NY State Senate Bill 2019-S8190A

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 29, 2020	print number 8190a
Apr 29, 2020	amend and recommit to housing, construction and community development
Apr 13, 2020	referred to housing, construction and community development

Bill Amendments

Original

A (Active)

co-Sponsors

2019-S8190 - Details

See Assembly Version of this Bill:: A10318
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Housing

2019-S8190 - Summary

Establishes the Emergency Coronavirus Affordable Housing Preservation Act of 2020 to implement protections to reduce the harm to New York residents and ensure safe, decent, sanitary, affordable housing and financial stability during the novel coronavirus disease, COVID-19, crisis and all other public emergencies.

2019-S8190 - Sponsor Memo

                                
 
BILL NUMBER: S8190

SPONSOR: SALAZAR
 
TITLE OF BILL:

An act to establish the Emergency Coronavirus Affordable Housing Preser-
vation Act of 2020

 
PURPOSE OR GENERAL IDEA OF BILL:

To preserve and ensure that safe, decent, sanitary, and affordable hous-
ing is available to New York residents vulnerable to the harm presented
by the COVID-19 public emergency.

 
SUMMARY OF PROVISIONS:

Section 1 provides that this at shall be known and may be cited as the
"Emergency Coronavirus Affordable Housing Preservation Act of 2020".

Section 2 sets forth legislative findings in support of this act.

Section 3 defines the terms "residential tenant", "commercial tenant",
"small businesses, "small homeowner", "affordable housing operators",
and "residential cooperative".

Section 4

(a) Provides for abatements of rent for residential and commercial small
business tenants that have lost income as a result of compliance with
government ordered restrictions responding to the COVID-19 outbreak or
as a result of closure of premises in compliance with government ordered
restrictions.

(b) (i) Provides that in regard to residential tenants, the State DHCR
or any court of competent jurisdiction shall have jurisdiction to deter-
mine rent abatements as provided in this law.

(ii) Provides that for commercial small business tenants, such determi-
nations shall be made by any court of competent jurisdiction as well as
relevant municipal departments or agencies.

(c) Provides that for residential tenants a rebuttable presumption that
the tenant has lost income shall be created if the tenant establishes by
testimonial or documentary evidence that the tenant lost hourly pay, was
terminated, laid-off, subject to a reduction in work hours, or termi-
nated from an independent contract job or gig employment within two
weeks of the government ordered restrictions.

(d) Provides the same rebuttable presumption for commercial small busi-
ness tenants as is provided in subdivision (c)for residential tenants.

(e) Any abatement of rent under this this law shall have the effect of
cancellation of the rental debt and shall prohibit any effort to
collect, enforce, or report of same to a credit reporting agency or
tenant screening bureau.

(f) Owners shall be entitled to certain offsets of related financial
obligations based on any rental abatements implemented pursuant to this
law.
Section 5. Provides that the provisions of Executive Order 202.9 modify-
ing Banking Law, Section 39(2)to provide that banks subject to the
jurisdiction of the DFS shall be deemed to be engaging in an unsafe and
unsound business practice if they fail to grant a forbearance relating
to residential mortgages to a person or business who has a financial
hardship due to the COVID-19 outbreak, is enacted as law.

Section 6. Provides for financial assistance or relief to small homeown-
ers losing rental income as a result of the COVID-19 crisis for the
purpose of ensuring such small homeowners possess sufficient funds to
continue operating safe, decent, and sanitary housing for themselves and
their tenants during the crisis. Funding for this assistance would come
from grants or funding available or repurposed by New York State in
relation to the COVID-19 public health; and/or any Federal or State
funds available in response to National and/or State Emergency Order;
and/or any funds received from Federal programs in relation to public
health emergency; and/or in relation to the COVID-19 public health emer-
gency allowing for the protection of low income, marginalized communi-
ties, public housing programs and economic development, and the preser-
vation and conservation of housing; and/or, any funds available to NYS
under the "Coronavirus Aid, Relief, and Economic Security Act" or the
CARES Act; and/or any Federal or State Emergency Relief Funds available
to NYS.

Section 7. Provides a similar opportunity to obtain financial assistance
or relief for affordable housing operators as is provided in Section 5
for small homeowners, with the same funding sources.

Section 8. Provides a similar opportunity to obtain financial assistance
or relief to residential housing cooperatives as is provided in Section
5 for small homeowners, with the same funding sources.

Section 9. Provides for regulatory relief for affordable housing opera-
tors and residential housing cooperatives experiencing financial hard-
ship caused by COVID-19 crisis.

Section 10. Severability provision.

Section 11. Provides for the effective date of immediate upon enactment.

 
JUSTIFICATION:

A serious public emergency exists in the state of New York due to the
impact of the global outbreak of coronavirus disease 2019 (COVID-19),
which as of the date of this legislation, created destabilized housing,
loss of employment and/or income, closure of businesses and/or schools,
and greatly exacerbated financial insecurity in the state of New York.
It is currently impossible to accurately access the full scope, dura-
tion, and severity of impact this public emergency has and will have on
the residents of New York. The Executive has declared a 'Disaster Emer-
gency' which has put extraordinary constraints on individuals, families,
homeowners, small businesses, not-forprofits, and local/state/federal
agencies. It is both in the public interest and the responsibility of
government to provide and secure federal and/or state emergency funding
to ensure small businesses, public housing entities, nonprofits, fami-
lies, and individuals, unable to afford housing and/or necessary
expenses as a result of lost income related to public health emergen-
cies, such as the COVID-19 coronavirus outbreak, are not encumbered with
severe financial burden. This bill, by providing protection and finan-
cial remedies for residential tenants, small homeowners, small commer-
cial business tenants, affordable housing operators, and residential
cooperatives operating housing projects for persons of low income,
reduces the harm to New York residents and helps to ensure safe, decent,
sanitary, affordable housing and financial stability during the COVID-19
crisis and all other public emergencies.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

The intention of this bill is that the necessary funding would come from
grants or funding available or repurposed by New York State in relation
to the COVID-19 public health; and/or any Federal or State funds avail-
able in response to National and/or State Emergency Order; and/or any
funds received from Federal programs in relation to public health emer-
gency; and/or in relation to the COVID-19 public health emergency allow-
ing for the protection of low income, marginalized communities, public
housing programs and economic development, and the preservation and
conservation of housing; and/or, any funds available to NYS under the
"Coronavirus Aid, Relief, and Economic Security Act" or the CARES Act;
and/or any Federal or State Emergency Relief Funds available to NYS.

 
EFFECTIVE DATE:
This section shall take effect immediately.

2019-S8190 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8190
 
                             I N  S E N A T E
 
                              April 13, 2020
                                ___________
 
 Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 AN ACT to establish the Emergency Coronavirus Affordable Housing Preser-
   vation Act of 2020
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. This act shall be known and may be cited as the  "Emergency
 Coronavirus Affordable Housing Preservation Act of 2020".
   § 2. Legislative findings. The legislature hereby finds that a serious
 public  emergency  exists  in the state of New York due to the impact of
 the global outbreak of novel coronavirus, COVID-19, which as of the date
 of this legislation, created destabilized housing,  loss  of  employment
 and/or income, closure of businesses and/or schools, and greatly exacer-
 bated  financial  insecurity  in  the state of New York. The legislature
 further finds that it is currently impossible to accurately  assess  the
 full  scope,  duration, and severity of impact this public emergency has
 and will have on the residents of New York and that, in response to this
 crisis, the executive declared a  'Disaster  Emergency'  which  has  put
 extraordinary  constraints  on  individuals, families, homeowners, small
 businesses,  not-for-profits,  and  local/state/federal  agencies.   The
 legislature  declares  that  it  is  both in the public interest and the
 responsibility of government to provide and secure federal and/or  state
 emergency  funding  to ensure small businesses, public housing entities,
 nonprofits, families, and individuals, unable to afford  housing  and/or
 necessary  expenses  as a result of lost income related to public health
 emergencies, such as the novel coronavirus, COVID-19, outbreak,  not  be
 encumbered  with severe financial burden and that, consistent with arti-
 cles 17 and 18 of the state constitution, it is therefore  incumbent  on
 the  legislature  and  the  executive  to implement protections so as to
 reduce the harm to New York residents and ensure safe, decent, sanitary,
 affordable housing and financial stability during the novel coronavirus,
 COVID-19, crisis and all other public emergencies.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16102-02-0

 S. 8190                             2
 
   § 3. Definitions. (a) "Residential tenant" shall have the same meaning
 as in paragraph (a) of subdivision 1 of section 235-f of the real  prop-
 erty  law,  those who otherwise pay for the use and occupancy of a resi-
 dential dwelling, or occupants as defined by paragraph (b)  of  subdivi-
 sion 1 of section 235-f of the real property law.
   (b) "Commercial small business tenant" shall mean a small business, as
 defined in section 131 of the economic development law, lawfully occupy-
 ing a covered property pursuant to a lease or other rental agreement.
   (c)  "Small  homeowner"  shall  mean  an owner of a dwelling with 4 or
 fewer units where such owner also resides as a primary residence.
   (d) "Affordable housing operator" shall mean a  not-for-profit  entity
 as  defined  in the not-for-profit corporation law or a housing develop-
 ment fund company as defined in  section  572  of  the  private  housing
 finance  law  that  owns  and  operates a housing project for persons of
 low-income.
   (e) "Residential cooperative" shall  mean  any  not-for-profit  corpo-
 ration  or  housing  development  fund  company owning and operating any
 housing project, of any size, for persons of low-income  as  defined  in
 section  573  of  the  private housing finance law or any corporation or
 entity owning and operating a residential cooperative with 10  or  fewer
 units.
   § 4. Abatement of rent in the case of residential and commercial small
 business  tenants  complying  or  formerly  employed  by  small business
 complying with COVID-19 orders and tenants who are  employees  of  small
 businesses; jurisdiction; evidentiary presumptions; effect of abatement;
 offset  of  abatement by owners. (a) Notwithstanding any other provision
 of law, rule or regulation to the contrary, for any  residential  tenant
 or commercial small business tenant in the state that has lost income as
 a  result  of  such  residential  tenant's, or such tenant's employer's,
 compliance with government  ordered  restrictions  in  response  to  the
 outbreak  of  novel coronavirus, COVID-19, or as a result of the closure
 of the premises when the premises are  such  commercial  small  business
 tenant's  place  of  business  in  compliance  with  government  ordered
 restrictions in response to the outbreak of novel coronavirus, COVID-19,
 no rent shall be recovered by an owner of  any  premises  used  by  such
 tenant  thereof  for human habitation, or for the operation of the small
 business, for the entire period of such compliance, which  period  shall
 run  from March 20, 2020 until the date when the governor shall specify,
 in an executive order, that the prohibition on enforcement of either  an
 eviction  of any tenant, residential or commercial, imposed by executive
 order 202.8, shall have expired, but in no event shall  such  period  be
 less than ninety days from March 20, 2020.
   (b) (i) In the case of residential tenants, both the state division of
 housing  and  community renewal as well as any court of competent juris-
 diction, which shall include the New York City Civil Court and any city,
 village, or town court within a summary proceeding under  article  7  of
 the  real  property actions and proceedings law, shall have jurisdiction
 to determine rental abatements as provided herein. The state division of
 housing and community renewal shall issue regulations to effectuate this
 section.
   (ii) In the case of commercial small business tenants,  any  court  of
 competent  jurisdiction,  which  shall  include  the New York City Civil
 Court and any city, village, or town court within a  summary  proceeding
 under  article  7  of  the real property actions and proceedings law, as
 well as the comptroller in a municipality having a comptroller, or in  a
 municipality  having  no  comptroller,  then the chief fiscal officer of

 S. 8190                             3

 such municipality, except that in the city of  New  York,  then  specif-
 ically  the  department of small business services, shall have jurisdic-
 tion to determine rental  abatements  as  provided  herein.  Said  comp-
 troller,  chief  fiscal  officer,  or,  in  the  city  of  New York, the
 department of small business services, such shall issue  regulations  to
 effectuate this section.
   (c)  For the purpose of demonstrating that such residential tenant has
 lost income as a result of such residential tenant's, or  such  tenant's
 employer's,  compliance with government ordered restrictions in response
 to the outbreak of novel coronavirus, COVID-19, a rebuttable presumption
 that such residential tenant has lost income shall  be  created  if  the
 residential tenant establishes through testimony or documentary evidence
 that the tenant has lost hourly income pay, or was terminated, laid-off,
 subject  to a reduction in work hours, or terminated from an independent
 contract job or "gig" employment within  2  weeks  of  the  issuance  of
 government  ordered  restrictions  in  response to the outbreak of novel
 coronavirus, COVID-19. For the purpose of this subdivision, the 2  weeks
 shall run from March 7, 2020.
   (d)  For the purpose of demonstrating that such commercial small busi-
 ness tenant has lost income as a result of such commercial  small  busi-
 ness   tenant's  compliance  with  government  ordered  restrictions  in
 response to the outbreak of novel coronavirus,  COVID-19,  a  rebuttable
 presumption  that  such commercial small business tenant has lost income
 shall be created if such commercial small  business  tenant  establishes
 through  testimony  or  documentary  evidence that such commercial small
 business tenant closed the premises when the premises are  such  commer-
 cial small business' place of business within 2 weeks of the issuance of
 government  ordered  restrictions  in  response to the outbreak of novel
 coronavirus, COVID-19.  For the purpose of this subdivision, the 2 weeks
 shall run from March 7, 2020.
   (e) Any abatement of rent provided  to  a  residential  or  commercial
 small  business tenant hereunder shall have the same effect as a cancel-
 lation of the rental debt and any claims related thereto for the purpose
 of legal collection, enforcement, and reporting to a credit reporting or
 tenant screening bureau, and  shall  render  any  person  who  seeks  to
 collect,  enforce,  or  report  to  a  credit reporting bureau or tenant
 screening bureau such abated rent to all like penalties, sanctions,  and
 liabilities  under  the law for the unlawful collection, enforcement, or
 reporting of debt.
   (f) At such owner's election, any owner of  premises  subject  to  any
 orders  awarding  abatements  of  rent issued by the state department of
 housing and community renewal or other department or  agency  designated
 by  the  chief  executive  of  a city with a population of more than one
 million or county, city, town, or village, or to any judgments issued by
 a court of competent jurisdiction shall be entitled to recover the total
 dollar amount of all  abatements  issued  hereunder  either:  (i)  as  a
 reduction in the owner's real property tax payment by deducting from the
 amount  due  in  any quarter or period an amount not in excess of 10% of
 the total abatement dollar amount from each payment coming due until the
 total abatement amount is deducted; or
   (ii) a withholding of any  mortgage  or  construction  loan  principal
 payments,  mortgage  or construction loan interest payments, or mortgage
 or construction loan extension fee payments due and owing to  the  state
 or any political subdivision thereof until the total abatement amount is
 repaid.  The  department of taxation and finance and all departments and
 agencies specified in the private housing  finance  law,  including  the

 S. 8190                             4
 
 supervising  agency  as  defined  in  article  1  of the private housing
 finance law, shall issue regulations establishing an application  proce-
 dure for an owner to elect a method of abatement offsetting.
   §  5. Residential mortgage relief for individuals with financial hard-
 ship. The provisions of executive order 202.9 of 2020, dated  March  21,
 2020, relating to a modification of subdivision two of section 39 of the
 banking  law  to provide that any bank which is subject to the jurisdic-
 tion of the department of financial  services  shall  be  deemed  to  be
 engaging in an unsafe and unsound business practice if it does not grant
 a  forbearance to any person or business who has a financial hardship as
 a result of the novel coronavirus, COVID-19, pandemic for a period of 90
 days is hereby enacted, in its entirety, including  with  the  directive
 that  the  department  of  financial  services promulgate regulations to
 effectuate the contents of such directive.
   § 6. Assistance to small homeowners losing rental income as  a  result
 of  the  novel  coronavirus, COVID-19, public health crisis. (a) For the
 purpose of ensuring that small homeowners possess  sufficient  funds  to
 continue  operating  safe,  decent, and sanitary housing, for themselves
 and for tenants, during the novel coronavirus, COVID-19,  public  health
 crisis, any small homeowner who has lost 25% or greater of rental income
 as  a  result  of  financial  hardship to such small homeowner's tenants
 shall be entitled to a payment of the total amount of lost rental income
 if the small homeowner can establish that the rental income was lost  as
 a  result of novel coronavirus, COVID-19, hardship, for which a rebutta-
 ble presumption of loss resulting from the novel coronavirus,  COVID-19,
 shall be created if such small homeowner can demonstrate the loss of 25%
 or  more  of  rental income within 1 month of the issuance of government
 ordered restrictions in response to the outbreak of  novel  coronavirus,
 COVID-19.    For  the  purpose  of  determining  whether  the rebuttable
 presumption created herein shall apply, the month shall run  from  March
 7, 2020 until April 20, 2020.
   (b)  Any  payment made to a small homeowner under this provision shall
 be monthly, paid on or before May 1, 2020 and such payment shall contin-
 ue on a monthly basis until and through the date when the governor shall
 specify, in an executive order, that the prohibition on  enforcement  of
 either  an eviction of any tenant, residential or commercial, imposed by
 executive order 202.8, shall have expired, but in no  event  shall  such
 period  be  less  than 90 days from March 20, 2020. The first payment on
 May 1, 2020 shall cover the period of March 20 through April 30, 2020.
   (c) The supervising agency, as defined in article  1  of  the  private
 housing finance law, shall issue regulations establishing an application
 procedure  for a small homeowner to seek such lost rental income relief.
 Such regulations shall provide  that  as  a  condition  of  such  relief
 payments,  a small homeowner shall agree and shall be obligated, through
 executing an instrument in a form specified in  any  regulations  issued
 hereunder,  to  provide  all  tenants  residing  in  the dwelling with a
 renewal lease of at least 1 year and at  the  amount  of  rent  actually
 charged  and collected 6 months prior to the application, and such regu-
 lations shall further provide that small homeowners shall not be  eligi-
 ble  for  the  relief provided herein for rental income imputable to any
 illegal unit or for rental  income  imputable  to  any  unit  containing
 uncorrected,  as  of  the time of the application, immediately hazardous
 violations of a state or local housing or  building  code  that  existed
 prior to March 1, 2020.

 S. 8190                             5
 
   (d)  The  assistance  provided  under  this section shall primarily be
 funded by any grants or funding available or repurposed by the state  in
 relation to:
   (i) the novel coronavirus, COVID-19, public health crisis;
   (ii)  any  federal  or state funds available in response to a national
 and/or state emergency order;
   (iii) any funds received from federal programs in relation  to  public
 health emergencies;
   (iv) the novel coronavirus, COVID-19, public health emergency allowing
 for the protection of low-income, marginalized communities, public hous-
 ing  programs and economic development, and the preservation and conser-
 vation of housing;
   (v) any funds available to the state under  the  federal  "Coronavirus
 Aid, Relief, and Economic Security Act" or the CARES Act; and/or
   (vi)  any  federal  or  state  emergency relief funds available to the
 state.
   § 7. Assistance for affordable housing operators losing rental  income
 as  a  result  of the novel coronavirus, COVID-19, public health crisis.
 (a) For the  purpose  of  ensuring  that  affordable  housing  operators
 possess  sufficient  funds to continue operating safe, decent, and sani-
 tary housing for vulnerable  low-income  populations  during  the  novel
 coronavirus,  COVID-19,  public  health  crisis,  any affordable housing
 operator that has lost 25% or greater of rental income as  a  result  of
 financial  hardship  to such affordable housing operator's tenants shall
 be entitled to a subsidy payment of the  total  amount  of  lost  rental
 income  if the affordable housing operator can establish that the rental
 income was lost as a result of novel  coronavirus,  COVID-19,  hardship,
 for  which  a  rebuttable  presumption  of loss resulting from the novel
 coronavirus, COVID-19, shall be created if such affordable housing oper-
 ator can demonstrate the loss of 25% or more of rental income  within  1
 month  of the issuance of government ordered restrictions in response to
 the outbreak of novel coronavirus, COVID-19. For the purpose  of  deter-
 mining  whether  the  rebuttable presumption created herein shall apply,
 the month shall be deemed to have begun on March 20, 2020 and shall  run
 until April 20, 2020.
   (b)  Any  payment  made  to  an affordable housing operator under this
 provision shall be monthly, paid on May 1, 2020, and such payment  shall
 continue on a monthly basis until and through the date when the governor
 shall  specify,  in an executive order, that the prohibition on enforce-
 ment of either an eviction of any  tenant,  residential  or  commercial,
 imposed  by  executive  order 202.8, shall have expired, but in no event
 shall such period be less than 90 days from March 20,  2020.  The  first
 payment  on May 1, 2020 shall cover the period of March 20 through April
 30, 2020.
   (c) All departments and agencies  specified  in  the  private  housing
 finance law, including the supervising agency as defined in article 1 of
 the private housing finance law, shall issue regulations establishing an
 application  procedure  for  an affordable housing operator seeking such
 lost rental income relief. Such regulations shall  provide  that,  as  a
 condition  of  such  relief, the affordable housing operator shall enter
 into a regulatory agreement, as defined in section 576  of  the  private
 housing  finance  law, with the executive unless such affordable housing
 operator is already subject to a regulatory agreement as defined  there-
 in,  and  such regulations shall further provide that affordable housing
 operators shall not be eligible  for  the  relief  provided  herein  for
 rental income imputable to any illegal unit or for rental income imputa-

 S. 8190                             6
 
 ble to a unit containing uncorrected, as of the time of the application,
 immediately hazardous violations of a state or local housing or building
 code that existed prior to March 1, 2020.
   (d)  The  assistance  provided  under  this section shall primarily be
 funded by any grants or funding available or repurposed by the state  in
 relation to:
   (i) the novel coronavirus, COVID-19, public health crisis;
   (ii)  any  federal  or state funds available in response to a national
 and/or state emergency order;
   (iii) any funds received from federal programs in relation  to  public
 health emergencies;
   (iv) the novel coronavirus, COVID-19, public health emergency allowing
 for the protection of low-income, marginalized communities, public hous-
 ing  programs and economic development, and the preservation and conser-
 vation of housing;
   (v) any funds available to the state under  the  federal  "Coronavirus
 Aid, Relief, and Economic Security Act" or the CARES Act; and/or
   (vi)  any  federal  or  state  emergency relief funds available to the
 state.
   § 8. Assistance to residential housing cooperatives losing maintenance
 and rental income as a result of the novel coronavirus, COVID-19, public
 health crisis.  (a) For the purpose of ensuring that residential housing
 cooperatives  possess  sufficient  funds  to  continue  operating  safe,
 decent,  and  sanitary multifamily housing during the novel coronavirus,
 COVID-19, public health crisis,  any  residential  housing  cooperatives
 that  have  lost  25%  or  greater  of maintenance or rental income as a
 result of financial hardship to such residential  housing  cooperative's
 tenants  or  shareholders  shall  be  entitled to a payment of the total
 amount of lost maintenance or rental income if the  residential  housing
 cooperative can establish that the maintenance or rental income was lost
 as  a  result  of  novel  coronavirus,  COVID-19,  hardship, for which a
 rebuttable presumption of loss resulting  from  the  novel  coronavirus,
 COVID-19,  shall  be created if such residential housing cooperative can
 demonstrate the loss of 25% or more  of  maintenance  or  rental  income
 within  a  month  of  the issuance of government ordered restrictions in
 response to the outbreak of novel coronavirus, COVID-19. For the purpose
 of determining whether the rebuttable presumption created  herein  shall
 apply, the month shall run from March 20, 2020 until April 20, 2020.
   (b)  Any  payment made to a residential housing cooperative under this
 provision shall be monthly, paid on or  before  May  1,  2020  and  such
 payment  shall  continue  on  a monthly basis until and through the date
 when the governor shall specify, in an executive order, that the  prohi-
 bition  on  enforcement  of  an  eviction  of any tenant, residential or
 commercial, imposed by executive order 202.8, shall have expired, but in
 no event shall such period be less than 90 days from March 20, 2020.
   (c) All departments and agencies  specified  in  the  private  housing
 finance  law  as supervising housing development fund companies, as well
 as the supervising agency as defined in article 1 of the private housing
 finance law, shall issue regulations establishing an application  proce-
 dure  for a residential housing cooperative seeking assistance with such
 lost maintenance  and  rental  income  relief.  Such  regulations  shall
 provide  that  as a condition of such assistance payments, a residential
 housing cooperative shall agree and shall be obligated, through  execut-
 ing  an  instrument  in a form specified in the regulations issued here-
 under, to provide any tenants residing in the housing cooperative with a
 renewal lease of at least 1 year, at the  same  rental  amount  actually

 S. 8190                             7

 charged and collected 6 months prior to the application for relief. Such
 regulations  shall  further  provide that any rental housing cooperative
 shall not be eligible for the relief provided herein for rental or main-
 tenance  income  imputable  to  any  illegal  unit  or  unit occupied in
 violation of the cooperative's bylaws or for rental income imputable  to
 a  unit containing uncorrected, as of the time of the application, imme-
 diately hazardous violations of a state or  local  housing  or  building
 code that existed prior to March 1, 2020 and which are the housing coop-
 erative's legal duty to remedy.
   (d)  The  assistance  provided  under  this section shall primarily be
 funded by any grants or funding available or repurposed by the state  in
 relation to:
   (i) the novel coronavirus, COVID-19, public health crisis;
   (ii)  any  federal  or state funds available in response to a national
 and/or state emergency order;
   (iii) any funds received from federal programs in relation  to  public
 health emergencies;
   (iv) the novel coronavirus, COVID-19, public health emergency allowing
 for the protection of low-income, marginalized communities, public hous-
 ing  programs and economic development, and the preservation and conser-
 vation of housing;
   (v) any funds available to the state under  the  federal  "Coronavirus
 Aid, Relief, and Economic Security Act" or the CARES Act; and/or
   (vi)  any  federal  or  state  emergency relief funds available to the
 state.
   § 9. Regulatory relief for affordable housing operators  and  residen-
 tial  housing  cooperatives providing housing during the novel coronavi-
 rus, COVID-19, public health crisis.  (a) Notwithstanding  any  contrary
 provision  of  law,  rule,  regulation or provision of any regulatory or
 other agreement by and between an affordable housing operator,  residen-
 tial  housing cooperative, or any affiliate or subsidiary of an afforda-
 ble housing operator or residential housing cooperative, as  one  party,
 and  the  department or agency of the state or any political subdivision
 of the state, as another party, affordable housing operators  and  resi-
 dential  housing  cooperatives shall: (i) have the right to use or apply
 any operating account reserves toward or for building or housing project
 operations or the satisfaction of any debts or obligations arising  from
 financial  hardship  caused  by  the novel coronavirus, COVID-19, public
 health crisis without any penalty or sanction otherwise provided for  in
 such law, rule, regulation, or provision of a regulatory or other agree-
 ment;  and  (ii) the right to withhold any mortgage or construction loan
 principal payments, mortgage or construction loan interest payments,  or
 mortgage  or  construction  loan extension fee payments due and owing to
 the state or any political subdivision thereof and apply  such  mortgage
 interest  payments  to housing project operations or the satisfaction of
 any debts or obligations arising from financial hardship caused  by  the
 novel  coronavirus,  COVID-19, public health crisis or to the replenish-
 ment of any operating account reserves.
   (b) Notwithstanding any contrary provision of law, rule, regulation or
 provision of any regulatory or other agreement by and between any corpo-
 ration, not-for-profit corporation, community benefit corporation, local
 community development corporation, as one party, and the  department  or
 agency of the state or any political subdivision of the state, as anoth-
 er party, relating to the provision of funding to any affordable housing
 operator or residential housing cooperative, whether as a mortgage or as
 any  supportive fund, such community benefit corporation or local commu-

 S. 8190                             8
 
 nity development shall, upon request of such affordable housing operator
 or residential housing cooperative, grant a forbearance to such afforda-
 ble housing operator or residential housing cooperative who has a finan-
 cial  hardship  as a result of the novel coronavirus, COVID-19, pandemic
 for a period of at least 90 days, which period shall be extended if  the
 governor  extends  the period of the mortgage forbearance as provided in
 section five of this act.
   (c) All departments and agencies  specified  in  the  private  housing
 finance law, including the supervising agency as defined in article 1 of
 the  private  housing finance law, shall issue regulations to effectuate
 the provisions of this section.
   § 10. Severability clause. If any clause, sentence, paragraph,  subdi-
 vision,  section  or  part  of  this act shall be adjudged by a court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair or invalidate the remainder thereof, but shall be confined in its
 operation  to  the  clause, sentence, paragraph, subdivision, section or
 part thereof directly involved in the controversy in which such judgment
 shall have been rendered. It is hereby declared to be the intent of  the
 legislature  that  this act would have been enacted even if such invalid
 provisions had not been included herein.
   § 11. This act shall take effect immediately.

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2019-S8190A (ACTIVE) - Details

See Assembly Version of this Bill:: A10318
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Housing

2019-S8190A (ACTIVE) - Summary

2019-S8190A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8190A

SPONSOR: SALAZAR
 
TITLE OF BILL:

An act to establish the Emergency Coronavirus Affordable Housing Preser-
vation Act of 2020

 
PURPOSE OR GENERAL IDEA OF BILL:

To preserve and ensure that safe, decent, sanitary, and affordable hous-
ing is available to New York residents vulnerable to the harm presented
by the COVID-19 public emergency.

 
SUMMARY OF PROVISIONS:

Section 1 provides that this at shall be known and may be cited as the
"Emergency Coronavirus Affordable Housing Preservation Act of 2020".

Section 2 sets forth legislative findings in support of this act.

Section 3 defines the terms "residential tenant", "commercial tenant",
"small businesses, "small homeowner", "affordable housing operators",
and "residential cooperative".

Section 4

(a) Provides for abatements of rent for residential and commercial small
business tenants that have lost income as a result of compliance with
government ordered restrictions responding to the COVID-19 outbreak or
as a result of closure of premises in compliance with government ordered
restrictions.

(b) (i) Provides that in regard to residential tenants, the State DHCR
or any court of competent jurisdiction shall have jurisdiction to deter-
mine rent abatements as provided in this law.

(ii) Provides that for commercial small business tenants, such determi-
nations shall be made by any court of competent jurisdiction as well as
relevant municipal departments or agencies.

(c) Provides that for residential tenants a rebuttable presumption that
the tenant has lost income shall be created if the tenant establishes by
testimonial or documentary evidence that the tenant lost hourly pay, was
terminated, laid-off, subject to a reduction in work hours, terminated
from an independent contract job or gig employment, or lost income as a
result of the shutdown of the industry in which such tenant was working,
operating or employed, within two weeks of the government ordered
restrictions.

(d) Provides the same rebuttable presumption for commercial small busi-
ness tenants as is provided in subdivision (c)for residential tenants.

(e) Any abatement of rent under this this law shall have the effect of
cancellation of the rental debt and shall prohibit any effort to
collect, enforce, or report of same to a credit reporting agency or
tenant screening bureau.


(f) Owners shall be entitled to certain offsets of related financial
obligations based on any rental abatements implemented pursuant to this
law.

Section 5. Provides that the provisions of Executive Order 202.9 modify-
ing Banking Law, Section 39(2)to provide that banks subject to the
jurisdiction of the DFS shall be deemed to be engaging in an unsafe and
unsound business practice if they fail to grant a forbearance relating
to residential mortgages to a person or business who has a financial
hardship due to the COVID-19 outbreak, is enacted as law.

Section 6. Provides for financial assistance or relief to small homeown-
ers losing rental income as a result of the COVID-19 crisis for the
purpose of ensuring such small homeowners possess sufficient funds to
continue operating safe, decent, and sanitary housing for themselves and
their tenants during the crisis. Funding for this assistance would come
from grants or funding available or repurposed by New York State in
relation to the COVID-19 public health; and/or any Federal or State
funds available in response to National and/or State Emergency Order;
and/or any funds received from Federal programs in relation to public
health emergency; and/or in relation to the COVID-19 public health emer-
gency allowing for the protection of low income, marginalized communi-
ties, public housing programs and economic development, and the preser-
vation and conservation of housing; and/or, any funds available to NYS
under the "Coronavirus Aid, Relief, and Economic Security Act" or the
CARES Act; and/or any Federal or State Emergency Relief Funds available
to NYS.

Section 7. Provides a similar opportunity to obtain financial assistance
or relief for affordable housing operators as is provided in Section 5
for small homeowners, with the same funding sources.

Section 8. Provides a similar opportunity to obtain financial assistance
or relief to residential housing cooperatives as is provided in Section
5 for small homeowners, with the same funding sources.

Section 9. Provides for regulatory relief for affordable housing opera-
tors and residential housing cooperatives experiencing financial hard-
ship caused by COVID-19 crisis.

Section 10. Severability provision.

Section 11. Provides for the effective date of immediate upon enactment.

 
DIFFERENCE BETWEEN ORIGINAL VERSION AND AMENDED BILL:

The Amended bill (S 8190-A / A 10318-A) modifies the definition of
"small homeowner" to include owner-occupied premises with 6 or fewer
units (changed from 4 or fewer, clarifies the eligibility criteria for
residential and small commercial tenants to ensure that individuals who
have lost income due to the shut down of the industry in which they work
(e.g., the theater industry)are eligible, reduced the threshold of
income loss required in order for small homeowners, not-for-profit
affordable housing providers, and residential cooperatives to be eligi-
ble for financial assistance from 25% percent of rental income to 10% of
rental income, and adds language to ensure that all regulations issued
to carry out the provisions of this Act shall include assistance for
non-English primary speakers.
 
JUSTIFICATION:

A serious public emergency exists in the state of New York due to the
impact of the global outbreak of coronavirus disease 2019 (COVID-19),
which as of the date of this legislation, created destabilized housing,
loss of employment and/or income, closure of businesses and/or schools,
and greatly exacerbated financial insecurity in the state of New York.
It is currently impossible to accurately access the full scope, dura-
tion, and severity of impact this public emergency has and will have on
the residents of New York. The Executive has declared a 'Disaster Emer-
gency' which has put extraordinary constraints on individuals, families,
homeowners, small businesses, not-for-profits, and local/state/federal
agencies. It is both in the public interest and the responsibility of
government to provide and secure federal and/or state emergency funding
to ensure small businesses, public housing entities, non-profits, fami-
lies, and individuals, unable to afford housing and/or necessary
expenses as a result of lost income related to public health emergen-
cies, such as the COVID-19 coronavirus outbreak, are not encumbered with
severe financial burden. This bill, by providing protection and finan-
cial remedies for residential tenants, small homeowners, small commer-
cial business tenants, affordable housing operators, and residential
cooperatives operating housing projects for persons of low income,
reduces the harm to New York residents and helps to ensure safe, decent,
sanitary, affordable housing and financial stability during the COVID-19
crisis and all other public emergencies.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  The intention of
this bill is that the necessary funding would come from grants or fund-
ing available or repurposed by New York State in relation to the COVID-
19 public health; and/or any Federal or State funds available in
response to National and/or State Emergency Order; and/or any funds
received from Federal programs in relation to public health emergency;
and/or in relation to the COVID-19 public health emergency allowing for
the protection of low income, marginalized communities, public housing
programs and economic development, and the preservation and conservation
of housing; and/or, any funds available to NYS under the "Coronavirus
Aid, Relief, and Economic Security Act" or the CARES Act; and/or any
Federal or State Emergency Relief Funds available to NYS.

 
EFFECTIVE DATE:
This Act shall take effect immediately.

2019-S8190A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8190--A
 
                             I N  S E N A T E
 
                              April 13, 2020
                                ___________
 
 Introduced  by  Sens.  SALAZAR,  JACKSON, MYRIE, RAMOS -- read twice and
   ordered printed, and when printed to be committed to the Committee  on
   Housing,   Construction   and   Community   Development  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to establish the Emergency Coronavirus Affordable Housing Preser-
   vation Act of 2020

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. This act shall be known and may be cited as the "Emergency
 Coronavirus Affordable Housing Preservation Act of 2020".
   § 2. Legislative findings. The legislature hereby finds that a serious
 public emergency exists in the state of New York due to  the  impact  of
 the global outbreak of novel coronavirus, COVID-19, which as of the date
 of  this  legislation,  created destabilized housing, loss of employment
 and/or income, closure of businesses and/or schools, and greatly exacer-
 bated financial insecurity in the state of  New  York.  The  legislature
 further  finds  that it is currently impossible to accurately assess the
 full scope, duration, and severity of impact this public  emergency  has
 and will have on the residents of New York and that, in response to this
 crisis,  the  executive  declared  a  'Disaster Emergency' which has put
 extraordinary constraints on individuals,  families,  homeowners,  small
 businesses,   not-for-profits,  and  local/state/federal  agencies.  The
 legislature declares that it is both in  the  public  interest  and  the
 responsibility  of government to provide and secure federal and/or state
 emergency funding to ensure small businesses, public  housing  entities,
 nonprofits,  families,  and individuals, unable to afford housing and/or
 necessary expenses as a result of lost income related to  public  health
 emergencies,  such  as the novel coronavirus, COVID-19, outbreak, not be
 encumbered with severe financial burden and that, consistent with  arti-
 cles  17  and 18 of the state constitution, it is therefore incumbent on
 the legislature and the executive to  implement  protections  so  as  to
 reduce the harm to New York residents and ensure safe, decent, sanitary,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD16102-03-0

 S. 8190--A                          2
 
 affordable housing and financial stability during the novel coronavirus,
 COVID-19, crisis and all other public emergencies.
   § 3. Definitions. (a) "Residential tenant" shall have the same meaning
 as  in paragraph (a) of subdivision 1 of section 235-f of the real prop-
 erty law, those who otherwise pay for the use and occupancy of  a  resi-
 dential  dwelling,  or occupants as defined by paragraph (b) of subdivi-
 sion 1 of section 235-f of the real property law.
   (b) "Commercial small business tenant" shall mean a small business, as
 defined in section 131 of the economic development law, lawfully occupy-
 ing a covered property pursuant to a lease or other rental agreement.
   (c) "Small homeowner" shall mean an owner of  a  dwelling  with  6  or
 fewer units where such owner also resides as a primary residence.
   (d)  "Affordable  housing operator" shall mean a not-for-profit entity
 as defined in the not-for-profit corporation law or a  housing  develop-
 ment  fund  company  as  defined  in  section 572 of the private housing
 finance law that owns and operates a  housing  project  for  persons  of
 low-income.
   (e)  "Residential  cooperative"  shall  mean any not-for-profit corpo-
 ration or housing development fund  company  owning  and  operating  any
 housing  project,  of  any size, for persons of low-income as defined in
 section 573 of the private housing finance law  or  any  corporation  or
 entity  owning  and operating a residential cooperative with 10 or fewer
 units.
   § 4. Abatement of rent in the case of residential and commercial small
 business tenants  complying  or  formerly  employed  by  small  business
 complying  with  COVID-19  orders and tenants who are employees of small
 businesses; jurisdiction; evidentiary presumptions; effect of abatement;
 offset of abatement by owners. (a) Notwithstanding any  other  provision
 of  law,  rule or regulation to the contrary, for any residential tenant
 or commercial small business tenant in the state that has lost income as
 a result of such residential  tenant's,  or  such  tenant's  employer's,
 compliance  with  government  ordered  restrictions  in  response to the
 outbreak of novel coronavirus, COVID-19, or as a result of the  shutdown
 of  the  industry  in  which such residential tenant or commercial small
 business tenant was working, operating,  or  employed  as  a  result  of
 government  ordered  restrictions  in  response to the outbreak of novel
 coronavirus, COVID-19,  including  the  definition  of  "essential"  and
 "non-essential" work, or as a result of the closure of the premises when
 the  premises are such commercial small business tenant's place of busi-
 ness in compliance with government ordered restrictions in  response  to
 the  outbreak of novel coronavirus, COVID-19, no rent shall be recovered
 by an owner of any premises used by such tenant thereof for human  habi-
 tation, or for the operation of the small business, for the entire peri-
 od  of such compliance, which period shall run from March 20, 2020 until
 the date when the governor shall specify, in an  executive  order,  that
 the  prohibition  on  enforcement  of  either an eviction of any tenant,
 residential or commercial, imposed by executive order 202.8, shall  have
 expired, but in no event shall such period be less than ninety days from
 March 20, 2020.
   (b) (i) In the case of residential tenants, both the state division of
 housing  and  community renewal as well as any court of competent juris-
 diction, which shall include the New York City Civil Court and any city,
 village, or town court within a summary proceeding under  article  7  of
 the  real  property actions and proceedings law, shall have jurisdiction
 to determine rental abatements as provided herein. The state division of
 housing and community renewal shall issue regulations to effectuate this

 S. 8190--A                          3

 section.   The regulations  issued  pursuant  to  this  paragraph  shall
 include  provisions  designed to ensure that assistance will be provided
 by the relevant agencies to ensure  full  access  to  the  services  and
 financial assistance required under this section by individuals for whom
 English is not the primary language.
   (ii)  In  the  case of commercial small business tenants, any court of
 competent jurisdiction, which shall include  the  New  York  City  Civil
 Court  and  any city, village, or town court within a summary proceeding
 under article 7 of the real property actions  and  proceedings  law,  as
 well  as the comptroller in a municipality having a comptroller, or in a
 municipality having no comptroller, then the  chief  fiscal  officer  of
 such  municipality,  except  that  in the city of New York, then specif-
 ically the department of small business services, shall  have  jurisdic-
 tion  to  determine  rental  abatements  as  provided herein. Said comp-
 troller, chief fiscal  officer,  or,  in  the  city  of  New  York,  the
 department  of  small business services, such shall issue regulations to
 effectuate this section.  The regulations issued pursuant to this  para-
 graph  shall  include provisions designed to ensure that assistance will
 be provided by the relevant  agencies  to  ensure  full  access  to  the
 services  and  financial assistance required under this section by indi-
 viduals for whom English is not the primary language.
   (c) For the purpose of demonstrating that such residential tenant  has
 lost  income  as a result of such residential tenant's, or such tenant's
 employer's, compliance with government ordered restrictions in  response
 to the outbreak of novel coronavirus, COVID-19, a rebuttable presumption
 that  such  residential  tenant  has lost income shall be created if the
 residential tenant establishes through testimony or documentary evidence
 that the tenant has lost hourly income pay, or was terminated, laid-off,
 subject to a reduction in work hours, or terminated from an  independent
 contract  job  or  "gig"  employment  within  2 weeks of the issuance of
 government ordered restrictions in response to  the  outbreak  of  novel
 coronavirus,  COVID-19. For the purpose of this subdivision, the 2 weeks
 shall run from March 7, 2020.
   (d) For the purpose of demonstrating that such commercial small  busi-
 ness  tenant  has lost income as a result of such commercial small busi-
 ness  tenant's  compliance  with  government  ordered  restrictions   in
 response  to  the  outbreak of novel coronavirus, COVID-19, a rebuttable
 presumption that such commercial small business tenant has  lost  income
 shall  be  created  if such commercial small business tenant establishes
 through testimony or documentary evidence  that  such  commercial  small
 business  tenant  closed the premises when the premises are such commer-
 cial small business' place of business within 2 weeks of the issuance of
 government ordered restrictions in response to  the  outbreak  of  novel
 coronavirus, COVID-19.  For the purpose of this subdivision, the 2 weeks
 shall run from March 7, 2020.
   (e)  Any  abatement  of  rent  provided to a residential or commercial
 small business tenant hereunder shall have the same effect as a  cancel-
 lation of the rental debt and any claims related thereto for the purpose
 of legal collection, enforcement, and reporting to a credit reporting or
 tenant  screening  bureau,  and  shall  render  any  person who seeks to
 collect, enforce, or report to  a  credit  reporting  bureau  or  tenant
 screening  bureau such abated rent to all like penalties, sanctions, and
 liabilities under the law for the unlawful collection,  enforcement,  or
 reporting of debt.
   (f)  At  such  owner's  election, any owner of premises subject to any
 orders awarding abatements of rent issued by  the  state  department  of

 S. 8190--A                          4
 
 housing  and  community renewal or other department or agency designated
 by the chief executive of a city with a  population  of  more  than  one
 million or county, city, town, or village, or to any judgments issued by
 a court of competent jurisdiction shall be entitled to recover the total
 dollar  amount  of  all  abatements  issued  hereunder  either: (i) as a
 reduction in the owner's real property tax payment by deducting from the
 amount due in any quarter or period an amount not in excess  of  10%  of
 the total abatement dollar amount from each payment coming due until the
 total abatement amount is deducted; or
   (ii)  a  withholding  of  any  mortgage or construction loan principal
 payments, mortgage or construction loan interest payments,  or  mortgage
 or  construction  loan extension fee payments due and owing to the state
 or any political subdivision thereof until the total abatement amount is
 repaid. The department of taxation and finance and all  departments  and
 agencies  specified  in  the  private housing finance law, including the
 supervising agency as defined  in  article  1  of  the  private  housing
 finance  law, shall issue regulations establishing an application proce-
 dure for an owner to elect a method of abatement offsetting.  The  regu-
 lations  issued  pursuant  to  this  paragraph  shall include provisions
 designed to ensure that assistance will  be  provided  by  the  relevant
 agencies  to ensure full access to the services and financial assistance
 required under this section by individuals for whom English is  not  the
 primary language.
   §  5. Residential mortgage relief for individuals with financial hard-
 ship. The provisions of executive order 202.9 of 2020, dated  March  21,
 2020, relating to a modification of subdivision two of section 39 of the
 banking  law  to provide that any bank which is subject to the jurisdic-
 tion of the department of financial  services  shall  be  deemed  to  be
 engaging in an unsafe and unsound business practice if it does not grant
 a  forbearance to any person or business who has a financial hardship as
 a result of the novel coronavirus, COVID-19, pandemic for a period of 90
 days is hereby enacted, in its entirety, including  with  the  directive
 that  the  department  of  financial  services promulgate regulations to
 effectuate the contents of  such  directive.    The  regulations  issued
 pursuant  to  this paragraph shall include provisions designed to ensure
 that assistance will be provided by the relevant agencies to ensure full
 access to the services and  financial  assistance  required  under  this
 section by individuals for whom English is not the primary language.
   §  6.  Assistance to small homeowners losing rental income as a result
 of the novel coronavirus, COVID-19, public health crisis. (a) Except  as
 modified  in  this section, for the purpose of ensuring that small home-
 owners possess sufficient funds to continue operating safe, decent,  and
 sanitary housing, for themselves and for tenants, during the novel coro-
 navirus,  COVID-19,  public  health  crisis, any small homeowner who has
 lost 10% or greater of rental income as a result of  financial  hardship
 to  such small homeowner's tenants shall be entitled to a payment of the
 total amount of lost rental income if the small homeowner can  establish
 that  the  rental  income  was  lost  as  a result of novel coronavirus,
 COVID-19, hardship, for which a rebuttable presumption of loss resulting
 from the novel coronavirus, COVID-19, shall be  created  if  such  small
 homeowner can demonstrate the loss of 10% or more of rental income with-
 in  1  month  of  the  issuance  of  government  ordered restrictions in
 response to the outbreak of novel coronavirus, COVID-19.  In addition to
 those small homeowners who can demonstrate the loss of 10%  or  more  of
 their  rental  income,  any  small homeowner who can demonstrate through
 testimony or documentary evidence that such small homeowner has lost  an

 S. 8190--A                          5
 
 amount  of  rental income less than 10%, but which is sufficient to have
 caused financial hardship to the small homeowner by rendering such small
 homeowner incapable of covering necessary expenses related to the  prop-
 erty,  shall  also  be entitled to a payment of the total amount of lost
 rental income if the small  homeowner  can  establish  that  the  rental
 income  was  lost  as a result of novel coronavirus, COVID-19, hardship,
 for which a rebuttable presumption of  loss  resulting  from  the  novel
 coronavirus,  COVID-19,  shall  be  created  if such small homeowner can
 demonstrate the loss of such income within 1 month of  the  issuance  of
 government  ordered  restrictions  in  response to the outbreak of novel
 coronavirus, COVID-19.   For the  purpose  of  determining  whether  the
 rebuttable  presumption  created herein shall apply, the month shall run
 from March 7, 2020 until April 20, 2020.
   (b) Any payment made to a small homeowner under this  provision  shall
 be monthly, paid on or before May 1, 2020 and such payment shall contin-
 ue on a monthly basis until and through the date when the governor shall
 specify,  in  an executive order, that the prohibition on enforcement of
 either an eviction of any tenant, residential or commercial, imposed  by
 executive  order  202.8,  shall have expired, but in no event shall such
 period be less than 90 days from March 20, 2020. The  first  payment  on
 May  1,  2020 shall cover the period of March 20 through April 30, 2020.
 Such shall also include provisions designed to  ensure  that  assistance
 will  be  provided by the relevant agencies to ensure full access to the
 services and financial assistance required under this section  by  indi-
 viduals for whom English is not the primary language
   (c)  The  supervising  agency,  as defined in article 1 of the private
 housing finance law, shall issue regulations establishing an application
 procedure for a small homeowner to seek such lost rental income  relief.
 Such  regulations  shall  provide  that  as  a  condition of such relief
 payments, a small homeowner shall agree and shall be obligated,  through
 executing  an  instrument  in a form specified in any regulations issued
 hereunder, to provide all  tenants  residing  in  the  dwelling  with  a
 renewal  lease  of  at  least  1 year and at the amount of rent actually
 charged and collected 6 months prior to the application, and such  regu-
 lations  shall further provide that small homeowners shall not be eligi-
 ble for the relief provided herein for rental income  imputable  to  any
 illegal  unit  or  for  rental  income  imputable to any unit containing
 uncorrected, as of the time of the  application,  immediately  hazardous
 violations  of  a  state  or local housing or building code that existed
 prior to March 1, 2020.  Such regulations shall also include  provisions
 designed  to  ensure  that  assistance  will be provided by the relevant
 agencies to ensure full access to the services and financial  assistance
 required  under  this section by individuals for whom English is not the
 primary language.
   (d) The assistance provided under  this  section  shall  primarily  be
 funded  by any grants or funding available or repurposed by the state in
 relation to:
   (i) the novel coronavirus, COVID-19, public health crisis;
   (ii) any federal or state funds available in response  to  a  national
 and/or state emergency order;
   (iii)  any  funds received from federal programs in relation to public
 health emergencies;
   (iv) the novel coronavirus, COVID-19, public health emergency allowing
 for the protection of low-income, marginalized communities, public hous-
 ing programs and economic development, and the preservation and  conser-
 vation of housing;

 S. 8190--A                          6

   (v)  any  funds  available to the state under the federal "Coronavirus
 Aid, Relief, and Economic Security Act" or the CARES Act; and/or
   (vi)  any  federal  or  state  emergency relief funds available to the
 state.
   § 7. Assistance for affordable housing operators losing rental  income
 as a result of the novel coronavirus, COVID-19, public health crisis.
   (a)  Except  as  modified in this section, for the purpose of ensuring
 that affordable housing operators possess sufficient funds  to  continue
 operating  safe,  decent, and sanitary housing for vulnerable low-income
 populations  during  the  novel  coronavirus,  COVID-19,  public  health
 crisis,  any affordable housing operator that has lost 10% or greater of
 rental income as a result of financial hardship to such affordable hous-
 ing operator's tenants shall be entitled  to  a  payment  of  the  total
 amount  of  lost  rental  income  if the affordable housing operator can
 establish that the rental income was lost as a result of novel coronavi-
 rus, COVID-19, hardship, for which  a  rebuttable  presumption  of  loss
 resulting from the novel coronavirus, COVID-19, shall be created if such
 affordable  housing  operator can demonstrate the loss of 10% or more of
 rental income within 1 month  of  the  issuance  of  government  ordered
 restrictions in response to the outbreak of novel coronavirus, COVID-19.
 In  addition  to  those affordable housing operators who can demonstrate
 the loss of 10% or more of their rental income, any  affordable  housing
 operator  who  can demonstrate through testimony or documentary evidence
 that such affordable housing operator  has  lost  an  amount  of  rental
 income  less  than 10%, but which is sufficient to have caused financial
 hardship to the affordable housing operator by rendering such affordable
 housing operator incapable of covering necessary expenses related to the
 property, shall also be entitled to a payment of  the  total  amount  of
 lost rental income if the affordable housing operator can establish that
 the  rental  income was lost as a result of novel coronavirus, COVID-19,
 hardship, for which a rebuttable presumption of loss resulting from  the
 novel coronavirus, COVID-19, shall be created if such affordable housing
 operator  can  demonstrate the loss of such income within 1 month of the
 issuance of government ordered restrictions in response to the  outbreak
 of  novel coronavirus, COVID-19.  For the purpose of determining whether
 the rebuttable presumption created herein shall apply, the  month  shall
 be  deemed  to have begun on March 7, 2020 and shall run until April 20,
 2020.
   (b) Any payment made to an  affordable  housing  operator  under  this
 provision  shall be monthly, paid on May 1, 2020, and such payment shall
 continue on a monthly basis until and through the date when the governor
 shall specify, in an executive order, that the prohibition  on  enforce-
 ment  of  either  an  eviction of any tenant, residential or commercial,
 imposed by executive order 202.8, shall have expired, but  in  no  event
 shall  such  period  be less than 90 days from March 20, 2020. The first
 payment on May 1, 2020 shall cover the period of March 20 through  April
 30, 2020.
   (c)  All  departments  and  agencies  specified in the private housing
 finance law, including the supervising agency as defined in article 1 of
 the private housing finance law, shall issue regulations establishing an
 application procedure for an affordable housing  operator  seeking  such
 lost  rental  income  relief.  Such regulations shall provide that, as a
 condition of such relief, the affordable housing  operator  shall  enter
 into  a  regulatory  agreement, as defined in section 576 of the private
 housing finance law, with the executive unless such  affordable  housing
 operator  is already subject to a regulatory agreement as defined there-

 S. 8190--A                          7
 
 in, and such regulations shall further provide that  affordable  housing
 operators  shall  not  be  eligible  for  the relief provided herein for
 rental income imputable to any illegal unit or for rental income imputa-
 ble to a unit containing uncorrected, as of the time of the application,
 immediately hazardous violations of a state or local housing or building
 code  that  existed prior to March 1, 2020.  Such regulations shall also
 include provisions designed to ensure that assistance will  be  provided
 by  the  relevant  agencies  to  ensure  full access to the services and
 financial assistance required under this section by individuals for whom
 English is not the primary language.
   (d) The assistance provided under  this  section  shall  primarily  be
 funded  by any grants or funding available or repurposed by the state in
 relation to:
   (i) the novel coronavirus, COVID-19, public health crisis;
   (ii) any federal or state funds available in response  to  a  national
 and/or state emergency order;
   (iii)  any  funds received from federal programs in relation to public
 health emergencies;
   (iv) the novel coronavirus, COVID-19, public health emergency allowing
 for the protection of low-income, marginalized communities, public hous-
 ing programs and economic development, and the preservation and  conser-
 vation of housing;
   (v)  any  funds  available to the state under the federal "Coronavirus
 Aid, Relief, and Economic Security Act" or the CARES Act; and/or
   (vi) any federal or state emergency  relief  funds  available  to  the
 state.
   § 8. Assistance to residential housing cooperatives losing maintenance
 and rental income as a result of the novel coronavirus, COVID-19, public
 health  crisis.  (a) Except as modified in this section, for the purpose
 of ensuring that residential  housing  cooperatives  possess  sufficient
 funds to continue operating safe, decent, and sanitary multifamily hous-
 ing  during  the  novel coronavirus, COVID-19, public health crisis, any
 residential housing cooperatives that have lost 10% or greater of  main-
 tenance or rental income as a result of financial hardship to such resi-
 dential  housing cooperative's tenants or shareholders shall be entitled
 to a payment of the total amount of lost maintenance or rental income if
 the residential housing cooperative can establish that  the  maintenance
 or  rental  income  was lost as a result of novel coronavirus, COVID-19,
 hardship, for which a rebuttable presumption of loss resulting from  the
 novel  coronavirus, COVID-19, shall be created if such residential hous-
 ing cooperative can demonstrate the loss of 10% or more  of  maintenance
 or  rental  income  within 1 month of the issuance of government ordered
 restrictions in response to the outbreak of novel coronavirus, COVID-19.
 In addition to those residential housing  cooperatives  who  can  demon-
 strate  the  loss of 10% or more of their rental income, any residential
 housing cooperative which can demonstrate through testimony or  documen-
 tary  evidence  that  such  residential  housing cooperative has lost an
 amount of maintenance or rental income  less  than  10%,  but  which  is
 sufficient  to have caused financial hardship to the residential housing
 cooperative by rendering such residential housing cooperative  incapable
 of  covering  necessary  expenses related to the property, shall also be
 entitled to a payment of the total amount of lost maintenance or  rental
 income  if  the  residential  housing cooperative can establish that the
 maintenance or rental income was lost as a result of novel  coronavirus,
 COVID-19, hardship, for which a rebuttable presumption of loss resulting
 from  the novel coronavirus, COVID-19, shall be created if such residen-

 S. 8190--A                          8

 tial housing cooperative can demonstrate the loss of such maintenance or
 rental income within 1 month  of  the  issuance  of  government  ordered
 restrictions in response to the outbreak of novel coronavirus, COVID-19.
 For  the  purpose  of  determining  whether  the  rebuttable presumption
 created herein shall apply, the month shall run from March 7, 2020 until
 April 20, 2020.
   (b) Any payment made to a residential housing cooperative  under  this
 provision  shall  be  monthly,  paid  on  or before May 1, 2020 and such
 payment shall continue on a monthly basis until  and  through  the  date
 when  the governor shall specify, in an executive order, that the prohi-
 bition on enforcement of an  eviction  of  any  tenant,  residential  or
 commercial, imposed by executive order 202.8, shall have expired, but in
 no event shall such period be less than 90 days from March 20, 2020.
   (c)  All  departments  and  agencies  specified in the private housing
 finance law as supervising housing development fund companies,  as  well
 as the supervising agency as defined in article 1 of the private housing
 finance  law, shall issue regulations establishing an application proce-
 dure for a residential housing cooperative seeking assistance with  such
 lost  maintenance  and  rental  income  relief.  Such  regulations shall
 provide that as a condition of such assistance payments,  a  residential
 housing  cooperative shall agree and shall be obligated, through execut-
 ing an instrument in a form specified in the  regulations  issued  here-
 under, to provide any tenants residing in the housing cooperative with a
 renewal  lease  of  at  least 1 year, at the same rental amount actually
 charged and collected 6 months prior to the application for relief. Such
 regulations shall further provide that any  rental  housing  cooperative
 shall not be eligible for the relief provided herein for rental or main-
 tenance  income  imputable  to  any  illegal  unit  or  unit occupied in
 violation of the cooperative's bylaws or for rental income imputable  to
 a  unit containing uncorrected, as of the time of the application, imme-
 diately hazardous violations of a state or  local  housing  or  building
 code that existed prior to March 1, 2020 and which are the housing coop-
 erative's  legal  duty  to remedy.   Such regulations shall also include
 provisions designed to ensure that assistance will be  provided  by  the
 relevant  agencies  to  ensure full access to the services and financial
 assistance required under this section by individuals for  whom  English
 is not the primary language.
   (d)  The  assistance  provided  under  this section shall primarily be
 funded by any grants or funding available or repurposed by the state  in
 relation to:
   (i) the novel coronavirus, COVID-19, public health crisis;
   (ii)  any  federal  or state funds available in response to a national
 and/or state emergency order;
   (iii) any funds received from federal programs in relation  to  public
 health emergencies;
   (iv) the novel coronavirus, COVID-19, public health emergency allowing
 for the protection of low-income, marginalized communities, public hous-
 ing  programs and economic development, and the preservation and conser-
 vation of housing;
   (v) any funds available to the state under  the  federal  "Coronavirus
 Aid, Relief, and Economic Security Act" or the CARES Act; and/or
   (vi)  any  federal  or  state  emergency relief funds available to the
 state.
   § 9. Regulatory relief for affordable housing operators  and  residen-
 tial  housing  cooperatives providing housing during the novel coronavi-
 rus, COVID-19, public health crisis.  (a) Notwithstanding  any  contrary

 S. 8190--A                          9
 
 provision  of  law,  rule,  regulation or provision of any regulatory or
 other agreement by and between an affordable housing operator,  residen-
 tial  housing cooperative, or any affiliate or subsidiary of an afforda-
 ble  housing  operator or residential housing cooperative, as one party,
 and the department or agency of the state or any  political  subdivision
 of  the  state, as another party, affordable housing operators and resi-
 dential housing cooperatives shall: (i) have the right to use  or  apply
 any operating account reserves toward or for building or housing project
 operations  or the satisfaction of any debts or obligations arising from
 financial hardship caused by the  novel  coronavirus,  COVID-19,  public
 health  crisis without any penalty or sanction otherwise provided for in
 such law, rule, regulation, or provision of a regulatory or other agree-
 ment; and (ii) the right to withhold any mortgage or  construction  loan
 principal  payments, mortgage or construction loan interest payments, or
 mortgage or construction loan extension fee payments due  and  owing  to
 the  state  or any political subdivision thereof and apply such mortgage
 interest payments to housing project operations or the  satisfaction  of
 any  debts  or obligations arising from financial hardship caused by the
 novel coronavirus, COVID-19, public health crisis or to  the  replenish-
 ment of any operating account reserves.
   (b) Notwithstanding any contrary provision of law, rule, regulation or
 provision of any regulatory or other agreement by and between any corpo-
 ration, not-for-profit corporation, community benefit corporation, local
 community  development  corporation, as one party, and the department or
 agency of the state or any political subdivision of the state, as anoth-
 er party, relating to the provision of funding to any affordable housing
 operator or residential housing cooperative, whether as a mortgage or as
 any supportive fund, such community benefit corporation or local  commu-
 nity development shall, upon request of such affordable housing operator
 or residential housing cooperative, grant a forbearance to such afforda-
 ble housing operator or residential housing cooperative who has a finan-
 cial  hardship  as a result of the novel coronavirus, COVID-19, pandemic
 for a period of at least 90 days, which period shall be extended if  the
 governor  extends  the period of the mortgage forbearance as provided in
 section five of this act.
   (c) All departments and agencies  specified  in  the  private  housing
 finance law, including the supervising agency as defined in article 1 of
 the  private  housing finance law, shall issue regulations to effectuate
 the provisions of this section.
   § 10. Severability clause. If any clause, sentence, paragraph,  subdi-
 vision,  section  or  part  of  this act shall be adjudged by a court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair or invalidate the remainder thereof, but shall be confined in its
 operation  to  the  clause, sentence, paragraph, subdivision, section or
 part thereof directly involved in the controversy in which such judgment
 shall have been rendered. It is hereby declared to be the intent of  the
 legislature  that  this act would have been enacted even if such invalid
 provisions had not been included herein.
   § 11. This act shall take effect immediately.

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Senate Bill S8190A

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

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Sponsored By

Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Actions

Bill Amendments

co-Sponsors

2019-S8190 - Details

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2019-S8190 - Sponsor Memo

2019-S8190 - Bill Text download pdf

co-Sponsors

2019-S8190A (ACTIVE) - Details

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