Assembly Actions - Lowercase Senate Actions - UPPERCASE |
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Mar 09, 2021 | signed chap.73 approval memo.1 |
Mar 08, 2021 | delivered to governor |
Jan 26, 2021 | returned to senate passed assembly ordered to third reading rules cal.13 substituted for a3207 |
Jan 19, 2021 | referred to judiciary delivered to assembly passed senate ordered to third reading cal.60 reported and committed to rules |
Jan 12, 2021 | print number 471a |
Jan 12, 2021 | amend (t) and recommit to housing, construction and community development |
Jan 06, 2021 | referred to housing, construction and community development |
senate Bill S471A
Signed By GovernorRelates to eviction and foreclosure protections
Sponsored By
Anna M. Kaplan
(D, IP, WF) 0 Senate District
Archive: Last Bill Status - Signed by Governor
- Introduced
- In Committee
- On Floor Calendar
- Passed Senate
- Passed Assembly
- Delivered to Governor
- Signed by Governor
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Jan 19, 2021 - floor Vote
S471A4617floor46Aye17Nay0Absent0Excused0Abstained-
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Floor Vote: Jan 19, 2021
aye (46)- Addabbo
- Akshar
- Bailey
- Benjamin
- Biaggi
- Breslin
- Brisport
- Brooks
- Brouk
- Comrie
- Cooney
- Felder
- Gaughran
- Gianaris
- Gounardes
- Harckham
- Hinchey
- Hoylman-Sigal
- Jackson
- Kaminsky
- Kaplan
- Kavanagh
- Kennedy
- Krueger
- Liu
- Mannion
- May
- Mayer
- Myrie
- Parker
- Persaud
- Ramos
- Reichlin-Melnick
- Rivera
- Ryan
- Salazar
- Sanders
- Savino
- Sepúlveda
- Serino
- Serrano
- Skoufis
- Stavisky
- Stewart-Cousins
- Tedisco
- Thomas
Jan 19, 2021 - Housing, Construction and Community Development committee Vote
S471A83committee8Aye3Nay0Aye with Reservations0Absent0Excused0AbstainedJan 19, 2021 - Rules committee Vote
S471A137committee13Aye7Nay0Aye with Reservations1Absent0Excused0Abstained -
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S471 - Details
- See Assembly Version of this Bill:
- A3207
- Law Section:
- Real Property
S471 - Summary
Establishes the COVID-19 Emergency Protect Our Small Businesses Act of 2021; relates to eviction proceedings (Part A); relates to foreclosure proceedings (Subpart A); relates to tax sales (Subpart B)… (view more) establishes hardship declarations for owners of commercial real property (Subpart C) (Part B).
S471 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 471 2021-2022 Regular Sessions I N S E N A T E (PREFILED) January 6, 2021 ___________ Introduced by Sen. KAPLAN -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development AN ACT establishing the "COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2021"; in relation to eviction proceedings; and to provide for the expiration of certain provisions upon the expiration thereof (Part A); and in relation to foreclosure proceedings; and providing for the expiration of certain provisions upon the expiration thereof (Subpart A); in relation to tax sales; and providing for the expiration of certain provisions upon the expiration thereof (Subpart B); to establish hardship declarations for owners of commercial real property; and providing for the expiration of such provisions upon the expiration thereof (Subpart C); and to authorize every governing body of an assessing unit and local assessor to extend to the 2021 assess- ment roll, the renewal of the exemptions received on the 2020 assess- ment roll; and to provide for the expiration of such provisions upon the expiration thereof (Subpart D) (Part B) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law components of legislation relating to eviction and foreclosure protections. Each component is wholly contained within a Part identified as Parts A through B. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section four of this act sets forth the general effective date of this act. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD07084-01-1 S. 471 2 § 2. Short title. This act shall be known and may be cited as the "COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2021". § 3. Legislative intent. The Legislature finds and declares all of the following: On March 7, 2020, Governor Andrew Cuomo proclaimed a state of emergen- cy in response to the Coronavirus disease (COVID-19) pandemic. Measures necessary to contain the spread of COVID-19 have brought about wide- spread economic and societal disruption, placing the state of New York in unprecedented circumstances. COVID-19 presents a historic threat to public health. Hundreds of thousands of residents are facing eviction or foreclosure due to neces- sary disease control measures that closed businesses and schools, and triggered mass-unemployment across the state. The pandemic has further interrupted court operations, the availability of counsel, the ability for parties to pay for counsel, and the ability to safely commute and enter a courtroom, settlement conference and the like. Stabilizing the housing situation for tenants, landlords, and homeown- ers is to the mutual benefit of all New Yorkers and will help the state address the pandemic, protect public health, and set the stage for recovery. It is, therefore, the intent of this legislation to avoid as many evictions and foreclosures as possible for people experiencing a financial hardship during the COVID-19 pandemic or who cannot move due to an increased risk of severe illness or death from COVID-19. As such, it is necessary to temporarily allow people impacted by COVID-19 to remain in their homes. A limited, temporary stay is neces- sary to protect the public health, safety and morals of the people the Legislature represents from the dangers of the COVID-19 emergency pandemic. PART A Section 1. Definitions. For the purposes of this act: 1. "Eviction proceeding" means a summary proceeding to recover possession of real property under article seven of the real property actions and proceedings law relating to a commercial unit or any other judicial or administrative proceeding to recover possession of real property relat- ing to a commercial unit. 2. "Landlord" includes a landlord, owner of a commercial property and any other person with a legal right to pursue eviction, possessory action or a money judgment for rent, including arrears, owed or that becomes due during the COVID-19 covered period, as defined in section 1 of chapter 127 of the laws of 2020. 3. "Tenant" includes a commercial small business tenant, as defined in section 131 of the economic development law, lawful occupant of a commercial unit, or any other person responsible for paying rent, use and occupancy, or any other financial obligation under a commercial lease or tenancy agreement, but does not include a commercial tenant or lawful occupant with a seasonal use lease where such tenant has a prima- ry residence to which to return to. 4. "Hardship declaration" means the following statement, or a substan- tially equivalent statement in the tenant's primary language, in 14-point type, published by the office of court administration, whether in physical or electronic written form: "NOTICE TO TENANT: If you have lost income or had increased costs during the COVID-19 pandemic, or moving would pose a significant health risk for you or a member of your household due to an increased risk for S. 471 3 severe illness or death from COVID-19 due to an underlying medical condition, and you sign and deliver this hardship declaration form to your landlord, you cannot be evicted until at least May 1, 2021 for nonpayment of rent or for holding over after the expiration of your lease. You may still be evicted for violating your lease by persistently and unreasonably engaging in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substan- tial safety hazard to others. If your landlord has provided you with this form, your landlord must also provide you with a mailing address and e-mail address to which you can return this form. If your landlord has already started an eviction proceeding against you, you can return this form to either your land- lord, the court, or both at any time. You should keep a copy or picture of the signed form for your records. You will still owe any unpaid rent to your landlord. You should also keep careful track of what you have paid and any amount you still owe. For more information about legal resources that may be available to you, go to www.nycourts.gov/evictions/nyc/ or call 718-557-1379 if you live in New York City or go to www.nycourts.gov/evictions/outside-nyc/ or call a local bar association or legal services provider if you live outside of New York City. Rent relief may be available to you, and you should contact your local housing assistance office. TENANT'S DECLARATION OF HARDSHIP DURING THE COVID-19 PANDEMIC I am a tenant, lawful occupant, or other person responsible for paying rent, use and occupancy, or any other financial obligation under a lease or tenancy agreement at (address of commercial unit). YOU MUST INDICATE BELOW YOUR QUALIFICATION FOR EVICTION PROTECTION BY SELECTING OPTION "A" OR "B", OR BOTH. A. ( ) I am experiencing financial hardship, and I am unable to pay my rent or other financial obligations under the lease in full or obtain an alternative suitable commercial property because of one or more of the following: 1. Significant loss of household income during the COVID-19 pandemic. 2. Increase in necessary out-of-pocket expenses related to performing essential work or related to health impacts during the COVID-19 pandem- ic. 3. Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member during the COVID-19 pandemic have negatively affected my ability or the ability of someone in my household to obtain meaningful employment or earn income or increased my necessary out-of-pocket expenses. 4. Moving expenses and difficulty I have securing an alternative commercial property make it a hardship for me to relocate to another residence during the COVID-19 pandemic. 5. Other circumstances related to the COVID-19 pandemic have negative- ly affected my ability to obtain meaningful employment or earn income or have significantly reduced my household income or significantly increased my expenses. To the extent that I have lost household income or had increased expenses, any public assistance, including unemployment insurance, pandemic unemployment assistance, disability insurance, or paid family leave, that I have received since the start of the COVID-19 pandemic S. 471 4 does not fully make up for my loss of household income or increased expenses. B. ( ) Vacating the premises and moving into a new commercial property would pose a significant health risk because I or one or more members of my household have an increased risk for severe illness or death from COVID-19 due to being over the age of sixty-five, having a disability or having an underlying medical condition, which may include but is not limited to being immunocompromised. I understand that I must comply with all other lawful terms under my commercial tenancy, lease agreement or similar contract. I further understand that lawful fees, penalties or interest for not having paid rent in full or met other financial obligations as required by my commercial tenancy, lease agreement or similar contract may still be charged or collected and may result in a monetary judgment against me. I further understand that my landlord may be able to seek eviction after May 1, 2021, and that the law may provide certain protections at that time that are separate from those available through this declaration. Signed: Printed name: Date signed: NOTICE: You are signing and submitting this form under penalty of law. That means it is against the law to make a statement on this form that you know is false." § 2. Pending eviction proceedings. Any eviction proceeding pending on the effective date of this act, including eviction proceedings filed on or before March 7, 2020, or commenced within thirty days of the effec- tive date of this act shall be stayed for at least sixty days, or to such later date that the chief administrative judge shall determine is necessary to ensure that courts are prepared to conduct proceedings in compliance with this act and to give tenants an opportunity to submit the hardship declaration pursuant to this act. The court in each case shall promptly issue an order directing such stay and promptly mail the respondent a copy of the hardship declaration in English, and, to the extent practicable, the tenant's primary language, if other than English. § 3. Pre-eviction notices. A landlord shall include a "Hardship Decla- ration" in 14-point type, with every written demand for rent made pursu- ant to subdivision 2 of section 711 of the real property actions and proceedings law, with any other written notice required by the commer- cial lease or tenancy agreement, law or rule to be provided prior to the commencement of an eviction proceeding, and with every notice of peti- tion served on a tenant. If the translation of the hardship declaration in the tenant's primary language is not available on the office of court administration's public website, as provided by section ten of this act, it shall be the landlord's responsibility to obtain a suitable trans- lation of the hardship declaration in the tenant's primary language. Such notice shall also include: 1. a mailing address, telephone number and active email address the tenant can use to contact the landlord and return the hardship declara- tion; and 2. a list of all not-for-profit legal service providers actively handling housing matters in the county where the subject premises are S. 471 5 located. Such lists shall be prepared and regularly updated, to the extent practicable, for such purpose and published on the website of the office of court administration. § 4. Prohibition on initiation of eviction proceeding. If there is no pending eviction proceeding and a tenant provides a hardship declaration to the landlord or an agent of the landlord, there shall be no initi- ation of an eviction proceeding against the tenant until at least May 1, 2021, and in such event any specific time limit for the commencement of an eviction proceeding shall be tolled until May 1, 2021. § 5. Required affidavit. 1. No court shall accept for filing any peti- tion or other filing to commence an eviction proceeding unless the peti- tioner or an agent of the petitioner files an affidavit of service, under penalty of perjury, demonstrating the manner in which the peti- tioner or the petitioner's agent served a copy of the hardship declara- tion in English and the tenant's primary language, if other than English, with any rent demand and with any other written notice required by the commercial lease or tenancy agreement, law or rule to be provided prior to the commencement of an eviction proceeding, and an affidavit under penalty of perjury: a. attesting that at the time of filing, neither the petitioner nor any agent of the petitioner has received a hardship declaration from the respondent or any other tenant or occupant of the commercial unit that is the subject of the proceeding, or b. attesting that the respondent or another tenant or occupant of the commercial unit that is the subject of the proceeding has returned a hardship declaration, but the respondent is persistently and unreason- ably engaging in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others, with a specific description of the behavior alleged. 2. Upon accepting a petition pursuant to article 7 of the real proper- ty actions and proceedings law, the attorney, judge or clerk of the court, as the case may be, shall determine whether a copy of the hard- ship declaration in English and the tenant's primary language, if other than English, is annexed to the served notice of petition and, if not, shall ensure that the hardship declaration is attached to such notice. Service of the notice of petition with the attached hardship declaration shall be made by personal delivery to the respondent, unless such service cannot be made with due diligence, in which case service may be made under section 735 of the real property actions and proceedings law. At the earliest possible opportunity, the court shall seek confirmation on the record or in writing from the respondent that the respondent has received the hardship declaration and that the respondent has not submitted a hardship declaration to the petitioner, an agent of the petitioner, or the court. If the court determines a respondent has not received a hardship declaration, then the court shall stay the proceed- ing for a reasonable period of time, which shall be no less than ten business days or any longer period provided by law, and provide the respondent with a copy of the hardship declaration in English and the respondent's primary language, if other than English, to ensure the respondent received and fully considered whether to submit the hardship declaration. § 6. Pending proceedings. In any eviction proceeding in which an eviction warrant has not been issued, including eviction proceedings filed on or before March 7, 2020, if the tenant provides a hardship declaration to the petitioner, the court, or an agent of the petitioner or the court, the eviction proceeding shall be stayed until at least May S. 471 6 1, 2021. If such hardship declaration is provided to the petitioner or agent, such petitioner or agent shall promptly file it with the court, advising the court in writing the index number of all relevant cases. § 7. Default judgments. No court shall issue a judgment in any proceeding authorizing a warrant of eviction against a respondent who has defaulted, or authorize the enforcement of an eviction pursuant to a default judgment, prior to May 1, 2021, without first holding a hearing after the effective date of this act upon motion of the petitioner. The petitioner or an agent of the petitioner shall file an affidavit attest- ing that the petitioner or the petitioner's agent has served notice of the date, time, and place of such hearing on the respondent, including a copy of such notice. If a default judgment has been awarded prior to the effective date of this act, the default judgment shall be removed and the matter restored to the court calendar upon the respondent's written or oral request to the court either before or during such hearing and an order to show cause to vacate the default judgment shall not be required. § 8. Post warrant of eviction. a. (i) In any eviction proceeding in which an eviction warrant has been issued prior to the effective date of this act, but has not yet been executed as of the effective date of this act, including eviction proceedings filed on or before March 7, 2020, the court shall stay the execution of the warrant at least until the court has held a status conference with the parties. (ii) In any eviction proceeding, if the tenant provides a hardship declaration to the petitioner, the court, or an agent of the petitioner or the court, prior to the execution of the warrant, the execution shall be stayed until at least May 1, 2021. If such hardship declaration is provided to the petitioner or agent of the petitioner, such petitioner or agent shall promptly file it with the court, advising the court in writing the index number of all relevant cases. b. In any eviction proceeding in which a warrant has been issued, including eviction proceedings filed on or before March 7, 2020, any warrant issued shall not be effective as against the occupants, unless, in addition to the requirements under section 749 of the real property actions and proceedings law for warrants, such warrant states: (i) The tenant has not submitted the hardship declaration and the tenant was properly served with a copy of the hardship declaration pursuant to this section, listing dates the tenant was served with the hardship declaration by the petitioner and the court; or (ii) The tenant is ineligible for a stay under this act because the court has found that the tenant is persistently and unreasonably engag- ing in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others, with a specific description of the behavior. c. No court shall issue a warrant directed to the sheriff of the coun- ty or to any constable or marshal of the city in which the property, or a portion thereof, is situated, or, if it is not situated in a city, to any constable of any town in the county, that does not comply with the requirements of this section. d. No officer to whom the warrant is directed shall execute a warrant for eviction issued that does not comply with the requirements of this section. e. Unless the warrant contains the information contained in paragraph (ii) of subdivision b of this section, if any tenant delivers the hardship declaration to the officer to whom the warrant is directed, the officer shall not execute the warrant and shall return the hardship form S. 471 7 to the court indicating the appropriate index/case number the form is associated with. § 9. Sections two, four, six and paragraph (ii) of subdivision a of section eight of this act shall not apply if the tenant is persistently and unreasonably engaging in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substan- tial safety hazard to others, provided: 1. If an eviction proceeding is pending on the effective date of this act, but the petitioner has not previously alleged that the tenant persistently and unreasonably engaged in such behavior, the petitioner shall be required to submit a new petition with such allegations and comply with all notice and service requirements under article 7 of the real property actions and proceedings law and this act. 2. If the court has awarded a judgment against a respondent prior to the effective date of this act on the basis of objectionable or nuisance behavior, the court shall hold a hearing to determine whether the tenant is continuing to persist in engaging in unreasonable behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others. 3. For the purposes of this act, a mere allegation of the behavior by the petitioner or an agent of the petitioner alleging such behavior shall not be sufficient evidence to establish that the tenant has engaged in such behavior. 4. If the petitioner fails to establish that the tenant persistently and unreasonably engaged in such behavior and the tenant provides or has provided a hardship declaration to the petitioner, petitioner's agent or the court, the court shall stay or continue to stay any further proceedings until at least May 1, 2021. 5. If the petitioner establishes that the tenant persistently and unreasonably engaged in such behavior or the tenant fails to provide a hardship declaration to the petitioner, petitioner's agent or the court, the proceeding may continue pursuant to article 7 of the real property actions and proceedings law and this act. § 10. Translation of hardship declaration. The office of court admin- istration shall translate the hardship declaration, as defined in section one of this act, into Spanish and the six most common languages in the city of New York, after Spanish, and shall post and maintain such translations and an English language copy of the hardship declaration on the website of such office beginning within fifteen days of the effec- tive date of this act. To the extent practicable, the office of court administration shall post and maintain on its website translations into such additional languages as the chief administrative judge shall deem appropriate to ensure that tenants have an opportunity to understand and submit hardship declarations pursuant to this act. § 11. Rebuttable presumption. A hardship declaration in which the tenant has selected the option indicating a financial hardship shall create a rebuttable presumption that the tenant is experiencing finan- cial hardship, in any judicial or administrative proceeding that may be brought, for the purposes of establishing a defense under chapter 127 of the laws of 2020, an executive order of the governor or any other local or state law, order or regulation restricting the eviction of a tenant suffering from a financial hardship during or due to COVID-19 provided that the absence of a hardship declaration shall not create a presump- tion that a financial hardship is not present. § 12. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid S. 471 8 and after exhaustion of all further judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part of this act directly involved in the controversy in which the judg- ment shall have been rendered. § 13. This act shall take effect immediately and sections one, two, three, four, five, six, seven, eight, nine, ten and twelve of this act shall expire May 1, 2021. PART B Section 1. This Part enacts into law components of legislation relat- ing to mortgage foreclosure, tax foreclosure, credit discrimination and tax renewal exemption protections. Each component is wholly contained within a Subpart identified as Subparts A through D. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Section 1. Application. This section shall apply to any action to foreclose a mortgage relating to commercial real property, provided the owner or mortgagor of such property is a natural person, regardless of how title is held, and owns ten or fewer commercial units whether directly or indirectly. The ten or fewer commercial units may be in more than one property or building as long as the total aggregate number of ten units includes the primary commercial property of the natural person requesting such relief and the remaining units are currently occupied by a tenant or are available for rent. For purposes of this act, real property shall not include property that is vacant and abandoned, as defined in subdivision 2 of section 1309 of the real property actions and proceedings law, which was listed on the statewide vacant and abandoned property electronic registry, as defined in section 1310 of the real property actions and proceedings law, prior to March 7, 2020 and that remains on such registry. Notwithstanding anything to the contrary, this act shall not apply to, and does not affect any mortgage loans made, insured, purchased or secu- ritized by a corporate governmental agency of the state constituted as a political subdivision and public benefit corporation, or the rights and obligations of any lender, issuer, servicer or trustee of such obli- gations. § 2. Definitions. For the purposes of this act, "Hardship Declaration" means the following statement, or a substantially equivalent statement in the mortagor's primary language, in 14-point type, published by the office of court administration, whether in physical or electronic writ- ten form: "NOTICE TO MORTGAGOR: If you have lost income or had increased costs during the COVID-19 pandemic, and you sign and deliver this hardship declaration form to your mortgage lender or other foreclosing party, you cannot be foreclosed on until at least May 1, 2021. S. 471 9 If your mortgage lender or other foreclosing party provided you with this form, the mortgage lender or other foreclosing party must also provide you with a mailing address and e-mail address to which you can return this form. If you are already in foreclosure proceedings, you may return this form to the court. You should keep a copy or picture of the signed form for your records. You will still owe any unpaid mortgage payments and lawful fees to your lender. You should also keep careful track of what you have paid and any amount you still owe. MORTGAGOR'S DECLARATION OF COVID-19-RELATED HARDSHIP I am the mortgagor of the property at (address of commercial unit). Including my primary residence, I own, whether directly or indirectly, ten or fewer commercial units. I am experiencing financial hardship, and I am unable to pay my mortgage in full because of one or more of the following: 1. Significant loss of household income during the COVID-19 pandemic. 2. Increase in necessary out-of-pocket expenses related to performing essential work or related to health impacts during the COVID-19 pandem- ic. 3. Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member during the COVID-19 pandemic have negatively affected my ability or the ability of someone in my household to obtain meaningful employment or earn income or increased my necessary out-of-pocket expenses. 4. Moving expenses and difficulty I have securing an alternative commercial property make it a hardship for me to relocate to another property during the COVID-19 pandemic. 5. Other circumstances related to the COVID-19 pandemic have negative- ly affected my ability to obtain meaningful employment or earn income or have significantly reduced my household income or significantly increased my expenses. 6. One or more of my tenants has defaulted on a significant amount of their rent payments since March 1, 2020. To the extent I have lost household income or had increased expenses, any public assistance, including unemployment insurance, pandemic unem- ployment assistance, disability insurance, or paid family leave, that I have received since the start of the COVID-19 pandemic does not fully make up for my loss of household income or increased expenses. I understand that I must comply with all other lawful terms under my commercial mortgage agreement. I further understand that lawful fees, penalties or interest for not having paid my mortgage in full as required by my commercial mortgage agreement may still be charged or collected and may result in a monetary judgment against me. I also understand that my mortgage lender or other foreclosing party may pursue a foreclosure action against me on or after May 1, 2021, if I do not fully repay any missed or partial payments and lawful fees. Signed: Printed Name: Date Signed: NOTICE: You are signing and submitting this form under penalty of law. That means it is against the law to make a statement on this form that you know is false." § 3. Any action to foreclose a mortgage pending on the effective date of this act, including actions filed on or before March 7, 2020, or commenced within thirty days of the effective date of this act shall be stayed for at least sixty days, or to such later date that the chief administrative judge shall determine is necessary to ensure that courts S. 471 10 are prepared to conduct proceedings in compliance with this act and to give mortgagors an opportunity to submit the hardship declaration pursu- ant to this act. The court in each case shall promptly issue an order directing such stay and promptly mail the mortgagor a copy of the hard- ship declaration in English, and, to the extent practicable, the mortgagor's primary language, if other than English. § 4. The foreclosing party shall include a "Hardship Declaration" in 14-point type, with every notice provided to a mortgagor. If the trans- lation of the hardship declaration in the mortgagor's primary language is not available on the office of court administration's public website, as provided by section nine of this act, it shall be the foreclosing party's responsibility to obtain a suitable translation of the hardship declaration in the mortgagor's primary language. Such notice shall also include a mailing address, telephone number and active email address the mortgagor can use to contact the foreclosing party and return the hard- ship declaration. § 5. If a mortgagor provides a hardship declaration to the foreclosing party or an agent of the foreclosing party, there shall be no initiation of an action to foreclose a mortgage against the mortgagor until at least May 1, 2021, and in such event any specific time limit for the commencement of an action to foreclose a mortgage shall be tolled until May 1, 2021. § 6. No court shall accept for filing any action to foreclose a mort- gage unless the foreclosing party or an agent of the foreclosing party files an affidavit, under penalty of perjury: (i) of service demonstrating the manner in which the foreclosing party's agent served a copy of the hardship declaration in English and the mortgagor's primary language, if other than English, with the notice, if any, provided to the mortgagor, and (ii) attesting that at the time of filing, neither the foreclosing party nor any agent of the foreclosing party has received a hardship declaration from the mortgagor. At the earliest possible opportunity, the court shall seek confirma- tion on the record or in writing that the mortgagor has received a copy of the hardship declaration and that the mortgagor has not returned the hardship declaration to the foreclosing party or an agent of the fore- closing party. If the court determines a mortgagor has not received a hardship declaration, then the court shall stay the proceeding for a reasonable period of time, which shall be no less than ten business days or any longer period provided by law, to ensure the mortgagor received and fully considered whether to submit the hardship declaration. § 7. In any action to foreclose a mortgage in which a judgment of sale has not been issued, including actions filed on or before March 7, 2020, if the mortgagor provides a hardship declaration to the foreclosing party, the court, or an agent of the foreclosing party or the court, the proceeding shall be stayed until at least May 1, 2021. If such hardship declaration is provided to the foreclosing party or agent of the fore- closing party, such foreclosing party or agent shall promptly file it with the court, advising the court in writing the index number of all relevant cases. § 8. In any action to foreclose a mortgage in which a judgment of sale has been issued prior to the effective date of this act but has not yet been executed as of the effective date of this act, including actions filed on or before March 7, 2020, the court shall stay the execution of the judgment at least until the court has held a status conference with the parties. In any action to foreclose a mortgage, if the mortgagor S. 471 11 provides a hardship declaration to the foreclosing party, the court, or an agent of the foreclosing party or the court, prior to the execution of the judgment, the execution shall be stayed until at least May 1, 2021. If such hardship declaration is provided to the foreclosing party or agent of the foreclosing party, such foreclosing party or agent shall promptly file it with the court, advising the court in writing the index number of all relevant cases. § 9. The office of court administration shall translate the hardship declaration, as defined in section one of this act, into Spanish and the six most common languages in the city of New York, after Spanish, and shall post and maintain such translations and an English language copy of the hardship declaration on the website of such office beginning within fifteen days of the effective date of this act. § 10. A hardship declaration shall create a rebuttable presumption that the mortgagor is suffering financial hardship, in any judicial or administrative proceeding that may be brought, for the purposes of establishing a defense under an executive order of the governor or any other local or state law, order or regulation restricting actions to foreclose a mortgage against a mortgagor suffering from a financial hardship during or due to the COVID-19 pandemic provided that the absence of a hardship declaration shall not create a presumption that a financial hardship is not present. § 11. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part of this act directly involved in the controversy in which the judg- ment shall have been rendered. § 12. This act shall take effect immediately and sections one, two, three, four, five, six, seven, eight, nine and eleven of this act shall expire May 1, 2021. SUBPART B Section 1. Application. This act shall apply to any action to fore- close on delinquent taxes or sell a tax lien relating to commercial real property, provided the owner or mortgagor of such property is a natural person, regardless of how title is held, and owns ten or fewer commer- cial units whether directly or indirectly. The ten or fewer commercial units may be in more than one property or building as long as the total aggregate number of ten units includes the primary commercial property of the natural person requesting such relief and the remaining units are currently occupied by a tenant or are available for rent. For purposes of this act, real property shall not include property that is vacant and abandoned, as defined in subdivision 2 of section 1309 of the real property actions and proceedings law, which was listed on the statewide vacant and abandoned property electronic registry, as defined in section 1310 of the real property actions and proceedings law, prior to March 7, 2020 and that remains on such registry. § 2. Definitions. For purposes of this act: 1. "Tax lien" means an unpaid tax, special ad valorem levy, special assessment or other charge imposed upon real property by or on behalf of a municipal corporation or special district or other public or private entity which is an encum- brance on real property, whether or not evidenced by a written instru- ment. S. 471 12 2. "Tax foreclosure and tax lien sale" shall mean any such tax lien sale or tax foreclosure pursuant to article 11 of the real property tax law, or any general, special or local law related to real property tax lien sales or real property tax foreclosures. 3. "Hardship Declaration" means the following statement, or a substan- tially equivalent statement in the owner's primary language, in 14-point type, whether in physical or electronic written form: "OWNER DECLARATION OF COVID-19-RELATED HARDSHIP I am the owner of the commercial property at (address). Including my primary commercial property, I own, whether directly or indirectly, ten or fewer commercial units. I am experiencing financial hardship, and I am unable to pay my full tax bill because of one or more of the follow- ing: 1. Significant loss of household income during the COVID-19 pandemic. 2. Increase in necessary out-of-pocket expenses related to performing essential work or related to health impacts during the COVID-19 pandem- ic. 3. Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member during the COVID-19 pandemic have negatively affected my ability or the ability of someone in my household to obtain meaningful employment or earn income or increased my necessary out-of-pocket expenses. 4. Moving expenses and difficulty I have securing an alternative commercial property make it a hardship for me to relocate to another property during the COVID-19 pandemic. 5. Other circumstances related to the COVID-19 pandemic have negative- ly affected my ability to obtain meaningful employment or earn income or have significantly reduced my household income or significantly increased my expenses. 6. One or more of my tenants has defaulted on a significant amount of their rent payments since March 1, 2020. To the extent that I have lost household income or had increased expenses, any public assistance, including unemployment insurance, pandemic unemployment assistance, disability insurance, or paid family leave, that I have received since the start of the COVID-19 pandemic does not fully make up for my loss of household income or increased expenses. I understand that lawful fees, penalties or interest for not having paid my taxes in full may still be charged or collected and may result in a foreclosure action against me on or after May 1, 2021, if I do not fully repay any missed or partial payments and fees. Signed: Printed Name: Date Signed: NOTICE: You are signing and submitting this form under penalty of law. That means it is against the law to make a statement on this form that you know is false." § 3. 1. A commercial real property owner may submit a "Hardship Decla- ration" to any village, town, city, school district, county, or other entity or person which conducts tax foreclosures or tax lien sales. 2. At least thirty days prior to the date on which a sale of a tax lien is scheduled to occur, or upon the filing of a petition of foreclo- sure of a tax lien, the enforcing officer or other person or entity conducting such tax lien sale or tax foreclosure shall notify the owner of the affected property of such owner's rights under this act and shall notify the owner that a copy of the hardship declaration can be accessed S. 471 13 on the New York State Department of Tax and Finance's website and also provide a link to such declaration form. For the purposes of this act, "enforcing officer" shall have the same meaning as defined in subdivi- sion 3 of section 1102 of the real property tax law. The New York State Department of Tax and Finance shall publish a copy of the hardship declaration on its website. 3. The submission of such a declaration, unless withdrawn by the owner, shall act as a temporary stay applicable to all entities and persons of all such tax lien sales and tax foreclosure actions and proceedings against such owner for such property that have been commenced or could have been commenced before May 1, 2021. 4. While such stay is in effect, no other action or proceeding shall be commenced to recover any part of such delinquent taxes. 5. Any applicable statutes of limitation for the commencement of any action or proceeding to sell a tax lien or foreclose a tax lien is tolled until such stay has expired. The obligation to pay the balance of such delinquent taxes is not rendered invalid, released or extinguished by such stay. 6. A hardship declaration shall create a rebuttable presumption that the owner is experiencing financial hardship, in any judicial or admin- istrative proceeding that may be brought, for the purposes of establish- ing a defense under an executive order of the governor or any other local or state law, order or regulation restricting actions to sell a tax lien or foreclose a tax lien against an owner suffering from a financial hardship during or due to the COVID-19 pandemic, provided that the absence of a hardship declaration shall not create a presump- tion that a financial hardship is not present. § 4. This act shall take effect immediately and sections one and two and subdivisions one, two, three, four and five of section three shall expire May 1, 2021. SUBPART C Section 1. Application. 1. This act shall apply to an owner of commer- cial real property, provided the owner or mortgagor of such property is a natural person, regardless of how title is held, and owns ten or fewer commercial units whether directly or indirectly. The ten or fewer commercial units may be in more than one property or building as long as the total aggregate number of ten units includes the primary commercial property of the natural person requesting such relief and the remaining units are currently occupied by a tenant or are available for rent. For purposes of this act, real property shall not include property that is vacant and abandoned, as defined in subdivision 2 of section 1309 of the real property actions and proceedings law, which was listed on the statewide vacant and abandoned property electronic registry, as defined in section 1310 of the real property actions and proceedings law, prior to March 7, 2020 and that remains on such registry. 2. Hardship declaration. For purposes of this act, "hardship declara- tion" shall mean the following statement, or a substantially equivalent statement in the owner or mortgagor's primary language, in 14-point type, whether in physical or electronic written form, and the department of financial services shall publish a copy of the hardship declaration on its website: "NOTICE TO OWNER/MORTGAGOR: If you have lost income or had increased costs due to the COVID-19 pandemic, and you sign and deliver this hard- ship declaration form to your lending institution, you cannot be S. 471 14 discriminated against in the determination of whether credit should be extended or reported negatively to a credit reporting agency until at least May 1, 2021. If a lending institution provided you with this form, the lending institution must also provide you with a mailing address and e-mail address to which you can return this form. You should keep a copy or picture of the signed form for your records. OWNER/MORTGAGOR DECLARATION OF COVID-19-RELATED HARDSHIP I am the OWNER/MORTGAGOR of the property at (address of commercial unit). Including my primary commercial property, I own, whether direct- ly or indirectly, ten or fewer commercial units. I am experiencing financial hardship, and I am unable to pay my mortgage in full because of one or more of the following: 1. Significant loss of household income during the COVID-19 pandemic. 2. Increase in necessary out-of-pocket expenses related to performing essential work or related to health impacts during the COVID-19 pandem- ic. 3. Childcare responsibilities or responsibilities to care for an elderly, disabled, or sick family member during the COVID-19 pandemic have negatively affected my ability or the ability of someone in my household to obtain meaningful employment or earn income or increased my necessary out-of-pocket expenses. 4. Moving expenses and difficulty I have securing an alternative commercial property make it a hardship for me to relocate to another commercial property during the COVID-19 pandemic. 5. Other circumstances related to the COVID-19 pandemic have negative- ly affected my ability to obtain meaningful employment or earn income or have significantly reduced my household income or significantly increased my expenses. 6. One or more of my tenants has defaulted on a significant amount of their rent payments since March 1, 2020. To the extent that I have lost household income or had increased expenses, any public assistance, including unemployment insurance, pandemic unemployment assistance, disability insurance, or paid family leave, that I have received since the start of the COVID-19 pandemic does not fully make up for my loss of household income or increased expenses. Signed: Printed Name: Date Signed: NOTICE: You are signing and submitting this form under penalty of law. That means it is against the law to make a statement on this form that you know is false." 3. Discrimination in credit decisions. Notwithstanding any law to the contrary, lending institutions shall not discriminate in the determi- nation of whether credit should be extended to any owner of commercial real property as defined in subdivision one of this section because, as provided for in this act, such owner has been granted a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or of tax lien sales, or that an owner of commercial real property as defined in subdi- vision one of this section is currently in arrears and has filed a hard- ship declaration with such lender. 4. Prohibition on negative credit reporting. Notwithstanding any law to the contrary, as provided for in this act, the granting of a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or tax lien sales, or that an owner of commercial real property as defined in S. 471 15 subdivision one of this section is currently in arrears and has filed a hardship declaration with their lender shall not be negatively reported to any credit reporting agency. § 2. This act take effect immediately and shall expire May 1, 2021. SUBPART D Section 1. Notwithstanding any other provision of law, in the interest of the health and safety of the public due to the novel coronavirus, COVID-19 pandemic, every governing body of an assessing unit and local assessor shall extend to the 2021 assessment roll, the renewal of the exemptions received on the 2020 assessment roll pursuant to sections 467 and 459-c of the real property tax law, relating to persons age sixty- five and older and for certain persons with disabilities and limited income, and no renewal application shall be required of any eligible recipient who received either exemption on the 2020 assessment roll in order for such eligible recipient to continue receiving such exemption at the same amount received on the 2020 assessment roll, except as here- in provided. Provided however, that the local assessor shall make avail- able renewal applications through postal mail or electronic means in order for eligible recipients to file renewal applications in the event that such eligible recipient determines his or her income has changed in a manner that would grant him or her a greater exemption than what was present on the 2020 assessment roll; and provided further that such governing body may adopt a local law or resolution which includes proce- dures by which the assessor may require a renewal application to be filed when he or she has reason to believe that an owner who qualified for the exemption on the 2020 assessment roll may have since changed his or her primary residence, added another owner to the deed, transferred the property to a new owner, or died; and provided further that no governing body of an assessing unit or local assessor may require eligi- ble recipients to appear in person to file a renewal application for any reason. § 2. This act shall take effect immediately and shall expire May 1, 2021. This act shall be deemed to have been in full force and effect on and after March 7, 2020. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section, item, subpart or part of this act shall be adjudged by any 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, subdivi- sion, section, item, subpart or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is here- by declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included here- in. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through D of this act shall be as specifically set forth in the last section of such Subparts. § 4. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any 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 judg- ment shall have been rendered. It is hereby declared to be the intent of S. 471 16 the legislature that this act would have been enacted even if such invalid provisions had not been included herein. § 5. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through B of this act shall be as specifically set forth in the last section of such Parts.
Co-Sponsors
Alessandra Biaggi
(D, WF) 0 Senate District
Brad Hoylman-Sigal
(D, WF) 47th Senate District
Robert Jackson
(D, WF) 31st Senate District
Timothy M. Kennedy
(D, WF) 63rd Senate District
- view additional co-sponsors
Liz Krueger
(D, WF) 28th Senate District
Rachel May
(D, WF) 48th Senate District
Shelley B. Mayer
(D, WF) 37th Senate District
Kevin S. Parker
(D, WF) 21st Senate District
José M. Serrano
(D, WF) 29th Senate District
S471A (ACTIVE) - Details
- See Assembly Version of this Bill:
- A3207
- Law Section:
- Real Property
S471A (ACTIVE) - Summary
Establishes the COVID-19 Emergency Protect Our Small Businesses Act of 2021; relates to eviction proceedings (Part A); relates to foreclosure proceedings (Subpart A); relates to tax sales (Subpart B)… (view more) establishes hardship declarations for owners of commercial real property (Subpart C) (Part B).
S471A (ACTIVE) - Sponsor Memo
BILL NUMBER: S471A SPONSOR: KAPLAN TITLE OF BILL: An act establishing the "COVID-19 Emergency Protect Our Small Businesses Act of 2021"; in relation to eviction proceedings; and to provide for the expiration of certain provisions upon the expiration thereof (Part A); and in relation to foreclosure proceedings; and providing for the expiration of certain provisions upon the expiration thereof (Subpart A); in relation to tax sales; and providing for the expiration of certain provisions upon the expiration thereof (Subpart B); to establish hardship declarations for owners of commercial real property; and providing for the expiration of such provisions upon the expiration thereof (Subpart C) (Part B) PURPOSE: This bill provides a mechanism for eviction protection for small busi- nesses of under 50 employees that demonstrate a financial hardship, while also extending foreclosure protections to small businesses who have 10 or less units. These protections are extended until May 2, 2021.
SUMMARY OF PROVISIONS: Section 1 - States clarifying language for the various Parts of this legislation. Section 2- Short Title of "COVID-19 Emergency Protect our Small Business Act of 2021". Section 3- Legislative Intent Part A- Contains definitions for purposes of this Act. This Part relates to eviction proceedings for tenants which are defined as a commercial tenant, that is a resident of the State, independently owned and oper- ated, not dominant in its field, and employs fifty or fewer persons. Further this Part contains a hardship declaration which a commercial tenant may file for eviction protections. This hardship declaration states that you have lost significant revenue, or had significantly increased necessary costs during the COVID-19 pandemic. This declaration must be signed and delivered to your landlord, and would prevent eviction until May 1, 2021 for nonpayment of rent, or for holding over after the expiration of your lease. However, the tenant may still be evicted for violating their lease by persistent and unreasonable behav- ior. Further this declaration states that if an eviction proceeding is already started against you, you can return this form to either your landlord or the courts at any time. The form states further that you will owe any unpaid rent to your landlord. This Part also states that any eviction proceedings filed on or before May 7, 2020 or commenced within thirty days of the effective date of this act shall be stayed for at least 60 days, or to such later date the chief administrative judge shall determine is necessary. In each case the court shall promptly issue an order directing such stay, and promptly mail the respondent a copy of the hardship declaration in English, and to the extent practica- ble the language in which the commercial lease or tenancy agreement was written if not English. A landlord shall include a hardship declaration with every written notice required by the commercial lease or tenancy agreement, law or rule provided prior to the commencement of an eviction proceeding, and with every notice of petition or summons and complaint served on a tenant. Further prohibits the initiation of an eviction proceeding against a tenant until May 1, 2021 if there is no pending eviction proceeding and a tenant has provided a hardship declaration to the landlord. This Part also states that a petitioner or plaintiff who is starting an eviction proceeding must attest that they have not received a hardship declaration from the respondent/defendant, or that the respondent/defendant has 'returned a hardship declaration but the respondent/defendant is persistent and unreasonably engaging in behavior that substantially infringes on the use and enjoyment of other tenants or occupants, or causes a substantial safety hazard to others. Further contains protections that a business served shall have been provided a hardship declaration and that adequate time has been provided for them to consider and file a hardship declaration with the court. For post warrant of evictions, states that an eviction warrant or judgement of possession or ejectment that has been issued prior to the effective date, but has not yet been executed, including proceedings before May 7, 2020, the court shall stay the execution at least until the court has held a status conference with the parties. Also contains information as it relates to unreasonable behavior of a tenant for these purposes. Further, contains a rebuttable presumption that the tenant is experienc- ing financial hardship in any judicial or administrative proceeding. Part B enacts mortgage foreclosure, tax foreclosure, credit discrimi- nation, and tax renewal exemption protections. Subpart A - This section shall apply to any action to foreclose a mort- gage to commercial real property, provided the owner or mortgagor of the property owns ten or fewer commercial units and is a business that is resident in New York, independently owned and operated, not dominant in its field, and employs fifty or fewer persons The ten or fewer units may be in more than one property or building as long as the total aggregate number of ten units are currently occupied by a tenant or are available for rent. This section creates a hardship declaration notice to commer- cial mortgagors. It states that if you have lost significant revenue or had significant increased necessary costs during the COVID-19 pandemic and you sign and deliver a hardship declaration to your mortgage lender or other foreclosing party, you cannot be foreclosed upon until at least May 1, 2021. Any action to foreclose a mortgage pending on the effective date, including action filed on or before March 7, 2020 or commenced within thirty days of the effective date shall be stayed for at least 60 days, or such later date as determined by the chief administrative judge. A foreclosing party shall include a hardship declaration with every notice required provided to a mortgagor prior to filing an action for foreclosure. No court shall accept for filing any action to fore- close a mortgage unless the foreclosing party files an affidavit stating how a hardship declaration was provided to the mortgagor, and that no hardship declaration has been received. The court shall seek confirma- tion that the mortgagor has received a hardship declaration and that he mortgagor has not returned it. If the court determines a mortgagor has not received a hardship declaration they shall stay the proceedings for a reasonable time, no less than 10 days to ensure the mortgagor received and fully considered the hardship declaration. In any action to fore- close a mortgage in which a judgement of sale has not been issued, including action filed on or before March 7, 2020, if the mortgagor provides a hardship declaration the proceeding shall be stayed until May 1, 2021. In any action to foreclose a mortgage in which a judgement of sale has been issued prior to this effective date of this act but has not yet been executed as of this effective date, including actions filed on or before March 7, 2020 the court shall stay the execution of the judgement at least until the court has held a status conference with the parties. In any action where a hardship declaration is provided, the execution shall be stayed until at least May 1, 2021. A hardship decla- ration shall create a rebuttable presumption that the mortgagor is suffering financial hardship in any judicial or administrative proceed- ing. Subpart B - Shall apply to any action to foreclose on delinquent taxes or sell a tax lien relating to commercial real property, provided the owner or mortgagor owns ten or fewer commercial units, is not dominant in its field, and employs fifty or fewer persons and is resident within New York. This Subpart allows an eligible entity to issue a Commercial Owner Declaration of COVID-19 Related Hardship that can be submitted to any village, town, city, school district, county, or other entity or person which conducts tax foreclosures or tax lien sales. At least thirty days prior to the date on which a sale of a tax lien is scheduled to occur, or upon the filing of foreclosure of a tax lien, the enforcing officer shall notify the owner of the affected property of the owner's rights under this act, and shall notify the owner that a copy of the hardship declaration can be accessed on the NYS Tax and Finance website, and provide a link to this form. The submission of a declaration unless withdrawn shall act as a temporary stay applicable to all entities and persons of all such tax lien sales and foreclosure actions and proceedings against such owner for such property that have been commenced or could have been commenced before May 1, 2021. While the stay is in effect, no other action or proceeding shall be commenced to recover any part of such delinquent taxes. No obligation to pay the balance of such delinquent taxes is not rendered invalid, releases or extinguished by such stay. Further states that a hardship declaration shall create a rebuttable presumption in any judicial or administrative proceeding. Subpart C - Applies to an owner of commercial real property, provided the owner or mortgagor of such property, owns ten or fewer commercial units, is resident in New York, not dominant in its field, and employs fifty or fewer persons. Allows a hardship declaration when they have lost significant revenue, or had significantly increased necessary costs due to the COVID-19 pandemic, that you cannot be discriminated against in the determination of whether credit should be extended, or reported negatively to a credit reporting agency until at least May 1, 2021. This Subpart states that a lending institution shall not discriminate in the determination of whether credit should be extended to any owner of commercial real property if the owner has been granted a stay of mort- gage foreclosure proceedings. Also creates a prohibition on negative credit reporting to any owner of commercial real property if the owner has been granted a stay of mortgage foreclosure proceedings. JUSTIFICATION: Chapter 381 of the Laws of 2020 extended historic eviction protections to residential tenants and foreclosure protections to their landlords during the COVID-19 pandemic. This legislation seeks to build off these historic residential tenant protections by extending these same protections to small business commercial tenants and their small busi- ness landlords. Small businesses are the backbone of our economy, and equally important the backbone of our communities. These small busi- nesses, especially those in economically disadvantaged communities, or those owned by communities of color have been even more disproportion- ately impacted. Studies show that it is possible that'/ of small busi- nesses that were in business at the start of the pandemic, may not be once we emerge from this pandemic. This legislation seeks to give these small businesses a fighting chance to emerge from this pandemic by help- ing both the small business and their small business commercial land- lord. LEGISLATIVE HISTORY: New Bill. FISCAL IMPLICATIONS: None. EFFECTIVE DATE: This act shall take effect immediately
S471A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 471--A 2021-2022 Regular Sessions I N S E N A T E (PREFILED) January 6, 2021 ___________ Introduced by Sen. KAPLAN -- 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 establishing the "COVID-19 Emergency Protect Our Small Businesses Act of 2021"; in relation to eviction proceedings; and to provide for the expiration of certain provisions upon the expiration thereof (Part A); and in relation to foreclosure proceedings; and providing for the expiration of certain provisions upon the expiration thereof (Subpart A); in relation to tax sales; and providing for the expiration of certain provisions upon the expiration thereof (Subpart B); to estab- lish hardship declarations for owners of commercial real property; and providing for the expiration of such provisions upon the expiration thereof (Subpart C) (Part B) THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act enacts into law components of legislation relating to commercial eviction and foreclosure protections. Each component is wholly contained within a Part identified as Parts A through B. The effective date for each particular provision contained within such Part is set forth in the last section of such Part. Any provision in any section contained within a Part, including the effective date of the Part, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Part in which it is found. Section four of this act sets forth the general effective date of this act. § 2. Short title. This act shall be known and may be cited as the "COVID-19 Emergency Protect our Small Businesses Act of 2021". EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
LBD07084-04-1 S. 471--A 2 § 3. Legislative intent. The Legislature finds and declares all of the following: On March 7, 2020, Governor Andrew Cuomo proclaimed a state of emergen- cy in response to the Coronavirus disease (COVID-19) pandemic. Measures necessary to contain the spread of COVID-19 have brought about wide- spread economic and societal disruption, placing the state of New York in unprecedented circumstances. COVID-19 presents a historic threat to small businesses. Thousands of small businesses are facing eviction or foreclosure due to necessary disease control measures that closed or restricted businesses across the state. The pandemic has further interrupted court operations, the avail- ability of counsel, the ability for parties to pay for counsel, and the ability to safely commute and enter a courtroom, settlement conference and the like. Ensuring small businesses can survive in this unprecedented time is to the mutual benefit of all New Yorkers and will help the state address the pandemic, protect public health, and set the stage for recovery. It is, therefore, the intent of this legislation to avoid as many evictions and foreclosures of small businesses as possible for businesses experi- encing a financial hardship during the COVID-19 pandemic. As such, it is necessary to temporarily allow small businesses impacted by COVID-19 to remain in their place of business. A limited, temporary stay is necessary to protect the public health, safety and morals of the people the Legislature represents from the dangers of the COVID-19 emergency pandemic. PART A Section 1. Definitions. For the purposes of this act: 1. "Eviction proceeding" means a summary proceeding to recover possession of real property under article seven of the real property actions and proceedings law relating to a commercial unit or any other judicial or administrative proceeding to recover possession of real property relat- ing to a commercial unit. 2. "Landlord" includes a landlord, owner of a commercial property and any other person with a legal right to pursue eviction, possessory action or a money judgment for rent, including arrears, owed or that becomes due during the COVID-19 covered period, as defined in section 1 of chapter 127 of the laws of 2020. 3. "Tenant" includes a commercial tenant that is a resident of the state, independently owned and operated, not dominant in its field and employs fifty or fewer persons. 4. "Hardship declaration" means the following statement, or a substan- tially equivalent statement in the language in which the commercial lease or tenancy agreement was written or negotiated, in 14-point type, published by the office of court administration, whether in physical or electronic written form: "NOTICE TO COMMERCIAL TENANT: If you have lost significant revenue or had significantly increased necessary costs during the COVID-19 pandem- ic, and you sign and deliver this hardship declaration form to your landlord, you cannot be evicted until at least May 1, 2021 for nonpay- ment of rent or for holding over after the expiration of your lease. You may still be evicted for violating your lease by persistently and unrea- sonably engaging in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others. S. 471--A 3 If your landlord has provided you with this form, your landlord must also provide you with a mailing address and e-mail address to which you can return this form. If your landlord has already started an eviction proceeding against you, you can return this form to either your land- lord, the court, or both at any time. You should keep a copy or picture of the signed form for your records. You will still owe any unpaid rent to your landlord. You should also keep careful track of what you have paid and any amount you still owe. COMMERCIAL TENANT'S DECLARATION OF HARDSHIP DURING THE COVID-19 PANDEMIC I am the owner, chief executive officer, president, or similar officer of (name of business), in which is a commercial tenant at (address of commercial unit). My business is resident in New York state, independ- ently owned and operated, not dominant in its field, and employs fifty or fewer persons. My business is experiencing financial hardship, and is unable to pay the rent or other financial obligations under the lease in full or obtain an alternative suitable commercial property because of one or more of the following: 1. Significant loss of revenue during the COVID-19 pandemic. 2. Significant increase in necessary expenses related to providing personal protective equipment to employees or purchasing and installing other protective equipment to prevent the transmission of COVID-19 with- in the business. 3. Moving expenses and difficulty in securing an alternative commer- cial property make it a hardship for the business to relocate to another location during the COVID-19 pandemic. To the extent the business has lost revenue or had increased expenses, any public assistance the business has received since the start of the COVID-19 pandemic does not fully make up for the business's loss of revenue or increased expenses. I understand that the business must comply with all other lawful terms under its commercial tenancy, lease agreement or similar contract. I further understand that lawful fees, penalties or interest for not having paid rent in full or met other financial obligations as required by the commercial tenancy, lease agreement or similar contract may still be charged or collected and may result in a monetary judgment. I further understand that the landlord may be able to seek eviction after May 1, 2021, and that the law may provide certain protections at that time that are separate from those available through this declaration. Signed: Printed name: Date signed: NOTICE: You are signing and submitting this form under penalty of law. That means it is against the law to make a statement on this form that you know is false." § 2. No commercial tenant shall be removed from the possession prior to May 1, 2021, except by an eviction proceeding. § 3. Pending eviction proceedings. Any eviction proceeding pending on the effective date of this act, including eviction proceedings filed on or before March 7, 2020, or commenced within thirty days of the effec- tive date of this act shall be stayed for at least sixty days, or to S. 471--A 4 such later date that the chief administrative judge shall determine is necessary to ensure that courts are prepared to conduct proceedings in compliance with this act and to give tenants an opportunity to submit the hardship declaration pursuant to this act. The court in each case shall promptly issue an order directing such stay and promptly mail the respondent a copy of the hardship declaration in English, and, to the extent practicable, the language in which the commercial lease or tenan- cy agreement was written or negotiated, if other than English. § 4. Pre-eviction notices. A landlord shall include a "Hardship Decla- ration" with every written notice required by the commercial lease or tenancy agreement, law or rule to be provided prior to the commencement of an eviction proceeding, and with every notice of petition or summons and complaint served on a tenant. If the translation of the hardship declaration in the language in which the commercial lease or tenancy agreement was written or negotiated is not available on the office of court administration's public website, it shall be the landlord's responsibility to obtain a suitable translation of the hardship declara- tion. Such notice shall also include a mailing address, telephone number and active email address the tenant can use to contact the landlord and return the hardship declaration. § 5. Prohibition on initiation of eviction proceeding. If there is no pending eviction proceeding and a tenant provides a hardship declaration to the landlord or an agent of the landlord, there shall be no initi- ation of an eviction proceeding against the tenant until at least May 1, 2021, and in such event any specific time limit for the commencement of an eviction proceeding shall be tolled until May 1, 2021. § 6. Required affidavit. 1. No court shall accept for filing any peti- tion or other filing to commence an eviction proceeding unless the peti- tioner or plaintiff or an agent of the petitioner or plaintiff files an affidavit of service, under penalty of perjury, demonstrating the manner in which the petitioner or plaintiff or the petitioner's or plaintiff's agent served a copy of the hardship declaration in English and the language in which the commercial lease or tenancy agreement was written or negotiated, if other than English, with any written notice required by the commercial lease or tenancy agreement, law or rule to be provided prior to the commencement of an eviction proceeding, and an affidavit under penalty of perjury: a. attesting that at the time of filing, neither the petitioner or plaintiff nor any agent of the petitioner or plaintiff has received a hardship declaration from the respondent, or b. attesting that the respondent or defendant has returned a hardship declaration, but the respondent or defendant is persistently and unrea- sonably engaging in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others, with a specific description of the behavior alleged. 2. Upon accepting a petition or complaint, the attorney, judge or clerk of the court, as the case may be, shall determine whether a copy of the hardship declaration in English and the language in which the commercial lease or tenancy agreement was written or negotiated, if other than English, is annexed to the served notice of petition or summons and complaint and, if not, shall ensure that the hardship decla- ration is attached to such notice or summons. At the earliest possible opportunity, the court shall seek confirmation on the record or in writ- ing from the respondent or defendant that the respondent or defendant has received the hardship declaration and that the respondent or defend- ant has not submitted a hardship declaration to the petitioner or plain- S. 471--A 5 tiff, an agent of the petitioner or plaintiff, or the court. If the court determines a respondent or defendant has not received a hardship declaration, then the court shall stay the proceeding for a reasonable period of time, which shall be no less than ten business days or any longer period provided by law, and provide the respondent or defendant with a copy of the hardship declaration in English and, to the extent practicable, the language in which the commercial lease or tenancy agreement was written or negotiated, if other than English, to ensure the respondent or defendant received and fully considered whether to submit the hardship declaration. § 7. Pending proceedings. In any eviction proceeding in which an eviction warrant or judgment of possession or ejectment has not been issued, including eviction proceedings filed on or before March 7, 2020, if the tenant provides a hardship declaration to the petitioner or plaintiff, the court, or an agent of the petitioner or plaintiff or the court, the eviction proceeding shall be stayed until at least May 1, 2021. If such hardship declaration is provided to the petitioner or plaintiff or agent, such petitioner or plaintiff or agent shall promptly file it with the court, advising the court in writing the index number of all relevant cases. § 8. Post warrant of eviction. a. (i) In any eviction proceeding in which an eviction warrant or judgment of possession or ejectment has been issued prior to the effective date of this act, but has not yet been executed as of the effective date of this act, including eviction proceedings filed on or before March 7, 2020, the court shall stay the execution of the warrant or judgment at least until the court has held a status conference with the parties. (ii) In any eviction proceeding, if the tenant provides a hardship declaration to the petitioner or plain- tiff, the court, or an agent of the petitioner or plaintiff or the court, prior to the execution of the warrant or judgment, the execution shall be stayed until at least May 1, 2021. If such hardship declaration is provided to the petitioner or plaintiff or agent of the petitioner or plaintiff, such petitioner or plaintiff or agent shall promptly file it with the court, advising the court in writing the index number of all relevant cases. b. In any eviction proceeding in which a warrant or execution has been issued, including eviction proceedings filed on or before March 7, 2020, any warrant or execution issued shall not be effective as against the occupants, unless, in addition to other requirements under law, such warrant or execution states: (i) The tenant has not submitted the hardship declaration and the tenant was properly served with a copy of the hardship declaration pursuant to this section, listing dates the tenant was served with the hardship declaration by the petitioner or plaintiff and the court; or (ii) The tenant is ineligible for a stay under this act because the court has found that the tenant is persistently and unreasonably engag- ing in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others, with a specific description of the behavior. c. No court shall issue a warrant or execution directed to the sheriff of the county or to any constable or marshal of the city in which the property, or a portion thereof, is situated, or, if it is not situated in a city, to any constable of any town in the county, that does not comply with the requirements of this section. S. 471--A 6 d. No officer to whom the warrant or execution is directed shall execute a warrant for eviction issued that does not comply with the requirements of this section. e. Unless the warrant or execution contains the information contained in paragraph (ii) of subdivision b of this section, if any tenant deliv- ers the hardship declaration to the officer to whom the warrant or execution is directed, the officer shall not execute the warrant or execution and shall return the hardship form to the court indicating the appropriate index/case number the form is associated with. § 9. Sections three, four, five, seven and paragraph (ii) of subdivi- sion a of section eight of this act shall not apply if the tenant is persistently and unreasonably engaging in behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others, provided: 1. If an eviction proceeding is pending on the effective date of this act, but the petitioner or plaintiff has not previously alleged that the tenant persistently and unreasonably engaged in such behavior, the peti- tioner or plaintiff shall be required to submit a new petition or an amended complaint with such allegations and comply with all notice and service requirements under law. 2. If the court has awarded a judgment against a respondent or defend- ant prior to the effective date of this act on the basis of objectiona- ble or nuisance behavior, the court shall hold a hearing to determine whether the tenant is continuing to persist in engaging in unreasonable behavior that substantially infringes on the use and enjoyment of other tenants or occupants or causes a substantial safety hazard to others. 3. For the purposes of this act, a mere allegation of the behavior by the petitioner or plaintiff or an agent of the petitioner or plaintiff alleging such behavior shall not be sufficient evidence to establish that the tenant has engaged in such behavior. 4. If the petitioner or plaintiff fails to establish that the tenant persistently and unreasonably engaged in such behavior and the tenant provides or has provided a hardship declaration to the petitioner, petitioner's or plaintiff's agent or the court, the court shall stay or continue to stay any further proceedings until at least May 1, 2021. 5. If the petitioner or plaintiff establishes that the tenant persis- tently and unreasonably engaged in such behavior or the tenant fails to provide a hardship declaration to the petitioner or plaintiff, petitioner's or plaintiff's agent or the court, the proceeding may continue pursuant to law. § 10. Translation of hardship declaration. The office of court admin- istration shall translate the hardship declaration, as defined in section one of this act, into Spanish and, to the extent practicable, the six most common languages in the city of New York, after Spanish, and shall post and maintain such translations and an English language copy of the hardship declaration on the website of such office beginning within fifteen days of the effective date of this act. To the extent practicable, the office of court administration shall post and maintain on its website translations into such additional languages as the chief administrative judge shall deem appropriate to ensure that tenants have an opportunity to understand and submit hardship declarations pursuant to this act. § 11. Rebuttable presumption. A hardship declaration shall create a rebuttable presumption that the tenant is experiencing financial hard- ship, in any judicial or administrative proceeding that may be brought, for the purposes of establishing a defense under an executive order of S. 471--A 7 the governor or any other local or state law, order or regulation restricting the eviction of a tenant suffering from a financial hardship during or due to COVID-19 provided that the absence of a hardship decla- ration shall not create a presumption that a financial hardship is not present. § 12. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part of this act directly involved in the controversy in which the judg- ment shall have been rendered. § 13. This act shall take effect immediately and sections one, two, three, four, five, six, seven, eight, nine, ten and twelve of this act shall expire May 1, 2021. PART B Section 1. This Part enacts into law components of legislation relat- ing to mortgage foreclosure, tax foreclosure, credit discrimination and tax renewal exemption protections. Each component is wholly contained within a Subpart identified as Subparts A through C. The effective date for each particular provision contained within such Subpart is set forth in the last section of such Subpart. Any provision in any section contained within a Subpart, including the effective date of the Subpart, which makes reference to a section "of this act", when used in connection with that particular component, shall be deemed to mean and refer to the corresponding section of the Subpart in which it is found. Section three of this Part sets forth the general effective date of this Part. SUBPART A Section 1. Application. This section shall apply to any action to foreclose a mortgage relating to commercial real property, provided the owner or mortgagor of such property owns ten or fewer commercial units whether directly or indirectly and is a business that is resident in New York State, independently owned and operated, not dominant in its field, and employs fifty or fewer persons. The ten or fewer commercial units may be in more than one property or building as long as the total aggre- gate number of ten units are currently occupied by a tenant or are available for rent. Notwithstanding anything to the contrary, this act shall not apply to, and does not affect any mortgage loans made, insured, purchased or secu- ritized by a corporate governmental agency of the state constituted as a political subdivision and public benefit corporation, or the rights and obligations of any lender, issuer, servicer or trustee of such obli- gations. § 2. Definitions. For the purposes of this act, "Hardship Declaration" means the following statement in 14-point type, published by the office of court administration, whether in physical or electronic written form: "NOTICE TO COMMERCIAL MORTGAGOR: If you have lost significant revenue or had significantly increased necessary costs during the COVID-19 pandemic, and you sign and deliver this hardship declaration form to your mortgage lender or other foreclosing party, you cannot be fore- closed on until at least May 1, 2021. S. 471--A 8 If your mortgage lender or other foreclosing party provided you with this form, the mortgage lender or other foreclosing party must also provide you with a mailing address and e-mail address to which you can return this form. If you are already in foreclosure proceedings, you may return this form to the court. You should keep a copy or picture of the signed form for your records. You will still owe any unpaid mortgage payments and lawful fees to your lender. You should also keep careful track of what you have paid and any amount you still owe. COMMERCIAL MORTGAGOR'S DECLARATION OF COVID-19-RELATED HARDSHIP I am the owner, chief executive officer, president, or similar officer of (name of the business), which is the mortgagor of the property at (address of commercial unit). My business owns, whether directly or indirectly, ten or fewer commercial units. My business is resident in New York State, independently owned and operated, not dominant in its field, and employs fifty or fewer persons. My business is experiencing financial hardship and is unable to pay the mortgage in full because of one or more of the following: 1. Significant loss of revenue during the COVID-19 pandemic. 2. Significant increase in necessary expenses related to providing personal protective equipment to employees or purchasing and installing other protective equipment to prevent the transmission of COVID-19 with- in the business. 3. Moving expenses and difficulty in securing an alternative commer- cial property make it a hardship for the business to relocate to another property during the COVID-19 pandemic. 4. One or more of the business's tenants has defaulted on a signif- icant amount of their rent payments since March 1, 2020. To the extent that the business has lost revenue or had increased expenses, any public assistance the business has received since the start of the COVID-19 pandemic does not fully make up for the business's loss of revenue or increased expenses. I understand that the business must comply with all other lawful terms under my commercial mortgage agreement. I further understand that lawful fees, penalties or interest for not having paid the mortgage in full as required by the commercial mortgage agreement may still be charged or collected and may result in a monetary judgment. I also understand that the mortgage lender or other foreclosing party may pursue a foreclosure action against the business on or after May 1, 2021, if I do not fully repay any missed or partial payments and lawful fees. Signed: Printed Name: Date Signed: NOTICE: You are signing and submitting this form under penalty of law. That means it is against the law to make a statement on this form that you know is false." § 3. Any action to foreclose a mortgage pending on the effective date of this act, including actions filed on or before March 7, 2020, or commenced within thirty days of the effective date of this act shall be stayed for at least sixty days, or to such later date that the chief administrative judge shall determine is necessary to ensure that courts are prepared to conduct proceedings in compliance with this act and to give mortgagors an opportunity to submit the hardship declaration pursu- ant to this act. The court in each case shall promptly issue an order directing such stay and promptly mail the mortgagor a copy of the hard- ship declaration. S. 471--A 9 § 4. The foreclosing party shall include a "Hardship Declaration" with every notice required provided to a mortgagor prior to filing an action for foreclosure. Such notice shall also include a mailing address, tele- phone number and active email address the mortgagor can use to contact the foreclosing party and return the hardship declaration. § 5. If a mortgagor provides a hardship declaration to the foreclosing party or an agent of the foreclosing party, there shall be no initiation of an action to foreclose a mortgage against the mortgagor until at least May 1, 2021, and in such event any specific time limit for the commencement of an action to foreclose a mortgage shall be tolled until May 1, 2021. § 6. No court shall accept for filing any action to foreclose a mort- gage unless the foreclosing party or an agent of the foreclosing party files an affidavit, under penalty of perjury: (i) of service demonstrating the manner in which the foreclosing party's agent served a copy of the hardship declaration with required notices, if any, provided to the mortgagor, and (ii) attesting that at the time of filing, neither the foreclosing party nor any agent of the foreclosing party has received a hardship declaration from the mortgagor. At the earliest possible opportunity, the court shall seek confirma- tion on the record or in writing that the mortgagor has received a copy of the hardship declaration and that the mortgagor has not returned the hardship declaration to the foreclosing party or an agent of the fore- closing party. If the court determines a mortgagor has not received a hardship declaration, then the court shall stay the proceeding for a reasonable period of time, which shall be no less than ten business days or any longer period provided by law, to ensure the mortgagor received and fully considered whether to submit the hardship declaration. § 7. In any action to foreclose a mortgage in which a judgment of sale has not been issued, including actions filed on or before March 7, 2020, if the mortgagor provides a hardship declaration to the foreclosing party, the court, or an agent of the foreclosing party or the court, the proceeding shall be stayed until at least May 1, 2021. If such hardship declaration is provided to the foreclosing party or agent of the fore- closing party, such foreclosing party or agent shall promptly file it with the court, advising the court in writing the index number of all relevant cases. § 8. In any action to foreclose a mortgage in which a judgment of sale has been issued prior to the effective date of this act but has not yet been executed as of the effective date of this act, including actions filed on or before March 7, 2020, the court shall stay the execution of the judgment at least until the court has held a status conference with the parties. In any action to foreclose a mortgage, if the mortgagor provides a hardship declaration to the foreclosing party, the court, or an agent of the foreclosing party or the court, prior to the execution of the judgment, the execution shall be stayed until at least May 1, 2021. If such hardship declaration is provided to the foreclosing party or agent of the foreclosing party, such foreclosing party or agent shall promptly file it with the court, advising the court in writing the index number of all relevant cases. § 9. The office of court administration shall post and maintain a copy of the hardship declaration on the website of such office beginning within fifteen days of the effective date of this act. § 10. A hardship declaration shall create a rebuttable presumption that the mortgagor is suffering financial hardship, in any judicial or S. 471--A 10 administrative proceeding that may be brought, for the purposes of establishing a defense under an executive order of the governor or any other local or state law, order or regulation restricting actions to foreclose a mortgage against a mortgagor suffering from a financial hardship during or due to the COVID-19 pandemic provided that the absence of a hardship declaration shall not create a presumption that a financial hardship is not present. § 11. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid and after exhaustion of all further judicial review, the judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, section or part of this act directly involved in the controversy in which the judg- ment shall have been rendered. § 12. This act shall take effect immediately and sections one, two, three, four, five, six, seven, eight, nine and eleven of this act shall expire May 1, 2021. SUBPART B Section 1. Application. This act shall apply to any action to fore- close on delinquent taxes or sell a tax lien relating to commercial real property, provided the owner or mortgagor of such property owns ten or fewer commercial units whether directly or indirectly and is a business that is resident in New York State, independently owned and operated, not dominant in its field, and employs fifty or fewer persons. The ten or fewer commercial units may be in more than one property or building as long as the units are currently occupied by a tenant or are available for rent. § 2. Definitions. For purposes of this act: 1. "Tax lien" means an unpaid tax, special ad valorem levy, special assessment or other charge imposed upon real property by or on behalf of a municipal corporation or special district or other public or private entity which is an encum- brance on real property, whether or not evidenced by a written instru- ment. 2. "Tax foreclosure and tax lien sale" shall mean any such tax lien sale or tax foreclosure pursuant to article 11 of the real property tax law, or any general, special or local law related to real property tax lien sales or real property tax foreclosures. 3. "Hardship Declaration" means the following statement in 14-point type, whether in physical or electronic written form: "COMMERCIAL OWNER DECLARATION OF COVID-19-RELATED HARDSHIP I am the owner, chief executive officer, president, or similar officer of (name of the business), which is the owner of the commercial property at (address). My business owns, whether directly or indirectly, ten or fewer commercial units. My business is resident in New York State, independently owned and operated, not dominant in its field, and employs fifty or fewer persons. My business is experiencing financial hardship, and is unable to pay its full tax bill because of one or more of the following: 1. Significant loss of revenue during the COVID-19 pandemic. 2. Significant increase in necessary expenses related to providing personal protective equipment to employees or purchasing and installing other protective equipment to prevent the transmission of COVID-19 with- in the business. S. 471--A 11 3. Moving expenses and difficulty in securing an alternative commer- cial property make it a hardship for the business to relocate to another property during the COVID-19 pandemic. 4. One or more of the business's tenants has defaulted on a signif- icant amount of their rent payments since March 1, 2020. To the extent that the business has lost revenue or had increased expenses, any public assistance that the business has received since the start of the COVID-19 pandemic does not fully make up for the loss of revenue or increased expenses. I understand that lawful fees, penalties or interest for not having paid the business's taxes in full may still be charged or collected and may result in a foreclosure action against the business on or after May 1, 2021, if the business does not fully repay any missed or partial payments and fees. Signed: Printed Name: Date Signed: NOTICE: You are signing and submitting this form under penalty of law. That means it is against the law to make a statement on this form that you know is false." § 3. 1. A commercial real property owner may submit a "Hardship Decla- ration" to any village, town, city, school district, county, or other entity or person which conducts tax foreclosures or tax lien sales. 2. At least thirty days prior to the date on which a sale of a tax lien is scheduled to occur, or upon the filing of a petition of foreclo- sure of a tax lien, the enforcing officer or other person or entity conducting such tax lien sale or tax foreclosure shall notify the owner of the affected property of such owner's rights under this act and shall notify the owner that a copy of the hardship declaration can be accessed on the New York State Department of Tax and Finance's website and also provide a link to such declaration form. For the purposes of this act, "enforcing officer" shall have the same meaning as defined in subdivi- sion 3 of section 1102 of the real property tax law. The New York State Department of Tax and Finance shall publish a copy of the hardship declaration on its website. 3. The submission of such a declaration, unless withdrawn by the owner, shall act as a temporary stay applicable to all entities and persons of all such tax lien sales and tax foreclosure actions and proceedings against such owner for such property that have been commenced or could have been commenced before May 1, 2021. 4. While such stay is in effect, no other action or proceeding shall be commenced to recover any part of such delinquent taxes. 5. Any applicable statutes of limitation for the commencement of any action or proceeding to sell a tax lien or foreclose a tax lien is tolled until such stay has expired. The obligation to pay the balance of such delinquent taxes is not rendered invalid, released or extinguished by such stay. 6. A hardship declaration shall create a rebuttable presumption that the owner is experiencing financial hardship, in any judicial or admin- istrative proceeding that may be brought, for the purposes of establish- ing a defense under an executive order of the governor or any other local or state law, order or regulation restricting actions to sell a tax lien or foreclose a tax lien against an owner suffering from a financial hardship during or due to the COVID-19 pandemic, provided that the absence of a hardship declaration shall not create a presump- tion that a financial hardship is not present. S. 471--A 12 § 4. This act shall take effect immediately and sections one and two and subdivisions one, two, three, four and five of section three shall expire May 1, 2021. SUBPART C Section 1. Application. 1. This act shall apply to an owner of commer- cial real property, provided the owner or mortgagor of such property owns ten or fewer commercial units whether directly or indirectly and is a business that is resident in New York State, independently owned and operated, not dominant in its field, and employs fifty or fewer persons. The ten or fewer commercial units may be in more than one property or building as long as the total aggregate number of ten units are current- ly occupied by a tenant or are available for rent. 2. Hardship declaration. For purposes of this act, "hardship declara- tion" shall mean the following statement in 14-point type, whether in physical or electronic written form, and the department of financial services shall publish a copy of the hardship declaration on its website: "NOTICE TO COMMERCIAL OWNER/MORTGAGOR: If you have lost significant revenue or had significantly increased necessary costs due to the COVID-19 pandemic, and you sign and deliver this hardship declaration form to your lending institution, you cannot be discriminated against in the determination of whether credit should be extended or reported nega- tively to a credit reporting agency until at least May 1, 2021. If a lending institution provided you with this form, the lending institution must also provide you with a mailing address and e-mail address to which you can return this form. You should keep a copy or picture of the signed form for your records. COMMERCIAL OWNER/MORTGAGOR DECLARATION OF COVID-19-RELATED HARDSHIP I am the owner, chief executive officer, president, or similar officer of (name of the business), which is the OWNER/MORTGAGOR of the property at (address of commercial unit). My business owns, whether directly or indirectly, ten or fewer commercial units. My business is resident in New York State, independently owned and operated, not dominant in its field, and employs fifty or fewer persons. My business is experiencing financial hardship, and is unable to pay the mortgage in full because of one or more of the following: 1. Significant loss of revenue during the COVID-19 pandemic. 2. Significant increase in necessary out-of-pocket expenses related to providing personal protective equipment to employees or purchasing and installing other protective equipment to prevent the transmission of COVID-19 within the business. 3. Moving expenses and difficulty in securing an alternative commer- cial property make it a hardship for the business to relocate to another commercial property during the COVID-19 pandemic. 4. One or more of my tenants has defaulted on a significant amount of their rent payments since March 1, 2020. To the extent that the business has lost revenue or had increased expenses, any public assistance that the business has received since the start of the COVID-19 pandemic does not fully make up for the loss of revenue or increased expenses. Signed: Printed Name: Date Signed: S. 471--A 13 NOTICE: You are signing and submitting this form under penalty of law. That means it is against the law to make a statement on this form that you know is false." 3. Discrimination in credit decisions. Notwithstanding any law to the contrary, lending institutions shall not discriminate in the determi- nation of whether credit should be extended to any owner of commercial real property as defined in subdivision one of this section because, as provided for in this act, such owner has been granted a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or of tax lien sales, or that an owner of commercial real property as defined in subdi- vision one of this section is currently in arrears and has filed a hard- ship declaration with such lender. 4. Prohibition on negative credit reporting. Notwithstanding any law to the contrary, as provided for in this act, the granting of a stay of mortgage foreclosure proceedings, tax foreclosure proceedings or tax lien sales, or that an owner of commercial real property as defined in subdivision one of this section is currently in arrears and has filed a hardship declaration with their lender shall not be negatively reported to any credit reporting agency. § 2. This act take effect immediately and shall expire May 1, 2021. § 2. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section, item, subpart or part of this act shall be adjudged by any 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, subdivi- sion, section, item, subpart or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is here- by declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included here- in. § 3. This act shall take effect immediately provided, however, that the applicable effective date of Subparts A through C of this act shall be as specifically set forth in the last section of such Subparts. § 4. Severability clause. If any clause, sentence, paragraph, subdivi- sion, section or part of this act shall be adjudged by any 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 judg- ment 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. § 5. This act shall take effect immediately provided, however, that the applicable effective date of Parts A through B of this act shall be as specifically set forth in the last section of such Parts.
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