"The Lieb Cast" (a New York based legal podcast hosted by Attorney Andrew Lieb and Lauren Lieb) has featured an entire episode devoted to New York's eviction moratorium (which gives landlords options to pursue evictions or get paid through governmental rent relief). "The Lieb Cast" discusses why landlords can still sue for a money judgment in supreme court. In addition, the podcast explores residential and commercial distinctions for evictions, plus the foreclosure moratoriums in New York.

"NYS landlords can and should file evictions. The new moratorium does not totally prevent evictions and if you file, you will either be able to proceed with the eviction or your tenant will be directed by the court to get government money to pay your rent". Said Andrew Lieb, Co-Host of The Lieb Cast.

 

Podcast Link: https://www.listentolieb.com/876124/9130411-ny-landlords-can-evict-tenants-even-with-the-eviction-ban-here-is-what-you-need-to-know

About The Lieb Cast

Business success takes hard work, but physical hustle can only get you so far. You also need to work out your mind to succeed today. Join Andrew Lieb's weekly podcast to explore how current events impact your business and real estate holdings. This podcast is for business owners and managers who want to stay up to date with the latest legislation and regulations that will impact their business. Learn how to navigate these laws to avoid getting sued, grow and market your business, manage employees, and strategize to dominate our ever-changing business world.

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). 

The counties subject to this Order can be found here - remember, the county must be an orange (substantial) or red (high) county for the moratorium to be applicable.

On December 28, 2020, Governor Cuomo signed the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 (“Act”). Essentially, the Act provides tenants with an opportunity to submit a Hardship Declaration, which stays most evictions until May 1, 2021. The second part of the Act which provides for mortgage foreclosure relief is discussed in a separate blog HERE.

The Details:

• Essentially, once a tenant provides a Hardship Declaration, the eviction is stayed until May 1, 2020.
• The Act applies to residential nonpayment AND holdover eviction proceedings.
• The Act does not apply to tenants of seasonal rentals with a primary residence to return to and tenants who infringe on other tenants' use and enjoyment of the premises or pose a substantial safety hazard to others, but only upon the landlord proving same.
• To qualify, a tenant must provide the Hardship Declaration and must declare that they are suffering a financial hardship, such as:
• Significant loss of income
• Increase in necessary out-of-pocket expenses due to COVID-19
• Childcare responsibilities or care for the elderly, disabled, or sick family member
• Moving expenses and difficult relocating
• Other circumstances negatively affecting the ability to find meaningful employment
• Vacating the premises and moving into new permanent housing poses a significant health risk
• Sample hardship declarations will be available on the Office of Court Administration website.
• New Eviction Proceedings - upon a Tenant's submission to the landlord of the Hardship Declaration, the landlord is prohibited from commencing any eviction proceeding until May 1, 2021. The landlord can commence an eviction proceeding if the landlord files the following:

Through Executive Order 202.81, Governor Cuomo extended the moratoriums for the initiation of a proceeding or enforcement of an eviction of any commercial tenant for nonpayment of rent or a foreclosure of any commercial mortgage for nonpayment of such mortgage to January 31, 2021. This means that no eviction or foreclosure proceeding may be commenced against commercial tenants for nonpayment of rent or mortgage until such date.

In addition, New York City’s Guaranty Law, which prohibits commercial landlords from enforcing personal guaranties against natural persons for payments during the COVID-19 period, was extended and now covers payments due from March 7, 2020 through March 31, 2021. The law was recently challenged in the United States District Court in the Southern District of New York for violating the Constitution, but the law was ultimately upheld. The Court reasoned that while the law does substantially impair contracts, the law is constitutional as it advances a legitimate public interest, and the law is reasonable and necessary in advancing such interest.

While commercial landlords may still seek relief by commencing a holdover eviction, landlords may be better off commencing an action in Supreme Court where they can seek damages for breach of contract, removal of the tenant through an ejectment action, and the enforcement of personal guaranties (for non-NYC landlords), if any. Landlords are advised to consult counsel to ensure compliance with the terms of the lease and all landlord-tenant laws currently in place to avoid any delays and additional damages.

There are currently no moratoriums in place for residential evictions. Residential landlords may commence both holdover and nonpayment proceedings. However, for nonpayment proceedings, courts may not grant a judgment of possession and warrant of eviction against tenants in a nonpayment proceeding who raise the affirmative defense of a COVID-19 financial hardship and proves same. Further, tenants who submit a CDC declaration form stating their inability to pay rent, among others, to their landlords are also protected from nonpayment eviction proceedings until December 31, 2020.

Andrew Lieb published the article in The Suffolk Lawyer, Federal Eviction and Foreclosure Moratoriums Invite Litigation. This article discusses issues that will be litigated if an eviction moratorium is raised as a defense to an eviction proceeding.

Tenants are disregarding their lease obligations and finding strength in the eviction moratoriums. What is a landlord to do? Andrew Lieb, Esq. shares tips in this article published in Behind The Hedges.