The Tenant Payment Plan Phasing Temporary Act of 2025 mandates that providers of commercial or residential rental properties offer and maintain rent payment plans for eligible tenants who entered into agreements between March 11, 2020, and July 25, 2022. The bill outlines specific requirements for these payment plans, including a minimum term of one year, the waiver of fees or penalties, and the assurance that tenants will not be reported as delinquent to credit agencies. Additionally, it stipulates that tenants must be informed about the availability and terms of the payment plans, and they are allowed to make payments in equal monthly installments without being required to provide lump-sum payments.

The legislation also establishes a process for tenants to apply for these payment plans, which must be approved if the tenant demonstrates financial hardship due to the COVID-19 public health emergency. Providers are prohibited from filing collection lawsuits or evictions for nonpayment of rent during the program period unless the tenant defaults on the payment plan. The act is set to take effect upon approval by the Mayor and will expire after 225 days.