Nonprofit landlords struggle with falling rent revenue

Nonprofit community development corporations throughout New York City have spearheaded additional COVID-19 relief efforts for their low-income clients – but declining revenues from rent are starting to put them in financial disarray, The Appeal reports.

Unlike for-profit landlords, community development corporations more often pair their oversight of affordable housing units with access to social services. And in normal times, they already operate on slimmer margins than their for-profit peers. The COVID-19 pandemic has only worsened the situation for nonprofit housing providers, according to the University Neighborhood Housing Program, as their expenses have increased while rental revenue falls. Along with other nonprofit organizations, they also are seeing threats to other funding streams from government and philanthropy. 

Advocates for nonprofit affordable housing organizations have called for more relief from local, state and federal governments to cover some of their costs, such as water expenses and insurance. The state Legislature is taking a look at bills that would offer both tenants and landlords support during the pandemic, including suspended mortgage payments for landlords losing rent payments.

Without incoming support, nonprofit landlords are sure to take a major financial hit. Cypress Hills Local Development Corporation, for example, anticipates nearly $4.6 million in cuts tied to New York City’s budget shortfalls.