New York Extends Eviction & Foreclosure Hardship Stay Until August 31, 2021
May 6, 2021
On May 4, 2021, Governor Cuomo signed legislation extending the protections of the Emergency Eviction and Foreclosure Prevention Act of 2020 (the “EEFPA”). As set forth in a client alert on December 29, 2020, the EEFPA, which became effective December 28, 2020, allows tenants facing eviction, and mortgagors facing foreclosure, to stop those proceedings by claiming a hardship related to the COVID-19 pandemic. The stay of proceedings pursuant to the EEFPA, as originally enacted, was set to expire May 1, 2021. With the extension, eviction and foreclosure cases in which a tenant/mortgagor files, or previously filed, a hardship declaration, will be stayed until August 31, 2021. The extension seeks to pause evictions and foreclosures until the State can implement the COVID-19 Emergency Rental Assistance Program, and Homeownership Relief and Protection Program, which will provide a combined $3 billion of rental, mortgage, and utility assistance to those experiencing financial hardship due to the COVID-19 pandemic.
A link to the law is provided below.
This Legal Update is intended to keep readers current on developments in the law, and is not intended to be legal advice. If you have any questions, please contact any member of the Financial Service Litigation Group.