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On April 14, 2021, U.S. District Judge Joanna Seybert dismissed a lawsuit filed by a group of five landlords against Attorney General Letitia James (“
AG James”) in the Eastern District of New York (
Chrysafis,
v.
Act”) on constitutional free speech and due process grounds. While the legislation also halts residential foreclosure proceedings and tax lien sales, the plaintiffs had hoped to enjoin enforcement of the Act’s moratorium on residential evictions for tenants facing pandemic-related hardship until August 31, 2021. In particular, Part A of the Act automatically stays eviction proceedings against tenants who submit a hardship declaration form that certifies, under penalty of perjury, their qualifications for protection under the Act.
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Commercial Moratorium Law” and, collectively with the Residential Moratorium Law, the “
Laws”) originally expired on May 1, 2021 and have now been extended to August 31, 2021 (with retroactive effect to the original expiration date).
The Residential Moratorium Law is intended to protect families suffering from pandemic-related hardship from being evicted from or foreclosed out of their homes during the pandemic, which could exacerbate the current public health emergency. The Commercial Moratorium Law is meant to provide eviction and foreclosure protection for small businesses so they can survive the pandemic, which has caused a steep reduction in business and drop in revenues for most small businesses in New York. Some of the material features of the Laws include:
City landlords and Rent Stabilization Association sue to block state eviction moratorium
Buck Ennis
Small property owners in the city are challenging the constitutionality of the state’s current ban on foreclosures and evictions, which they called “downright unconscionable” in a lawsuit filed in New York Southern District Court on Thursday.
The Rent Stabilization Association, which represents more than 25,000 landlords of rent-stabilized apartments, as well as a handful of individual owners, are seeking to block state authorities from implementing and enforcing the moratorium and to declare it unconstitutional.
The Covid-19 Emergency Eviction and Foreclosure Prevention Act of 2020 was originally set to expire in April, but Gov. Andrew Cuomo announced a four-month extension through Aug. 31 on Wednesday in a major blow to the city’s landlords.
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On May 5, 2021, New York Governor Andrew Cuomo signed a bill that extends the moratorium on evictions and foreclosures for residential tenants and small businesses to August 31, 2021. The previous moratorium expired May 1, 2021.
Specifically, the bill extends two separate laws: the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 (the “
2020 Act”) and the COVID-19 Emergency Protect Our Small Businesses Act of 2021 (the “
2021 Act”). The 2020 Act, which was signed into law by Governor Cuomo on December 28, 2020, bans eviction proceedings against residential tenants who file a hardship declaration stating that the tenant is experiencing financial hardship due to COVID-19 or that moving would pose a significant health risk because of a high-risk household member. It also bans foreclosure proceedings against residential property owners who own ten or fewer dwelling units who file a hardship declara