Q&A
Historical progression of rent arrears and current collection rate
0:12:01
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109 sec
This chapter details the historical progression of rent arrears in NYCHA properties and discusses the current rent collection rate. Annika Lescott-Martinez provides a year-by-year breakdown of the increasing rent arrears balance since the start of the pandemic.
- Pre-pandemic (December 2019) rent arrears balance was $125 million
- By the end of 2023, rent arrears had grown to $493 million
- The current rent collection rate is 68%, down from 71% in July 2020
- An additional $300 million would be needed to clear all arrears after current funding is distributed
Annika Lescott-Martinez
0:12:01
So it's a great question, council member.
0:12:04
If we look back prior to the pandemic, our rent arrears balance in December 2019 was $125,000,000, and that's $125,000,000 since the beginning of NYCHA back in 1935.
0:12:19
So as we mentioned in the testimony, since then, rent arrears was grown pretty considerably.
0:12:25
By the end of 2020, it was 202,000,000.
0:12:29
By the end of 2021,000,000, by the end of 2022, 467,000,000 and by the end of 2023,493,000,000.
0:12:39
One thing that's important is that what you don't see is that during the year, it ebbed and flowed.
0:12:44
So our arrears reached its highest of 543,000,000 just last year before Europe.
Chris Banks
0:12:51
And how many of those developments are Rad Pak?
Annika Lescott-Martinez
0:12:54
So this is just for instance.
Chris Banks
0:12:55
It's just nitrile.
Annika Lescott-Martinez
0:12:56
Correct.
Chris Banks
0:12:58
At at your July 2020 board meeting, rent collection was stated to be 71%.
0:13:05
What is the most recent rent rate of the rent collection?
Annika Lescott-Martinez
0:13:09
Sure.
0:13:09
The most current rate of rent collection is 68%.
Chris Banks
0:13:12
68%.
0:13:13
How much additional funding would be needed to bring the collection to a 100%.
Annika Lescott-Martinez
0:13:19
Well, we would 1st need to be able to adjust all of the arrears.
0:13:24
Or at least a substantial amount.
0:13:26
So we mentioned in the testimony 2 additional forms of funding, the COVID Rental arrears program in which we're expecting 35,000,000 from the state.
0:13:36
And the home art program where we're expecting a $150,000,000 flowing through the city, but it is federal funds.
0:13:44
Even if we get the maximum amount in those programs, our rendereers would still be $300,000,000.
0:13:49
Okay.
