$800 Million to Emergency Rental Assistance Program as Part of Continued Commitment to Supporting Tenants and Landlords Suffering from Pandemic Hardship
$800 Million for Hospitals Still Experiencing Financial Distress from the COVID-19 Pandemic
$250 Million to Eliminate Pandemic-Related Utility Debt for Low-Income Households
$125 Million for Landlord Rental Assistance Program to Support Landlords Whose Tenants Declined to Participate in Emergency Rental Assistance Program
Governor Kathy Hochul today detailed the uses of $2 billion in reserve pandemic recovery funding in the FY 2023 State Budget. When she introduced her Executive Budget in January, Governor Hochul indicated that she would work with the legislature to find the best use for these additional funds, which will support one-time, non-recurring programs that will lift up vulnerable New Yorkers who were hit especially hard by the pandemic. Under agreements with the legislature, $800 million is being directed to the Emergency Rental Assistance Program, $250 million is for utility assistance, $125 million is for the Landlord Rental Assistance Program, and $800 million is going towards hospitals that are still experiencing financial distress from the COVID-19 pandemic. An additional $25 million will go to other one-time, non-recurring investments.
“Some of our most vulnerable communities are still reeling from the devastating effects of this once-in-a-generation pandemic,” Governor Hochul said. “An unprecedented crisis demands an unprecedented response for those with seemingly insurmountable debt, and I'm grateful to our partners in the legislature for their work to ensure this critical funding was included in the Budget. This Budget will build on the efforts of my first seven months in office and provide support for struggling New Yorkers to get back on their feet.”
Emergency Rental Assistance Program
The FY 2023 State Budget includes an additional $800 million in state funds for the Emergency Rental Assistance Program. An additional $150 million is appropriated to enable spending of federal funds that were reallocated by the federal government to New York State. To date, the Office of Temporary Disability Assistance has distributed more than $2.1 billion in federal funding for rental arrears, supporting more than 160,000 low and moderate-income households facing housing instability.
Utility Arrears Assistance
The FY 2023 State Budget will add $250 million in funding to eliminate pandemic-related utility arrears for low-income households, and reduce all other household arrears that accumulated during the pandemic. This funding will be administered by the Department of Public Service in cooperation with OTDA, consumer organizations and utilities. The program is in addition to an estimated $100 million to be paid through ERAP to reduce utility arrears. In addition, Governor Hochul launched a new initiative between OTDA and DPS to automatically enroll more low-income households in utility discount programs that will save participating households hundreds of dollars per year on utility costs.
Landlord Rental Assistance Program
The FY 2023 State Budget includes an additional $125 million for the Landlord Rental Assistance Program. LRAP provides rental assistance to landlords whose tenants did not apply for ERAP, including instances where the tenant vacated the property with rental arrears. So far, more than 15,000 payments totaling more than $160 million have been made to assist landlords.
To build the healthcare system of tomorrow and restore a depleted healthcare workforce, Governor Hochul will make a historic $20 billion, multi-year investment in healthcare, including $800 million from this agreement for hospitals still experiencing financial distress from the COVID-19 pandemic.