Multifamily and Residential Investment Property Landlords are feeling uneasy now that a measure to stop evictions for two months is about to become law. The New eviction moratorium measure just passed in New York State is turning into a hardship for landlords. Will other states follow with similar legistlation?
The state Senate and Assembly voted today to pass the Emergency Eviction and Foreclosure Prevention Act of 2020, which will limit evictions and foreclosures on some properties until May 1. For many landlords, the larger threat of an eviction ban is that it could incite tenants to not pay rent, even if they can, as there is no mechanism to determine eligibility. Lawmakers have acknowledged this.
In addition, the legislation doesn’t pay down rent arrears, which could now total as much as $3.4 billion statewide, according to a study from the National Council of State Housing Agencies. That study, conducted at the end of September, estimated that anywhere from 800,000 to 1.2 million households are behind on rent, and that there could be 730,000 evictions filed in New York by January 2021.
Gov. Andrew Cuomo said in a Monday press conference that he would sign the bill into law once it passed.
Excerpted from www.therealdeal.com