NY A10901

Covered tenants (not-for-profit corporations or small businesses with 25 or fewer employees) forced to close or experiencing substantially curtailed business activities due to COVID-19 restrictions are responsible for paying only up to 20 percent of actual income for the prior 30 days or one-third of contractual rent, whichever is less, per month during the covered period and 180 days following it.

Landlords must waive 20 percent of contractual rent per month for 180 days following the end of the covered period, with covered tenants providing sworn affidavits of actual income to the Department of Financial Services for verification.

Covered tenants may use reduced rent payments made pursuant to this act as a defense in summary non-payment proceedings, and late fees, interest, or penalties cannot be collected for rent accrued during the state of emergency.

Courts cannot accept petitions for eviction based on non-payment of rent due to COVID-19 income loss for at least 30 days after the state of emergency ends, and reduced rent payments cannot be grounds for eviction based on chronic nonpayment.

The Department of Financial Services is authorized to establish a commercial rent relief program funded with up to $500 million in federal monies to compensate landlords who have lost rental income and have not been fully compensated by other emergency assistance.