S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3190
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2021
                                ___________
 
 Introduced  by M. of A. EPSTEIN, GOTTFRIED, SIMON, CARROLL, STECK, FRON-
   TUS, SEAWRIGHT, BARRON, PERRY, DICKENS, TAYLOR,  BRONSON,  RICHARDSON,
   HUNTER,  DE LA ROSA,  KIM,  BARNWELL,  ANDERSON, ROZIC, KELLES -- read
   once and referred to the Committee on Small Business
 
 AN ACT to suspend rent payments for certain tenants in response  to  the
   outbreak of coronavirus
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. For the purposes of this act:
   (a) "actual income" means for a not-for-profit  corporation  employing
 twenty-five  or less full-time employees or full-time equivalent employ-
 ees or for a small business incorporated and  resident  in  this  state,
 independently owned and operated, not dominant in its field, and employs
 twenty-five  or less full-time employees or full-time equivalent employ-
 ees, all revenue, including emergency federal, state  or  local  assist-
 ance,  or  any  other  form of income that  may be used to pay rent, but
 excluding restricted grants;
   (b) "landlord" means the person or entity to  whom  a  covered  tenant
 owes rent;
   (c)  "rent"  means the amount charged in consideration for the use and
 occupancy of real property pursuant to a written or oral  rental  agree-
 ment or statute;
   (d)  "state  of  emergency"  means  the state of emergency declared by
 executive order 202 that began on March 7, 2020 and any  further  amend-
 ments  or  modifications,  and  as  may  be further extended pursuant to
 section 28 of the executive law;
   (e) "covered tenant" includes a tenant that is a not-for-profit corpo-
 ration employing twenty-five or less full-time  employees  or  full-time
 equivalent  employees, or a tenant that is a small business incorporated
 and resident in this state, independently owned and operated, not  domi-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02356-02-1
              

 A. 3190                             2
 
 nant  in  its field, and employs twenty-five or less full-time employees
 or full-time equivalent employees; and
   (f)  "covered period" means March 7, 2020 until the date on which none
 of the provisions that closed or otherwise restricted public or  private
 businesses  or  places of public accommodation, or required postponement
 or cancellation of all non-essential gatherings of individuals  of   any
 size,  for  any  reason  in Executive Orders 202.3, 202.4, 202.5, 202.6,
 202.7, 202.8, 202.10, 202.11, 202.13 or 202.14, as extended by Executive
 Orders 202.28 and 202.31 and as further extended by any future Executive
 Order, issued in response to the COVID-19 pandemic continue to apply  in
 the county in which the covered tenant is located.
   § 2. (a) (i) Notwithstanding any other provision of law, rule or regu-
 lation  to  the  contrary, any covered tenant in the state that has been
 forced to close their place of business, or  whose  business  activities
 have  been  substantially  curtailed  resulting in a loss of income as a
 result of government ordered restrictions in response to the outbreak of
 coronavirus disease 2019  (COVID-19),  shall  be  responsible  for  rent
 payments  up to twenty percent of the covered tenant's actual income for
 the thirty days prior to the date such rent  was  due  or  one-third  of
 their contractual rent, whichever is less, per month for the duration of
 the  covered  period through one hundred eighty days following the final
 day of the covered period.  A landlord of a covered tenant  shall  waive
 twenty percent of the contractual rent per month for the duration of one
 hundred eighty days following the final day of the covered period.
   (ii)  Where  a  covered  tenant is authorized to pay an amount that is
 less than their contractual or statutory rent pursuant to this act,  the
 covered tenant shall provide the landlord and the department of economic
 development with a sworn affidavit affirming the covered tenant's actual
 income  for the thirty days prior to the date such rent was due for each
 month for which the tenant is seeking a reduced payment of rent  due  to
 loss  of  income  as  a  result  of  government  ordered restrictions in
 response to the outbreak of coronavirus disease  2019  (COVID-19).  Upon
 the verification of such statement by the commissioner of the department
 of  economic development or his or her agent, such payment shall absolve
 the covered tenant of any further obligation to pay rent and any differ-
 ence between the rent that would have been contractually or  statutorily
 owed  and  the  amount  paid pursuant to this paragraph shall be waived,
 except where a covered tenant later  receives  additional  income,  such
 rent obligations shall be recalculated.
   (iii)  In a summary proceeding for the non-payment of rent under arti-
 cle 7 of the real property actions and proceedings law, a covered tenant
 may raise a payment made pursuant to this act as a defense  to  non-pay-
 ment. If the amount of the covered tenant's actual income is in dispute,
 the  court  shall review documentation of the covered tenant's income in
 camera, unless otherwise deemed necessary by the court.  Notwithstanding
 any  other  provision  of law to the contrary customary documentation of
 income shall constitute prima facie evidence  of  the  covered  tenant's
 actual  income  and  shall  be  presumptively admissible in such summary
 proceeding.
   (b) Any covered tenant whose lease expires during the  covered  period
 shall  have  the option of extending such lease under the terms existing
 prior to the expiration of the lease for a period of up to  one  hundred
 eighty days after the expiration of the state of emergency.
   (c)  Late  fees,  interest or other penalties shall not be collectable
 for rent accrued during the existence of the state of emergency.

 A. 3190                             3
 
   § 3. (a) The commissioner of the department of economic development is
 hereby authorized and directed to establish  and  implement  an  interim
 commercial  rent relief program to support covered tenants and landlords
 impacted by the COVID-19 pandemic. Such program  shall  be  provided  at
 least  $500,000,000, including but not limited to monies that have  been
 allocated to the state of New York by the federal government.
   (b) Notwithstanding any other law to the contrary, a landlord that has
 lost rental income pursuant to this act and has not been  fully  compen-
 sated  by emergency federal, state or local assistance, may apply to the
 department of economic development for relief. The commissioner  of  the
 department of economic development may, upon satisfaction of the veraci-
 ty  of  the landlord's application and to the extent possible, authorize
 the distribution of funds, including but not limited to any unrestricted
 federal emergency assistance monies provided to the state that have  not
 otherwise  been  obligated,  to  any  such landlord in the amount of the
 balance of rental income lost after the twenty percent of the contractu-
 al rent waived by the landlord and any amount paid by a  covered  tenant
 pursuant to section two of this act.
   (c)  The  commissioner of the department of economic development shall
 promulgate rules and regulations to effectuate the  provisions  of  this
 act.    The  regulations  promulgated pursuant to this subdivision shall
 include provisions designed to ensure full access to  the  services  and
 financial assistance required under this section by individuals for whom
 English is not the primary language.
   §  4.  Notwithstanding  any  other law to the contrary, no court shall
 accept for filing a petition to commence a  new  summary  proceeding  to
 recover possession of real property under article 7 of the real property
 actions  and  proceedings  law  for  non-payment  of rent due to loss of
 income as a result of government ordered restrictions in response to the
 outbreak of coronavirus disease 2019 (COVID-19) for at least thirty days
 following the expiration of the state of emergency; provided any statute
 of limitations applicable to such summary proceedings  shall  be  tolled
 for  thirty  days;  provided  further,  however,  that  the tenant shall
 provide a sworn affidavit affirming the covered tenant's loss of  income
 as  a  result  of  government  ordered  restrictions  in response to the
 outbreak of coronavirus disease 2019 (COVID-19).  In no event shall late
 or reduced rent payments during the state of  emergency  constitute  the
 basis  for  a  summary holdover proceeding for the chronic nonpayment of
 rent.
   § 5. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after March 7, 2020.