Assembly Bill A10387

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10387
 
                           I N  A S S E M B L Y
 
                                May 4, 2020
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Judiciary
 
 AN ACT to amend the  real  property  actions  and  proceedings  law,  in
   relation to default of payment of rent
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 2 of section 711 of the real  property  actions
 and proceedings law, as amended by section 12 of part M of chapter 36 of
 the laws of 2019, is amended to read as follows:
   2.  The  tenant  has defaulted in the payment of rent, pursuant to the
 agreement under which the premises are held, and a written demand of the
 rent has been made with at least fourteen days' notice requiring, in the
 alternative, the payment of the rent, or the possession of the premises,
 has been served upon him OR HER as prescribed in section  seven  hundred
 thirty-five  of  this  article.  Any person succeeding to the landlord's
 interest in the premises may proceed under this subdivision for rent due
 his OR HER predecessor in interest if he OR SHE  has  a  right  thereto.
 Where  a  tenant  dies during the term of the lease and rent due has not
 been paid and the apartment is occupied by a  person  with  a  claim  to
 possession,  a  proceeding  may be commenced naming the occupants of the
 apartment seeking a possessory judgment  only  as  against  the  estate.
 Entry  of  such  a judgment shall be without prejudice to the possessory
 claims of the occupants, and any warrant issued shall not  be  effective
 as  against  the  occupants.  THIS  SUBDIVISION  SHALL NOT APPLY WHERE A
 TENANT THAT IS A SMALL BUSINESS, AS DEFINED BY SECTION ONE HUNDRED THIR-
 TY-ONE OF THE ECONOMIC DEVELOPMENT LAW, HAS DEFAULTED IN THE PAYMENT  OF
 RENT  DUE  BETWEEN  MARCH  SEVENTH,  TWO  THOUSAND TWENTY AND A DATE SIX
 MONTHS AFTER THE EXPIRATION OF THE STATE  DISASTER  EMERGENCY,  AS  SUCH
 TERM  IS DEFINED IN SECTION TWENTY OF THE EXECUTIVE LAW, DECLARED PURSU-
 ANT TO EXECUTIVE ORDER TWO  HUNDRED  TWO  OF  TWO  THOUSAND  TWENTY,  AS
 AMENDED.
   §  2.  Subdivision  2  of section 747 of the real property actions and
 proceedings law, as added by chapter 312 of the laws of 1962, is amended
 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16242-01-0

 A. 10387                            2
 
   2. The judgment shall not bar an action to recover the  possession  of
 real property. The judgment shall not bar an action, proceeding or coun-
 terclaim,  commenced  or  interposed  within  sixty days of entry of the
 judgment, for affirmative equitable relief which was not sought by coun-
 terclaim  in  the  proceeding because of the limited jurisdiction of the
 court. NO JUDGMENT FOR POSSESSION SHALL BE ENTERED FROM RENT OWED  BY  A
 TENANT THAT IS A SMALL BUSINESS, AS DEFINED BY SECTION ONE HUNDRED THIR-
 TY-ONE OF THE ECONOMIC DEVELOPMENT LAW, BETWEEN MARCH SEVENTH, TWO THOU-
 SAND  TWENTY  AND  A  DATE  SIX MONTHS AFTER THE EXPIRATION OF THE STATE
 DISASTER EMERGENCY, AS SUCH TERM IS DEFINED IN  SECTION  TWENTY  OF  THE
 EXECUTIVE  LAW,  DECLARED PURSUANT TO EXECUTIVE ORDER TWO HUNDRED TWO OF
 TWO THOUSAND TWENTY, AS AMENDED.
   § 3. The real property actions  and  proceedings  law  is  amended  by
 adding a new section 712 to read as follows:
   §  712.  GROUNDS  WHERE  LANDLORD-TENANT  RELATIONSHIP EXISTS; SPECIAL
 PROCEEDINGS FOR RENT DUE  FROM  SMALL  BUSINESSES  DURING  THE  COVID-19
 PANDEMIC.   AS USED IN THIS SECTION, A "TENANT" SHALL MEAN A TENANT THAT
 IS A SMALL BUSINESS, AS DEFINED BY SECTION ONE HUNDRED THIRTY-ONE OF THE
 ECONOMIC DEVELOPMENT LAW.  NO TENANT SHALL BE REMOVED FROM POSSESSION IN
 A SPECIAL PROCEEDING MAINTAINED UNDER THIS ARTICLE UPON THE  GROUNDS  OF
 THIS  SECTION.  A  SPECIAL  PROCEEDING FOR A JUDGMENT OF RENT DUE MAY BE
 MAINTAINED WHERE THE TENANT HAS DEFAULTED IN THE PAYMENT OF RENT, PURSU-
 ANT TO THE AGREEMENT UNDER WHICH THE PREMISES ARE HELD, WHERE SUCH  RENT
 WAS DUE BETWEEN MARCH SEVENTH, TWO THOUSAND TWENTY AND A DATE SIX MONTHS
 AFTER  THE  EXPIRATION  OF THE STATE DISASTER EMERGENCY, AS THAT TERM IS
 DEFINED IN SECTION TWENTY OF THE EXECUTIVE  LAW,  DECLARED  PURSUANT  TO
 EXECUTIVE  ORDER TWO HUNDRED TWO OF TWO THOUSAND TWENTY, AS AMENDED, AND
 A WRITTEN DEMAND OF THE RENT HAS BEEN MADE WITH AT LEAST FOURTEEN  DAYS'
 NOTICE  REQUIRING  THE  PAYMENT  OF  THE RENT, SERVED UPON THE TENANT AS
 PRESCRIBED IN SECTION SEVEN HUNDRED THIRTY-FIVE  OF  THIS  ARTICLE.  ANY
 PERSON SUCCEEDING TO THE LANDLORD'S INTEREST IN THE PREMISES MAY PROCEED
 UNDER  THIS  SECTION FOR RENT DUE HIS OR HER PREDECESSOR IN INTEREST FOR
 THE TIME PERIOD SPECIFIED ABOVE IF HE OR SHE HAS A RIGHT THERETO.
   § 4. This act shall take effect immediately.