NY State Senate Bill 2021-S5629

Senate Bill S5629

2021-2022 Legislative Session

Establishes a rental assistance loan-to-grant program to assist landlords due to the COVID-19 pandemic

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Archive: Last Bill Status - In Senate Committee Housing, Construction And Community Development Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to housing, construction and community development
Mar 12, 2021	referred to housing, construction and community development

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2021-S5629 (ACTIVE) - Details

See Assembly Version of this Bill:: A6595
Current Committee:: Senate Housing, Construction And Community Development
Law Section:: Real Property
Versions Introduced in 2023-2024 Legislative Session:: S3499, A4698

2021-S5629 (ACTIVE) - Summary

Establishes a rental assistance loan-to-grant program to assist landlords of small rental properties who have lost rental income due to the inability of the landlords' tenants to pay rent during the COVID-19 state disaster emergency.

2021-S5629 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5629

SPONSOR: TEDISCO
 
TITLE OF BILL:

An act to establish a rental assistance loan-to-grant program to assist
landlords of small rental properties who have lost rental income due to
the inability of the landlords' tenants to pay rent during the COVID-19
state disaster emergency; and providing for the repeal of such
provisions upon the expiration thereof

 
PURPOSE:

This legislation establishes a rental assistance loan-to-grant program
to assist landlords due to the COVID-19 pandemic

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. 1. (a) States there shall be established in the New York
Division of Housing and Community Renewal a rental assistance loan-to-
grant program

(b) The program shall provide loans to landlords of residential proper-
ties containing up to six rental units for the purpose of covering rent
arrearages owed by tenants of the building who were unable to pay rent
during the COVID-19 state disaster emergency due to unemployment or
medical emergency and accrued during the state disaster emergency
declared pursuant to executive order 202 of 2020.  If a tenant subse-
quently pays the landlord the arrearages in rent, in whole or in part,
the landlord shall pay such funds to the program as full or partial
repayment of the loan. If a tenant does not pay the landlord the arrear
ages in rent, that portion of the loan from the program shall be
converted by the Division of Housing and Community Renewal into a grant
to the landlord and the landlord shall be held harmless from any obli-
gation to repay such portion of the loan, absent any fraud.

2. Illustrates allocated Federal monies, which will be utilized to fund
this program.

3. The Commissioner of the New York State Division of Housing and Commu-
nity Renewal will promulgate rules and regulations for the implementa-
tion and administration of the program.

4. Nothing in this act shall be construed to relieve any tenant of any
obligation to pay rent to a landlord pursuant to a valid rental agree-
ment or understanding.

 
JUSTIFICATION:

New York State has enacted an eviction ban for tenants living in the
state, giving residents fearful of losing their homes during the pandem-
ic some relief at least until May of 2021.

As laudable as the aim may be, landlords, particularly those who own
commercial properties for small business use, and those who rent six or
less units continue to operate with little-to-no assistance.  This
legislation offers a loan-to-grant program to those landlords renting
six or less units. Under this program, if tenants pay their back rent,

the landlords would simply repay the state. If the tenant never pays the
rent, then the landlord would be held harmless.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire on the later of
December 31, 2021 or 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 size for any reason in
executive order numbers 202.3, 202.4, 202.5, 202.6, 202.7, 202.8,
202.10, 202.11, 202.13 or 202.14 of two thousand twenty, as extended by
executive order numbers 202.28 and 202.31 of two thousand twenty and as
further extended by any future executive order, issued in response to
the COVID-19 pandemic continue to apply anywhere in the state, when upon
such date the provisions of this act shall be deemed repealed; provided
that the state commissioner of social services shall notify the legisla-
tive bill drafting commission upon the date on which none of the
provisions that closed or otherwise restricted public or private busi-
nesses or places of public accommodation, or required postponement
cancellation of all non-essential gatherings of individuals of any size
for any reason in executive order numbers 202.3, 202.4, 202.5, 202.6,
202.7, 202.8, 202.10, 202.11, 202.13 or 202.14 of two thousand twenty,
as extended by executive order numbers 202.28 and 202.31 of two thousand
twenty and as further extended by any future executive order, issued in
response to the COVID-19 pandemic continue to apply anywhere in the
state, in order that the commission may maintain an accurate and timely
effective data base of the official text of the laws of the state of New
York in furtherance of effectuating the provisions of section 44 of the
legislative law and section 70-b of the public officers law.

2021-S5629 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5629
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 12, 2021
                                ___________
 
 Introduced  by Sens. TEDISCO, GALLIVAN, HELMING, JORDAN, MARTUCCI, OBER-
   ACKER, ORTT, PALUMBO -- read  twice  and  ordered  printed,  and  when
   printed  to be committed to the Committee on Housing, Construction and
   Community Development
 
 AN ACT to establish a rental assistance loan-to-grant program to  assist
   landlords  of  small rental properties who have lost rental income due
   to the inability of the landlords' tenants  to  pay  rent  during  the
   COVID-19  state  disaster  emergency;  and providing for the repeal of
   such provisions upon the expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. 1. (a) There shall be established in the New York Division
 of Housing and  Community  Renewal  a  rental  assistance  loan-to-grant
 program  ("the  program") to assist landlords of small rental properties
 who have lost rental income due  to  the  inability  of  the  landlord's
 tenants  to  pay  rent  during the period of the COVID-19 state disaster
 emergency declared pursuant to executive order 202 of 2020. The  program
 shall  be  administered  by the Commissioner of the New York Division of
 Housing and Community Renewal.
   (b) The program shall provide loans to landlords of residential  prop-
 erties  containing  up  to  six rental units for the purpose of covering
 rent arrearages owed by tenants of the building who were unable  to  pay
 rent during the COVID-19 state disaster emergency due to unemployment or
 medical  emergency  and  accrued  during  the  state  disaster emergency
 declared pursuant to executive order 202 of 2020.  If  a  tenant  subse-
 quently  pays  the landlord the arrearages in rent, in whole or in part,
 the landlord shall pay such funds to the  program  as  full  or  partial
 repayment of the loan. If a tenant does not pay the landlord the arrear-
 ages  in  rent,  that  portion  of  the  loan  from the program shall be
 converted by the Division of Housing and Community Renewal into a  grant
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10350-01-1

 S. 5629                             2
 
 to  the  landlord and the landlord shall be held harmless from any obli-
 gation to repay such portion of the loan, absent any fraud.
   2. The program shall be funded with monies from the following sources:
   (a) all funds received by the state of New York from the federal Emer-
 gency Rental Assistance program;
   (b) any funds remaining from monies allocated to the state of New York
 from  the federal Coronavirus Aid, Relief, and Economic Security (CARES)
 Act of 2020 (P.L. 116-136) for the Emergency Rent Relief  Act  of  2020,
 pursuant  to chapter one hundred twenty-five of the laws of two thousand
 twenty, such that the sum of such funds actually  expended  pursuant  to
 such  chapter  and  that such funds reallocated and expended pursuant to
 this article shall equal one hundred million dollars; and
   (c) any additional funds allocated by the federal  government  to  the
 state  of New York for emergency rental or utility assistance related to
 the COVID-19 pandemic.
   3. The Commissioner of the New York  State  Division  of  Housing  and
 Community  Renewal  will promulgate rules and regulations for the imple-
 mentation and administration of the program including, but  not  limited
 to:
   (i) standards of eligibility for the program;
   (ii) application procedures;
   (iii) a verification process for eligibility for the program;
   (iv)  a  process  for  distribution of program funds to eligible land-
 lords;
   (v) a verification process for payment by a tenant of rent  arrearages
 or of the tenant's failure to do so;
   (vi)  time  frames for the processing of applications and the distrib-
 ution of funds under the program;
   (vii) procedures for and methods of repayment of loans in whole or  in
 part by landlords; and
   (viii)  procedures  for the conversion of loans to grants, in whole or
 in part.
   4. Nothing in this act shall be construed to relieve any tenant of any
 obligation to pay rent to a landlord pursuant to a valid  rental  agree-
 ment or understanding.
   §  2.  This  act shall take effect immediately and shall expire on the
 later of December 31, 2021 or 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  size  for  any
 reason  in  executive  order  numbers 202.3, 202.4, 202.5, 202.6, 202.7,
 202.8, 202.10, 202.11, 202.13 or  202.14  of  two  thousand  twenty,  as
 extended  by  executive  order numbers 202.28 and 202.31 of two thousand
 twenty and as further extended by any future executive order, issued  in
 response  to  the  COVID-19  pandemic  continue to apply anywhere in the
 state, when upon such date the provisions of this act  shall  be  deemed
 repealed;  provided that the state commissioner of social services shall
 notify the legislative bill drafting commission upon the date  on  which
 none  of  the  provisions  that closed or otherwise restricted public or
 private businesses or places of public accommodation, or required  post-
 ponement  or cancellation of all non-essential gatherings of individuals
 of any size for any reason in  executive  order  numbers  202.3,  202.4,
 202.5,  202.6,  202.7,  202.8,  202.10,  202.11, 202.13 or 202.14 of two
 thousand twenty, as extended  by  executive  order  numbers  202.28  and
 202.31  of  two  thousand  twenty  and as further extended by any future
 executive order, issued in response to the COVID-19 pandemic continue to

 S. 5629                             3
 
 apply anywhere in the state, in order that the commission  may  maintain
 an  accurate  and timely effective data base of the official text of the
 laws of the state  of  New  York  in  furtherance  of  effectuating  the
 provisions  of section 44 of the legislative law and section 70-b of the
 public officers law.

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