Nassau County has a new plan to help local Long Island renters and landlords, but it is literally a lottery.
While there are still many conflicting reports and debates about the vote on the latest stimulus package, Nassau County seems to have come up with its own plan. How can you use it to save your property as a Long Island landlord? What happens when our landlords don’t get any financial help?
The New Stimulus Plan
Out of the new $2.3T, 5,000 plus page spending bill, $25B of that is being directed towards helping renters across America’s 50 states. Around 90% of that is being mandated to actually go to helping those in need. The other 10% may be used for admin costs and setting up systems for these programs on a state level.
Nassau County’s Plan For Landlords & Tenants
Nassau County has just announced its own initiative. A $6M relief fund. Out of this fund renters can claim up to 3 months of unpaid rent, up to $2,500 per month. Those funds would be paid directly to the landlord.
Applications to the program don’t begin until January 6th. Current eviction moratoriums end in January 2021.
The bigger catch is that only 900 renters may receive help. The recipients are to be chosen by lottery.
What Happens When There Is No Help For Landlords?
While it is far more fashionable to focus on renters and villainize landlords today, it is important to think about the impact of bankrupting Long Island landlords.
If landlords can’t evict or collect rent, yet still have to pay their mortgages, insurance, maintenance, utilities and property tax bills, it is only a matter of time before they run out of money too.
First the property goes down hill, then it falls into foreclosure and becomes another zombie property. A liability for the town and county that all of the neighboring property owners have to pay to keep up or tear down through higher taxes. That leaves even fewer choices for renters, and forces rental prices to rise.
It is a lose-lose for everyone.
What To Do As A Long Island Landlord
As a landlord you probably won’t qualify for a new $600 stimulus check, but you do have three options.
1. Challenge bills like your annual property taxes and get them lowered
2. Apply for the new round of PPP loans to cover expenses
3. Inform your tenants about assistance programs