Coronavirus has led to unemployment as well as increase in eviction cases. A city in New York State, Ithaca, is planning to cancel the unpaid rent.
Many pundits believe that Ithaca is the first city in the USA to approve a resolution seeking this type of rent relief. This is a bold move in a city where 70% of the population are renters.
If the Resolution of June 3 is approved, then the Mayor of Ithaca City, will have great powers of cancelling all the residential and small business rents and outstanding dues between April and June.
The New York State Department of Labor has released data showing that 9,200 people working for the private sector in Ithaca city lost their jobs in April alone. Overall, unemployment rate in Ithaca is currently pegged at 11 percent.
Ithaca City is waiting for approval from New York State Governor, Andrew Cuomo. Landlords in New York State have their hands tied in terms of eviction by a ban which will expires on August 20.
Any plans for landlords?
A Bill has been tabled that will provide financial assistance for small homeowners and landlords by imposing fines on banks which refuse mortgage deferral. Landlords may also receive vouchers for their lost revenue.
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