, until 5/1/21. As to those matters not yet started within 30 days of the effective day of the proposed law or the date the Governor signs the law, those cased will be stayed until 5/21.
So the question becomes, what to do?
Well, if you want to try to hold a spot in line as cases become more and more backlogged, we suggest that now is probably the time to serve demands and hope to file the petition before the proposed law becomes effective
Once the law is effective, it may be too late to try to get your case in unless that case is a nuisance Holdover as you may be stopped from filing until after May 2021. After that, we would think that a lot will depend on the success of the vaccine and the number of people vaccinated by May. If the vaccine is not as successful as we hope, in the interest of the health and welfare of our residents, it is likely that the government will extend again. We believe that you need to have the information in order to make informed decisions and this is just good information to have. We are not suggesting deciding today. We simply want you to know the law and we want you to understand how it may impact your business if it is signed.
You might be dealing with renewals or tenants leaving b/c the rent is too high. Maybe you would decide it’s better having a vacancy or not having the vacancy or weigh that against the risk of a tenant moving in and then not paying when you can only have 1 month security. This may affect your current decisions and we hope that you find this information useful. Or course, we remain available to answer any questions.
We will be hosting a special zoom with special guests so that we can answer your questions.
Please register in advance for this webinar:
https://sdkhlaw.zoom.us/webinar/register/WN_JyTiMG7CTxyvAWesmHbFXg
After registering, you will receive a confirmation email containing information about joining the webinar.
If you are a Broker you may earn 1 credit satisfying the New law Requirement. If you are an owner, renter or just interested in understanding the current rent laws and policies governing evictions when you register just use 123456 as your license number.
Please feel free to send in questions prior. We do believe it’s a good time to write to your public officials explaining the tremendous burden this law will place on your properties.
Last, please keep in mind that if you don’t have a case filed before the effective date or within 30 days of the effective date and the tenant writes a letter with any COVID related hardship, you may be waiting to start or serve until 5/1 which will put you behind all matters filed prior to that date. The legislation will affect non-payments and holdovers except for nuisance matters.
Please keep in mind that the legislation may also have the effect of additional and more costly service requirements. If you would like to discuss, please do not hesitate to call us.
Have a happy and healthy new year. We will keep you apprised as the law unfolds...
