As the National Ban on Evictions will be Lifted in June, There Will be a Rise of Evictions

With about 11 million Americans reported to be behind on their rent, experts predict that the number of evictions will increase when the national ban on evictions will be lifted on June 30th. New York State has extended the eviction and foreclosure moratoriums on both residential and commercial properties to August 31st, 2021. (A.7175)

While some states are still struggling to distribute the $45 billion in rental assistance, many renters continue to be behind on their housing payments.

If you would like to apply for rental assistance in NY, follow this link.

Have you applied for rental assistance?

Co-op Loans At-Risk Based on Legislation that Passed the US House

A law that passed the House in May and is before the Senate (The Comprehensive Debt Collection Improvement Act or “CDCIA”) could force lenders to slam the breaks on issuing mortgages to co-op purchasers.

This law reverses a 2019 decision from the US Supreme Court, Obduskey V. McCarthy, and would cause the Fair Debt Collection Practices Act (FDCPA) to apply to businesses engaged in non-judicial foreclosures, which applies to co-op mortgage loans.

In other words, the CDCIA would hamstring co-op lenders' ability to utilize third-parties to collect their loans (e.g., the law limits the number of times a debtor may be reached, it requires that contact be ceased when the debtor so requests, it creates tons of exposure to damages and attorneys' fees, etc.). It would also suppress important information from a credit report, such as forbidding credit scoring models from using medical debt as a negative factor.

As you can certainly deduce, if the CDCIA passes the Senate and is signed by the President, lenders will likely have stricter qualification terms and may even raise rates on co-op mortgage loans that qualify.

Are the protections in the CDCIA worth the law's chilling effect on co-op loans? Should the Senate change the law? Should it just vote it down?

Do you think the CDCIA will lead to fewer co-op transactions?

Employees are Entitled to Use Paid Sick Leave to Recover from COVID-19 Vaccinations.

To provide further incentive for people to get vaccinated, The New York State Department of Labor recently issued guidance permitting employees to use paid sick leave to recover from side effects of the COVID-19 vaccine. The New York State legislature previously passed a law entitling employees to paid leave to receive vaccinations.

New York State law requires employers with five or more employees (or net income of more than $1 million dollars) to provide 40 hours of annual paid sick leave to its employees. New York Labor Law Sec. 196-b permits employees to use sick leave "for mental or physical illness, injury, or health condition, regardless of whether it had been diagnosed or requires medical care at the time of the request for leave." 

The DOL clarified that Section 196-b requires employers to "honor the employee's desire to use accrued sick leave for recovery of any side effects of the COVID-19 vaccination." 

Increased Fair Housing Enforcement is Coming Per President

According to today's White House Press Release, "President Biden issued a memorandum directing the U.S. Department of Housing and Urban Development (HUD) to address discrimination in our housing market." 

In doing so, the President has charged the Secretary of HUD to lead an "interagency initiative to address inequity in home appraisals" while citing to a study that found "homes in majority-Black neighborhoods are often valued at tens of thousands of dollars less than comparable homes in similar—but majority-White—communities."

Next week, HUD is publishing a new disparate impact discrimination rule in the federal register to address neutral housing policies that have a discriminatory impact on marginalized groups. 

Are you part of the problem or part of the solution? 

Suing a Town for Discrimination? Case Says That You Better Notice Them Quickly or Your Case Will Be Dismissed

In a recent case of interest, Elco v. Aguiar (Supreme Court, Suffolk County), a town public safety dispatcher asserted that she was discriminated against by the town in her job when the town injected itself into her child custody dispute with another town police department employee. She alleged discrimination because of her gender/sex, disability, & familial status while also alleging that she was subject to a hostile work environment. 

Some specific factual allegations that she made of discrimination were as follows:

1. Refusal to accept domestic incident reports concerning child custody or family court orders;
2. Reassigned shifts; 
3. Harassment or stalking campaign against her;
4. Accusations levelled at her regarding her fitness as a mother;
5. Denied opportunities of earning overtime;
6. Denied an opportunity to participate in interviewing new hires & supervisees; &
7. Failure to process her insurance buyback forms.

That being said, the town moved to dismiss on a technicality in arguing that its "municipal notice of claim requirement residing in Town Law §67, [requires] the filing of a notice of claim within three months after her claim arose []as a condition precedent to the maintenance of this action against the defendants."

The Court agreed and granted dismissal. 

Moving forward, town employees better file a notice of claim within three months of the alleged discrimination or they will be out of luck in bringing an employment discrimination lawsuit.

Do you think that it's fair that town employees have three months to file whereas private employees have three years to file the same employment discrimination lawsuits?