UPDATE: As anticipated, on May 26, 2020, this legislation was enacted into law and takes effect immediately.
On May 13, 2020, the New York City Council unanimously passed a COVID-19 Relief Package that may temporarily prohibit the enforcement of personal liability provisions (a/k/a personal guaranty provisions) in commercial leases involving COVID-19 impacted tenants. If the COVID-19 Relief Package becomes law, which is expected to occur within 30 days, it will amend the Administrative Code of the City of New York and take effect immediately. It will apply to businesses in New York City impacted by mandated closures and service limitations in the Governor's Executive Orders.
The COVID-19 Relief Package was presented to Mayor Bill de Blasio. The Mayor has 30 days to sign it into law, veto it, or take no action. If the Mayor vetoes the bills that make up the COVID-19 Relief Package, the COVID-19 Relief Package will be sent back to the City Council. If this occurs, the City Council may override the veto. However, if within 30 days, the Mayor does not sign the bills or vetoes the bills, the bills become law. Once a bill is signed by the Mayor, or a bill's veto is overridden by the City Council, the bill is then added to the Administrative Code.
Please see full publication below for more information.
