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Q&A
Funding needs and plans to address NYCHA rent arrears
0:55:50
ยท
3 min
Council Member Erik Botcher inquires about NYCHA's plans to address rent arrears beyond the anticipated $185 million in funding. NYCHA officials discuss the total amount needed to cover all rent arrears and the challenges faced by residents in catching up on payments.
- NYCHA would need an additional $360 million to cover all current rent arrears
- There are no known additional rental assistance programs beyond the anticipated funding
- NYCHA will continue to work with tenants on payment plans and enforcement measures
- The average rent arrears owed per household is $8,116, which can take residents 5-10 years to catch up on
Erik Botcher
0:55:50
If so once that $185,000,000 is spent to address the rent arrears What's the plan beyond that?
0:55:59
What additional funding is coming?
0:56:03
What's the where do we go from there?
Annika Lescott-Martinez
0:56:06
Sure so we don't know of at this point any additional rental assistance programs beyond that funding and so we would continue to do our normal tenant workouts and enforcement.
0:56:21
So we would certainly work with our tenants to get them on payment plans, encourage folks to pay the rent, do one shot deals with HRA, and do the sort of enforcement and collection work hand in hand with our tenants at the property level.
0:56:37
So there are no other to answer the question very clearly there are no other rent assistance programs beyond those that we are aware of at this time.
Erik Botcher
0:56:44
And what size check would you need right now to cover all the rent arrears out there?
Annika Lescott-Martinez
0:56:52
545,000,000.
Erik Botcher
0:56:55
So we've got to get you that delta there between the 185 and the $5.45, you said?
Annika Lescott-Martinez
0:57:02
So you'd have to get us $360,000,000.
Erik Botcher
0:57:05
Okay.
0:57:07
This is critical that we do this because it's the when people have these rent arrears on their backs, it's hard to get them up to date on their month to month payments.
Lisa Bova-Hiatt
0:57:27
Councilmember That's correct.
0:57:28
Yeah, that's exactly right.
0:57:29
When you think about a family and our CFO mentioned this earlier, to owe $6,000 when your rent is $350 you know, although we are so incredibly grateful that we were able to provide rental assistance to our tenants.
0:57:54
It came two years into the pandemic.
0:57:57
So we have residents really through no fault of their own, so many of them want to pay rent but it's very, very difficult for them to catch up.
0:58:08
And some sign payment agreements but as we mentioned we can only go up to 40% of a tenant's income.
0:58:24
And so that pushes out their ability to become non delinquent years.
0:58:33
And so it's a it's really a struggle and I think you're absolutely right that there are so many residents that want to pay their rent and are staying current, but the significant amount of arrears it's going to take them you know five to ten years to catch up.
Annika Lescott-Martinez
0:58:53
And I just want to correct one thing on Lisa's behalf.
0:58:56
The average rent arrears owed per household is $8,116.
0:59:00
Thank you.