Former Tenants of Foreclosed Property Didn't Pay Rent and Couldn't Stay Eviction Under ERAP

Landlord, which had obtained the subject property in a foreclosure action in March 2019, sued to evict tenants in October 2019. The court ruled for landlord on Jan. 28, 2020. Because of the COVID pandemic and resulting Executive Orders, execution on the warrant wasn't completed. In November 2021, landlord asked the court for a replacement eviction warrant since the prior warrant had become stale. The court signed a replacement warrant on Nov. 23, 2021, without objection by tenants. Tenants then sought a stay of execution of the judgment and warrant. On Jan. 31, 2022, execution on the warrant was briefly stayed to give tenants a chance to excuse their default. After a Feb. 8, 2022 hearing, the stay was lifted and the court authorized execution on the warrant. On Feb. 15, 2022, tenants submitted an application for a stay, claiming their recent filing of an Emergency Rental Assistance Program (ERAP) application prevented further action on the previously issued eviction warrant. 

The question for the court was whether the ERAP stay of proceedings applied in cases where there is an eviction proceeding following a foreclosure and no landlord-tenant relationship exists. Generally a lease is terminated by a mortgage foreclosure and sale. A purchaser at a foreclosure sale can't look to a lease agreement in an effort to hold occupants liable for payment of rent. Nor can the continued occupancy by tenants create a landlord-tenant relationship. Here, tenants have no obligation to pay rent to landlord as consideration for occupancy of the premises. They are neither tenants nor occupants because there is no lease or rental agreement with landlord. So despite their recent filing of an ERAP application, tenants weren't eligible to benefit from the "stay of proceedings" contained in the law governing ERAP. 

U.S. Bank Trust, NA v. Alston: Dckt. No. 19110096, 2022 NY Slip Op 22051 (Justice Ct. Pleasant Valley; 2/24/22; Sears, J)