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NYCHA Begins Outreach for Up to $185M in Additional Rental Arrears Assistance

Michael

The CRA Program will distribute up to $35 million allocated by the New York State Legislature 

The HOME-ARP Program will distribute up to $150 million in federal funds awarded by HUD 

On October 17, NYCHA announced two new programs to provide up to $185 million in rental assistance to eligible residents with arrears. These programs, the COVID-19 Rental Assistance (CRA) Program and the HOME American Rescue Plan (HOME-ARP) Program, will make available $35 million allocated by Governor Kathy Hochul and the New York State Legislature and up to $150 million awarded by the U.S. Department of Housing & Urban Development (HUD), respectively. These one-time programs are intended to further help residents recover from the economic impacts of the COVID-19 pandemic so that they can better meet their obligations to pay rent and maintain housing stability. The funds come on top of those made available beginning in 2023 through the New York State Emergency Rental Assistance Program (ERAP).

NYCHA has identified approximately 61,500 households with outstanding rental arrears totaling over $370 million who may be eligible for these additional programs. NYCHA has kicked off outreach efforts to these households, requesting that they log in to NYCHA’s Self-Service Portal, click on the box labeled “Apply for Rental Arrears Assistance,” and fill out a simple consent form to allow NYCHA to seek payment on their behalf from State and local entities. To qualify, households must have an income less than or equal to 50 percent of the Area Median Income (AMI) and must meet each program’s requirements on how current their annual recertification must be.  Eligible households who need assistance completing the online consent form should contact their Property Management Office. Outreach for these programs includes mailings, door-knocking, robocalls, text messages, and email to ensure that as many eligible households as possible can be served. After they apply, households will receive notice by mail informing them of their approval status and the amount of assistance they may receive, which will then be credited directly to their accounts. 

“We’re continuing to support vulnerable New Yorkers who were hit hard by the pandemic and helping to ensure families remain in their homes,” said New York Governor Kathy Hochul. “This additional $35 million in State funding builds on our efforts to provide meaningful COVID-related rental assistance, bringing total State support to nearly $200 million in rental assistance for NYCHA residents.” 

“At the height of the COVID-19 pandemic, President Biden signed the $1.9 trillion American Rescue Plan into law, providing New Yorkers $464.6 million in direct housing aid and 9,925 Emergency Housing Vouchers. Today’s announcement is an example of how HUD and the federal family continue to work closely with local governments to supplement their needs,” said HUD Regional Administrator for New York and New Jersey Alicka Ampry-Samuel. “Our neighbors at NYCHA, who struggled during the pandemic, deserve to stay in their homes. This funding will assist them and our partners at NYCHA with added financial stability so we can all move forward after the enduring disruption caused by COVID-19.”   

“This administration’s dedication to tenant protection is reflected in NYCHA’s work to ease rental arrears,” said First Deputy Mayor Maria Torres-Springer. “We must not lose sight that 61,500 households, our fellow New Yorkers, need this support, and we’re grateful to the federal and State governments for making this funding possible.” 

“We have fought tirelessly for our NYCHA residents to get their fair share of rental assistance following the COVID-19 pandemic, and I am delighted that these two new programs will supplement the aid that came through ERAP,” said NYCHA Chief Executive Officer Lisa Bova-Hiatt. “We’re so thankful to our partners at the City, the State, and at HUD for providing support that will bring both financial relief and stability to NYCHA residents.”  

“It’s wonderful to see the State and federal government (HUD) step up to assist our residents,” said Citywide Council of Presidents Chair Daniel Barber. “This opportunity will help many households lift a burden off their backs and get their lives back to a sense of normalcy. It goes with much appreciation and gratitude that this assistance is being provided.” 

In 2023, NYCHA engaged with the New York State Legislature to secure $35 million in CRA funds to further support residents who had COVID-related arrears. Additionally, NYCHA successfully advocated to secure federal funds through the HOME-ARP Program, which was approved by HUD in January 2024. 

This comes on top of NYCHA’s previous extensive and successful advocacy for the prioritization of rental assistance for public housing residents through ERAP. As part of the program, NYCHA submitted more than $161 million in applications on behalf of over 30,000 households. NYCHA identified residents with rental arrears who met the criteria for ERAP, advocated on their behalf with the State legislature, and streamlined the submission process to submit applications on the residents’ behalf. As of September 30, 2024, NYCHA has received approximately $159 million from the State in ERAP funds, to be applied to over 27,000 households. Residents may be able to receive funding from one or both of the new programs even if they have previously received assistance from ERAP; however, for the CRA Program, priority will be given to households that have not received ERAP who apply within the first 30 days. 

Rent payments are critical to NYCHA’s operations because they fund one-third of the Authority’s operating budget, facilitating NYCHA’s ability to perform necessary maintenance and repairs. HUD expects public housing authorities to collect 100 percent of the rent, and does not allow them to forgive outstanding rent. HUD also does not provide an increase in operating subsidy to bridge the funding gap, making the available forms of assistance critical. As of September 30, 2024, after the application of ERAP funds, NYCHA’s tenant arrears totaled $494 million across 68,000 households, nearly quadrupling since 2019. Residents remain responsible for paying current and future rent, as well as any past due rent not covered by CRA or HOME-ARP assistance. Program funding is limited, and eligible households are urged to apply now. 

CRA is designed to distribute $35 million in funds from the New York State Legislature, which was announced in November 2023, with a goal of specifically supplementing the rent relief provided by ERAP for NYCHA residents. HOME-ARP is a one-time allocation to be used for strategic local investments in housing, homelessness assistance, and supportive services. This is a federally funded program awarded to the City of New York by HUD and administered by the New York City Department of Housing Preservation & Development (HPD).