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Mandatory ERAP Rider

Posted by Jordan Tapia | Apr 22, 2022 | 0 Comments

CHIP has clarified the requirement of the ERAP rider to be sent to notify tenants of the restrictions and protections that accompany an owner's receipt of ERAP funds. This notice must be sent once an owner accepts funds from ERAP. There is no formal notice published by the government; however, the language used in the CHIP notice is taken from the ERAP legislation. CHIP's notice template includes this language in paragraphs 1 through 4.

There is no legal mandate to provide tenants with specific details about the ERAP rent freeze. However, in order to avoid confusion and protect against any future claims of waiver of the right to charge the full legal rent, CHIP recommends including such language to the notice for rent- stabilized units. We also recommend having your attorney review the language to be sure it is tailored to your specific circumstances.  

In addition, if a lease renewal occurs during the 12-month period after receipt of ERAP funds, CHIP recommends including similar language in a rider to the lease setting forth the lower collectible amount, the reason for the lower collectible amount (i.e., the ERAP requirements), the duration of the lower collectible amount, and notice of when the collectible amount will return to any higher amount set forth in the lease. We always recommend consulting with counsel to ensure the language is tailored to your specific circumstance.

About the Author

Jordan Tapia

Phone: (212) 566-6780 Email: [email protected] Jordan Tapia, a partner at our law firm, is known as a fierce litigator. She has successfully represented various small businesses facing eviction and has helped many come to an amicable resolution with their landlord, often avoiding litigati...

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