I'm not sure what to say other than a 25% decrease in annual revenue (and three months without any) would be catastrophic for almost everyone I know in the business. Class warfare at its finest. Gotta love New York State. They always find new ways of reminding me why I am leaving.
@Wesley W. If the gov't volunteered to pay a portion the rent on behalf of the tenant that might be OK. But to give away our money like that is unconscionable and most likely unconstitutional. It is absurd! I am OK with dealmaking and giving people a break but that concession should come from me and not some self serving politician. We are not even being asked! I thought we were a Democracy?
@Wesley W. If the gov't volunteered to pay a portion the rent on behalf of the tenant that might be OK. But to give away our money like that is unconscionable and most likely unconstitutional. It is absurd! I am OK with dealmaking and giving people a break but that concession should come from me and not some self serving politician. We are not even being asked! I thought we were a Democracy?
"Gov. Cuomo announced a 90-day freeze on mortgage payments and foreclosures for those facing financial hardship."
So, what does that look like? Tacked on at the back end, while rent is just forgiven forever?
I haven't looked at that part of this particular executive order (he is writing executive orders every single day for the last several days - no joke), but in his press conference last week he specifically mentioned "out of work" as the financial hardship, so I think it is intended to benefit W2 owner occupants. He did not mention anything about this topic during his press conference today. But yes, the expectation is that the banks will kick the amortization "can" down the road to the end of the loan. Not so for this "rent forgiveness" proposal.
There is already a mechanism to deal with job loss called unemployment benefit, which congress may extend to 100% in which case there is no loss of income. The President is also talking about writing families $1200 checks. My point is for most people, they will have income, yet they are not expected to pay rent, mortgage or utilities. The only thing open is grocery stores, so there isn't even entertainment to spend money on. Yet landlords are expected to pay taxes, insurance and mortgage payments? Even if a mortgage payment for investors gets deferred, they still have to pay it. This seems to violate property rights and beyond that it is just nasty.
There is already a mechanism to deal with job loss called unemployment benefit, which congress may extend to 100% in which case there is no loss of income. The President is also talking about writing families $1200 checks. My point is for most people, they will have income, yet they are not expected to pay rent, mortgage or utilities. The only thing open is grocery stores, so there isn't even entertainment to spend money on. Yet landlords are expected to pay taxes, insurance and mortgage payments? Even if a mortgage payment for investors gets deferred, they still have to pay it. This seems to violate property rights and beyond that it is just nasty.
Don't worry about their entertainment, with no rent to pay and extra money in their pocket, they're going to buy a giant flat screen TV and the latest Xbox from Walmart while doing their "essential grocery shopping".
And those $1200 checks are supposedly only going out to households that make less that $99K. Given that landlords are probably better off than most people, not only will they not get a stimulus check, but they will be the ones paying for those checks through higher taxes.