NYCHA Tenants Struggle with Rent Arrears Amid Pandemic Relief Delays
Lack of State Funding Impacts Public Housing Residents
At a recent City Council hearing, NYCHA shared that more than 70,000 households still owe rent, due in large part to being put at the back of the line for state pandemic rent relief.
Background
In 2021, when New York State rolled out its COVID-19 rent relief program, New York City Housing Authority (NYCHA) residents were not included in the initial wave of funding. The impact of that still reverberates years later, with tens of thousands of public housing tenants behind on rent and the housing authority struggling to meet the cost of operational needs.
ERAP Funding
Opened in June 2021, ERAP provided up to 12 months of owed rent and three months of future rent to tenants and households financially impacted by the pandemic. Payments were made to landlords directly on their behalf. NYCHA communities were among those hardest hit by COVID-19: in a survey conducted by the Community Service Society (a City Limits funder) in August 2020, more than a fifth of public housing respondents reported having a household member who’d been sick, while nearly half reported losing work or income.
Current Situation
A year after the ERAP application launched, more than 73,000 NYCHA tenants had back rent, with more than 31,000 applying for the state funding. However, public housing tenants only started getting rent relief money last year, after pushing the state to include more ERAP funds in its budget specifically for public housing and Section 8 residents.
Outstanding Rent
As of Sept. 1, more than 70,000 households still have rental arrears, including 20,000 who are senior heads of households. The average amount of arrears per household is $6,915, spanning an average of 14 months, with about 20 percent of households owing more than $10,000.
Impact on NYCHA
The housing authority relies on rent payments for one-third of its operational budget to upkeep maintenance work. Currently, NYCHA also needs close to $80 billion worth of capital repairs in its portfolio over the next two decades. Unfortunately, we are currently collecting only about 68 percent of owed rent, and rent arrears now stand at $487 million—nearly four times what is was in 2018 and well beyond the ERAP funding we’ve secured for residents.
PACT Program
Concerns around the Permanent Affordability Commitment Together (PACT) program, which transfers traditional Section 9 public housing properties over to private management and to the more lucrative Section 8 program, were also raised. Although the eviction rate is expected to "increase a little bit" over the next couple of years, according to NYCHA’s First Deputy General Counsel, Hannah Roth, the rate for both traditional Section 9 public housing developments and PACT sites are both lower than the citywide average.
Conclusion
The lack of state funding and delayed ERAP relief has had a devastating impact on NYCHA tenants, with tens of thousands still struggling to pay their rent. NYCHA is counting on rental assistance from the State COVID-19 Rental Assistance Program (CRA) and the federal HOME American Rescue Plan Program (HOME-ARP), but even with these funds, the housing authority still faces a significant challenge in paying off the outstanding rent.
FAQs
Q: How many households still owe rent due to delayed ERAP relief?
A: More than 70,000 households still have rental arrears.
Q: What is the average amount of arrears per household?
A: $6,915, spanning an average of 14 months.
Q: How much does NYCHA need for capital repairs over the next two decades?
A: Close to $80 billion.
Q: What is the current eviction rate in NYCHA?
A: The eviction rate is expected to "increase a little bit" over the next couple of years, but it is still lower than the citywide average.
