New York City Landlords Go Into A Panic As 25% Of NYC Renters Didn’t Pay June Rent
The Community Housing Improvement Program represents the owners of 400,000 small rent-stabilized units which equals 3 million units. The group claims nearly a fifth of those surveyed reported rent collections less than 60% of normal.
CHIP is calling for a “massive federally-funded bailout” for renters. They believe this will mitigate the devastating impact of the rent shortfalls.
Landlords were excluded from the $350 billion Paycheck Protection Program. The most direct form of rental assistance came in the form of a one-time $1,200 check from the federal government to individuals and enhanced unemployment benefits. On the state level, a rent assistance bill is waiting to be signed into law.
In the survey, 66% of commercial tenants paid no rent so far in June. 40% of respondents said they will struggle to pay their property taxes.
The group’s May survey showed similarly dismal rent collection numbers. It remains unclear what those figures will look like once enhanced unemployment expires in July.
City and state legislators have passed measures to provide some relief to renters and landlords. However, these measures have not been signed into law. Landlords may end up paying more to the city’s coffers in the form of late fees in exchange for the extra time.
Assessing residential rent payments during the pandemic has been difficult. Another industry group, the National Multifamily Housing Council, found that 89% of renters paid at least some rent in June so far. This is significantly more than CHIP’s survey.
New York City rent strikes are also another factor. They are an ongoing issue although the impact on rent collections is unclear.