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New York|Why a ‘Startling Number’ of Low-Income Tenants Face Eviction Cases

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WHY A ‘STARTLING NUMBER’ OF LOW-INCOME TENANTS FACE EVICTION CASES

Some of the biggest providers of housing for mentally ill and formerly homeless
New Yorkers have sued tenants for unpaid rent. While few have been evicted,
critics call the process cruel and unnecessary.

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Luis Ortiz, a tenant of the Times Square, a supportive housing development in
Midtown Manhattan, is facing possible eviction because of unpaid rent that
accrued after he lost his job at the Salvation Army.Credit...Hilary Swift for
The New York Times


By Stefanos Chen

Published May 31, 2023Updated June 1, 2023, 10:39 a.m. ET

One of the largest providers of housing for mentally ill and formerly homeless
people in New York City has started hundreds of eviction cases in an attempt to
collect millions of dollars in rent that its tenants failed to pay during the
pandemic, according to a new analysis of housing court records.

The housing developer, Breaking Ground, has filed to evict the tenants in about
345 of its more than 4,300 apartments since January 2022, according to SHOUT, an
advocacy group for low-income and formerly homeless tenants that compiled the
data. The cases came after a pandemic-era moratorium on evictions was lifted.

The analysis captures a longstanding practice among nonprofit housing providers
that has been exacerbated by the pandemic, legal experts said: threatening to
evict low-income tenants who are behind on rent as a tactic to prod the city to
give those tenants rental assistance more quickly. The lawsuits come at a time
when the city is dealing with record-high homelessness and surging demand for
shelter from migrant asylum seekers.

Very few of the cases have led to evictions, but critics of the approach say
that the lawsuits are an unnecessary hardship for some of the most vulnerable
renters in the city, many of whom have lived on the streets or in shelters for
years. They are also emblematic, they said, of dysfunction within the city’s
social safety net, at a time when budget cuts are straining numerous
departments.



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“It’s a startling number of cases,” said Jenny Akchin, a lawyer with TakeRoot
Justice, a nonprofit legal services group. “This has been standard operating
procedure,” she said, “but it doesn’t have to be, and it really shouldn’t be.”

Another developer, CAMBA, has petitioned to evict more than a quarter of
residents from one of its buildings in Brooklyn, according to court records.

The housing providers say the lawsuits are necessary, as a last resort, to
recoup rent they rely on to operate the buildings and pay down debt.

They acknowledge that the filings are designed to trigger actions in court that
can speed up the process of receiving a so-called one-shot deal — a lump-sum
payment of emergency rental assistance that tenants can receive from the city’s
Human Resources Administration to cover back rent.

The agency is struggling to meet the demand for one-shot deals and other cash
assistance grants for tenants. In early May, the Department of Social Services
said that its caseload was up 43 percent since before the pandemic. Staffing
shortages are hampering the department, according to a city comptroller report.



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In supportive housing, formerly homeless tenants, many of whom have mental
health or substance abuse issues, pay no more than 30 percent of their income,
whether from work or government assistance programs, toward a portion of their
rent. The rest is covered by a range of public subsidies. The tenants also
receive on-site, voluntary mental health and other services.


WHAT TO KNOW ABOUT AFFORDABLE HOUSING IN NEW YORK

Card 1 of 5

A worsening crisis. New York City is in a dire housing crunch, exacerbated by
the pandemic, that has made living in the city more expensive and increasingly
out of reach for many people. Here is what to know:

A longstanding shortage. While the city always seems to be building and
expanding, experts say it is not fast enough to keep up with demand. Zoning
restrictions, the cost of building and the ability by politicians to come up
with a solution are among the barriers to increasing the supply of housing.

Rising costs. The city regulates the rents of many apartments, but more than
one-third of renters in the city are still severely rent-burdened, meaning they
spend more than 50 percent of their income on rent, according to city data.
Property owners say higher rents are necessary for them to deal with the growing
burden of taxes and rising expenses for property maintenance.

Public housing. Thousands of people are on waitlists for public housing in
buildings overseen by the New York City Housing Authority. But it has been years
since the city’s public housing system has received enough funds to deal with
the many issues that have made it an emblem of neglect, and plummeting rent
payments from residents threaten to make things worse.

In search of solutions. Mayor Eric Adams has presented a plan to address the
housing crisis that includes expanding affordable housing through incentives for
developers. The speaker of the City Council, meanwhile, has proposed converting
the open spaces on public housing used for gardens and parking lots into new
buildings. Developers have also announced a plan to transform a hotel near
J.F.K. into affordable housing under a state program.

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The buildings often also house a number of low- and moderate-income renters who
pay below-market rent. The eviction cases were filed against both kinds of
tenants.

Housing single adults in permanent housing of this kind can cost half as much as
keeping them in the shelter system, according to Project Renewal, a homeless
services group. But the providers operate on thin margins, and unpaid rent is
putting a financial strain on the model, said Brenda Rosen, the president and
chief executive of Breaking Ground.

“We have never seen the amount of rent arrears that we have now,” she said, in
part because many tenants had additional hardships during the height of the
pandemic, and because of the eviction moratorium. The group said that in April,
it was owed $6 million in unpaid rent from tenants across its portfolio; 45
percent of the nonpayment filings were sent to supportive housing tenants.



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At its 652-unit flagship building, the Times Square in Midtown Manhattan,
Breaking Ground has sued 81 tenants for about $670,000 in arrears; the total
unpaid rent at the building is $1.1 million. Gothamist previously reported on
eviction filings at the building, but not across the company’s portfolio.


Image

Breaking Ground, one of New York City’s largest supportive housing providers,
has filed to evict about 345 tenants since last January, with 81 petitions filed
against residents of the Times Square, its flagship development.Credit...Hilary
Swift for The New York Times


Luis Ortiz, 63, a longtime rent-regulated tenant of the Times Square, said that
he had tried to get public assistance to help cover his $504 monthly rent, after
losing his job as a driver and supervisor for Salvation Army, and that he had
spoken to building staff about his arrears. Breaking Ground sued him for $6,599
in unpaid rent in December.

“Only after I got the letter did they tell me about the one-shot deal,” he said,
referring to the rental assistance program. “Why didn’t they tell me that
before?”



A spokesman for Breaking Ground said it made many attempts to discuss the back
rent with Mr. Ortiz before the petition was filed.

Tenants’ share of the rent makes up about 40 percent of the operating budget for
a typical supportive housing building, Ms. Rosen said.



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“We use every tool at our disposal to keep people housed," she said, adding that
Breaking Ground had an eviction rate of less than 1 percent.

But critics say filing for eviction is an unnecessary and cruel step that could
be avoided with earlier intervention.

“This looks like offloading casework to housing courts,” said Craig Hughes, a
social worker with Mobilization for Justice, a nonprofit legal services group,
and a member of SHOUT.

In many cases, tenants fall behind on the rent because of paperwork issues that
delay or reduce the cash they receive from public assistance, the main source of
income for some tenants, said Sandra Gresl, a lawyer with Mobilization for
Justice.

Of the more than 345 eviction petitions filed by Breaking Ground, lawyers were
assigned to only 26 cases: The vast majority of tenants had to represent
themselves in court.



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“For people who have a history of homelessness and a chronic sense of housing
precarity, and have disabilities, even just landing in court is trauma,” she
said.

At least two low-income tenants who were sued for rent arrears at the Times
Square surrendered their apartments before receiving rental assistance, court
records showed. Breaking Ground also took possession of a unit in a Brooklyn
building, the Schermerhorn, after it filed to evict a low-income tenant for
failing to complete required paperwork about his income.

A spokesman for Breaking Ground said these tenants “chose not to engage with us”
to address their unpaid rent.

Tenant advocates have criticized the relatively small amount of arrears that
have led to some eviction filings; in one case, the tenant owed about $800.

Joe DeGenova, the chief executive of the Center for Urban Community Services,
which provides services at several Breaking Ground projects, said it does
everything possible to resolve rent arrears with tenants before the landlord
takes the tenant to court.



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Image

CAMBA, a supportive housing provider, has filed to evict more than a quarter of
residents at this 293-unit development in East Flatbush, Brooklyn, since January
2022. Nearly all the cases cite unpaid rent. Credit...Hilary Swift for The New
York Times


A New York Times analysis of court records found that CAMBA has filed to evict
more than a quarter of residents at a 293-unit development in East Flatbush,
Brooklyn, since the eviction moratorium was lifted last January.

A spokeswoman for CAMBA said the group “works every day to provide housing and
prevent evictions.” Only one tenant in the development had been evicted in the
last three years, the spokeswoman said, and that was because of behavioral
issues, not unpaid rent.

A spokeswoman for the Department of Social Services said that a court filing was
not a requirement to qualify for a one-shot deal, and never has been.

But supportive housing providers have long operated under the notion that a
court order is a prerequisite to help get a tenant emergency rental assistance,
said Pascale Leone, the executive director of the Supportive Housing Network of
New York, which represents about 100 providers in the city.



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“It’s officially not their policy, but that is the practice, to this day,” Ms.
Leone said. “When you go through these proceedings, it does unlock additional
assistance.”

That process can be stressful, said Shakeme Boyd, a tenant in a Breaking Ground
building in the Bronx.

The provider sued him in June 2022 for $2,169 in rent arrears that accrued, in
part, after he lost his job as a housekeeper in a nursing home, he said.

“I was scared,” he said. “I was dreading I was going to be back on the street.”

He said he was scheduled to speak with building staff about a possible one-shot
deal, and that he could not imagine losing the apartment, which had taken him
five years to secure.

“I don’t know what I would do.”

Susan C. Beachy contributed research.



Stefanos Chen is a real estate reporter, based in New York. He joined The Times
in 2017 after five years with The Wall Street Journal, where he was a reporter
and multimedia producer. @stefanoschen

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