Evictions Halted

With the COVID-19 measures taken, multifamily buildings, including coops and condos, may not be able to collect rents, maintenance, and common charges from those affected. Yet, property owners need to continue paying their bills. Will this jeopardize their ability to function?

According to CURBED NEW YORK, “New York halts evictions due to corona virus pandemic” for 90 days until at least June 20th. Technically, cooperatives hold a lease, so, this applies to those as well as renters.

The single largest cost of operating a building in New York City is the Real Estate Tax. This cost typically accounts for approximately 50% of total operating costs! The second largest cost is staff, which usually accounts for 25% of total.

As it stands now, multifamily buildings do not qualify for the Payroll Protection Program (PPP.) However, the Council of New York Cooperatives and Condominiums is urging boards to contact their Congressional Representative and U.S. Senators and ask them to expand the CARES act.

Brick Underground wrote several articles on the various problems that the tragic pandemic is causing the real estate industry. These include the effective halt on real estate closings, which will have a particular large impact on coops’ and condos’ ability to collect transfer or flip taxes.

On April 1, Governor Cuomo relaxed the rules on Real Estate Brokers’ ability to list apartments. Certain aspects of their work are considered essential. Brokers need to stay within state mandates and conduct all listings and closings virtually.

The New York Times predicts that 40% of N.Y. tenants won’t be able to pay rent.