NY State Senate Bill 2019-S8473

Senate Bill S8473

2019-2020 Legislative Session

Relates to the default of rent payments and judgments of possession for tenants who are small businesses

download bill text pdf

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 03, 2020	referred to housing, construction and community development

2019-S8473 (ACTIVE) - Details

See Assembly Version of this Bill:: A10387
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property Actions and Proceedings Law
Laws Affected:: Amd §§711 & 747, add §712, RPAP L

2019-S8473 (ACTIVE) - Summary

Provides that no default in the payment of rent due or judgment of possession shall be entered against a tenant who is a small business 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 pursuant to executive order two hundred two of two thousand twenty, as amended.

2019-S8473 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8473

SPONSOR: HOYLMAN
 
TITLE OF BILL:

An act to amend the real property actions and proceedings law, in
relation to default of payment of rent

 
PURPOSE OR GENERAL IDEA OF BILL:

To protect small business and non-profit tenants impacted by the COVID19
pandemic from losing their businesses and organizations in a possessory
judgement.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 2 of section 711 of the real property
actions and proceedings law to provide that the subdivision shall not
apply where a tenant is a small business or non-profit and has defaulted
in the payment of rent due between March 7th 2020 and a date six months
after the expiration of the state disaster emergency.

Section 2 amends section 747 of the real property actions and
proceedings law to provide that no possessory judgement shall be entered
from rent owed by a small businesses or non-profit tenant between March
7th 2020 and a date six months after the expiration of the state disas-
ter emergency.

Section 3 amends the real property actions and proceedings law by adding
a new section 712 to provide that no small business or non-profit tenant
shall be removed from possession in a special proceeding maintained
under the article upon the grounds of the section.

 
JUSTIFICATION:

There are over 400,000 small businesses in New York. Many of these firms
are suffering losses to their bottom line as a result of the COVID-19
pandemic, jeopardizing the livelihoods of hundreds of thousands of New
Yorkers. A $349 billion aid program has been slow to reach small busi-
nesses thanks in part to banking industry that has favored large corpo-
rations over mom and pops, according to an April 22nd, 2020 report by
the New York Times. Without aid, these struggling businesses are unable
to meet their expenses, including rent. In addition to providing employ-
ment opportunities and essential goods and services, New York's small
businesses generate billions of dollars in sales tax revenue for the
state, making them an integral part of our economy.

Non-profits also play essential roles in strengthening neighborhoods by
offering a variety of services such as assistance in obtaining housing,
employment, and securing benefits. A 2016 report issued by the State
Comptroller found that non-profits provided 1.3 million jobs for New
Yorkers and nearly $62 billion in wages. Like small businesses, these
organizations resources are strained as many of their caseloads have
gone up in response to the COVID-19 pandemic and the economic fallout it
has caused. Now more than ever must we ensure that the small, community
based organizations that are serving New Yorkers in this crisis can
continue to do so.


Part of any strategy to restart New York's economy must include efforts
to preserve the hundreds of thousands of struggling small businesses and
nonprofits. This bill aims to prevent the mass eviction of hundreds of
thousands of small businesses and small non-profits that default on rent
during the COVID-19 pandemic.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Unknown.

 
EFFECTIVE DATE:
Immediately after becoming law.

2019-S8473 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8473
 
                             I N  S E N A T E
 
                               June 3, 2020
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Housing, Construction  and
   Community Development
 
 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD16242-01-0

 S. 8473                             2
 
   § 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:
   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.

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