Real Estate Industry News

For more than a month, people around the US and world have been discussing the possibility of rent or mortgage ‘freezes’ and waivers, and even a larger rent strike, in the context of ‘lock-downs,’ loss of life, and economic hardship related to COVID-19.

In response, New York State lawmakers have proposed a three-bill package that would waive or suspend rent for individual and small-business tenants impacted by this crisis, as well as allocate funds to help support small landlords at the same time.

The legislation is sponsored by Queens-based NY State Senator Michael Gianaris and by NY Assembly Member Yuh-Line Niou, whose districts (like many others in New York City and State) have been home to many shuttered businesses and out-of-work residents in recent weeks. Since mid-March, the number of state residents who filed new unemployment claims has reportedly reached 1.4 million. Numerous co-sponsors have signed onto the proposed bills in both New York’s State Assembly and Senate.

“For the people who have lost their jobs and the small businesses that have been forced to shutter, this is an immediate crisis – their income has been cut off, but rent is still due on the first,” Niou told amNY. “Our action to help them needs to be just as immediate.”

As Grant Lancaster reported Thursday for amNY, “One bill would waive all rent payments for residential and small business tenants that can prove hardship related to the virus and allow landlords facing hardship to put off some mortgage payments for 90 days. [Another] would suspend rent payments for tenants who lost income or were forced to close their business due to the state of emergency [and] also establish a coronavirus rental assistance fund.”

A third bill would set up “an emergency fund for assisting small landlords,” Lancaster explained. In addition, he wrote, “Niou wants to provide further support for renters by providing property tax relief for small landlords, freezing rent payments at their current level for the length of the crisis and one year after, using emergency funds to sanitize and disinfect NYCHA public areas, and more.”

Since March, the notion of waiving or delaying rent for hard-hit tenants has become increasingly popular in New York State and across the US, though most lawmakers have been hesitant to take up this idea (with its many potential facets and impacts).

Exceptions include Seattle City Council member Kshama Sawant, who called for “a national day of action” on this matter in her April 16 TeenVogue op-ed, as well as New York State’s Niou and colleagues.

Now that some lawmakers have opted to take a public stance in favor of such steps, it seems likely that others may be more willing to follow.

For example, as Kristine Garcia reported for PIX 11, New York City Mayor Bill de Blasio promoted similar goals for NYC this past week, emphasizing in a Friday morning press conference “[the] need to make sure that every New Yorker can stay in their home during this crisis.”

“A lot of what we saw in the Great Depression is happening right now, right here,” de Blasio said. “Give them a rent freeze. They need it.”

As Garcia reported, “The mayor also called on the state to approve allowing tenants to pay rent with their security deposit, [allowing] tenants who miss rent to repay over 12 months and [extending] the eviction moratorium to 60 days beyond the crisis.”

Speaking in response to de Blasio’s call for state assistance in rent freezes, Secretary to the Governor Melissa DeRosa commented that New York City rent rules are “outside of [the] actual jurisdiction” of state Governor Andrew Cuomo’s office.

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