The following information is from NYS Executive Order No. 202.28 , which at least through June 6, 2020 suspends Sections 7-103, 7-107 and 7-108 of the General Obligation Law of the City of New York to allow landlords such as Lefrak and the tenants in Gateway to do the following:
- If a tenant approaches Lefrak and asks to have his/her security deposit (and any interest accrued on the deposit) used to cover all or part of any rent that is in arrears (i.e. past due) or is coming due, Lefrak is required to accept such an arrangement , i.e. allow the tenant to use his/her security deposit to cover the rent if the tenant making the request can show that he/she is either eligible to receive unemployment insurance benefits or is otherwise facing financial hardship due to the Covid 19 pandemic. In all other cases, a tenant may still ask that his/her security deposit be used to cover all or part of the rent, but Lefrak is not required to enter into such an arrangement. In all cases, by allowing the tenant to use his security deposit, Lefrak is not waiving its right to collect the balance of the rent due in the future.
- Lefrak may not compel or otherwise order the tenant to use his/her security deposit to cover rent that is due. Nor can Lefrak harass or threaten any tenant who declines to agree to use his/her security deposit to cover rent.
- If the security deposit is used to cover rent that is due, the tenant is required to replenish or repay the security deposit at the rate of the 1/12 of the amount used as payment for rent per month until it is repaid. The payments to replenish the security deposit become due and owing no sooner or earlier than 90 calendar days after the date that the security deposit is used. (I believe this means that the tenant has at least 90 days from the date that Lefrak uses his/her security deposit to begin to replenish the security deposit by making replenishing payments at the rate of 1/12 of the amount used until it is repaid).
- If the tenant has an insurance policy that provides relief for his/her landlord In lieu of making monthly security deposit replenishment), then Lefrak must accept this insurance as replenishment.
- Finally, the Executive Order suspends that part of the Real Property Law so that Lefrak cannot charge any tenant a fee for any late rent payment that may occur between March 20 and August 20, 2020.