Management announced at the end of March that residents who are experiencing financial hardship due to COVID-19 can apply for assistance through a new program, although residents will still ultimately be required to pay all rent that is due.
The C19 Resident Financial Hardship Assistance Program provides options to leaseholders who have a demonstrated financial hardship as a result of the virus, which includes a loss of income or extraordinary expense due to COVID-19. Leaseholders who are in good standing who can demonstrate financial hardship can apply for assistance, but at least half of the leaseholders in the apartment must be experiencing hardship to be eligible for the program.
The program has multiple options for those who are able to provide proof of financial hardship, including a payment plan and early lease termination. Under the payment plan, residents can defer up to 100% of one month’s rent and will enter a payment plan that will have the deferred rent paid in equal installments every month until the lease ends.
Four local elected officials, including Councilmember Keith Powers, have proposed that renters be allowed to use their security deposit for this month’s rent. Powers, in addition to Brooklyn Borough President Eric Adams, Brooklyn Councilmember Robert Cornegy and Manhattan Borough President Gale Brewer, announced the proposal last Tuesday and sent letters to Mayor Bill de Blasio and Governor Andrew Cuomo last Thursday asking that tenants be given relief.
Allowing tenants to liquidate their security deposits would serve as a needed $8 billion cash infusion for the thousands of New Yorkers who have lost their jobs or income due to the coronavirus outbreak, the officials told Crain’s last week.
“New Yorkers are facing unprecedented circumstances due to the coronavirus,” Powers said. “With thousands of tenants facing sudden and unprecedented hardships, we must look toward immediate solutions for those struggling to make their next rent payments in a matter of days. Using existing, pre-paid security deposits to supplement rent payment allows tenants time to seek relief.”