Extends certain provisions relating to the COVID-19 emergency rental assistance program

• Democratic1

◆ The sponsor's argument

Why Brian Kavanagh says this is needed

The SFY 2021-22 budget enacted a rent relief program (the COVID-19 Emer- gency Rental Assistance Program (ERAP)) using federal funds to assist renters with incomes below 80% of the Area Median Income (AMI) by paying up to 12 months of rent and utility arrears and three months of prospec- tive rent. Additional federal and state funding was added to the program in SFY 2022-23 and SFY 2023-24. Applications for ERAP closed on January 20, 2023. Under the terms of the program, a tenant who applied for ERAP was protected from eviction until a determination of eligibility had been made. If the tenant was approved for ERAP, a payment was made directly to the landlord for the covered arrears. By accepting the ERAP payment, landlords agreed not to pursue non-payment eviction for months covered by the program, not to evict for an expired lease or holdover tenancy for one year, waive late fees for arrears paid for by the program, and not to raise rent for a year from the amount at the time an application was filed. Landlords could still pursue eviction for nonpay- ment of rent for months not covered by the program. Tenants received proof that a payment was made on their behalf, or if their landlord was unresponsive, that a reserve payment was held for at least 180 days. Proof of reserved payment could be used to protect them- selves against non-payment eviction for arrears that would be covered by the program for up to one year after the determination was made. If the landlord had not accepted the payment within a year, they were deemed to have waived the rent that would have been covered by that payment and were prevented from initiating a monetary action or proceeding or collecting a judgement for the amount of the rent covered by the payment. The statute for ERAP is set to expire and be repealed on September 30, 2025. However, the statute of limitations for a landlord to initiate a monetary action or proceeding or collect a judgement for the amount of rent covered by an ERAP payment will not have expired by that time. Allowing a potential loophole where landlords who refused ERAP payments could potentially sue tenants for the same arrears that would have been covered by the program. This bill would extend the limit on initiating a monetary action or collecting a judgment - only when the landlord did not accept an ERAP payment and only for t he amount of rent covered by that payment.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.