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New York’s Eviction and Foreclosure Moratorium Extended until January 2022

On September 2, 2021, Governor Hochul signed a new Moratorium on COVID-19 related to Evictions and Foreclosures.  “The pandemic has created unimaginable anxiety for families and business owners who have lost income and are struggling to pay the rent every month.”  Governor Hochul said.  “To help remedy the Supreme Court’s heartless decisions striking down the New York and the Biden administration’s moratorium on evictions, we are enacting a new moratorium on residential and commercial evictions and extending the protections of New York’s Safe Harbor Act to January 15.  These steps will alleviate the crisis facing vulnerable New Yorkers who are suffering through no fault of their own.”

The moratorium applies to Residential and Commercial Evictions, Residential and Commercial Foreclosures and Tax Lien sales.  The key difference between this legislation and the original COVID-19 Emergency Eviction and Foreclosure Prevention Act, is that there is a carve out for landlords and lenders that if they have a good faith belief that the tenant or borrower has not experienced a hardship, a motion can be made and the court shall grant a hearing to determine whether to find the hardship claim as invalid.  

Residential Evictions:

For tenants who have endured a COVID related hardship, this legislation places a moratorium on residential evictions until January 15, 2022.  Tenants must submit a hardship declaration to either the landlord or Court to prevent the eviction.  Landlords can proceed with evictions however for tenants who do not submit a hardship declaration or if the tenant is causing nuisance, safety or health hazards for other tenants.

Commercial Evictions:

For commercial tenants who have endured a COVID related hardship, this legislation places a moratorium on commercial evictions until January 15, 2022.  This legislation applies to small business with under 50 employees that demonstrate a COVID related hardship.  Commercial tenants must submit a hardship declaration to either the landlord or Court to prevent the eviction.  

Residential Foreclosure Proceedings:

For borrowers in default on their mortgage payments, this legislation places a moratorium on foreclosure proceedings until January 15, 2022.  Borrowers who own 10 or fewer residential dwellings can file a hardship declaration with their mortgage lender or the court to prevent or stay their foreclosure.

Commercial Foreclosure Proceedings:

The legislation places a moratorium on commercial foreclosure proceedings until January 15, 2022.

Tax Lien Sales

The legislation prevents local governments from engaging in tax lien sales or a tax foreclosure until at least January 15, 2022.

Need Eviction or Foreclosure Help?

If you are late on rental payments or your mortgage payments, now is the time to talk to an attorney.  We can help you navigate through this difficult time and come up with solutions to best fit your needs.  Please give us a call at 914.472.6202.  

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