In late May, we successfully advocated for the suspension of the enforcement of personal liability guarantees in commercial leases.
The current law was enacted then, but is set to expire on Sept. 30th. Today however, we are proud to announce the extension of this law from September 30, 2020 to March 31, 2021. The legislation will now be sent to Mayor de Blasio who is expected to sign the bill into law before the end of this month.
As we noted in the past, the real estate industry has sued the city over this law and while the outcome is still uncertain, we expect the judge to rule on the case soon.
We thank Councilmember Carlina Rivera, Speaker Corey Johnson and supporters in the City Council for passing this important piece of legislation that protects tens of thousands of small business owners from personal financial ruin. Small business owners should not be held personally liable for the economic crisis that resulted from Covid-19, nor should they be held personally liable for government actions and mandates that have significantly limited their operations and stream of revenues.
Today's press conference prior to the vote on this legislation: