On Wednesday August 26, Governor David Paterson signed into Law Assembly Bill 08842 (Chap. No. 408), introduced by Assemblyman Marcos A. Crespo (D-Bronx), which relates to small loans to owners of multiple dwellings to remove substandard or unsanitary conditions and to loans of owner occupants of one to four unit private and multiple dwelling units.
As reported by Manny Fernandez and Jennifer Lee in a July 15th New York Times article, (/Struggling Landlords Leaving Repairs Undone/) many property owners are struggling to pay their mortgages and are leaving their properties in a state of disrepair, leaving tenants in substandard living conditions.
This legislation, sponsored in the Senate by Senate Majority Leader and Chairman of the Senate Housing Committee, Senator Pedro Espada Jr., (D-Bronx), will clarify language in the Private Housing Finance Law to allow for small loans under Article 8A and 8B to be spread over a thirty year term. Shorter loan terms may increase debt service beyond the amount the property’s rent roll can support.
“Many tenants in my district have raised the issue that landlords are not adequately maintaining and repairing their apartments. In turn, property owners maintain that the rent rolls barely cover their mortgage payments. This legislation will clarify language to provide owners the financial support they need to address low-income tenants’ concerns,” said Assemblyman Crespo.
The NYC Department of Housing Preservation & Development which administers the 8A and 8B Loan programs, had expressed the need to ensure that these low interest rehabilitation loans to rental properties of low income tenants be made more accessible and financially viable.
Last year, loans made under the 8A program affected repairs to over 3600 units in the City. Now, Mitchell Lama’s are increasingly tapping into this resource.
For more information, please contact Assemblyman Crespo at (718) 893-0202.