S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8139
 
                             I N  S E N A T E
 
                              March 29, 2020
                                ___________
 
 Introduced  by Sen. GIANARIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 AN ACT to suspend rent payments for certain tenants in response  to  the
   outbreak  of  coronavirus;  and  to  amend  the  state finance law, in
   relation to establishing the COVID-19 rental assistance fund

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. For the purposes of this act:
   (a)  "actual  income"  means  (i) for a residential tenant, all wages,
 tips, overtime, salary, recurring gifts, returns on investment,  welfare
 assistance,  social security payments, child support payments, unemploy-
 ment benefits, emergency federal, state  or  local  assistance,  or  any
 other  form  of income that may be used to pay rent; and (ii) for a not-
 for-profit corporation or small business, all revenue,  including  emer-
 gency  federal,  state  or local assistance, or any other form of income
 that  may be used to pay rent, received minus the amount of any wages or
 salary paid to employees of  the  not-for-profit  corporation  or  small
 business.
   (b) "landlord" means the person or entity to whom a tenant owes rent;
   (c)  "rent"  means the amount charged in consideration for the use and
 occupancy of real property pursuant to a written or oral  rental  agree-
 ment or statute;
   (d)  "state  of  emergency"  means  the state of emergency declared by
 executive order 202 that began on March 7, 2020.
   (e) "covered tenant" includes a residential  tenant  having  the  same
 meaning as paragraph (a) or (b) of subdivision 1 of section 235-f of the
 real property law, or  those who otherwise pay for the use and occupancy
 of  a  residential dwelling, except for a residential tenant receiving a
 local, state or federal income based rental subsidy, a tenant that is  a
 not-for-profit  corporation,  or  a  tenant  that is a small business as
 defined by section 131 of the economic development law.
   § 2. (a) (i) Notwithstanding any other provision of law, rule or regu-
 lation to the contrary, any covered tenant in the state  that  has  lost
 earned  income,  has  been  forced  to close their place of business, or
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16103-01-0

 S. 8139                             2
 
 whose business activities have been substantially curtailed resulting in
 a loss of income as a  result  of  government  ordered  restrictions  in
 response  to  the outbreak of coronavirus disease 2019 (COVID-19), shall
 be  responsible  for rent payments up to thirty percent of their current
 income or their contractual rent, whichever is less, per month  for  the
 duration of ninety days following the effective date of this act.
   (ii)  Where  a tenant is authorized to pay an amount that is less than
 their contractual or statutory rent pursuant to  this  act,  the  tenant
 shall provide the landlord with a written and signed statement affirming
 the  tenant's  aggregate  actual income for the thirty days prior to the
 date such rent was due. Such payment shall absolve  the  tenant  of  any
 further  obligation to pay rent and any difference between the rent that
 would have been contractually or statutorily owed and  the  amount  paid
 pursuant  to this paragraph shall be waived, except where a tenant later
 receives additional income, such rent obligations shall be recalculated.
   (iii) In a summary proceeding for the non-payment of rent under  arti-
 cle  7  of  the  real property actions and proceedings law, a tenant may
 raise a payment made pursuant to this act as a defense  to  non-payment.
 If  the  amount  of  the tenant's actual income is in dispute, the court
 shall review documentation of the  tenant's  income  in  camera,  unless
 otherwise  deemed  necessary  by  the  court.  Notwithstanding any other
 provision of law to the contrary, pay stubs, copies of checks and signed
 letters from the tenant's employer, and other customary documentation of
 income shall constitute prima facie  evidence  of  the  tenant's  actual
 income and shall be presumptively admissible in such summary proceeding.
   (b) Any tenant whose lease expires during the state of emergency shall
 have  the  option of extending such lease under the terms existing prior
 to the expiration of the lease for a period of up to ninety  days  after
 the expiration of the state of emergency.
   (c)  Late  fees,  interest or other penalties shall not be collectable
 for rent accrued during the existence of the state of emergency.
   § 3. Notwithstanding any other law to the contrary,  a  landlord  that
 has  lost  rental  income  pursuant  to  this act and has not been fully
 compensated by emergency federal, state or local assistance,  may  apply
 to the division of housing and community renewal for relief. The commis-
 sioner may, upon satisfaction of the veracity of the landlord's applica-
 tion and to the extent possible, authorize the distribution of any emer-
 gency aid available through the COVID-19 rental assistance fund pursuant
 to section 99-hh of the state finance law in response to the outbreak of
 the  novel  coronavirus disease 2019 (COVID-19), to any such landlord in
 the amount of rental income lost. The commissioner of  the  division  of
 housing  and community renewal shall promulgate rules and regulations to
 effectuate this act.
   § 4. Notwithstanding any other law to the  contrary,  no  court  shall
 accept  for  filing  a  petition to commence a new summary proceeding to
 recover possession of real property under article 7 of the real property
 actions and proceedings law for non-payment of rent for at least  thirty
 days  following  the  expiration of the state of emergency; provided any
 statute of limitations applicable to such summary proceedings  shall  be
 tolled for thirty days.  In no event shall late or reduced rent payments
 during  the  state of emergency constitute the basis for a summary hold-
 over proceeding for the chronic nonpayment of rent.
   § 5. The state finance law is amended by adding a new section 99-hh to
 read as follows:
   § 99-HH. COVID-19 RENTAL ASSISTANCE FUND. 1. THERE  IS  HEREBY  ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE COMMISSIONER OF HOUSING AND COMMUNITY

 S. 8139                             3
 
 RENEWAL AND THE COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS THE "COVID-19
 RENTAL ASSISTANCE FUND".
   2.  SUCH  FUND  SHALL  CONSIST  OF  ANY UNRESTRICTED FEDERAL EMERGENCY
 ASSISTANCE FUNDING PROVIDED TO THE STATE THAT MAY  BE  APPROPRIATED  FOR
 SUCH  PURPOSE,  AND  ALL  OTHER MONEYS APPROPRIATED, CREDITED, OR TRANS-
 FERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW. NOTHING IN
 THIS SECTION SHALL PREVENT  THE  STATE  FROM  SOLICITING  AND  RECEIVING
 GRANTS,  GIFTS  OR  BEQUESTS  FOR THE PURPOSES OF THE FUND AS DEFINED IN
 THIS SECTION AND DEPOSITING THEM INTO THE FUND ACCORDING TO LAW.
   3. MONEYS OF THE FUND SHALL BE EXPENDED ONLY FOR RELIEF DUE TO REDUCED
 RENTAL INCOME CAUSED BY  OUTBREAK  OF  NOVEL  CORONAVIRUS  DISEASE  2019
 (COVID-19).
   4.  MONEYS  SHALL  BE PAID OUT OF THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  COMMISSIONER
 OF  HOUSING  AND  COMMUNITY  RENEWAL. ANY INTEREST RECEIVED BY THE COMP-
 TROLLER ON MONEYS ON DEPOSIT IN  THE  COVID-19  RENTAL  ASSISTANCE  FUND
 SHALL BE RETAINED IN AND BECOME PART OF SUCH FUND.
   §  6.  This  act  shall take effect immediately and shall be deemed to
 have been in full force and effect on and after March 7, 2020.