Scott Mollen ERAP Stay and Property Values: This Week in Scott Mollen's Realty Law Digest
Scott Mollen discusses "Horizon Realty of Mt. Vernon LLC v. Dabbs," where an ERAP stay was lifted as being inequitable to the landlord who had already suffered in the lengthy process, and "McWhinney v. Rockland Cider Works," where defendants were preliminarily enjoined from operating a cidery that would hurt surrounding property values.
March 07, 2023 at 12:56 PM
18 minute read
Landlord-Tenant—ERAP Stay—Subsidized Tenants Not Currently Being Paid—It Was "Inequitable" to Landlord—Landlords Not Obligated To Participate in the ERAP Process—However, If Landlord Refuses To Participate and Applicant Is Eligible, Outstanding Rent Will Be Waived—Court Found That Making the Landlord Wait Further Would Only "Exacerbate the Inequity Placed Upon…Landlord In This Process"—Court Noted "That The Likelihood of the (Tenant) Securing Any Monies From ERAP Is Slim to None at This Point" and Asked "How Long Does the System Think a Landlord Should Wait?"
The salient issue was "whether the stay imposed by the Section 8 tenant's ERAP application is futile due to the current regulations that provide such applications will be reviewed after all applications from non-subsidized tenants have been processed."
A landlord had commenced a nonpayment proceeding in January 2022. The premises are regulated by the ETPA. The tenant had applied for Emergency Rental Assistance Program (ERAP) assistance on or about June 16, 2021. The ERAP application was "still pending" when the subject decision was rendered. "No provisional letter of approval has been issued."
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