Assembly Minority Leader Will Barclay and Senate Minority Leader Rob Ortt today urged Gov. Cuomo and legislative colleagues to move forward in distributing $1.3 billion in unused federal assistance. The funding, which was approved by Congress in December, is intended to help families and individuals pay for rent and utility expenses, while assisting rental property owners cover their mounting costs.

If New York fails to distribute its $1.3 billion allocation by September 30, the federal government may take back any unspent funds and provide them to other states. Minority Conference leaders and the ranking members of the legislative Housing Committees wrote to Gov. Cuomo to call for action. A copy of the letter is available here.

“It’s been more than three months since Washington approved funding to help tenants and landlords manage the financial disasters they’ve experienced during the pandemic. However, Albany has not moved an inch toward getting that money into the hands of people who desperately need it,” said Leader Barclay (R,C,I-Pulaski). “We have a September 30 deadline that will be here before we know it. Albany is easily distracted even on a good day. We already missed one deadline with CARES Act funding and needed a last-minute extension. Considering the severity of the rental crisis at hand, it would be wise not to let history repeat itself.”

“These monies are a win for both tenants and landlords. Since COVID began, we have heard cries from tenants who beg for rent relief to prevent them from being evicted. Now that Washington, D.C. has given us the ability to provide this relief, the governor’s administration is playing games and dragging its feet. This relief needs to get into the hands of tenants who can’t make rent and landlords who can’t pay their property taxes and utility bills. Financial hardships for landlords and tenants have a negative ripple effect felt across our local economy. Now is not the time for that. We must set aside the politics and actually govern,” said Leader Ortt (R-Tonawanda).

New York used only $47 million of the $100 million it received last spring through the federal CARES Act. The state was granted an extension from the federal government, thereby avoiding having to pay back the outstanding undisbursed funds. Even now, New York has failed to distribute CARES Act funding to programs.

“It is inconceivable that New Yorkers facing this unprecedented pandemic recovery have not been given much-needed relief because of political distractions and administrative incompetence,” said Assemblyman Michael Fitzpatrick, Ranking Minority Member on the Committee on Housing, (R,C,I-Smithtown). “Landlords and tenants have fallen through the cracks and the governor does not seem interested in doing what is needed to protect their fiscal interests and long-term well-being. We are calling for immediate action; we have received the funds, using it is supposed to be the easy part.”

“The housing and rental economy is a critical part of our state’s overall financial health. We rely on a delicate ecosystem in which tenants must be able to pay rent and landlords must be able to make mortgage payments. This money being held captive by the governor’s office threatens this balance,” said Assemblyman Colin J. Schmitt, Minority Member on the Committee on Housing, (R,C,I,LBT,SAM-New Windsor). “The $1.3 billion set aside for these individuals will help landlords pay bills and relieve an enormous amount of stress on tenants struggling to make rent. The governor’s inability to do his job is becoming more pervasive each day.”

“There is no excuse for delaying this critical relief for tenants and landlords experiencing real economic hardship. This is a failure of state government and a disservice to these New Yorkers. Release the money today. Get it done,” said Senator Pam Helming, Ranking Member of the Senate Committee on Housing, Construction and Community Development, (R,C,IP-54^th Senate District).

The ongoing fallout and financial impacts of COVID-19 have presented prolonged challenges across the entire housing spectrum. According to a recent survey conducted by the housing coalition Under One Roof:

• 42 percent of small landlords are using personal loans and savings to cover expenses such as mortgages, property taxes and utility bills;
• 30 percent of small landlords have used business reserves to cover lost rental payments, resulting in job losses, delays in upgrades to rental units and inability to cover operating expenses; and
• 37 percent of all landlords are unable to make capital investments to meet obligations to bring rental units to market, forcing many to sell.

Thirteen states have already taken steps to develop a grant program or have started accepting applications for individuals to receive federal money.

“Tenants, landlords and the entire housing market are hurting, and we are approaching a level of irreparable damage. Reaching a full recovery will be a long, difficult road. It’s disgraceful that the pain being felt by thousands is being extended by unnecessary and inexplicable bureaucratic delays from Albany,” said Leader Barclay.