New York State wants to abolish rent for pandemic victims

As states begin to lift moratoria on evictions that have taken place since the start of the coronavirus pandemic, one city in New York is moving in the opposite direction. The moratorium on eviction of the state was extended not only until August 20, but the city of Ithaca is going to cancel the unpaid rent. Writes about it USA Today.

Ithaca is believed to be the first city in the United States to pass a resolution on this type of aid - a historic step in a city where 70% of the population is tenants.

The Ithaca Council asked the New York State Government if its mayor, Svante Mirik, could be eligible to cancel the rental due to the economic downturn caused by COVID-19, which resulted in job loss and loss of income.

If the state department of health approves the resolution of June 3, this will give Mirik an unprecedented amount of mayor authority, which will allow him to cancel all rental payments for housing and small businesses and additional fees that were to be paid between April and June.

The resolution also calls on the state to authorize the mayor to oblige landlords to offer lease extensions at the current rate for the duration of the state of emergency.

According to the Department of Labor, Ithaca lost 9 jobs in the private sector in April, which is 200% less than in 16,2. The unemployment rate in Ithaca is currently approaching 2019%.

The city is seeking approval through Governor Andrew Cuomo’s order to suspend and amend laws regarding the emergency due to COVID-19. He collaborated on this issue with the recently created Ithaki Tenant Union.

The first ban on eviction in New York expires on June 20. Cuomo extended the ban until August 20, but the new extension provides less protection.

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“You can still be handed documents and summoned to court,” says Genevieve Rand, organizer of the Ithaca Residents' Union. "You must have protection that can prove that you were in economic hardship due to COVID-19."

Will New York approve Ithaki's request?

Ithaca does not yet have a plan on how he will implement the abolition of rent if the state government approves the request.

“We will have the opportunity to structure something more complete when we know that we can move on,” said Mirik. “Even if I had been given these powers, I would have canceled the lease right tomorrow, we need to think it over.”

If the state approves the abolition of the rent, the earliest when the council can come together to plan it will be July.

“I would like to create a working group that would allow us to find real rent relief, which would probably include rent cancellation, but that could only happen in partnership with relief for smallholders and homeowners,” Mirik said.

If Mirik gets the right to cancel the rent, this will cover both students who live in hostels and Ithaki tenants who are not students. However, if tenants can pay rent, they must continue to do so, the resolution says.

Officials are not sure that their request to cancel the rental has a chance to get approval.

But what about homeowners?

The Ithaca General Council also calls on the State Senate to pass a bill that would provide financial assistance to smallholders and homeowners by increasing fines for banks that refuse to extend mortgages, and oblige the state to use federal funds to provide vouchers for lost homeowners.

The Council will send Congress members a letter requesting the inclusion of the National Mortgage Rental and Forgiveness Fund in the next COVID-19 assistance package.

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But concerns remain about how landowners will be affected by plans to abolish city rents. George McGonigal, Elder of First Ward, voted against the resolution.

“I think I don’t understand why we would like to transfer the pain and economic hardships of one group of our citizens to another group of our citizens,” McGonigal said during the meeting.

Help due to COVID-19

The $ 2,2 trillion coronavirus relief package includes a moratorium on eviction for most people living in apartments subsidized by the state, as well as in houses secured by state-funded mortgages.

The second bill of assistance for coronavirus in the amount of $ 3 trillion, which may be adopted, will provide about $ 175 billion to pay for rent and mortgages.

New Jersey lawmakers have enacted a $ 100 million rent reduction law, while Governor Tom Woolf signed a law in Pennsylvania that directs $ 175 million to pay rents and mortgages.

So, the Housing Service will launch a rental assistance program, and Tompkins County officials expect more than $ 589 to be allocated to help rent a home for low- and moderate-income tenants.

Boston provides $ 8 million for rent. Baltimore allocated $ 13 million in federal funding to launch a rental assistance program, while Philadelphia provided $ 10 million to help approximately 13 people with their rents.

“We've got to do something,” said Philadelphia councilor Helen Gim, whose bill would prevent evictions within two months after the state of emergency was lifted. "We cannot go back to the normal order of things in the city."