Nyc Reps Blame Federal Chaos After Nyc Housing Officials Delay Rental

Leo Migdal
-
nyc reps blame federal chaos after nyc housing officials delay rental

Make your contribution now and help Gothamist thrive in 2025. Donate today Gothamist is funded by sponsors and member donations Two New York City congress members are blaming “chaos” at the federal level for slowing key rental assistance payments to landlords of roughly 100,000 low-income tenants in the five boroughs. U.S. Reps.

Ritchie Torres of the Bronx and Nydia Velázquez of Brooklyn, both Democrats, said staff cuts at the Department of Housing and Urban Development and a threatened freeze on federal funding in late January have... “The threat of funding freezes, separate and apart from the reality of them, creates massive uncertainty that destabilizes critical programs like Section 8,” Torres told Gothamist in an interview. ”Uncertainty carries its own costs.” The recent federal shutdown continues to impact New York City, as local officials prepare for delays in rental assistance payments for low-income residents. The Section 8 program is expected to face delays in fund disbursement, with the New York City Housing Authority (NYCHA) receiving notice of this from the Department of Housing and Urban Development (HUD). Tenants typically contribute around 30 percent of their income toward housing, with the government covering the remainder through Section 8.

According to an official NYCHA statement, reported by Gothamist, “Following notice from HUD that payments to Section 8 landlords would be delayed this month, NYCHA is assessing interim options and will distribute funding as... The New York Apartment Association (NYAA) referenced NYCHA’s update, noting that it is “standard procedure to pay its Section 8 landlords as soon as is reasonably practicable following its receipt of funding from HUD.”... Recognizing the impact on tenants and landlords, NYCHA issued an apology for the delay. In a statement to Gothamist, the agency said, “NYCHA extends its sincere apologies for any inconvenience incurred as a result of the delayed distribution of Section 8 funds” and confirmed that it will “continue... As the effects of the federal shutdown continue to affect social service funding, NYAA is closely monitoring the situation to keep its members informed. Norwood News has also contacted HUD for additional information and will share updates once they are received.

Donald Trump’s proposed federal funding freeze was on the table for mere hours, but a week later, it’s still causing chaos. New York City officials delayed payments to thousands of landlords on Monday whose tenants use Section 8 housing vouchers, Gothamist reported. At least a dozen property owners with hundreds of units contacted the likes of New York Apartment Association senior vice president Jay Martin as the day went on. The program, which is administered by the New York City Housing Authority, is backed by $2 billion annually from the federal Department of Housing and Urban Development. Private landlords receive their funds at the beginning of the month, but awoke Monday to a dearth of expected deposits. A NYCHA spokesperson said the delays were due to confusion from the Trump administration’s proposal for federal agencies to pause all payments.

The spokesperson added that NYCHA had received the funds as of Monday morning and started processing payments, which were expected to hit bank accounts within one business day. “One day is significant,” said Martin. “We really need to make sure the government and NYCHA make sure this doesn’t happen again.” The rescinded government order to pause federal funding caused the New York City Housing Authority to delay payments this month. President Donald Trump’s recent proposed federal funding freeze has caused the New York City Housing Authority to delay rent payments on Feb 3. The payments have not gone out to landlords who lease apartments to Section 8 housing tenants, causing issues across the city.

The New York City Housing Authority oversees the federal Section 8 program for nearly 100,000 households across the five boroughs, usually receiving around $2 billion a year from the Department of Housing and Urban... However, while New York landlords expected to receive their usual monthly rent checks on Monday morning, many did not. According to Jay Martin, senior vice president of the landlord trade group New York Apartment Association, over a dozen property owners who own hundreds of apartments contacted him on Monday after they did not... U.S. Reps. Ritchie Torres and Nydia Velázquez said uncertainty at the federal level is forcing New York City to hold off on Section 8 payments.

To view factuality data please Upgrade to Premium To view ownership data please Upgrade to Vantage Make your contribution now and help Gothamist thrive in 2025. Donate today Gothamist is funded by sponsors and member donations New York City officials say the fallout from a proposed federal funding freeze caused them to delay rent payments on Monday to landlords who lease apartments to tens of thousands of tenants with Section...

The New York City Housing Authority administers the federal Section 8 program for roughly 100,000 households in the five boroughs, with the agency receiving nearly $2 billion a year from the Department of Housing... Landlords expected to see the monthly rent checks deposited in their bank accounts on Monday morning, but many of the deposits were missing, according to interviews. Amidst the hopeful developments for many New Yorkers who have recently made it onto the long-awaited Section 8 waitlist, housing officials find themselves grappling with the consequences of a federal funding debacle. New York City Housing Authority (NYCHA), tasked with administrating the Section 8 program, ran into delays in rent payments to landlords due to confusion arising from a federal funding freeze, as reported by Gothamist. The agency, which provides assistance to approximately 100,000 households and disburses nearly $2 billion annually from the Department of Housing and Urban Development, fell behind on its obligation to private landlords. Some of these landlords, like Alina Suriel, who told Gothamist that late payments could prevent them from covering mortgages on their properties, are stressed about the implications of the mishap.

"I can’t cover the mortgage without those payments," Suriel explained about the significance of the delayed funds. While the immediate issue has been reportedly addressed, with NYCHA spokesperson Michael Horgan assuring that the processing of the delayed funds began, the larger problem of funding uncertainty looms. Property owners who provide apartments to voucher recipients worry about future reliability, with concerns voiced by Rachel Fee, executive director of the New York Housing Conference. She emphasized to Gothamist that, "Payment delays and funding uncertainty can send shockwaves through the affordable housing community, affecting building owners and tenants." As for the aspiring tenants, over 600,000 New Yorkers applied for a spot on the Section 8 waitlist when it opened this summer, and now 200,000 lucky applicants are moving forward in the process. According to PIX11 News, these individuals are currently undergoing eligibility interviews and searching for apartments with their newly issued vouchers.

The Housing Choice Voucher comes with a set of guidelines and a strict timeline, with NYCHA only contributing up to specific predetermined amounts per apartment size. For instance, NYCHA will contribute no more than $2,696 for a one-bedroom unit and $3,027 for a two-bedroom. Despite the recent turmoil, the process marches forward. NYCHA's pledge to issue 1,000 vouchers each month signals a continuous investment in the program, providing housing support for many New Yorkers. Properties meeting NYCHA's standards will be inspected to ensure quality living conditions, culminating in NYCHA paying their portion of rent directly to landlords. Tenants, on their end, will pay about 30% of their income toward rent, establishing a partnership that hinges on the timely flow of federal funds—a fact made all too clear by recent events.

Make your contribution now and help Gothamist thrive in 2025. Donate today Gothamist is funded by sponsors and member donations The federal shutdown may be over, but it is still wreaking havoc on low-income New Yorkers. The federal Department of Housing and Urban Development told the New York City Housing Authority and others on Tuesday that funding for the Section 8 rental assistance program will be delayed this month in... The Section 8 program provides federal dollars to landlords who lease units to low-income tenants in order to subsidize the rent.

Typically, someone in the Section 8 program is required to pay about 30 percent of their income toward housing and the government picks up the rest. Make your contribution now and help Gothamist thrive in 2025. Donate today Gothamist is funded by sponsors and member donations New York City’s public housing agency is stepping in to provide a new source of rental assistance for nearly 5,500 low-income households that are set to lose their current aid because the Trump administration... But the decision comes at a cost: The New York City Housing Authority will stop issuing Section 8 vouchers to thousands of families and individuals on a lengthy waiting list in order to plug...

“The abrupt conclusion of this assistance, which has been a lifeline for so many, could have a devastating effect on New York’s families without this action,” NYCHA spokesperson Michael Horgan told Gothamist in a... “NYCHA is committed to keeping vulnerable residents housed.” United States Attorney for the Southern District of New York, Jay Clayton, Commissioner of the New York City Department of Investigation (“DOI”), Jocelyn E. Strauber, Acting Inspector General of the U.S. Department of Housing and Urban Development, Office of Inspector General (“HUD-OIG”), Brian D. Harrison, Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J.

Patel, Special Agent in Charge of the Northeast Region of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), Jonathan Mellone, and Special Agent in Charge of the New York Field Office of Internal Revenue Service – Criminal Investigation (“IRS-CI”), Harry T. Chavis, announced that all 70 employees of the New York City Housing Authority (“NYCHA”) who were arrested and charged in February 2024 have now been convicted of bribery, fraud, or extortion offenses. Of the 70 defendants charged in February 2024 with accepting bribes in exchange for awarding NYCHA repair contracts, three defendants were convicted after jury trials, 56 defendants pled guilty to felony offenses, and 11... Sentencings are ongoing, but sentences imposed to date range up to 48 months in prison. The defendants were collectively responsible for accepting over $2.1 million in bribes in exchange for awarding NYCHA contracts worth over $15 million.

As a result of the convictions, the defendants will collectively pay over $2.1 million in restitution to NYCHA and will forfeit over $2 million in criminal proceeds. “Today’s plea of the 70th and final NYCHA pay-for-play contracting scheme defendant marks an important milestone in one of the largest single-day corruption cases in the history of the Justice Department,” said U.S. Attorney Jay Clayton. “All 70 charged defendants have now been convicted for attempting to criminally leverage the contracting process of work for affordable housing for New Yorkers to line their own pockets. NYCHA residents deserve better. New Yorkers deserve better.

This broad and swift action demonstrates our Office’s commitment to combatting corruption in our nation’s largest public housing authority—home to 1 in every 17 New York City residents.” “Today, the last of the 70 NYCHA employees charged with bribery and extortion in connection with the awarding of micro-purchase contracts pled guilty, closing the chapter on an investigation in which DOI and our... Strauber. “All the defendants, many of them supervisors, now have taken responsibility for separate schemes that, in total, involved more than $15 million in no-bid contracts, awarded in exchange for the payment of more than... To date, approximately $2 million in restitution to NYCHA and nearly $2 million in forfeiture has been ordered. Equally important, DOI’s 14 recommendations to improve controls with respect to NYCHA’s micro-purchase contracting have been implemented – three of which were similar to DOI’s 2021 recommendations that were rejected by NYCHA.

I thank the U.S. Attorney’s Office for the Southern District of New York and our federal law enforcement partners for their commitment to thwart corruption that drains public housing resources, and NYCHA for the implementation of much-needed contracting... “Today’s final guilty plea is an important milestone in bringing to an end the egregious pay-to-play bribery scheme that wasted millions of dollars that should have benefited HUD tenants in New York and raised... Harrison. “All 70 of the NYCHA employees who failed to uphold the basic duty of not stealing from public housing have now admitted guilt or been found guilty at trial within two years of indictment,... We are grateful to the U.S.

People Also Search

Make Your Contribution Now And Help Gothamist Thrive In 2025.

Make your contribution now and help Gothamist thrive in 2025. Donate today Gothamist is funded by sponsors and member donations Two New York City congress members are blaming “chaos” at the federal level for slowing key rental assistance payments to landlords of roughly 100,000 low-income tenants in the five boroughs. U.S. Reps.

Ritchie Torres Of The Bronx And Nydia Velázquez Of Brooklyn,

Ritchie Torres of the Bronx and Nydia Velázquez of Brooklyn, both Democrats, said staff cuts at the Department of Housing and Urban Development and a threatened freeze on federal funding in late January have... “The threat of funding freezes, separate and apart from the reality of them, creates massive uncertainty that destabilizes critical programs like Section 8,” Torres told Gothamist in an int...

According To An Official NYCHA Statement, Reported By Gothamist, “Following

According to an official NYCHA statement, reported by Gothamist, “Following notice from HUD that payments to Section 8 landlords would be delayed this month, NYCHA is assessing interim options and will distribute funding as... The New York Apartment Association (NYAA) referenced NYCHA’s update, noting that it is “standard procedure to pay its Section 8 landlords as soon as is reasonably practicabl...

Donald Trump’s Proposed Federal Funding Freeze Was On The Table

Donald Trump’s proposed federal funding freeze was on the table for mere hours, but a week later, it’s still causing chaos. New York City officials delayed payments to thousands of landlords on Monday whose tenants use Section 8 housing vouchers, Gothamist reported. At least a dozen property owners with hundreds of units contacted the likes of New York Apartment Association senior vice president J...

The Spokesperson Added That NYCHA Had Received The Funds As

The spokesperson added that NYCHA had received the funds as of Monday morning and started processing payments, which were expected to hit bank accounts within one business day. “One day is significant,” said Martin. “We really need to make sure the government and NYCHA make sure this doesn’t happen again.” The rescinded government order to pause federal funding caused the New York City Housing Aut...