by Winnie Shen
The ongoing global pandemic has laid bare how intimately connected stable housing is to public health. Unfortunately, COVID-19’s resulting economic crisis has also put nearly 40 million people at risk of eviction. State policymakers have implemented stopgap measures, such as temporary eviction moratoriums and lackluster rent relief programs, which only serve to delay the impending flood of evictions and do not guarantee housing stability for all during this pandemic.
One reason for the insufficient response by states is the lack of support from the federal government. A truly comprehensive rent relief program or any form of rent cancellation would require significant federal assistance, as many state governments are facing serious budget shortfalls. New York State alone would require $15 billion to cover its deficit.
The federal government has taken some steps to provide rental assistance and tenant protections. The Centers for Disease Control and Prevention (CDC) passed a nationwide eviction moratorium on September 4th that was recently extended by President Biden to last until March 31, 2021. However, CDC’s eviction moratorium is limited in scope and has many eligibility requirements, ranging from income limits to requiring the tenant to prove they have exhausted all other available public assistance. For states without any eviction moratoriums though, the CDC’s eviction moratorium provides baseline protection.
New York’s Tenant Protections During COVID-19
In New York, tenants receive more protections than those offered by the CDC. On December 28, 2020, Governor Cuomo signed into law the COVID-19 Emergency Eviction and Foreclosure Prevention Act, which placed a stay on all evictions still pending until February 26, 2021. Following the expiration of the stay, tenants who have been financially affected by COVID-19 or who if moving would pose a significant health risk, can submit a Hardship Declaration form to their landlord. Their landlord will not be able to evict them or start a case in Housing Court until May 1, 2021. Additionally, the protections guaranteed by the Tenant Safe Harbor Act that was passed June 30, 2020, are still in effect. Under the Tenant Safe Harbor Act, tenants cannot be evicted for rent arrears accrued between March 7, 2020, up until New York is no longer in a state of emergency. However, there remain glaring problems not addressed by either legislation.
The first issue is that these acts are temporary. Employment rates may not return to pre-pandemic levels until the end of 2023. Tenants will likely continue to struggle with paying their rent arrears and future rent. New Yorkers may be safe from evictions now but will be still at a heightened risk after all the COVID-19 protections expire.
Secondly, neither legislation frees tenants from their obligation to pay their rent arrears. While landlords are not able to start an eviction proceeding for nonpayment of rent, they can still request a money judgment. In theory, tenants can use this as an opportunity to negotiate a payment agreement. However, for tenants who have been rendered financially destitute, even the most forgiving payment agreement does not help when they have neither savings nor steady employment.
New York’s COVID-19 Rent Relief Program
Policymakers have not completely ignored this problem. New York implemented the COVID-19 Rent Relief Program on July 16, 2020. The first round of the program was a clear failure. Out of the $100 million allocated to New York through the federal CARES Act for rental assistance, less than $40 million was distributed. In light of this failure, Governor Cuomo announced a second round of the program that ran from December 18, 2020, through February 1, 2021, with slight changes made to the eligibility requirements. However, the rent relief program was designed to not provide tenants with the amount of rent relief they would need to pay all or even a significant portion of their rent arrears. The subsidy only covers the difference between the tenant’s rent burden pre-pandemic and their rent burden April through July 2020.
Additionally, the strict eligibility requirements preclude many tenants from being able to receive any relief. Applicants must prove they lost income during the period of April 1 to July 31, 2020, which lines up almost exactly with when the federal government provided expanded unemployment insurance (UI) benefits. From March through July 2020, the federal government provided an extra $600 a week on top of regular UI benefits. In other words, a tenant’s unemployment may have rendered them ineligible for rent relief.
Other Forms of Rent Relief?
Some policymakers, such as Assemblymember Yuh-line Niou and State Senator Julia Salazar, have realized that housing stability cannot be guaranteed without taking bold measures. They proposed a cancellation of both rent and mortgage payments for small owners with their Rent and Mortgage Cancellation Act of 2020. The bill was not passed before the legislative session ended last year and would need to be re-introduced this session.
While the political and financial viability of rent cancellation continues to be discussed by legislators, it is important to not sideline other potential forms of rent relief. The federal HEROES Act provided New York with $1.3 billion for rental assistance, but the state has not announced plans for how this aid will be distributed. California, on the other hand, has announced exactly what they plan on doing with their $2.6 billion in federal aid.
California’s COVID-19 Rent Relief and Eviction Moratorium
On January 29, 2021, Governor Gavin Newsom signed into law SB 91 – COVID-19 Tenant Relief Act. The legislation does not cancel rent but covers 80% of unpaid rent accrued between April 2020 and March 2021, so long as the landlord agrees to forgive the remaining 20% owed and not pursue an eviction. However, landlords are not required to forgive the rent and will still be entitled to receive 25% of the tenant’s rent arrears regardless. Again, much like New York’s rent relief program, not all tenants are eligible for the program.
SB 91 also extends the state’s eviction moratorium. California’s moratorium is notably more restrictive than New York’s. While both states require tenants to submit a hardship declaration form, California also requires tenants to have paid at least 25% of all rent arrears that accrued or will accrue from September 1, 2020, through June 30, 2021, by June 30, 2021. Failure to submit the declaration form and pay 25% of the rent arrears means the tenant will not be protected by the eviction moratorium.
While neither state has responded to advocates’ calls for the cancellation of rent, California has outshined New York by instituting a more comprehensive rent relief program. California’s program is still centered on protecting landlords’ profits but it also offers some tenants a possibility of being free from their rent arrears — a possibility that many New Yorkers don’t have.
Call to Action for New York State’s Legislature
With legislators back in session in New York, they can and should revisit the Rent and Mortgage Cancellation Act. Additionally, the legislature needs to follow California’s example and act expeditiously to distribute the available federal aid. California’s rent relief program is an improvement over the existing program in New York, but it is certainly not perfect. New York now has the advantage of being able to learn from California’s model, as well as their mistakes. With estimates of over $3 billion accumulated in rent arrears statewide, the New York State legislature cannot afford to delay.
Cover Image Source: Gothamist