On May 8, 2020, New York Governor Andrew Cuomo issued Executive Order No. 202.28 (“Continuing Temporary Suspension and Modification of Laws Relating to the Disaster Emergency”), specifying policies regarding residential and commercial landlords and tenants.
The order provides that:
NON-PAYMENT CASES, EVICTIONS AND FORECLOSURES REMAIN SUSPENDED
- Eviction proceedings or enforcement for failure to pay rent, or foreclosure for nonpayment of mortgage, for both residential and commercial properties, is suspended, providing that the renter or owner is eligible for unemployment insurance or benefits or otherwise financially impacted by the COVID-19 pandemic.
- The suspension period is set to end on August 20, 2020.
RESIDENTIAL TENANTS ONLY: SECURITY DEPOSITS CAN BE USED FOR RENT
- Upon the request of a tenant (or licensee) who is eligible for unemployment insurance or benefits or is otherwise facing financial hardship due to the COVID-19 pandemic, the landlord must allow for the tenant’s security deposit to be used for rent, including rent owed and future rent, as well as any accrued interest.
- If the security deposit is a lower amount than a full month rent payment, the landlord’s consent does not constitute a waiver of the remaining rent owed.
- An email between the landlord and tenant will suffice for this agreement.
- A landlord may not coerce or harass a tenant to enter into such an agreement.
- Security deposit used for rent shall be replenished by the tenant, at the rate of 1/12 of the amount used as rent per month, beginning no sooner than 90 days after the deposit is used for rent.
- The tenant may retain insurance that provides relief for the landlord in lieu of the monthly security deposit replenishment, which the landlord must accept.
RESIDENTIAL TENANTS ONLY: NO LATE FEES
- A Landlord is not entitled to and may not demand any late fees from a tenant between March 20, 2020 and August 20, 2020.
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