New Jersey Executive Order 128: Security Deposits May Be Used for Rental Obligations

Late last week (April 24, 2020), NJ Gov. Murphy signed Executive Order No. 128 (“EO”). The EO takes effect immediately and will remain in effect until the end of the public health emergency established by Executive Order No. 103 (2020). The EO applies in the context of residential leases (not commercial leases) and allows residential tenants to use their security deposit for the payment of rent.

To read the full text of this post by Duane Morris partner Brad Molotsky, please visit the Duane Morris Project Development/Infrastructure/P3 Blog.

Maryland Temporarily Prohibits Commercial and Industrial Evictions

Maryland Governor Lawrence J. Hogan issued Order Number 20-04-03-01 on April 3, 2020, which amends and restates an order previously issued on March 16, 2020, that, among other things, temporarily prohibits evictions of tenants suffering substantial loss of income due to COVID-19. The new order expands the coverage of the original order to temporarily prohibit commercial and industrial evictions.

To read the full text of this Duane Morris Alert, please visit the firm website.

Update to Various State Construction Closure Orders Related to COVID-19

This list is current as of April 14, 2020 (4:00 p.m. EST) and is and Update to an earlier Alert we posted on April 3rd. Please note that these closure orders are changing almost daily so please make sure you are checking the applicable state in question when considering a closure question.

To read the full text of this post by Duane Morris partner Brad Molotsky, please visit the Duane Morris Project Development/Infrastructure/P3 Blog.

A Landlord’s Primer For An Uncertain Retail Environment

Landlords are often among the very first to feel the impacts of their tenant’s financial woes. In today’s unpredictable economic environment, many businesses are forced to shut their stores temporarily while the risks of COVID-19 continue to play out. Within the last few days many large and small retailers have unilaterally announced publicly that they would not be paying upcoming rent. In these unprecedented times, landlords must be aware of the risks they face in light of what is certain to be a previously unheard of level of tenant defaults.

To read the full text of this post by Duane Morris partner Rick Hyman, please visit the Duane Morris Business Reorganization and Financial Restructuring Blog.

Mortgage and Other Real Property Relief Under the CARES Act

The Coronavirus Economic Stabilization Act (CESA, under Title IV of the CARES Act) puts in place a foreclosure moratorium for certain residential properties (including individual units of condominiums and cooperatives), and an eviction moratorium for tenants of certain “covered property” (predominantly multifamily housing units). The foreclosure moratorium applies to foreclosures of single family residential real property (designed for occupancy by one to four families) subject to federally backed mortgage loans (prohibiting loan servicers from initiating foreclosure actions). The eviction moratorium applies to lessor eviction actions based on nonpayment of rent or other fees and charges from single family and multifamily properties that (i) participate in certain federal housing voucher programs, (ii) have a loan that was made or guaranteed a federal program, or (iii) were purchased or securitized by Fannie Mae or Freddie Mac (collectively, “Covered Property”) (prohibiting lessors from intiating eviction actions). In addition to the imposition of the above noted moratoria, CESA has mandatory forbearance provisions that apply to loans on single and multifamily residential property with federally backed mortgages.

To read the full text of this Duane Morris Alert, please visit the firm website.

Social Distancing and Notarization During the COVID-19 Pandemic

With most of the country under stay-at-home orders and practicing social distancing, COVID-19 has become a major disruptive force for the indefinite future. One of the many business areas severely hindered by COVID-19 is contractual relationships between parties. Consenting parties to a new contract may agree that a PDF signature page sent by email suffices in these times, but what about statutory requirements that have to be satisfied? Real estate deeds and mortgages generally need to be notarized to be accepted for recording and for title companies to insure them. A will or trust agreement drawn up during the pandemic may need to be notarized as well to be given effect. Usual notary requirements include in-person, physical presence before the notary. How does that work with social distancing?

To read the full text of this Duane Morris Alert, please visit the firm website.

COVID-19 in Singapore: What Can Commercial Tenants Do?

The global outbreak of the novel coronavirus (COVID-19) is the most critical problem facing the world now.

The Singapore government has acted swiftly to reduce the risks of local transmission. At the time of publication of this Alert, all bars and entertainment venues such as nightclubs, cinemas and games centres have been prohibited from operating. In addition, all gatherings involving more than 10 persons have been prohibited. Food and beverage, retail, and health and fitness businesses have been allowed to continue their operations (but with further precautionary measures)―for now. It is certain that these regulations will, and must, be tightened if the health crisis continues on its current trajectory.

To read the full text of this Duane Morris Alert, please visit the firm website.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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