The year 2020 has been terrible for both residential and commercial property owners in New York City. The pandemic drove a mass exodus of renters out of the city to suburbs, and the laying off of employees has left the renters in debt. According to a survey conducted by New York City, apartment tenants are more than $1 billion in debt from missed rent payments during the coronavirus pandemic. The ongoing pandemic has shut down several businesses, and the unemployment rate has led the renters to miss out on their monthly rental payments.

The debt figure is the most recent indicator that unemployment benefits and federal stimulus packages have so far been inadequate to alleviate the growing financial burden of missed rent payments across thousands of city households. Both landlord and tenant advocacy groups have lobbied heavily for more government rental assistance during the pandemic.According to a new survey from the Community Housing Improvement Program, tenants in rent-stabilized apartments are more than $1 billion behind on rent. The figure represents about 185,000 households that owe more than two months’ rent — an average of $6,000.

According to the executive director of CHIP, if we consider the entire situation of the New York’s apartment rentals and the $1 million market rate, the tenants are carrying a debt of more than $2 billion. “It’s not an insurmountable amount,” Martin told the Journal. “The numbers tell us that, probably, if we could get an additional $1 billion or $2 billion in the city, we could probably pay off every single renter’s arrears in the entire city of New York over the last year of the crisis.”

Moreover, Washington and Albany have come to New York’s aid and provided some help with the debt. The recent federal relief package includes $1.3 billion in rental assistance for the entire state, and the incoming Biden administration is bringing hopes for everyone as they’d probably bring another beneficial stimulus package for the economy. However, Landlords are also prohibited from evicting tenants until May under the state’s eviction moratorium. But it seems like the state’s eviction moratorium is only benefitting the renters as all of them are in a crucial state. Therefore, advocates for both landlords and tenants are calling out to people for more financial support.

The COVID-19 has taken the world by storm and has brought about many changes in the world. The world requires financial support as more people keep lining for jobs. We hope the year 2021 will rebound and clear the stabilize the entire financial situation.

 

 

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