The teams mentioned they hope the aid program for small landlords would in flip allow them to scale back or cancel hire for his or her tenants who need assistance.
The program is a part of the Lease and Mortgage Cancellation Act of 2020 that state Sen. Julia Salazar and Assemblywoman Yuh-Line Niou are sponsoring. They initially hoped to pay for this system with federal funds, however given how unlikely that now seems, Niou mentioned she would assist having bigger actual property firms finance it.
“PPP loans went to a few of the largest landlords in New York,” she mentioned. “We consider that billionaire landlords can afford to pay and supply that cushion.”
It’s unclear precisely how a lot firms obtained in PPP cash, because the federal authorities launched solely ranges for the way a lot the loans had been value. Macklowe and Midwood each obtained between $1 million and $2 million, whereas Clipper obtained $350,000 to $1 million, based on the info. Crain’s obtained cash from this system as nicely.
Macklowe didn’t retain any jobs with the funding, whereas Midwood retained 56 jobs and Clipper retained 119 jobs, based on the info.
Representatives for Macklowe and Clipper didn’t reply to requests for remark. Representatives for Midwood declined to remark.
State and metropolis officers have resisted a number of calls to cancel hire outright for the reason that pandemic started, however all evictions in New York for instances introduced after March 17 stay suspended.
Some main landlords, together with The Durst Group and Brookfield Properties, have arrange a $4 million fund to direct cash via nonprofits that may assist tenants struggling to pay hire through the pandemic. The Actual Property Board of New York is a part of the plan, referred to as Challenge Parachute.
Canceling hire throughout the board would in the end simply create monetary issues for struggling companies, based on REBNY President James Whelan.
“Proper now we’re centered on coming collectively and advocating for the federal help wanted to fund direct aid to tenants struggling to pay hire and property homeowners struggling to pay their mortgage, property taxes and constructing upkeep employees,” Whelan mentioned.
However Weaver maintained that having giant actual property companies step as much as assist out small landlords was a sensible monetary transfer.
“The fiscally accountable coverage proper now’s asking the company landlords who can afford to do that to soak up some prices for the owners, the smaller landlords and the tenants,” she mentioned.