The League of Independent Theater’s Small Venue Rent Town Hall is Thursday, May 28 at 1 p.m. We have created this explainer, compiled by Guy Yedwab, on the bills that will be discussed. You must RSVP to the event at venuerentforgiveness.eventcombo.com.
WHAT IS FULL COMMERCIAL RENT FORGIVENESS?
A law that would state that commercial spaces (including independent theaters) are not responsible to pay rent during the period where rent is forgiven.
WHY IS IT IMPORTANT?
Because independent theaters cannot make income during this crisis, but the rent bills continue to be due. This could have irreparable consequences for indie theater venues.
WHAT PROPOSALS ARE THERE?
The State Legislature has two similar bills that would fully forgive rent for commercial spaces (including independent theater):
Senate Bill S8125A (Sponsor: Gianaris) / Assembly Bill A10224A (Sponsor: Niou) - Complete rent forgiveness for ninety days
Senate Bill S8190A (Sponsor: Salazar) / Assembly Bill A10318A (Sponsor: Lentol) - Complete rent forgiveness during the COVID crisis and all future public emergencies
The Salazar bill is more comprehensive -- as we all know, it is unlikely that the COVID crisis will be resolved within 90 days, and some public health officials believe there may be future spikes. It also protects us in future without having to fight this fight over again.
EVICTION SUSPENSION
WHAT IS IT?
A law that would stop landlords from evicting tenants.
WAIT, ISN’T THAT ALREADY HAPPENING?
Yes - for the moment. However, in just a couple weeks, the eviction suspension ends and landlords can begin evicting again. But we know this isn’t going to be resolved in a couple weeks for theaters.
IS THAT ENOUGH?
Our concern about eviction suspension on its own is that it doesn’t stop the rent from being due, it just stops you from being evicted. The debts rack up, and eventually that debt will need to be settled through bankruptcy or eviction.
WHAT PROPOSALS ARE THERE?
The State Legislature has a bill that would extend eviction preventions through six months after the crisis ends:
Senate Bill S8192A (Sponsor: Hoylman) / Assembly Bill A10290A (Sponsor: Dinowitz)
Assembly Bill A10387 (Sponsor: Epstein)
BUSINESS INTERRUPTION INSURANCE COVERAGE
WHAT IS IT?
A law that would require insurers to pay for lost income during COVID-19 even if it was previously excluded from the policy.
IS THAT ENOUGH?
It would be a positive impact for a lot of theaters that can claim for all of the tickets they would have sold -- if they have the right kind of insurance. And it might not cover all of the costs that continue to stack up during the crisis.
WHAT PROPOSALS ARE THERE?
The State Legislature has a bill to do just that:
Senate Bill S8211A (Sponsor: Gounardes) / Assembly Bill A10226B (Sponsor: Carroll)
EARLY TERMINATION
WHAT IS IT?
A proposal to allow commercial tenants to walk away from their lease without penalty during the state of emergency.
WILL IT HELP SAVE SPACES?
No, it would reduce the financial pain of closing a space for the person or company that operated it.
WHAT PROPOSALS ARE THERE?
The State Legislature has a bill to do just that:
Assembly Bill A10471 (Sponsor: Epstein)
TEMPORARY PROHIBITION OF ENFORCEMENT OF PERSONAL LIABILITY IN COMMERCIAL LEASES
WHAT IS IT?
A bill passed by New York City Council that says if your commercial lease includes personal liability (basically, you’ll pay rent out of your personal finances if your company can’t pay), landlords can’t enforce or threaten to enforce during the crisis. In fact, if they do, it’s harassment!
HOW DOES THAT HELP?
During this crisis, venue owners won’t need to dig into their own pockets to fill in rent money, keeping their personal finances a little safer.
IS THAT ENOUGH?
The law is only for the duration of the crisis -- which means, once the crisis is over, the landlord can go after personal finances again. Without rent forgiveness or other means of covering the lost revenues, it will only delay the pain.
WHAT’S THE STATUS
It’s already law! New York City Council passed Intro 1932-2020 on May 26, 2020!
ANTI-HARASSMENT OF COMMERCIAL TENANTS
WHAT IS IT?
A bill passed by New York City Council making threats against a commercial tenant based on their status as a COVID-19 impacted business or person a form of harassment.
HOW DOES THAT HELP?
If you run a venue and your landlord is harassing you, you could seek a penalty of $10,000-$50,000.
WHAT’S THE STATUS
It’s already law! New York City Council passed Intro 1914-2020 on May 26, 2020!
SOME THINGS TO KEEP IN MIND ABOUT THESE BILLS
Some are drafted as short-term fixes; others will help in the long term.
What is maximally beneficial to as many as possible?
FOOTNOTE - THE SPONSORS
Here are the sponsors listed above:
State Senator Michael Gianaris (Astoria, Long Island City, Sunnyside, Woodside, Ridgewood, Maspeth, Woodhaven)
State Senator Julia Salazar (Bushwick, Greenpoint, Cypress Hills, Williamsburgh, Bedford-Stuyvesant, Brownsville, East New York)
State Senator Brad Hoylman (Greenwich Village, Midtown, Hells Kitchen, Upper West Side)
State Senator Andrew Gounardes (Bay Ridge, Dyker Heights, Bensonhurst, Bath Beach, Gravesend, Gerritsen Beach, Manhattan Beach, Marine Park)
State Assemblymember Yuh-Line Niou (Lower Manhattan)
State Assemblymember Joseph R. Lentol (Greenpoint, Williamsburgh, Fort Greene)
State Assemblymember Robert C. Carroll (Park Slope, Windsor Terrace, Kensington, Borough Park, Victorian Flatbush, Ditmas Park, Middwood)
State Assemblymember Harvey Epstein (Lower East Side, East Village, Midtown East)
The information provided in this document does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information in this document may not constitute the most up-to-date legal or other information.
Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction.