Mayor Bill de Blasio at New York City first ever virtual bill signing Image Credit: Mayor’s Office

Local Law addressing personal liability provisions in commercial leases raises constitutional law discussion. On May 26, 2020, Mayor Bill de Blasio signed seven COVID-19 relief bills into law during New York City’s first ever virtual bill signing. Among the laws, Local Law 55 of 2020, sponsored by Council Member Carlina Rivera, temporarily prevents the enforcement of personal liability provisions in commercial leases or rental agreements involving COVID-19 impacted tenants.  The law also makes it a form of harassment to attempt or threaten to enforce personal liability provisions on the COVID-19 impacted tenant. Several of the bills were heard by their respective committees on April 29, 2020 and all were approved by their committees and the full Council on May 13, 2020.  To read CityLand’s prior coverage of the other COVID-19 Relief Bills and Local Law 55 at public hearing, click here. For the coverage of the Third Party Delivery Service bills and the Stated Meeting click here.

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Council Member Mark Gjonaj speaking at the May 13, 2020 virtual Stated Meeting Image Credit: City Council Livestream

Council Bills intended to support the restaurant industry and small business. On May 13, 2020 the New York City Council voted to approve two bills intended to restrict the amount of fees third-party delivery services can charge restaurants during the COVID-19 pandemic and restaurant closures. Intro 1898-A, which essentially prevents fees to restaurants when no actual transaction results, was approved with 47 votes in the affirmative and three votes in the negative. Intro 1908-B, which restricts third-party food delivery service fees to a maximum 15 percent per order, was approved by a vote of 46 votes in the affirmative and 4 votes in the negative.

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Governor Andrew M. Cuomo delivers briefing on Coronavirus pandemic. Image Credit: Governor’s Office

Advocates and industry leaders calling for more protections and more action from Governor. On May 7, 2020, New York Governor Andrew Cuomo issued Executive Order No. 202.28, extending the eviction moratorium through August 20, 2020. The moratorium prevents the filing of eviction proceedings against both residential and commercial tenants. The original eviction moratorium, came by way of Chief Administrative Judge Lawrence K. Marks on March 15, 2020, and was reinforced by Governor Cuomo’s Executive Order No. 202.8, on March 20, 2020. The March 20 order extended the eviction moratorium through June 20, 2020. Read CityLand’s initial coverage of the eviction moratorium here.

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Council Speaker Corey Johnson, Council Member Robert Cornegy, and Council Member Andrew Cohen at the April 28th Committee public hearing held through Zoom./Image Credit: City Council

Testimonies at the public hearing revealed concerns about the two bills and their impact on the City’s tenants and landlords. On April 28, 2020, the City Council Committee on Housing and Buildings, and Committee on Consumer Affairs and Business Licensing held a joint public hearing on two bills that will provide protection to residential and commercial tenants who are financially impacted by COVID-19. Introduction 1912, sponsored by Council Speaker Corey Johnson, will prohibit court marshals and sheriffs from enforcing evictions and collecting debt for one month after the federal and state moratoriums on evictions are lifted. Introduction 1936, sponsored by Council Member Ritchie Torres, will make it illegal to harass a tenant based on how they were impacted by COVID-19. The bills were proposed to provide financial relief to tenants who have faced COVID-19 related economic losses and to prevent an increase of homelessness and displacement after eviction moratoriums are lifted.

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Mayor Bill de Blasio. Image credit: CityLand

The Housing Stability and Tenant Protection Act makes it possible to freeze rents at preferential rates for qualifying New Yorkers. On September 18, 2019, the de Blasio administration released guidance regarding renter rights under the Housing Stability and Tenant Protection Act. This guidance will allow New Yorkers who pay preferential rents in rent stabilized apartments to benefit from the City’s Rent Freeze Programs. (more…)