S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8865
 
                             I N  S E N A T E
 
                               July 31, 2020
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to suspend rent payments for certain tenants in response  to  the
   outbreak of coronavirus
 
   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 for a not-for-profit  corporation  employing
 twenty-five  or less full-time employees or full-time equivalent employ-
 ees or for a small business incorporated and  resident  in  this  state,
 independently owned and operated, not dominant in its field, and employs
 twenty-five  or less full-time employees or full-time equivalent employ-
 ees, all revenue, including emergency federal, state  or  local  assist-
 ance,  or  any  other  form of income that  may be used to pay rent, but
 excluding restricted grants;
   (b) "landlord" means the person or entity to  whom  a  covered  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 and any  further  amend-
 ments  or  modifications,  and  as  may  be further extended pursuant to
 section 28 of the executive law;
   (e) "covered tenant" includes a tenant that is a not-for-profit corpo-
 ration employing twenty-five or less full-time  employees  or  full-time
 equivalent  employees, or a tenant that is a small business incorporated
 and resident in this state, independently owned and operated, not  domi-
 nant  in  its field, and employs twenty-five or less full-time employees
 or full-time equivalent employees; and
   (f) "covered period" means March 7, 2020 until the date on which  none
 of  the provisions that closed or otherwise restricted public or private
 businesses or places of public accommodation, or  required  postponement
 or  cancellation of all non-essential gatherings of individuals  of  any

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD16906-05-0

 S. 8865                             2
 
 size, for any reason in Executive Orders  202.3,  202.4,  202.5,  202.6,
 202.7, 202.8, 202.10, 202.11, 202.13 or 202.14, as extended by Executive
 Orders 202.28 and 202.31 and as further extended by any future Executive
 Order,  issued in response to the COVID-19 pandemic continue to apply in
 the county in which the covered tenant is located.
   § 2. (a) (i) Notwithstanding any other provision of law, rule or regu-
 lation to the contrary, any covered tenant in the state  that  has  been
 forced  to  close  their place of business, or 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 twenty percent of the covered tenant's actual income  for
 the  thirty  days  prior  to  the date such rent was due or one-third of
 their contractual rent, whichever is less, per month for the duration of
 the covered period through one hundred eighty days following  the  final
 day  of  the covered period.  A landlord of a covered tenant shall waive
 twenty percent of the contractual rent per month for the duration of one
 hundred eighty days following the final day of the covered period.
   (ii) Where a covered tenant is authorized to pay  an  amount  that  is
 less  than their contractual or statutory rent pursuant to this act, the
 covered tenant shall provide the landlord and the department  of  finan-
 cial  services  with  a  sworn  affidavit affirming the covered tenant's
 actual income for the thirty days prior to the date such  rent  was  due
 for each month for which the tenant is seeking a reduced payment of rent
 due  to loss of income as a result of government ordered restrictions in
 response to the outbreak of coronavirus disease  2019  (COVID-19).  Upon
 the  verification of such statement by the superintendent of the depart-
 ment of financial services or his  or  her  agent,  such  payment  shall
 absolve the covered tenant of any further obligation to pay rent and any
 difference between the rent that would have been contractually or statu-
 torily  owed  and  the  amount  paid pursuant to this paragraph shall be
 waived, except where a covered 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 covered tenant
 may raise a payment made pursuant to this act as a defense  to  non-pay-
 ment. If the amount of the covered tenant's actual income is in dispute,
 the  court  shall review documentation of the covered tenant's income in
 camera, unless otherwise deemed necessary by the court.  Notwithstanding
 any  other  provision  of law to the contrary customary documentation of
 income shall constitute prima facie evidence  of  the  covered  tenant's
 actual  income  and  shall  be  presumptively admissible in such summary
 proceeding.
   (b) Any covered tenant whose lease expires during the  covered  period
 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  one  hundred
 eighty 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. (a) The superintendent of the department of financial services is
 hereby authorized and directed to establish  and  implement  an  interim
 commercial  rent relief program to support covered tenants and landlords
 impacted by the COVID-19 pandemic. Such program shall be provided up  to
 $500,000,000   of   monies that have  been allocated to the state of New
 York by the federal government.

 S. 8865                             3
 
   (b) Notwithstanding any other law to the contrary, a landlord that has
 lost rental income pursuant to this act and has not been  fully  compen-
 sated  by emergency federal, state or local assistance, may apply to the
 department of financial services for relief. The superintendent  of  the
 department  of financial services may, upon satisfaction of the veracity
 of the landlord's application and to the extent possible, authorize  the
 distribution  of  any  unrestricted  federal emergency assistance monies
 provided to the state that have not otherwise  been  obligated,  to  any
 such  landlord  in the amount of the balance of rental income lost after
 the twenty percent of the contractual rent waived by  the  landlord  and
 any amount paid by a covered tenant pursuant to section two of this act.
 The superintendent of the department of financial services shall promul-
 gate rules and regulations to effectuate the provisions of 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 due to loss of
 income as a result of government ordered restrictions in response to the
 outbreak of coronavirus disease 2019 (COVID-19) 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;  provided  further,  however,  that  the tenant shall
 provide a sworn affidavit affirming the covered tenant's loss of  income
 as  a  result  of  government  ordered  restrictions  in response to the
 outbreak of coronavirus disease 2019 (COVID-19).  In no event shall late
 or reduced rent payments during the state of  emergency  constitute  the
 basis  for  a  summary holdover proceeding for the chronic nonpayment of
 rent.
   § 5. This act shall take effect immediately and  shall  be  deemed  to
 have been in full force and effect on and after March 7, 2020.