As more commercial tenants experience tremendous financial challenges since the emergence of the coronavirus, it appears that incidents of landlord harassment are on the uptick. Because a vast majority of retail operations are struggling to pay the rent on their commercial leases or find themselves in a position where they can’t pay at all, the New York City Council last week voted to grant more protection for commercial and residential tenants, according to a report on the Bisnow.com web site.
In new legislation that would broaden the legal definition of landlord harassment to include the issuance of threats directed at the assets of tenants should they be unable to pay rent or if they should default on their lease because of the adverse economic impact of the Coronavirus, the council enacted Int. 1932-2020 A, in the full body vote of 44-6.
The bill was just one of a multitude of coronavirus relief actions considered by the council this week, as was reported by Bisnow.com
The legislation was initiated by council member Carlina Rivera who has represented the 2nd Council District since 2017 which includes the diverse neighborhoods of the East Village, Flatiron, Gramercy Park, Rose Hill, Kips Bay, Murray Hill, and the Lower East Side. Speaking to the Gothamist web site, Rivera said it was “grossly immoral” for landlords to threaten assets amid the pandemic as many tenants are already under inordinate financial strains.
If NYC Mayor Bill DeBlasio should decide to sign the legislation into law the ramifications of the bill would be applicable to landlords whose tenants include retail stores, gyms and others that have had no choice but to shutter their operations since the beginning of May.
“Small businesses and restaurants are the heart and soul of New York City and right now, they are hurting. They are paying high fees, getting harassed and are worried about losing their homes,” City Council Speaker Corey Johnson said in a statement. “They need help, and this small business package is designed to protect them during this pandemic.”
Criticizing the measure for its alleged legal broadness was the Real Estate Board of New York (REBNY), a unsurprising opponent of the new legislation.
The Real Deal web site has reported that a council member who cast their vote in favor of the bill made note of the fact that it would not only apply to small businesses but to major corporations, Bisnow also reported that the council also voted 47-3 to amend the Housing Maintenance Code to make it illegal for landlords to threaten essential employees and those afflicted with COVID-19, punishable by a fine of up to $10K.
