New York passes nation’s strongest ban on evictions and foreclosures

December 29, 2020 5:40 PM

On December 28th, New York Governor Andrew Cuomo signed the COVID-19 Emergency Eviction and Foreclosure Prevention Act. The law effectively enacts a 60-day eviction and foreclosure moratorium for all New York tenants and homeowners until February 26, 2021. New Yorkers who are experiencing financial hardship due to the COVID-19 pandemic and who submit a hardship declaration form are prevented from being evicted or having their home foreclosed on for even longer, until May 1, 2021.

With the bill’s signing, New York State now has the strongest eviction moratorium in the nation.

Protections for New York renters

The new law suspends pending and future eviction proceedings against New York tenants for either 60 days or 4 months, depending on their financial circumstances:

  • All pending eviction proceedings, as well as any eviction proceedings started on or before January 27, 2021, are suspended for a 60-day period and cannot go forward until February 26, 2021. This provision applies to all New York tenants, regardless of financial hardship.

  • New York tenants who are experiencing financial hardship as a result of the COVID-19 pandemic, or who are living with someone who is at increased risk of severe illness due to COVID-19, can submit a Standardized Hardship Declaration Form to their landlord or in court to prevent or halt an eviction proceeding against them.

    • New York tenants can declare financial hardship if they:
      • Lost income due to the pandemic;
      • Have increased healthcare expenses;
      • Have increased child care or other family care expenses;
      • Are unable to gain employment because of the pandemic; or
      • Cannot afford to move.

    • Once the Standardized Hardship Declaration Form is submitted to the landlord or a court, the landlord cannot file an eviction proceeding against the tenant until May 1, 2021. Eviction proceedings already underway will also be suspended until May 1st.

Protections for New York homeowners

The law prevents foreclosure proceedings against New York property owners who own less than 10 dwelling units for either 60 days or 4 months, depending on their financial circumstances. The new law also includes rules regarding tax lien sales and credit reporting to protect New York homeowners.

Foreclosure Proceedings

  • All pending foreclosure proceedings, as well as any foreclosure proceedings started on or before January 27, 2021, are suspended for a 60-day period and cannot go forward until February 26, 2021. This provision applies to all New York property owners who own less than 10 dwelling units, regardless of financial hardship.

  • New York homeowners who are experiencing financial hardship as a result of the COVID-19 pandemic must submit a Standardized Hardship Declaration Form to their mortgage lender, local assessor, or in court to prevent or halt a foreclosure proceeding against them.

    • New York property owners can declare financial hardship if they have lost income due to the pandemic, whether caused by increased expenses, a reduction in rent collection, or an inability to gain employment.

    • Once the form is submitted to their mortgage lender, local assessor, or in a court, the foreclosure proceedings cannot be filed against the homeowner until May 1, 2021. Foreclosure proceedings already underway will also be suspended until May 1st.

Tax Lien Sales and Negative Credit Reporting

New York homeowners who file a Standardized Hardship Declaration Form will also be protected against:

  • Tax lien sales of their property until May 1, 2021.

  • Credit discrimination if the homeowner has fallen behind on mortgage payments. This includes negative reporting to any credit agency of the granting of a stay on foreclosure proceedings, or a stay of tax lien sales on the property.

How to submit a hardship declaration form

If you are a tenant, you can find the Standardized Hardship Declaration form here.

If you are a homeowner, you can find the Standardized Hardship Declaration form here.

If you are a tenant or homeowner in New York State and have faced financial hardship due to the COVID-19 pandemic, we encourage you to submit this form to your landlord (tenants) or mortgage lender or local assessor (homeowners) to delay eviction or foreclosure proceedings until May 1, 2021.