My Property Man
Covid Rent Relief Program
Updated: Nov 9, 2020
Everyone strives to get thru the unprecedented times since the pandemic arrived in the city earlier this year. It has become crucial for landlords to know what relief options are available to them. We have helped many of our landlord clients get on a mortgage forbearance program and put them on flexible payment plans with their home insurance and utility providers.
While we have helped our landlords implement their relief options, we have also worked with them helping their financially impacted tenants in every way possible. Unfortunately, as the Federal PUC compensation expires, we see more tenants are struggling to pay their rent.
Though it looks like a full freeze on New Yorkers' rent is not going to happen, long-awaited help for NY State tenants is finally here.
We encourage our financially impacted tenants to find out if they qualify for the Covid Rent Relief Program. We also encourage our landlords to educate themselves about the program, so they can assist their tenants through the application.
In this article, we will go over the program highlights and qualification requirements.
- Leased premises must be tenant's primary residence in New York State.
- Tenant must have made below 80 percent of area median income based on household size (ex. For a 1-person household, tenant's annual income should be under $50,960 in Brooklyn. Full list is available at the following link: www.hcr.ny.gov/system/files/documents/2020/07/crrp2020_eligible_income_80ami.pdf)
- Tenant must have paid more than 30 percent of their monthly income towards rent pre-Covid and at the time of the application.
- Tenant must have impaired income due to Covid.
How It Works:
Rent subsidy from NYS is based on the tenant's rent burden. Rent burden is calculated by the percentage increase in tenant’s rent-to-income ratio (must be more than 30% to be considered "rent burden" as described above.) NYS will look at what percentage of the tenant's income went towards rent before Covid and after Covid.
If a tenant paid 40% of their income towards rent before Covid and paid 80% of their income towards rent after Covid, NYS will cover the 40% increased rent burden bringing the tenant back to their pre-Covid position.
This is a one-time subsidy paid in the amount of up to 4 months' rent. If a qualifying tenant has already paid their rent in full, they can still get assistance towards future months.
Tenant’s calculated subsidy payment is made directly to the landlord.
If a tenant applied for the Covid Rent Relief Program, landlord will get an email from firstname.lastname@example.org requesting a W9 Form to be filled out.
Form should be submitted immediately. It can be submitted electronically via DocuSign.
Although, it's not required, we recommend landlords to include their bank account information on the form, so they can receive the subsidy payment directly into their bank account.
We are happy to answer any questions regarding the Covid Rent Relief Program.
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