This week I heard from an affordable housing developer who is increasingly concerned about the federal government shutdown, especially food stamps and rental vouchers.
Not only has the shutdown lasted longer than usual, but the Trump administration has taken a number of seemingly discretionary measures to pressure Democrats to make a deal.
Typically, the federal government tries to minimize the impact of shutdowns. But Donald Trump is not your usual president. He is always looking for influence and is not a slave to political norms. As such, he has spoken openly about the shutdown, which gives him the opportunity to cut Democrats’ favorite programs.
That’s a problem for landlords who rely on Section 8 or whose tenants receive SNAP benefits, also known as food stamps. I asked this developer about the phrase “rent eats first.”
The developer responded, “People will definitely pay for food before paying rent. Don’t you?”
Yes. Hunger is immediate; don’t rent. And I’ve learned — like many renters during the Covid moratoriums — that not paying rent doesn’t mean you’ll be evicted anytime soon, if ever. Even without a lawyer, you can squat for two years without paying.
Not only that, but rent arrears are needed to get a one-time deal from the city, just as they would get help from the state’s Covid-era Emergency Rental Assistance Program.
That seems like an incentive not to pay, but other social programs work the same way. I recently helped a couple who had lost everything (except their house) pay their electric and gas bills. PSEG threatened to shut down their service. But when I inquired about the utility’s hardship program, I was told that only customers in arrears are eligible.
The couple then applied for benefits but was rejected by New Jersey – because I had paid their bills. The lesson is clear: to get help from the safety net, you have to be a good-for-nothing.
But I digress. Back to the developer, who had just read a press release from the Department of Housing and Urban Development in which HUD Secretary Scott Turner said”For nearly a month, the left has held our government hostage. Instead of ending this shutdown and putting our government back to work for the American people, they continue to shamelessly exploit America’s pain for political gain.”
Once upon a time – that is, ten months ago – such a statement from the head of an agency was unthinkable.
The developer was crazy.
“If HUD stops paying, initial repairs and maintenance will suffer dramatically, then violations will pile up, and then you will trip up your debt covenants by A) not maintaining the property or B) not paying off your loan. Or A and B.”
What we’re thinking about: Nissequogue River State Park is located marred by dozens of abandoned buildings of the old Kings Park Psychiatric Center, which closed 30 years ago. The 521-hectare site was deemed parkland five years later, but the buildings remain standing because the state has higher priorities than demolishing and executing them. a plan There are calls for playgrounds, concession stands, a farmers market, a botanical garden and a museum. Should the state consider a public-private partnership instead? Send your thoughts to eengquist@therealdeal.com.
Something we learned: Insurance companies now pay more for it sidewalk liability claims than for fire and water-related damage – the traditional two highest insurance payments. In response, carriers are issuing cancellation notices for properties with sidewalks they deem risky. The city was once liable for accidents caused by sidewalks it owned, but it paid out so much money for alleged trips and falls that it became the sidewalk owners’ responsibility. An exception was made for owner-occupied homes of one to three units.
Elsewhere…
I don’t wish harm on anyone. At the same time, I don’t feel too sorry for people who complain about it The real deal‘s accurate reporting of their problems.
A common order:
- They love TRD when we discuss the early successes that mark their arrival as players in the real estate industry.
- Something goes wrong and they complain when we talk about it. A typical complaint is that it is not newsworthy and will be resolved immediately, so we should not repeat the story, or at least wait until the issue is resolved.
- The problem is not solved immediately.
- Similar problems crop up at the complainant’s other properties. We cover them, which gives rise to more arguments that we are unfairly targeting this person.
- The complainant faces a wave of defaults, bankruptcies, lawsuits and sometimes charges.
- The complaints TRD stop, as the controversial businessman realizes there are bigger issues to deal with than negative media coverage.
What made me think of this? Could this be the latest news on Toby Moskovits?
Closing time
Due to the elections, there are no data to report today. Check back tomorrow to see the city’s top closures and listings.
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