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  4.  » Special Edition: What to Expect When New York’s Eviction Moratorium Expires at the End of August

Greetings! Very recently we presented a Special Edition article regarding the extension of the temporary ban on evictions and foreclosures to July 31st as the country continues to rebound  from the coronavirus pandemic. In New York State, Governor Andrew M. Cuomo signed the  COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020, placing a moratorium  on residential evictions until August 31st, 2021 for tenants who have endured COVID-related  hardships. Today we will be sharing details on what to expect after the expiration date.

On June 1, 2020, the New York State Emergency Rental Assistance (ERAP) was made  available to tenants and New York City households who fell back on their rent as a result of the  COVID-19 pandemic. If you’ve applied for the state-run rental assistance program, you’re  protected against evictions even if you don’t receive a response from the state before the end of  August. Issues and delays with the Emergency Rental Assistance Program have compounded  fears that struggling families could wind up homeless, renters and landlords alike will be caught  unaware of their rights or tied up in unnecessary proceedings. The moratorium did not cancel or  forgive rent owed by tenants, so many will be on the hook for months of money owed to  property owners regardless of their financial situation. Advocates have pleaded with lawmakers  to extend the eviction ban further, but that seems unlikely as the legislature is out of session until  next year. 

Below is a recap exactly what the eviction moratorium entails: 

  • Residential Evictions: the legislation places a moratorium on residential evictions until  August 31, 2021 for tenants who have endured COVID-related hardship. Tenants must  submit a hardship declaration, or a document explaining the source of the hardship, to  prevent evictions. Landlords can evict tenants that are creating safety or health hazards  for other tenants, and those tenants who do not submit hardship declarations. 
  • Residential Foreclosure Proceedings: the legislation also places a moratorium on  residential foreclosure proceedings until August 31, 2021. Homeowners and small  landlords who own 10 or fewer residential dwellings can file hardship declarations  with their mortgage lender, other foreclosing party or a court that would prevent a  foreclosure. 
  • Commercial Evictions: the legislation places a moratorium on evictions until August 31,  2021 for commercial tenants that have endured COVID-related hardship. The  legislation applies to small businesses with under 50 employees that demonstrate  financial hardship. Tenants must submit a hardship declaration, or a document  explaining the source of the hardship, to prevent evictions. 
  • Commercial Foreclosure Proceedings: the legislation places a moratorium on  commercial foreclosure proceedings until August 31, 2021. 
  • Tax Lien Sales: the legislation prevents local governments from engaging in a tax lien  sale or a tax foreclosure until at least August 31, 2021. Payments due to the locality are still due. 
  • Credit Discrimination and Negative Credit Reporting: lending institutions are  prohibited from discriminating against a property owner seeking credit because the  property owner has been granted a stay of mortgage foreclosure proceedings, tax  foreclosure proceedings or tax lien sales. They are also prohibited from discriminating  because the owner is in arrears and has filed a hardship declaration with the lender. 
  • Senior Citizens’ Homeowner Exemption and Disabled Homeowner Exemption: local  governments are required to carry over SCHE and DHC exemptions from the 2020  assessment roll to the 2021 assessment roll at the same levels. They are also required to  provide renewal applications for anyone who may be eligible for a larger exemption in  2021. Localities can also set procedures by which assessors can require renewal  applications from people who the assessors believe may no longer be eligible for an  exemption in 2021. Recipients of the exemption do not have to file renewal  applications in person. 

Once again, we would like to mention that the federal moratorium enacted by the Centers  for Disease Control and Prevention, has been extended several times. Tenants across New York  State will have another month of protections under a state eviction moratorium. New York State  officials have not given any indication that the moratorium will be extended again, as it has been multiple times during the pandemic. 

Here at The Law Offices of Marjory Cajoux, we are doing the best to keep everyone  informed about the resources available during these difficult times. We will keep you updated as  more information is unveiled. We are ready and committed to provide you the best possible  service and support in the areas of immigration, real estate, estate and business planning and  personal injury (WTC claims).