In an effort to improve neighborhood preservation and community renewal, New York will expand their current definition of preservation and renewal to include the administration of landlord training classes. The amended bill covers all municipalities and aims to provide assistance primarily to underserved neighborhoods. Landlords are not required to participate in these classes so they will not be penalized if they choose not to do so. 

The amended bill, A05393, which is awaiting Gov. Hochul's signature, will administer landlord training classes in the definitions of neighborhood preservation activities and community renewal activities. These classes will cover information ranging from building codes to evictions. Preservation and community renewal activities include, but are not limited to, repairs, renovations, and restorations. Ultimately, the goal of the Bill is to preserve underserved neighborhoods and to protect tenants from being unnecessarily bothered and illegally evicted by landlords. 

Landlords are having new laws thrown at them on a regular basis in light of the COVID pandemic. And if you're not tuned in, updates on regulations and new laws can be easily missed or misunderstood. These classes will afford landlords the opportunity to know what's going on in their industry. This Bill could also help landlords reduce legal fees by getting it right the first time around. 

Details have not yet been released regarding where the classes will take place, in what form - virtual or in-person, how often, and how New York will monitor whether or not a landlord has actually completed the training classes. If all goes according to plan, this Bill will be helpful to both landlords and tenants alike. The classes in theory sound like they will be an extremely useful tool for landlords. But, if a landlord is not required to attend the classes, will they actually go to them? 

It is the beginning of the end of paper copy lease agreements in NYS, at least for rent stabilized tenants. 

Moving forward, rent stabilized tenants are going to be processing their leases electronically because Bill A02679 passed the legislature and is pending Gov. Hochul's signature. This Bill requires that the Division of Housing and Community Renewal ("DHCR") develops regulations allowing electronic leases and signatures to be used for both leases and lease renewals of rent stabilized tenants. 

However, the Bill makes clear that electronic leases are not yet required. As such, those who may not be well-versed in technology, such as the Baby Boomer generation, need not worry about how this could affect their lease execution process as tenants will be able to choose whether or not they want to execute their lease via electronic means or via a traditional paper copy. A tenant will be presented with a form, developed by DHCR, in the top 6 languages that will confirm that the tenant has the choice whether to consent to the use of electronic records and signatures. Therefore, landlords will not be permitted to require their tenants to execute their lease by electronic means.

It is expected that electronic leases are going to become the norm sooner rather than later. They cut down on costs of office supplies, such as printer ink and paper, while provide for improved organization and retrieval. They save time by avoiding face-to-face meetings and can maximize safety in this COVID world. 

Do you think most rent stabilized tenants will choose to have their leases executed electronically? Or, will paper copies stand the test of time in a constantly evolving technology driven world? Seems unlikely. It's my guess that as the Boomer generation dissipates, paper copy leases will as well. 

• Extend residential and commercial eviction and foreclosure moratoria to January 15, 2022;
• Expand eviction protections for tenants under the COVID-19 Emergency Rental Assistance Program (CERAP);
• Create a due process mechanism for a landlord to challenge a tenant’s Hardship Declaration;
• Direct judges to require residential tenants to apply for CERAP if their hardship claim is determined to be valid;
• Extend the period covered by the Tenant Safe Harbor Act to January 15, 2022; and
• Increase funding for CERAP, Hardship Fund, and legal services for tenants facing evictions.

Eligible tenants are:

1. Tenants or occupants obligated to pay rent in their primary NYS residence;
2. Individuals who have qualified for unemployment or experienced a reduction in household income, incurred significant costs, or experienced other financial hardship due – directly or indirectly – to the COVID-19 outbreak;
3. Tenants who demonstrate a risk of experiencing homelessness or housing instability; AND
4. Tenants who have a household income at or below 80% of the area median income, adjusted for household size.

If a tenant is approved for rental assistance under CERAP, the money goes directly to the landlord. However, landlords who accept CERAP payments, must:

• Not use any prior arrears as a basis for a nonpayment eviction proceeding;
• Waive late fees;
• Not increase monthly rent due 1 year from the date the first CERAP payment is received; and
• Not evict based on an expired lease for a period of 12 months after the first CERAP payment is received, UNLESS the property is in a building with 4 or fewer units, and in which case, the landlord may decline to extend the lease only if the landlord or his immediate family intends to immediately occupy the unit for personal use as a primary residence.

Nonetheless, landlords who accept CERAP may still commence evictions against tenants who:

• Intentionally cause significant damage to the property;
• Persistently and unreasonably engage in behavior that substantially infringes on the use and enjoyment of other tenants or occupants; or
• Causes a substantial safety hazard to others.

What should landlords do now?
Start an eviction proceeding and challenge the hardship, which will either result in CERAP money or permission to continue the eviction process. Alternatively, if a landlord does not have a good faith basis to challenge the hardship or does not want to be restricted by the program’s requirements, then, a landlord should bring a breach of contract lawsuit in NYS Supreme Court against their non-paying tenants, as explained by the federal courts in Elmsford Apartment Associates LLC v. Cuomo.

On August 27, 2021, the US Supreme Court opened the floodgates for evictions throughout the United States in the case of Alabama Association of Realtors v. DHHS. 

Landlords, have you called your attorney yet to start the eviction process? 

Investors, are you ready for the housing market to swing because of a flood of inventory? 

Tenants, have you started to make moving arrangements and tried to settle your arrears for less money? 

Wow, can you feel that tsunami coming? 

Make no mistake, this is the first domino to fall in our housing market's shift into a buyer's market on fundamentals. Are you ready? 

For the legal context of what transpired, the CDC had issued a moratorium on evictions in counties with substantial or high levels of COVID-19, which we explained here. That moratorium was thrown-out by the District Court for the District of Columbia, but that Court knew that the issue would get to the Supreme Court so they stayed (a/k/a, paused) the effectiveness of their Order overturning the moratorium until the Supreme Court could weigh-in, which we explained here. Now, the Supreme Court has weighed-in and the eviction moratorium is ineffective, unlawful, and unenforceable. 

To be clear, the Supreme Court did not weigh-in on the policy of an eviction moratorium. They didn't rule as to whether it is a good idea, good policy, or needed for our country. Instead, the Supreme Court ruled "that the statute on which the CDC relies does not grant it the authority it claims." In plain language, the eviction moratorium was thrown-out because the CDC's basis for imposing the moratorium does not afford it that power.

You see, Executive Branch agencies, like the CDC, can't do whatever they want. They need power before they act, which comes from Congress. Without that power, they can't do anything. They can't issue regulations, rules, or directives. This power, called an enabling statute, was missing from the eviction moratorium, according to the Supreme Court, which explained that the power relied upon by the CDC was meant "to implement measures like fumigation and pest extermination," not eviction moratoriums. According to the Supreme Court, "our system does not permit agencies to act unlawfully even in pursuit of desirable ends." 

Knowing that, you should be wondering if Congress will act and impose its own eviction moratorium? 

For landlords, investors, and tenants that is a really important question given that the Supreme Court acknowledged, in its decision, that "[a]t least 80% of the country, including between 6 and 17 million tenants at risk of eviction, [fell] within the moratorium." 

However, we doubt that Congress will issue another moratorium because it can't get anything done with its division in the Senate. Further, the Supreme Court reminded Congress, in its decision, that a federal "moratorium intrudes into an area that is the particular domain of state law: the landlord-tenant relationship." 

As a result, evictions are about to flood the court systems. Are you ready for the eviction tsunami? 

On August 3, 2021, CDC issued its latest eviction moratorium to address the rise of the Delta variant. 

Here is what landlords and tenants need to know about the moratorium:

1. It only applies to residential housing;
2. The moratorium only applies where tenant(s) provide a declaration to their landlord(s);
3. The Declaration is available here;
4. The Declaration requires a sworn statement that the tenant(s):
1. Have used best efforts to obtain all available governmental assistance; 
2. Earned <=$99,000 in Calendar Year 2020 ($198,000 if filing jointly) with other financial options to qualify;
3. Can't pay full rent because of stated work issues;
4. Making best efforts to pay as much as possible of rent; 
5. Would likely be homeless as a result of eviction; &
6. Resides in substantial / high COVID county.
5. Evictions are permitted for the following reasons:
1. Engaging in criminal activity while on the premises;
2. Threatening the health or safety of other residents;
3. Damaging or posing an immediate & significant risk of damage to property;
4. Violating any applicable building code, health ordinance, or similar regulation relating to health & safety; or
5. Violating any other contractual obligation (other than rent payment). 
6. Criminal penalties for violating this moratorium include a fine of <=$100,000 or one year in jail or both (<=$200,000 for organizations that violate the order).