In the article below we will closely examine the eviction moratorium and its effect on different subsets of people. We will look particularly at this subject from the point of view of a tenant, landlord, and business owner as each of them has a differing point of view.
This term may be pretty new to most people because this is the first time we have encountered this situation. The Eviction Moratorium is a pause on landlord evictions to both residences and small businesses alike. This break in evictions or foreclosure is due to the outbreak of the CoVid-19 virus and the high associated unemployment rates. It was first implemented on September 4th, 2020 by The Centers for Disease Control and Prevention (CDC). They placed fourth an Order under Section 361 of the Public Health Service Act to temporarily halt residential evictions to prevent the further spread of COVID-19. The moratorium has been in place for some time affecting homeowners, renters, landlords, and banks.
For homeowners and tenants, they get the confidence and security of knowing they can remain in their home even if they can’t make the payments due to lack of work, funds, or illness. This benefits approximately 28 million homeowners who have mortgages guaranteed by Fannie Mae and Freddie Mac, according to a press release from the FHFA. For banks and landlords, they are no longer guaranteed their payments. Smaller landlords, those with 10 units or less, can declare financial hardship as well, in a bid to protect themselves from foreclosure. Those units wouldn’t include properties that are vacant and abandoned.
Some people may ask if these laws apply to businesses. Well, to answer your question: On March 9, 2021, New York Governor Andrew Cuomo signed into law the New York State COVID-19 Emergency Protect Our Small Businesses Act of 2021 (S471A/A3207). The Act provides relief measures to protect eligible small businesses suffering from COVID-19 hardships. Currently, the Act covers small businesses’ that submit a standard hardship declaration from eviction or foreclosure.
They are exempt from eviction if the small business is a commercial tenant which employs 50 people or less, is resident in New York, is independently owned and operated, and is not dominant in its field.
Foreclosures find exemptions if the small business owns, directly or indirectly, in aggregate, ten commercial units or less employs 50 or fewer persons, is resident in New York, is independently owned and operated, and is not dominant in its field. The government is taking into consideration the inability of production due to reduced labor. They are accepting of the fact that when people are sick or told to stay home, they cannot go to work or perform their duties which is beyond the control of the business owner. Therefore, the smaller business owners are now exempt from evictions or foreclosure on the business spaces.
So, what does this mean for you? If you are a renter, life just got easier. Take a deep breath. No Boogie Man is coming to evict you for non-payment as long as the missed payments are CoVid-related. Co-Vid pretty much has its hand in everything which, enforces the simplicity of your claim. You can relax and focus on your family and your health.
For business owners, this now applies to you and you can also take a sigh of relief. The government is recognizing that these businesses’ have been shut-down and production has been at a stand-still. They are prepared to protect you and continue to have New York businesses’ thrive.
If you are a landlord, the situation may not be as cut and dry. Now, you may be stuck still paying your mortgage, but a lack of incoming payments. When you are paying your mortgage but not bringing in any rent on the property your income can change overnight. When this is happening multiple times, the effects can be terrifying. Now maybe the time to think about dumping a few properties to fit under the limits.
The system is in a place of limbo and the landlord might be the one left holding the bag at this moment. If you are the landlord that maintains multiple rental units please take the time to learn and stay informed. Make smart decisions, stay up-to-date, and plan to prepare. Follow all of the updates about New York and Orange County by following the link below. https://www.governor.ny.gov/news/governor-cuomo-signs-covid-19-emergency-protect-our-small-businesses-act-2021-establishing. See ya next time!!