PUBLIC TESTIMONY
Testimony by Adam Roberts, Representative of New York Apartment Association (NYAA)
1:34:21
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169 sec
Adam Roberts, representing the New York Apartment Association (NYAA), testified about the ongoing impacts of the pandemic on renters and housing providers in New York City. He highlighted the limitations of the Emergency Rental Assistance Program (ERAP) and the financial distress faced by housing providers, particularly those with rent-stabilized units in outer boroughs.
- Roberts emphasized the need for addressing ERAP's failures and implementing a housing court diversion program to alleviate the overwhelming number of nonpayment cases.
- He presented data showing a significant decline in net operating income for pre-1974 buildings and an increase in distressed buildings citywide.
- The testimony called for collaboration with the city council to address these issues and improve the situation for both tenants and housing providers.
Adam Roberts
1:34:21
Thank you for holding us hearing today.
1:34:23
I'm Adam Roberts testifying behalf of the New York Apartment Association, also known as Naya.
1:34:29
Naya is a newly formed trade group representing multifamily housing providers across New York City.
1:34:35
Our diverse membership consists of long term owners and operators of rental housing, who collectively provide more than 1,000,000 units across the city, most of which are subject to rent regulation and were constructed pre 1974, meaning they have not received 421A or public subsidies.
1:34:52
Our mission is to ensure that rental housing stock is abundant, safe, and desirable to live in so that New York can be affordable for generations to come.
1:35:00
The repercussions of the pandemic are still being felt by New York renters and their housing provider.
1:35:05
With ERAP's limited funding sources and program restrictions, including ERAP only covering 15 months of unpaid rent.
1:35:12
Countless renters are left with pandemic related arrears.
1:35:16
For renters, these arrears can threaten their ability to remain in their current apartment even if they have resumed paying their monthly rent.
1:35:22
For housing providers, the financial distress from unpaid rent leads to deferred maintenance and prohibits necessary capital improvements, leaving tenants in buildings with increasing states of disrepair.
1:35:34
For buildings with high percentages of rent stabilized units in the outer boroughs, the situation is even worse.
1:35:41
Those buildings were already operating on narrow financial margins and the shock from unpaid rent during the pandemic has accelerated these buildings financial free fall.
1:35:49
For instance, the rent guidelines board found in its 2024 income and expense study that pre 1974 buildings, again, those that didn't receive 421a are particularly in peril.
1:36:01
From 2021 to 2022, net operating income fell 20% in the Bronx, while over 10% of building citywide are officially distressed.
1:36:11
The median units rent is only $272 above cost, leaving not enough funding to repay loans for much needed repairs.
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ERAP's failure has also left housing court overwhelmed with nonpayment cases.
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The Biden administration encouraged federal emergency rentals assistance funding, be coupled with housing court diversion programs.
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These programs allow for nonpayment cases to be mediated outside of housing court preventing it from being overwhelmed.
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However, New York City did not follow this path, which has forced tenants into the dysfunctional housing court system.
1:36:45
In housing court 1 shot deals which cover arrears are sparsely distributed.
1:36:50
The failure to implement a diversion program has left housing court overwhelmed even years after the financial crisis caused by COVID has ended.
1:36:58
These delays were not only traumatic for tenants, but leave rent stabilized buildings, especially those in the Outer boroughs on uncertain financial footing.
1:37:05
We hope to work with the council to address ERAP's failures and implement the diversion program.
1:37:09
Thank you.
Chris Banks
1:37:10
Thank you.
