New York state has a tough new eviction law that will make it harder for landlords to evict tenants who can’t pay their rent. But the new law also includes provisions making it harder for banks to foreclose on smaller landlords—those with fewer than 10 rental units—who are having their own financial difficulties.
Legislators called a special session this week to pass the measure, and New York Governor Andrew Cuomo quickly signed the bill, putting it into effect immediately. According to a report from The New York Times, “the legislators’ urgency reflected a national concern over the fate of millions of people without jobs and access to job opportunities,” as a result of the COVID-19 pandemic.
According to data from advisory services firm Stout, between 6.97 million and 14.16 million people are at risk of eviction nationally.
The National Association of REALTORS® has been sounding the alarm since March about how the real estate industry and larger economy could be hurt by ongoing eviction moratoriums that don’t include rental assistance and other protections for landlords. On Sunday, President Donald Trump signed a federal stimulus package that extends the federal eviction moratorium to Jan. 31, 2021, and includes $25 billion in rental assistance to states. The federal assistance, available through Sept. 30, 2022, enables landlords to apply for funds on behalf of tenants. Funds can be used for rent in arrears and for utilities and other expenses related to housing. Learn more.
Tenant advocates have said the federal moratorium doesn’t do enough to protect tenants from losing their homes. That’s why New York and other states are taking action to further delay evictions. New York’s new law effectively stays action for 60 days on any eviction proceedings started within 30 days of the measure’s effective date; it also makes it easier for both tenants and small landlords to claim hardship. The New York Times’ report cited actions in other states, including Connecticut, which now has an eviction ban in place until Feb. 9, and Washington state, which extended its ban through March 31.
Source: "New York Bans Most Evictions as Tenants Struggle to Pay Rent" The New York Times (Dec. 28, 2020), "Senate Will Pass Strongest Eviction Moratorium In Nation" The New York State Senate (Dec. 27, 2020), "Congress Set to Pass $900B Stimulus Package" NAR (Dec. 21, 2020), and "STOUT Rental and Eviction Live Data"
