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But the coronavirus has exacerbated the situation. An estimated 735,000 households in New York City have lost employment income as a result of COVID-19, according to the NYU Furman Center, a group that advances research and debate on housing and urban policy. Black and Hispanic households in the city have been particularly hard hit.
Approximately 58% of Hispanic wage-earning households and 38% of Black wage-earning households worked in industries that were vulnerable to disruption from coronavirus, like hospitality, according to an analysis from the group. Community organizations say that as a result, an estimated 50,000 renters could face eviction proceedings when the housing courts fully reopen.
Samuel Himmelstein, a partner at the law firm Himmelstein, McConnell, Gribben, Donoghue & Joseph, who focuses on tenants’ rights litigation, said that since March, his office has been inundated by New Yorkers who lost their jobs.
“I and the firm have been overwhelmed with inquiries from people who are basically saying, ‘I can’t afford my rent, I’m running out of money. What are my options?’” Himmelstein said. “I’ve been practicing for 40 years and I’ve never seen anything like this.”
Understanding the Potential Magnitude of Rent Shortfalls in New York Due to COVID
June 4th 2020
NYU Furman Center
Conclusion
Our analysis suggests that the CARES Act is currently protecting most renters who lost income due to COVID-19 and claim UI from elevated rent burdens. Without Enhanced Benefits, however, the scale of monthly rental assistance needed to help lower income households may reach up to between $391 and $516 million per month starting in August, depending on job recovery rates. Additionally, a subset of households who are left out of CARES Act assistance programs may have a cumulative rent need of about $475 million between March and July. A disproportionate share of the workers at risk of housing instability and nonpayment are Black and Hispanic, as evidenced by their over-representation in occupations that have faced higher rates of job loss.
It is important to note that throughout our analysis, we did not assume that rents would either increase or fall. It may be the case that rents do drop, or that building owners negotiate with tenants to reduce rents at lease renewal. If this occurs, this would decrease the rental assistance need estimates overall. Our method highlights the need to tie real-time monitoring of actual UI claims to housing status. Because UI is such an important benefit during the pandemic, it is critical to understand the intersection between the labor market and the rental market. Additionally, it would be beneficial to understand how other labor market conditions affect housing status, including the effect of reduced hours, which we did not build into our analysis; what the actual UI claim rate has been in comparison to actual job loss; and the actual job recovery rate. Finally, our analysis also underscores the need for real-time information on non-payment in New York City’s rental stock in order to understand which housing portfolios are most affected by non-payment. We look forward to forthcoming national estimates using a similar methodology from our research partners at the Urban Institute and the Joint Center for Housing Studies.
Whether assistance is provided directly to tenants, or directly to landlords to cover rents for tenants in exchange for not displacing tenants, the amount budgeted must match the scale of the issue, and administratively needs to be set up in the next 45 days to mitigate against a large, expected cliff starting in August 2020.
City is busted, and state isn't far behind. Neither nor both combined have the hundreds of millions lying around to pay back rent (March through say August), much less forward rent until perhaps end of year.
In NYC alone nearly 70% of households rent their homes; just do the math and you'll see numbers just don't work out.
What's that you say? What about cancel the rent? Neither eegit Il Duce or Sam the Eagle have taken that bait. While not the brighest bulbs in legal tool box both are well aware unless city or state ponies up monies to make LLs whole, before ink is dry on any such law first legal challenges would be filed. Not just in the liberal/democrat/progressive NYS court system, but federal where chances are property owners would get a fairer hearing.
Simply not process evictions. You're LL with a deadbeat tenant? Tough zhit, you're stuck with them.
Quote:
Originally Posted by BugsyPal
What are they going to do?
City is busted, and state isn't far behind. Neither nor both combined have the hundreds of millions lying around to pay back rent (March through say August), much less forward rent until perhaps end of year.
In NYC alone nearly 70% of households rent their homes; just do the math and you'll see numbers just don't work out.
What's that you say? What about cancel the rent? Neither eegit Il Duce or Sam the Eagle have taken that bait. While not the brighest bulbs in legal tool box both are well aware unless city or state ponies up monies to make LLs whole, before ink is dry on any such law first legal challenges would be filed. Not just in the liberal/democrat/progressive NYS court system, but federal where chances are property owners would get a fairer hearing.
Under normal pre-COVID circumstances it cold take months to evict someone who stopped paying rent as far as I know but I don't know about in recent years
Simply not process evictions. You're LL with a deadbeat tenant? Tough zhit, you're stuck with them.
That cannot be done either; you are then depriving someone (in this case landlord) of their due process rights. Again landlord or landlords would sue in federal and or state courts.
Yes, governors can suspend certain actions by courts in cases of emergency, but there has to be an end to things.
Even in uber liberal California they've not cancelled rent, nor permanently stopped evictions. There is a ban against evictions in certain areas or statewide, but they all end by 90 days after pandemic state of emergency is lifted.
Could a governor continue a state of emergency declaration indefinitely? Well assume he or she could try absent something in state law or constitution that sets a limit on things. But my hunch is by a year or so those being economically affected (in this case landlords being forced to house non-paying tenants) would get fed up and sue state in federal or state courts.
In any event as these busted people keep moaning about isn't eviction per se that's got them worried. They have leases which are legally valid contracts. A governor or local area may prevent evictions for the moment, but a LL still can sue for back rent and be granted judgment. Armed with said lien they can garnish wages, seize bank accounts or assets.... Or and once they are sued those tenants will end up blacklisted so if/when they eventually have to move, no one will touch them with a barge pole.
They sue and they'd lose. If rent regulation is legal this would be legal. Eviction is a service provided by the government at their discretion.
Quote:
Originally Posted by BugsyPal
That cannot be done either; you are then depriving someone (in this case landlord) of their due process rights. Again landlord or landlords would sue in federal and or state courts.
They sue and they'd lose. If rent regulation is legal this would be legal. Eviction is a service provided by the government at their discretion.
Who told you that? It's funny because it isn't true.
b. The court of city-wide civil jurisdiction of the city of New York shall have jurisdiction over the following classes of actions and proceedings which shall be originated in such court in the manner provided by law: actions and proceedings for the recovery of money, actions and proceedings for the recovery of chattels and actions and proceedings for the foreclosure of mechanics liens and liens on personal property where the amount sought to be recovered or the value of the property does not exceed twenty-five thousand dollars exclusive of interest and costs, or such smaller amount as may be fixed by law; over summary proceedings to recover possession of real property and to remove tenants therefrom and over such other actions and proceedings, not within the exclusive jurisdiction of the supreme court, as may be provided by law. The court of city-wide civil jurisdiction shall further exercise such equity jurisdiction as may be provided by law and its jurisdiction to enter judgment upon a counterclaim for the recovery of money only shall be unlimited.
Thus far courts have turned down challenges to NYS and other rent regulation laws in that they do or did not violate takings clause of USC. One has nothing to do with the other.
State cannot tell a property owner he must house a tenant indefinitely who fails in his/her contractual agreement to pay rent as per a legally valid lease.
Since you brought it up; LL's suing NYS over portion of 2019 rent laws got their first glimmer of perhaps good news recently.
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