COVID-19 Commercial Eviction & Foreclosure Proceedings
9/13/2021- New Moratorium Enacted to January 15, 2022
On September 2, 2021, Governor Hochul signed into law new legislation related to commercial eviction and foreclosure protections (L. 2021, c. 417; “Act”). The Act continues to provide relief to respondents and defendants in commercial eviction proceedings and certain commercial foreclosure actions in New York with certain caveats, including, among other things:
- Publishing a form “Hardship Declarations” to be used by tenant-respondents in commercial eviction matters and defendant-mortgagors in commercial foreclosure actions in reporting financial hardship during or due to the COVID-19 pandemic.
- Staying commercial eviction proceedings (“Proceedings”) and certain commercial real property mortgage foreclosure actions (“Actions”) until at least January 15, 2022 in Proceedings and Actions where a tenant-respondent or defendant-mortgagor submits a completed Hardship Declaration.
- Implementing a court hearing process by which a petitioner-landlord may contest the hardship certified by a tenant-respondent in commercial eviction matters and certain defendant-mortgagors in certain commercial foreclosure actions that has submitted a Hardship Declaration.
- “Covered Commercial Foreclosure Actions” are commercial foreclosures involving a mortgagor which owns ten or fewer commercial units (whether directly or indirectly) and is a business resident in New York, independently owned and operated, not dominant in its field, and employing one hundred or fewer persons.
- “Covered Commercial Eviction Proceedings” are evictions involving a commercial tenant which is a resident of New York State, is independently owned and operated, is not “dominant” in its field, and employs one hundred or fewer persons.
- Administrative Order AO/262/21 (addressing commercial foreclosures)
- Administrative Order AO/261/21 (addressing commercial evictions)
- Ch. 417, L. 2021, Related to Commercial Evictions and Foreclosures
- Memorandum of Chief Administrative Judge Lawrence K. Marks, dated September 8, 2020 (addressing commercial evictions)
- Memorandum of Chief Administrative Judge Lawrence K. Marks, dated September 8, 2020 (addressing commercial foreclosures)
- COVID-19 Emergency Protect our Small Businesses Act of 2021 Amendment
- Ch.104, L.2021, The COVID-19 Emergency Residential and Commercial Evictions Extension
- The COVID-19 Emergency Protect Our Small Businesses Act of 2021
- Administrative Order AO/161 /21 (addressing evictions)
- Administrative Order AO/159 /21 (addressing foreclosures)
- Memorandum of Chief Administrative Judge Lawrence K. Marks (addressing commercial eviction proceedings), dated May 24, 2021
- Memorandum of Chief Administrative Judge Lawrence K. Marks, dated May 24, 2021 (addressing foreclosure proceedings)
Commercial Hardship Declarations:
When signed and submitted by commercial tenants and commercial mortgagors, the Hardship Declaration requires that the case be temporarily delayed until January 15, 2022. Also, the Declaration can help prove financial hardship that may be a defense against commercial eviction or commercial foreclosure under New York law.
If your landlord or mortgage holder has not yet started a proceeding against you, you should send the Hardship Declaration to the landlord or mortgage holder (or to their agent). If you are already a party to a commercial eviction or foreclosure proceeding, you should file the Hardship Declaration directly with the Court, and send a copy to your landlord or mortgage holder (or their agent).
If you have a lawyer, you should discuss the Hardship Declaration with the lawyer before signing and sending it to your landlord, mortgage holder, or the court.