Removes the requirement that rent arrears be repaid

• Democratic1

◆ The sponsor's argument

Why Brian Kavanagh says this is needed

New York state is facing an affordable housing crisis in the state. According to an August 2021 report released by the NYS Comptroller and using data from the 2019 American Community Survey, 78% or 946,000 of New York City's 1 2 million low-income rental households were rent-bur- dened, defined as households with an annual income at or below 80% Area Median Income (AMI) paying more than 30% of their income towards rent. The same report also stated that 47% of all renter households in New York state were rent-burdened. In New York City, an analysis by the Community Service Society on the city's 2021 Housing Vacancy Survey data found that 55% or 1,196,100 households were rent-burdened in 2021, with a third of New York City renter households -- overwhelmingly low-income tenants -- deemed severe- ly rent burdened or paying more than half of their income towards rent. For these New Yorkers, any circumstances that put them behind on rent would put them in the difficult situation of not being able to repay their arrears. Rental assistance can be a lifeline that keeps them from homelessness. This legislation removes the requirement that emergency grants for rental arrears must be repaid in New York City. Individuals who fall behind on rent payments and/or are at risk of becoming homeless may be eligible to obtain an emergency assistance grant from their local social service district, often referred to as a "one shot deal," covering rental arrears provided that they can supply proof of their ability to pay rent going forward. However, current statute states that emergency rental assistance must be repaid. Many low- and moderate-income families simply cannot meet this requirement, which likely discourages many otherwise eligible people from applying for this vital form of eviction prevention assistance. Such emergency assistance grants are intended to help individuals remain in their homes, but a requirement to repay rental arrears can cause further financial distress, essentially preventing a renter from ever getting ahead. Outside of New York City since October 2024, the Shelter Arrears Eviction Forestallment program (SAEF), administered by OTDA, provides emergency rental assistance for the payment of rent arrears. SAEF assistance is not subject to repayment or recoupment unless the applica- tion submitted was fraudulent, or otherwise identified as ineligible.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.