On December 28, 2020, New York Governor Andrew Cuomo signed into law the COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020 which is intended to provide relief to tenants, homeowners, and small landlords facing continued economic hardship resulting from the ongoing COVID-19 pandemic. The Act prevents residential evictions, foreclosure proceedings, credit discrimination, and negative credit reporting related to the COVID-19 pandemic until May 1, 2021. It also extends the Senior Citizens’ Homeowner Exemption and Disabled Homeowner Exemption from 2020 to 2021.

The Act helps tenants facing eviction and mortgagors facing foreclosure proceedings due to the pandemic in the following areas:

1) Residential Evictions: The Act places a moratorium on residential evictions until May 1, 2021, for tenants who have endured COVID-related hardship. Tenants must submit a hardship declaration or a document explaining the source of the pandemic-related.

2) Residential Foreclosure Proceedings: The Act also places a moratorium on residential foreclosure proceedings until May 1, 2021. Homeowners and small landlords who are a natural person and own 10 or fewer residential dwellings may file Hardship Declarations with their mortgage lender, other foreclosing party, or a court in order to prevent foreclosure until after the moratorium expires.

3) Tax Lien Foreclosures and Sales: The Act prevents local governments from engaging in a tax lien sale or a tax foreclosure (including, in connection with any unpaid tax, special ad valorem levy, special assessment, or other similar charge) until at least May 1, 2021. However, tax payments and assessments due to the local government will remain due and payable.

4) Credit Discrimination and Negative Credit Reporting: The Act prohibits lenders from discriminating against a property owner when making lending decisions because the property owner has been granted a stay of mortgage foreclosure proceedings, tax foreclosure proceedings, or tax lien sales pursuant to the Act, has filed a Hardship Declaration, or is in arrears.

5) Senior Citizens’ Homeowner Exemption and Disabled Homeowner Exemption: Local governments are required to carry over Senior Citizens’ Homeowner Exemptions (SCHE) for homeowners who are 65 years old or older, and Disabled Homeowner Exemptions (DHC) from the 2020 tax assessment roll to the 2021 assessment roll at the same levels. Local governments are also required to provide renewal applications for anyone who may be eligible for a higher amount of exemption in 2021. Municipal governments may set up procedures for assessors to require renewal applications from people who the assessors believe may no longer be eligible for an exemption. Recipients of the exemption do not have to file renewal applications in person due to the COVID-19 pandemic.

Throughout the COVID-19 public health emergency, New York’s government has attempted to provide relief from pandemic-related hardship to New Yorkers in danger of losing their homes or their businesses. According to Governor Cuomo, this Act of Dc 28^th is “the kind of support that helps us stay New York Tough.”