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November022021

NYS Provides Rental Relief for Landlords

Jessica Blatt, CPA and Terence Artus, Jr, CPA

11.2.21 | Industry Insights

Relief has arrived for landlords who were ineligible for the New York State Emergency Rental Assistance Program (ERAP)1 due to tenants refusing to file or for tenants who vacated the premises with outstanding arrears. On October 7, 2021, NYS Governor Kathy Hochul released $125 million in rent relief for property owners under the Landlord Rental Assistance Program (LRAP).2

Landlords approved for LRAP may receive up to 12 months of rental arrears payment for rents accrued on or after March 1, 2020. All landlords may apply for the program, but for the first 45 days priority will be given to those with 20 or fewer units. After the first 45 days, applications will be processed on a first-come, first-served basis as long as funds are available. Landlords can apply on the NYS rental assistance portal.

How to Qualify for the LRAP

In order to qualify, landlords must:

  • Own units leased for at or below 150% of fair market rent for their county. These limits are based on the respective county in New York along with the number of bedrooms of the rental unit.
  • Have documented the overdue rent payments from after March 1, 2020 that relate to tenants who have either vacated or declined to participate in ERAP.
  • Provide the following:
    • W-9 tax form
    • Proof of Ownership
    • Executed Lease (If there was no written lease, the landlord must provide a cancelled check or evidence of funds transfer of the last full monthly tenant payment)
    • Documentation of unpaid rent due
    • Banking information

Important Stipulations

The landlord must also agree to the following:

  • The LRAP payment satisfies the tenant’s full rental obligations for the time period covered by the payment.
  • Any late fees due on any rental arrears covered by the LRAP payment will be waived.
  • If the household is currently residing in the unit, the landlord will not increase the monthly rental amount above the monthly amount due at the time of application for LRAP assistance for months for which rental assistance is received and for one year from receipt of the LRAP payment.
  • The landlord must have contacted the current tenant household at least three times, two in writing, to encourage participating in the ERAP.
  • If the household is currently residing in the unit, the landlord agrees not to evict the household on behalf of whom the LRAP payment is made for reason of expired lease or holdover tenancy for one year from the receipt of the LRAP payment. An exception to this requirement shall be made if the dwelling unit contains four or fewer units and the property owner or owner’s immediate family members intend to immediately occupy the unit for use as a primary residence.

Questions: Contact Jessica Blatt at 212.331.7589 | jblatt@berdonllp.com or reach out to your Berdon advisor.

Berdon LLP New York Accountants

1 https://otda.ny.gov/programs/emergency-rental-assistance/

2 https://otda.ny.gov/programs/landlord-rental-assistance/

 

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