The Hardship Program That Wasn’t

Why Rent Stabilized Buildings Can't Get Relief, Even When They're in Crisis 

When Mayoral Candidate Zohran Mamdani said that struggling rent-stabilized housing providers should just use the hardship program, it sounded simple enough. But scratch the surface just a little bit, and you’ll find a system that’s set up to fail.

Last year only three hardship applications were filed statewide. At the same time, housing experts across the board were sounding the alarm about widespread financial distress in stabilized housing. How can both be true? Because the program isn't actually offering relief, it’s a dead end. In fact, since 2022 not a single application has been approved.

Owners who’ve tried, describe the process as a bureaucratic obstacle course. Applications get tossed for tiny technicalities, a missing signature here, a form filed in duplicate instead of triplicate there. One small Manhattan owner shared how he applied again and again only to be denied because of silly paperwork errors. Even when he corrected every little detail, months passed before anyone even looked at his file. And when they did? Another rejection. 

This isn't the exception, it’s the norm which is why hardly anyone bothers to apply. 

There’s another catch. You can’t apply for hardship and challenge your property taxes at the same time. And for most owners, property taxes are the bigger issue and the biggest expense. More than 15,000 stabilized buildings challenged their taxes last year, while just three filed hardship applications. The choice seems obvious, even if it leaves no safety net. 

If New York is serious about saving affordable housing, the fix is straightforward: Reform the hardship program so it actually delivers relief, or reduce the crushing property tax burden on stabilized buildings. Better yet, do both. Right now, the state’s hardship program isn't a solution, it's an illusion.