(New York, NY) – The New York Apartment Association (NYAA) estimates that rent-stabilized buildings in New York City need a $4.65 billion infusion to prevent widespread mortgage defaults. This figure includes the $1 billion previously requested by the New York Housing Conference, plus an additional $3.65 billion for majority rent-stabilized, pre-1974 buildings that are privately owned and pay $1.6 billion annually in property taxes.
“The severe fiscal distress in rent-stabilized housing is now clear to everyone. Privately-owned, majority rent-stabilized buildings are operating with less revenue than nonprofits that are requesting a billion dollar bailout. The data clearly shows that if you are going to bail out them, you are going to need to do the same for privately-owned buildings,” said Kenny Burgos, CEO of the New York Apartment Association.
The $4.65 billion estimate was calculated by combining the majority rent-stabilized, privately owned pre-1974 buildings with the nonprofit rent-stabilized sector, creating a total universe of 680,746 stabilized apartments. That is roughly 70% of all stabilized housing in New York City.
“All of us need to be clear-eyed about what is happening here. The math doesn’t work for rent-stabilized housing anymore. A one-time $4.65 billion dollar bailout would, at best, stabilize these buildings for the next five years. We will be back here again needing another bailout if we want to prevent the loss of this housing stock to defaults, foreclosures, and massive abandonment and disinvestment,” said Burgos.
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The New York Apartment Association (NYAA) is a 501(c)(6) not-for-profit organization that represents a diverse coalition of apartment building owners and managers who provide the majority of affordable multi-family housing in the state of New York. To put it simply, we are Housing New York. The official NYAA website isHousingNY.Org. @HousingNY on X; @HousingNYon Instagram;@HousingNYon Youtube, and @HousingNYon TikTok.