One of the most devastating impacts of the COVID-19 pandemic has been the lack of housing security, with so many people unable to pay their rent. The CDC has moved to remedy this with an eviction moratorium, which was recently extended to June 30th. It is easy to see trouble brewing in housing courts across the country. Some places are not creating alternative paths, hoping that landlords and tenants will resolve the back rent issues independently. Others are reinforcing their housing court staff to prepare for the influx of evictions served once the moratorium is lifted. A few cities, like New York City, are putting together mediation programs to provide a more regulated path and avoid mass evictions.

What is the Landlord-Tenant Mediation Project?

The Landlord-Tenant Mediation Project is meant to resolve disputes between landlords and tenants, including back rent. This project is meant to address any issue, and with much of the world living in places containing concrete, there can be many issues outside of rent hikes or the inability to pay rent. Most concrete structures can last for more than 100 years, but if it is not properly maintained, it can crumble. The project would allow tenants to bring up maintenance and safety concerns with landlords in a non-adversarial process. This can help both sides understand where the other party is coming from and allow a good faith effort to come up with a solution. Working together can strengthen community bonds to create a real sense of accountability and trust in a community.

How Does It Work?

The program in New York City is set up so that tenants and small landlords without legal representation can be referred to their borough's Community Dispute Resolution Center (CDRC) to find an alternative solution to eviction. This is designed to help both the tenants and the small landlords who are part of the nearly 64% of small businesses facing financial struggles at this time. By coming up with a plan to pay a reduced rent that gradually increases to cover the back rent due, the tenant doesn't need to worry once the eviction moratorium is lifted. The landlord will also be able to properly maintain the property with rent coming in.

How Does Mediation Help?

Mediation is a process that can help prevent wasting judicial resources on matters that can be resolved outside of litigation. This process has effectively resolved foreclosure matters and provided a less adversarial option for divorces that allow all parties to gain from the dispute. Mediation has become a popular option over the years. In the 1960s about 11.5% of federal civil cases went to trial, while today, the percentage of cases that proceed to trial in the federal courts hovers around 1%. This reduction is due to mediation as an alternative to the courts.

Mediation typically costs less than a trial. It doesn't prevent the parties from proceeding to court if they cannot reach a resolution, but it is an excellent option. Mediation is also a better option than arbitration which can often lead to extremely high costs for one side, while mediation splits the costs more evenly between parties.

Another benefit of mediation is that it allows the parties to come to a solution together instead of the court or an arbitrator issuing a ruling. Mediation is a collaborative process that can help strengthen relationships and is a great community-building tool. This helps make communities safer by requiring the parties to compromise and see the dispute from the other side, meaning the landlords and tenants are less likely to resort to tactics meant to force the other side to accept their terms.

Mediation ensures that landlords don’t act irresponsibly, even in these testing times. However, preventing evictions isn’t the only responsibility that landlords must focus on at this time. Providing suitable living standards is vital if they wish to avoid disputes from tenants. And potential legal repercussions. This can range from using the right student housing design plans to ensuring that safety facilities are in place for all tenants. Crucially, they must ensure that all rental properties are priced fairly. 

Ultimately, though, it’s in the landlord’s best interests too. A low turnover makes their life easier while reducing the level of potential financial exposure. Still, the fact that tenants will have a place they can call home without concerns about eviction is a crucial factor.

Mediation is not the only solution, but it is an excellent option. Mediation allows for a third party to help lessen the emotional impact of the process while guiding parties to build a resolution. Mediation also keeps the door open for litigation should the parties be unable to resolve their dispute.

Learn more about New York City’s Landlord-Tenant Mediation Project here.