NYS Guidance for Using Security Deposit for Payment of Rent

Posted on by Honey Berk

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:

  1. 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.
  1. 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.
  1. 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).
  1. 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. 
  1. 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.

Rent Stabilization Update

Posted on by Honey Berk

GPTA continues to work with the Battery Park City Authority and with our elected officials to secure an extension of the rent stabilization agreement, which currently expires June 30. Although we remain optimistic that an extension agreement will be achieved, as of today that has not yet occurred. For that reason, currently-stabilized tenants whose leases expire after June 30 are being offered renewals at increases greater than those stated in the NYC Rent Stabilization Guidelines.

GPTA has strongly advocated to BPCA and to our elected officials that any extension of the rent stabilization agreement should retroactively adjust any renewals that may have been signed by tenants before the extension agreement is finalized so that those renewals conform to rent stabilization increases. Although such retroactive treatment is our objective, until a rent stabilization extension agreement is achieved, we cannot predict what its terms will be.

As a result, tenants receiving a lease renewal offer today should be mindful of the deadline for responding to the offers and make a decision on whether to accept the offer within the stated deadline. Although the recent renewal offers appear to state that the response period for accepting a renewal is 30 days from receipt of the offer, Gateway Management has informed tenants who have inquired about the deadline that the deadline is in fact 30 days prior to lease expiration. That is, Management has stated that July 1 is the renewal response deadline for leases expiring July 31. We suggest that tenants who have questions about the renewal offer response deadline should contact Gateway Management.

GPTA is not advising tenants on how they should respond to renewal offers, but we note that it is likely that, if there is going to be an extension of rent stabilization, that extension will be agreed before July.

View letter regarding rent stabilization sent to LeFrak Organization by our elected officials (April 20, 2020).

TONIGHT: Virtual Town Hall with NYS Senator Brian Kavanagh

Posted on by Honey Berk

NYS Senator Brian Kavanagh will be hosting a virtual town hall meeting on Thursday, April 30th at 7:00 p.m. to discuss some of the issues he says constituents have contacted them about most frequently, with experts to answer your questions. 

Here’s the agenda:

  • 7:00p to 8:00p: Issues facing renters, homeowners, and homeless New Yorkers
    • Ellen Davidson, Staff Attorney, Legal Aid Society
    • Joshua Goldfein, Staff Attorney, Legal Aid Society
  • 8:00p to 9:00p: Assistance for small businesses
    • Gregg Bishop, Commissioner, NYC Department of Small Business Services
    • Andrew Flamm, Regional Director, Pace Small Business Development Center

The Town Hall will be streamed live via Zoom and Facebook Live, or you can dial in by phone. Translation will be available in Spanish, Mandarin, and Cantonese. 

A flyer for the event is available in English, in Spanish, and in Chinese, and posted on Twitter and Facebook. Please feel free to share this invitation with neighbors and other residents of Senate District 26.

Please visit kavanagh.nysenate.gov to RSVP and receive access information, submit questions or comments in advance, or let them know about topics you’d like them to cover in future events.

Gateway Plaza Renewal Lease Info

Posted on by Honey Berk

The following info relates to renewal leases for market rate and rent stabilized tenants. We have seen press reports of NYC tenants negotiating with landlords for rent abatements, rent reductions or lease renewal rate modifications.  GPTA has no special insight into how COVID-19 will affect the NYC rental market, but historically during recessions, apartment rents go down, not up.  Whether COVID-19 causes a recession is anyone’s guess right now.  Depending on how a landlord views the COVID-19 economic impact, the landlord might be prepared to negotiate to keep tenants.  

Please note that GPTA does not provide legal advice, so if you need legal advice, please contact a lawyer.

We wish we could provide more concrete information.  Please check back here for periodic updates.

Thanks,
GPTA Executive Committee

Market Rate Tenants 
We are aware that market-rate tenants have been offered renewal leases at varying levels of rent increases.

GPTA is continuing to advocate for an extension of the current rent stabilization agreement so that it would cover all Gateway tenants.  As of now, however, no such extension agreement has been reached, and there is no assurance that we will be successful in extending rent stabilization protections to currently-market-rate tenants.  GPTA is also advocating for a COVID-19 freeze on rent increases for at least 4 months.  As with rent stabilization, we can make no assurances that we will be successful in obtaining a COVID-19 freeze.

Tenants facing lease renewals should be mindful of the deadline specified in the renewal offer for acceptance.  Typically, Gateway Management has required a response to its renewal offers within 30 days of the tenant’s receipt of the offer, but you should check your specific offer to make sure you understand the response deadline.  You should keep a note of the date you received the offer.  If your renewal offer cover letter is dated significantly earlier than when you received the offer, you may also want to save the envelope in which you received the offer if it bears a dated postmark.

Rent Stabilized Tenants
We are aware that currently-stabilized tenants with leases expiring after June 30 (when the current rent stabilization agreement expires) are being offered renewals at rent increases greater than that provided in the rent stabilization guidelines. 

GPTA is continuing to work with the Battery Park City Authority and our elected officials to secure an extension of the rent stabilization agreement.  As of now, however, no such extension agreement has been reached, and, although we are optimistic, there is no assurance that we will be successful in extending rent stabilization protections.  GPTA is also advocating for a COVID-19 freeze on rent increases for at least 4 months.  As with rent stabilization, we can make no assurances that we will be successful in obtaining a COVID-19 freeze.  

Tenants facing lease renewals should be mindful of the deadline specified in the renewal offer for acceptance.  Typically, Gateway Management has required a response to its renewal offers within 30 days of the tenant’s receipt of the offer, but you should check your specific offer to make sure you understand the response deadline.  You should keep a note of the date you received the offer.  If your renewal offer cover letter is dated significantly earlier than when you received the offer, you may also want to save the envelope in which you received the offer if it bears a dated postmark.


GPTA Quarantine Newsletter 2

Posted on by Honey Berk

Dear Gateway Neighbors,

As we enter month 2 of quarantine, GPTA wants you to know we are here to listen and to help if we can.  We hope you are safe and strong.  Here are a few things to be aware of….some we mentioned before so as a reminder and new information as well.  

  1. First and foremost, if you need assistance, please reach out to GPTA.  As we all know, “WE ARE ALL IN THIS TOGETHER”.  We have volunteers ready to help if you need it or if you know of someone who may need help.  It could be with groceries, walking a dog, prescription pick up, or even if you just want someone to talk to. 

There is much to be done and your membership is more important than ever as we continue our efforts to answer your questions and to provide information to our community by working with our elected officials and Gateway management.  During the quarantine, we are organizing volunteers to help our neighbors at risk.  We have also started a staff appreciation program  and your dues will help recognize the many staff members who work on our behalf every day.

  • To get the most recent information regarding rents and leases or other Gateway info, please continue to check our website.
  • FREE MEALS are available now at 55 Battery Place. For information and schedule, go to: NYC DOE Free Meals.
  •  We have heard from many of you about the difficulty in paying rent due to job loss during the COVID-19 crisis. Gateway Management has advised us that tenants in this situation should contact them directly.
  • We have been contacted by several tenants who have inquired as to where they can purchase the necessary face coverings or masks to be worn whenever we leave our apartments to go to the lobby, laundry room or outside. Please understand that wearing a mask protects you and saves others.  We are excited to report that we have a group of Gateway volunteers who have come together to make face coverings to give to tenants!  We call this wonderful group of volunteers, “THE MASK MAKERS”.  Email us IF YOU NEED A MASK OR KNOW SOMEONE WHO NEEDS A MASK. To make your own no-sew mask, see the video below for.
  • Here are 3 Ways to show SOLIDARITY AND GRATITUDE for health care professionals, volunteers, and all essential workers of our community INCLUDING OUR GATEWAY STAFF. 
  1. We received the information below on this wonderful effort from Gateway neighbors to say “Thank you” to the Staff.

‘We are running a fundraiser to donate to all Gateway Staff for showing up for us during this time. This covers all staff across all buildings (doormen, porters, maintenance, security, etc)”  Consider giving if you can.”

To donate, visit the Gift Cards for Gateway Staff gofundme page.
  •  “SHARE YOUR LIGHT” (#shareyourlight).  Each night until this passes, put a light in your window in Solidarity and Gratitude.  Any kind of light….Holiday lights, candles, lamps, battery operated.
  • CLAP FOR OUR HEROES– (#clapbecausewecare) 7:00 PM each night, at a window near you!  Along with the healthcare workers on the front lines, we cheer for all essential workers who are making sure we have what we need.  This includes our Gateway Staff.
  • If you are part of the Gateway Settlement Lawsuit, the deadline to file your claim form is  THIS WEEK, April 16th ,so send it as soon as you can if you have not already. To make it easy, you can email your filled-out forms to claims@gatewayplazasettlement.com or file your claim online at the Gateway Plaza Settlement website.

We invite all tenants to connect with us at the Gateway Plaza Tenants Association (GPTA) via social media: 

Facebook: Gateway Plaza Tenants Association
To post on our FB page:

  • Like our page (not simply a post or a picture on the page.)
  • Click on “Post”. The “Post” option appears on the same row and to the right of “Home” and “About”.

Twitter: @GPTA_BPC
Email: gatewayplazata@gmail.com

In the meantime, we wish you good health during this challenging time.

GPTA

Executive Committee: Rosalie, Robin, Jeff, Bruce, Karlene
Board Members: Audrey, Denise, Honey, Howard, Larry, Pat, Sarah, Steve

We Are All in This Together

Posted on by Honey Berk

Dear Gateway Neighbors,

All of us on the GPTA Board are thinking of our neighbors and hoping you are all safe and healthy.  We want to make you aware of a few important things.First and foremost, if you need assistance, please reach out to GPTA.  As we all know, “WE ARE ALL IN THIS TOGETHER”.  We have volunteers ready to help if you need it, or if you know of someone else who may need it.  It could be with groceries, walking a dog, prescription pick-up, or even if you just want someone to talk to. 

1.Please check our website for updates. We recently posted an update on rent payments. Please check it out at this link: Update on Gateway Rent Payment.

2. It is census time so please be sure to fill out your census forms. You can do it online. It’s quick and easy.  Here is the link: Welcome to the 2020 Census.

3. If you are part of the Gateway Settlement Lawsuit, the deadline to file your form is April 16, 2020, so mail submit it as soon as you can, if you have not already done so. In addition to using postal mail to the address on the form (we suggest using certified mail), you can also email your completed form to: claims@gatewayplazasettlement.com or you can submit your claim via the settlment website located here: Gateway Plaza Residents Litigation website.

4. Free Meals for anyone will be available at 55 Battery Place beginning April 3, 2020.  For information and schedule, go to the NYC DOE Free Meals website.

5. Here are 3 Ways to show Solidarity and Gratitude for or Gateway staff workers, health care professionals, volunteers, and all essential workers of our community. 

a. From Gateway Management:

It can be easy to feel isolated during these times. In effort to show support for each other, especially our Healthcare and Emergency Services residents, we invite all Gateway residents to participate in our new Wednesday Community Initiative.


At 6:00pm each Wednesday moving forward, we are asking those who are well to open their windows and wave and engage with each other from a safe distance. Wave at your neighbors, lend a smile to someone who needs it, and applaud the incredibly hard-working Front Line Professionals who are enduring their third 12-hour shift this week. Let’s celebrate ourselves and each other at 6:00pm!

b.   From GPTA:

“Share Your Light” (#shareyourlight).  Each night until this passes, put a light in your window in Solidarity and Gratitude.  Any kind of light….Holiday lights, candles, lamps, battery operated.

c.      Citywide:

Clap For Our Heroes (#clapbecausewecare). Join the entire city in clapping for our healthcare professional and essential workers. 7:00pm every night, at a window near you!

7.     There is strength in community and, as in the past, Gateway is resilient.  We invite all tenants to connect with us at the Gateway Plaza Tenants Association (GPTA) via social media: 

Facebook: Gateway Plaza Tenants Association
To post on our FB page:

  • Like our page (not simply a post or a picture on the page.)
  • Click on “Post”. The “Post” option appears on the same row and to the right of “Home” and “About”.

Twitter: @GPTA_BPC
Email: gatewayplazata@gmail.com

In the meantime, we wish you good health during this challenging time.

GPTA

Executive Committee: Rosalie, Robin, Jeff, Bruce, Karlene
Board Members: Audrey, Denise, Honey, Howard, Larry, Pat, Sarah, Steve

Update on Gateway Rent Payment

Posted on by Honey Berk

Renters and COVID-19

Many of you have asked whether rent need still be paid during the COVID crisis.  Our understanding for now, appears to be “yes.” However, late fees cannot be imposed for non-payment or late payment and you cannot be evicted for non-payment at least until June 20, 2020.

The commercial and legal landscape for renters in NYC, including in Gateway, is changing almost daily.  The major federal COVID relief legislation that became law on Friday, March 27 (the CARES Act) provides some relief.  The CARES act prohibits the commencement of non-payment eviction proceedings for a period of 120 days and prohibits the imposition of late fees or penalties for non-payment during that same period.  These protections apply to tenants in buildings that have federally backed mortgages, which include mortgages that are insured by HUD. We have confirmed today (April 1) with Greg Tumminia (Gateway’s General Manager) that Gateway does indeed have a federally insured mortgage.  Greg went on to say:

The landlord will adhere to all applicable laws and regulations. We are responding to all resident inquiries as we still have some staff on-site daily (seven days per week). We also have phones forwarded to staff members that are working remotely.

General Operations Update will be released later today to all residents in a form of an e-mail.  We are well stocked with masks( N-95), gloves, other PPE equipment in addition to sanitizer and hospital grade disinfectants.   Our building staff is holding up okay.

Best to you and your families during these difficult times.

In addition to these federal protections, New York State has imposed a prohibition against evictions for any reason, at least until June 20, 2020.

Other Resources:

https://www.washingtonpost.com/business/2020/04/01/april-1st-rent-mortgage-payment-due-faq

https://blog.augrented.com/renting-during-the-novel-coronavirus-outbreak/

Social Distancing? Connecting with Us!

Posted on by Honey Berk

Dear Gateway Neighbors,

We know that this time is scary and difficult for all of us. This community, standing together, has shown it can meet and get through challenges. Though the circumstances have changed and the way we interact may change, our core belief in the strength of our community is unchanged.

The key is to be there for one another by reaching out to our neighbors who may need help.  We encourage people to check in with neighbors…by phone, email, WhatsApp, or text. As more and more of us are self-isolating, it is important that we stay in touch with one another in ways that are safe.

There is strength in community and, as in the past, Gateway is resilient.  We invite all tenants to connect with us at the Gateway Plaza Tenants Association (GPTA) via social media: 

Facebook: Gateway Plaza Tenants Association
To post on our FB page:

  1. Like our page (not simply a post or a picture on the page.)
  2. Click on “Post”. The “Post” option appears on the same row and to the right of “Home” and “About”.

Twitter: @GPTA_BPC
Email: gatewayplazata@gmail.com

In the meantime, we wish you good health during this challenging time.


Resources:
CDC Checklist for Individuals and Families
NY State Department of Health
NYC Department of Health
GPTA Local Resources