Tenant Can Raise Financial Hardship Defense

Landlord sued to evict unregulated tenant occupying a co-op apartment for nonpayment of rent in November 2018. After a default judgment and warrant were issued in February 2019, the court granted tenant's order to show cause to stay execution of the warrant in late 2019. Later, due to the COVID-19 pandemic, all evictions were administratively stayed from mid-March 2020 through Sept. 30, 2020. Landlord then requested, pursuant to DRP 213 issued by the court on Aug. 12, 2020, to execute on the warrant of eviction. Tenant now owed $18,371. The court ruled that, although landlord was entitled to execute upon an eviction warrant, execution on the warrant would be stayed on an interim basis until the court issued an order on tenant's defense of financial hardship now raised under the 2020 Tenant Safe Harbor Act (TSHA). Given the absence of admissible evidence and landlord's timely objections to tenant's claimed proof, a hearing was needed. The court interpreted the TSHA to permit tenants to raise financial hardship during the COVID-19 covered period as a defense in response to landlord's motion to execute upon a pre-March 7, 2020, warrant since rents accruing during the COVID-19 covered period are de facto possessory because of an earlier current rent provision. 

111-50 Realty Corp. v. Melgar: Index No. L&T74821/18, 2020 NY Slip Op 20348 (Civ. Ct. Queens; 12/23/20; Guthrie, J)