Q&A
Factors contributing to higher rent collection rates in RAD/PACT properties
0:46:59
·
157 sec
Council Member Erik Bottcher and NYCHA officials discuss the factors contributing to the higher rent collection rate in RAD/PACT properties compared to traditional public housing:
- Rent forgiveness during conversion:
- RAD/PACT developers can forgive rent arrears during the conversion process
-
Public housing authorities under Section 9 cannot forgive rent arrears
-
Robust outreach and counseling:
- RAD/PACT partners follow housing stability and retention guidelines
- Similar outreach efforts are also made in traditional NYCHA properties
The rent forgiveness during conversion is considered the more significant factor, as starting with lower arrears makes it easier to maintain a higher collection rate.
Erik Bottcher
0:46:59
So So there's expectation set for the Rad Pak partners.
0:47:03
There's guidelines that are issued that they have to meet.
0:47:08
That is what has resulted in a 92% collection rate.
Annika Lescott-Martinez
0:47:15
I would add one other thing, council member, if I may.
0:47:19
Upon conversion, there are opportunities for the developers to forgive rent in a way that public housing authorities cannot.
0:47:26
So we have seen as developments go through conversions, they might forgive a 100% of the rent.
0:47:32
They might forgive a partial amount of the arrears.
0:47:35
And public housing authorities under the section 9 program, we don't have any authority to forgive rent arrears.
Erik Bottcher
0:47:42
There's 2 factors in the in the that explain the difference in the collection rate between 92% in Rad Pak and 68%, in traditional public housing.
0:47:57
1 is the the fact that in the during the conversion process, some of the RadPack partners have a amnesty, so to speak, for the incoming during the transition.
0:48:13
And the other factor is that there's robust outreach and counseling and and such in the Rad Pak program.
Annika Lescott-Martinez
0:48:25
I would say the first is probably more significant than the second because if you're starting from a place of lower arrears or lower arrears, it's a lot easier to keep at that same level.
0:48:36
Particularly if you're talking about wiping out, you know, 1,000,000 of dollars of pandemic arrears.
Erik Bottcher
0:48:40
Okay.
0:48:41
Because you know what my next question's gonna be.
0:48:44
If there's a higher collection rate due to the robust outreach counseling, etcetera, in the Rad Pak partners, why isn't why can't we say that about Nietz's Outreach?
Eva Trimble
0:49:01
I I would say that about Nietz's Outreach Council member.
0:49:05
You know, I think we were happy and that the pack developers have that level of outreach and we wanted to share that that they are doing what we we hope that they would as far as engaging residents, but that doesn't discount the work that we're also doing in that area.
0:49:20
As far as I've laid out in our testimony and in our Q And A today, all of the outreach efforts we're making with our residents.
0:49:27
And do you think the larger part is that that impact of not having that arrears bill in continuing to pay your rent is really important?
