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COVID-19 Information

Moratorium on Enforcement of Evictions and Foreclosures due to the Covid-19 Pandemic

On March 7, 2020, Governor Andrew Cuomo issued Executive Order Number 202, declaring a State disaster emergency for the entire State of New York providing for, amongst other things, a Moratorium on Enforcement of Evictions and Foreclosures. The provision relates to residential and commercial tenants and residential and commercial properties. The portion of the order covering the moratorium provides, in relevant part, that “[t]here shall be no enforcement of either an eviction of any tenant, residential or commercial, or a foreclosure of any residential or commercial property for a period of ninety days.”

This Executive Order does not provide any guidance on notices that may be given during the ninety-day period, and more importantly, it does not excuse payment of rent or other amounts that may be due under a lease or a mortgage.

On March 27, 2020, President Donald Trump signed into law the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES Act.’’ Unlike the Executive Orders issued in the State of New York, the moratorium on evictions and the mortgage forbearance apply to residential properties only. Temporary moratorium on eviction filings applies to tenants under a residential lease (or such residential tenants “without a lease or with a lease terminable under State law”). Some of the highlights are as follows:

  • The duration is the 120 day period beginning on the date of enactment of the Act.
  • There are prohibitions against any filing with the court to initiate a legal action to recover possession from the tenant for nonpayment of rent or other fees or charges.
  • There are also prohibitions against charging fees, penalties, or other charges related to such nonpayment of rent.
  • The landlord may not require the tenant to vacate the covered dwelling unit before the date that is 30 days after the date on which the landlord provides the tenant with a notice to vacate; however, landlord may not issue a notice to vacate until after the expiration of the 120 day period.

Kane Kessler’s Real Estate practice group is available to provide guidance for you and your company in connection with commercial leases and any other real estate questions or issues. For additional information, please feel free to reach out to Darren S. Berger (at 212-519-5196, dberger@kanekessler.com), Gary Ostroff (at 212-519-5112, gostroff@kanekessler.com), Ari Gamss (at 212-519-5135, Agamss@kanekessler.com), Cantesi Tiggs (at 212-519-5189, ctiggs@kanekessler.com).

Kane Kessler, P.C. is a full service law firm and we are available to address all your needs, including, but not limited to, labor and employment, litigation, intellectual property, bankruptcy, corporate and matrimonial.

This memo is provided for informational purposes only. It is not intended as legal advice and readers should consult counsel to discuss how these matters relate to their individual circumstances.