Governor Kathy Hochul continues to make waves within the real estate community by signing legislation that has significant detrimental effects on owners and landlords alike.

A special legislative extraordinary session was called Wednesday, September 1, 2021, redrafting a new anti-eviction law that relates to commercial and residential evictions, and foreclosure protections.

It is time to change your commercial lease agreement to provide for a provision asserting entitlement to “actual” legal fees, rather than any reasonable attorneys’ fees that a Court grants in its discretion. Why compromise?

The endless fight for “good cause evictions” has resurfaced and won the favor of legislators in Albany. It has been the topic of conversation for years with bills on the State level that did not progress into law. However, organizers have shifted their focus and efforts to the local level.

NY State has enacted the Health and Essential Rights Act, also known as the H.E.R.O Act.

While the recent trend in New York City seems to be to protect the tenants from incurring any extra fees, the Department of State went too far in adding a protection not found within the statute by misrepresenting to the public that tenants were relieved from paying brokerage fees.

In 2019 under the Housing Stability Tenant and Protection Act (“HSTPA”) a massive overhaul of the Landlord Tenant Law occurred. While HSTPA was intended to be a vehicle to protect Tenant/ Renters rights, it unintentionally impacted Purchasers and Sellers of Cooperatives. Currently there is legislation approved by both the Senate and Assembly now before the Governor for signature that would change this.

Please be aware that on June 7th, a new bill was presented in the NYS Senate that proposes an amendment to the Administrative Code of the City of New York with respect to establishing the legal regulated rent when 2 or more vacant apartments are combined.

In anticipation of  the opening of the Emergency Rental Assistance Program (ERAP) for Tenants and Owners to submit applications for relief from unpaid rent, the NYS Office of Temporary and Disability Assistance (OTDA) has made a number of educational resources available to the public.

The much anticipated portal for Tenants and Owners to submit applications for relief from unpaid rent will open on June 1. No one knows exactly what this will look like and exactly how much unpaid rent will be recouped for any tenant. However, with the application process opening, we encourage you to educate yourselves.

With eviction delays and tenants continuing to not pay their rent, owners of real estate in New York City are left feeling frustrated by the lack of recourse against their defaulting tenant. However, the SDK Heiberger Team has taken a very aggressive approach.

The New York Office of Temporary and Disability Assistance (OTDA) announced on March 16, 2021, that, effective until at least May 1, it will eliminate the pending lawsuit requirement in the city-administered Family Homelessness and Eviction Prevention Supplement program (FHEPS).

Tenants’ Rights to Reasonable Accommodations for Persons with Disabilities. New Mandatory Notice Requirement for Housing Providers.

The Appellate Term – 1st Dept. stands by the Regina Metropolitan LLC v. DHCR, 2020 NY Slip Op 02127 Court of Appeals Decision by refusing to permit a lookback beyond 4 years for a Pre-HSTPA matter without an allegation of fraud AND colourable claim of fraud.

Another big win for SDK Heiberger – Landlord awarded possession after trial based on proving ongoing nuisance.

Since the enactment of the HSTPA, Owners of Rent Regulated units need to think twice before accepting a reduced rent. This is particularly troublesome while the NYC rental market is down some 30 plus percent.

SDK HEIBERGER LLP’s recent Supreme Court success highlights the added value that the Firm brings to our Client's. From the outset, we conduct the Due Diligence, handle the Purchase(s), draft lease(s), commence and defend Court actions, and effectuate the Sale(s).

We will continue to do our best to keep you up to date on what is going on with the Courts and as a result of the recent or any further changes in the law or procedures.

As of Monday December 28th 2020, the Covid 19 Emergency Eviction and Foreclosure Prevention Act has been signed into law. The immediate effect of this new law is that all pending housing court cases will effectively be stayed for sixty days.

We hope everyone had a wonderful holiday. We need to share a couple of important updates. First, looks like Freddy Mac is extending the Multi-Family Forbearance Program. We encourage all qualified borrowers to look into and avail themselves as necessary.