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NY Eviction Moratorium Extended

During his May 7th daily briefing, Governor Cuomo stated without much detail that he would be signing an Executive Order extending the moratorium on evictions through August 20th, banning imposition of late fees, and requiring landlords to allow tenants to utilize their security deposits to pay rent. Executive Order 202.28 was published later that day and the following is a summary of that order with added detail:

  • There shall be no initiation of eviction proceedings and no enforcement of evictions based upon nonpayment of rent against residential and commercial tenants, provided the tenant “is eligible for unemployment insurance or benefits under state or federal law or otherwise facing financial hardship due to the COVID-19 pandemic for a period of sixty days beginning on June 20, 2020.”

  • Landlords are required, upon request from a residential tenant, to apply the security deposit, plus accrued interest, to pay rent that is in arrears or will become due, provided the tenant “is eligible for unemployment insurance or benefits under state or federal law or otherwise facing financial hardship due to the COVID-19 pandemic for a period of sixty days beginning on June 20, 2020.”

    - Tenants are required to replenish the security deposit starting no less than 90 days from the date of usage of the security deposit at the rate of 1/12 the amount used as rent per month. Tenants may, at their sole option, retain appropriate insurance in lieu of replenishing the security deposit, which the landlord must accept.
  • Landlords are prohibited from demanding or collecting any fees for the late payment of rent from a residential tenant during the time period from March 20th though August 20th, 2020.

At this point, it is unclear how this Order will be implemented or enforced. For example, the Order does not define the phrase, “or otherwise facing financial hardship due to the COVID-19 pandemic”, or provide a remedy if a tenant fails to timely replenish the security deposit. We are keeping a close eye on any further orders or directives and will report back as the facts warrant.