New York landlords have filed a lawsuit in U.S. District Court for the Southern District of New York against New York Governor Cuomo to nullify his executive order (“EO”) limiting evictions during the COVID-19 crisis. The EO imposes an additional moratorium on nonpayment evictions of residential or commercial tenants who are eligible for unemployment insurance or benefits under state or federal law or otherwise facing financial hardship due to the COVID-19 pandemic for a period of sixty days beginning on June 20, 2020. The landlords claim that the EO violates their due process rights under the 14th amendment and constitutionally protected right against takings. The EO also allows tenants to use their security deposits for the payment of rent.
Because the EO prevents them from commencing any eviction proceedings for nonpayment of rent, the landlords claim that they are deprived of the full value of their properties. They argue that they are obligated to pay their own carrying costs and other expenses, including taxes, even though their tenants cannot be evicted for nonpayment of rent.
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