EXTENSION ON COMMERCIAL EVICTIONS IN NEW YORK
On October 20, 2020, Governor Cuomo issued Executive Order No. 202.70, which further strengthens tenants’ protections during the COVID-19 pandemic, this time for commercial tenants. The Executive Order extends New York State’s moratorium on COVID-related commercial evictions and foreclosures through January 1, 2021. Governor Cuomo states that the “extension of this protection gives commercial tenants and mortgagors additional time to get back on their feet and catch up on rent or their mortgage, or to renegotiate their lease terms to avoid foreclosure moving forward”.
This extension will align the moratorium for commercial tenants and residential tenants, both through January 1, 2021. The state moratorium on evictions was initially announced on March 20, 2020 for a period of 90 days. The commercial eviction and foreclosure moratorium were extended monthly by Executive Orders through August 20, September 20, and October 20. On June 30, 2020, Governor Cuomo also signed the Tenant Safe Harbor Act which immediately extended the eviction moratorium for residential tenants until the end of the public health emergency.
Governor Cuomo has also previously issued executive orders that protect tenants from late fees for failure to pay timely rent and allowed residents to use their security deposit towards past due rent. The extension on the commercial moratorium is simply another protection to allow time for individuals and establishments to financially recover from their hardships. These moratoriums continue to have a negative impact on landlords who are unable to evict any nonpaying tenants. However, the landlords still remain responsible for paying their own bills to keep the property running, such as maintenance, taxes, insurance, and utilities.
The information in this Client Alert is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based upon particular circumstances. Each legal matter is unique, and prior results do not guarantee a similar outcome.
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