On March 23, 2020, Senate Bill S8125A was introduced to the New York State Senate. This Bill is designed to provide rent relief for tenants in certain circumstances and mortgage relief for those landlords that lose out on rent payment as the result of said rent relief afforded to tenants.
To summarize, the Bill proposes to “suspend all rent payments for certain residential tenants and small business commercial tenants if such tenant has lost employment or was forced to close their place of business and certain mortgage payments for landlords of such tenants in the state for 90 days following the effective date of this act in response to the outbreak of coronavirus disease 2019 (COVID-19).” This does not mean tenants have deferred rent. It means tenants are forgiven on all rent and not required to pay the waived rent owed during this time period, ever.
Furthermore, the Bill proposes that “any person or entity that faces a financial hardship as a result of being deprived rent payments for a covered property pursuant to this section shall receive forgiveness on any mortgage payments for such covered property” during the 90-day period. Therefore, if a landlord does not receive their owed rent payment due to this Bill, and cannot make their mortgage payment as a result, the landlord will be forgiven for such payments.
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