COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 signed by Governor Cuomo

The COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 which prevents residential evictions, foreclosure proceedings, credit discrimination, and negative credit reporting as a consequence of COVID-19 pandemic, was signed by Governor Cuomo on December 28, 2020. This legislation also protects Senior Citizens and Disabled homeowner exemption from 2020 to 2021.

Since the lockdown started, New Yorkers have been forced to stay home in order to stop the spread. This has caused many people to face financial hardships, making New Yorkers more vulnerable to face home evictions and foreclosures. However, Governor Cuomo has been making incredible efforts to make it easier for tenants and seniors to go through these difficult times. 

There are five areas that this legislation primarily covers:

• Residential Foreclosure Proceedings
  Residential foreclosures are suspended until May 1, 2021
  Who can file?
  Homeowners and landlords who own 10 or fewer residential properties. 

• Residential Evictions
  Residential evictions are suspended until May 1, 2021
  Who can file?
  Tenants who have suffered hardships due to the COVID-19 pandemic.
  How to file?
  Tenants must submit a hardship letter explaining their hardship. Likewise, landlords can evict tenants that he/she considers are creating health risks to other tenants; or tenants that haven’t submitted their hardship letters.

• Senior Citizens’ Homeowner Exemption and Disabled Homeowner Exemption
  Senior Citizen Homeowners’ Exemption and Disabled Homeowner Exemption are required to transfer from the 2020 assessment roll to the 2021 assessment roll at the same levels by their local governments. Renewal applications are also available for those who qualify for a larger exemption in 2021. 

• Tax Liens
  Local governments are restricted from participating in a tax lien sale or foreclosure until May 1, 2021.

• Credit Discrimination and Negative Credit Reporting
  Property owners that have been granted a stay of mortgage foreclosure proceedings, tax foreclosure proceedings, or tax lien sales and are seeking credits, must not be discriminated against by Lending Institutions. Property owners must also not be discriminated against by Lending Institutions even if they filed a hardship declaration with the lender.

In addition, as declared in the Residential Eviction Moratorium issued by Governor Newsom on March 27, 2020, tenants cannot be charged a penalty fee for late rent payments, and can still use their security deposit as payment for their rent and repay it in the future.

If you need help filling out the hardship documents, please contact us at (718) 332-0582. We’re always here to help our community!

_{Source: Gov. Cuomo’s Pressroom}