How one couple lost their condo, but found a new home in the Bronx

by Center for NYC Neighborhoods on 2 Comments

In this Friday, June 17, 2016, photo, Carmen Ramirez, and her husband, Ricardo Ramirez, embrace in their room at the Bronxwood Home for the Aged, in the Bronx borough of New York. A series of emergency expenses were enough to cost Carmen and Ricardo Ramirez their one-bedroom condominium in Washington Heights, a neighborhood close to the northern tip of Manhattan. Now a couple entering their golden years is out of their home and in an assisted-living facility. (AP Photo/Richard Drew) Carmen and Ricardo Ramirez had been living the American Dream of homeownership in Washington Heights when the recession interrupted it.

As recounted by The Associated Press in a recent story marking a decade since the housing crash, the couple had been managing the payments for the $299,000 adjustable-rate mortgage on their one-bedroom condominium in Upper Manhattan.

But the downturn and emergency expenses put their homeownership at grave risk in 2010.

That year, they had to shutter their steakhouse, a source of income. The next year, Ricardo fell, suffering a traumatic brain injury; Carmen suffered an injury to her leg and back in 2012. Their finances were further destabilized when funeral costs for her parents caused the couple to miss mortgage payments, “triggering fees for late payments that led to foreclosure,” the AP reported.

“Have you ever heard the saying, when it rains, it pours?” Carmen, 61, told the AP. “Well, it was one after the other with us.”

The couple was facing eviction from their condo when the New York City Consumer Affairs Department referred them to the Center for NYC Neighborhoods’ Housing Mobility program, which helps homeowners who can no longer afford to stay in their homes move to new housing. Since 2013, with support from the Mizuho USA Foundationthe program has helped more than 300 homeowners. The program combines one-on-one housing counseling, assistance in securing alternative housing, financial advice, relocation grants, and links homeowners to trusted realtors. Staff work closely with mortgage lenders to ensure that homeowners who are no longer able to retain their homes are released of further financial obligations.

“We are working with clients who face enormous challenges at the crossroads of the foreclosure crisis and New York City’s housing affordability crisis,” says Joseph Sant, Director of Homeowner Services at the Center. “Our goal is to help these families avoid homelessness, find affordable housing, and emerge with financial support as they close out a very difficult chapter in their lives.”

For Carmen and Ricardo Ramirez, that chapter in their life found a resolution in the Bronx.

Working with the Human Resource Administration’s Adult Protective Services, the Center’s Housing Mobility program staff was able to help the couple secure alternative housing at Bronxwood Assisted Living Residence just before an eviction order was executed by the Sheriff. The facility helped the couple to apply for an increase of their Social Security Income, so they could pay for all of their housing, food and care expenses.

The Housing Mobility Program also provided a one-time relocation grant of $500, and secured a $900 grant from Jarvie Commonweal Emergency Fund to help the couple as they worked to stabilize their finances.

But giving up their home did come at a cost: They lost the home equity they had built over the years.

“We got nothing back — except a tax bill,” Carmen told the AP.

That, as the AP reported, turns out to be the case for a “disproportionate number of minorities” who lost their homes in the aftermath of the housing crisis, and could have far-reaching consequences for wealth generation and racial divisions for generations.

PHOTO:  In this Friday, June 17, 2016, photo, Carmen Ramirez, and her husband, Ricardo Ramirez, embrace in their room at the Bronxwood Home for the Aged, in the Bronx borough of New York. (AP Photo/Richard Drew)

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Big victories and one major defeat for the NY State housing agenda

by Caroline Nagy on 1 Comment

The end of New York State’s legislative session is always an action-packed time, and this year did not disappoint, with lawmakers working into the early hours of Saturday morning on June 17, while advocates labored to keep New York’s housing needs on the agenda. Ultimately, the final results include several victories and one major defeat: While homeowners and their advocates secured hard-fought solutions for “zombie” properties and streamlining the foreclosure process, the lack of a budget agreement on $2 billion in funding for long-promised housing programs is a grave disappointment. Here are how our priorities turned out.

Wins:

  • Community Restoration Fund: Legislation establishing the New York State Community Restoration Fund passed the Senate and Assembly. The Fund will play a vital role in helping communities statewide to recover from the foreclosure crisis. Administered by the State of New York Mortgage Agency, it will purchase mortgage notes of homeowners at risk of foreclosure, and work with homeowners to keep them in their home whenever possible. It will also be able to acquire and renovate foreclosed and abandoned properties, redeveloping them as affordable housing. This is a major victory for homeowners, and represents years of advocacy at the state level.  A huge thank you to Assembly Member Weinstein and Senator Savino for introducing this legislation, as well as to Senator Klein’s office for their determined advocacy.
  • Zombie Properties: In another major victory for communities affected by the foreclosure crisis, the Legislature adopted new requirements for tackling “zombie” properties as part of a package of foreclosure reforms contained within the end-of-session “Big Ugly” legislation. “Zombies” are abandoned homes that are stuck in the foreclosure process, rapidly deteriorating with no one responsible for their upkeep. While banks are responsible for maintaining properties following a foreclosure, zombie properties have remained in limbo. Fortunately, the zombie legislation fixes this problem by requiring banks and servicers to maintain vacant and abandoned properties prior to foreclosure. It builds on a previous agreement with mortgage servicers made by the New York Department of Financial Services. State Senator Klein and State Attorney General Eric Schneiderman have also served as strong advocates on this issue.
  • Improvements to the foreclosure process: A number of other key improvements were included within the “Big Ugly” to better help New York homeowners at risk of losing their homes due to foreclosure. This includes changes to the State settlement conference process that will provide homeowners with the right to submit an answer to foreclosure actions brought against them up to 30 days after their first settlement conference. The legislation will also improve the notice homeowners receive when foreclosure proceedings begin, providing better information to homeowners about their rights and where to seek help.
  • Bill of Rights for homeowners: Finally, the legislation calls on the New York Department of Financial Services to publish a Consumer Bill of Rights, detailing the rights and responsibilities of the plaintiff and the defendant in a foreclosure proceeding. This is to be developed in consultation with all stakeholders, and, as homeowner advocates, we look forward to working with DFS to ensure that the resulting Bill of Rights makes a strong stand for the fair treatment of homeowners seeking to avoid foreclosure.

Losses:

  • No funding for CRF or homeownership programs through the MOU: While we are thrilled with the above legislative reforms, the lack of an agreement on funding for the $2 billion affordable housing plan is a major disappointment. This funding was agreed upon as part of the State budget negotiations earlier this year, with the provision that the Governor, Assembly Speaker, and Senate Majority Leader would come to an agreement on the specifics of the plan, to be finalized in a Memorandum of Understanding. Unfortunately, the session ended without this agreement, though $150 million in new funding was committed for 1,200 units of supportive housing, and other funding priorities continue to be negotiated. Ultimately, we hope to see an additional funding agreement with an initial investment of $30 million for the newly-established Community Restoration Fund so that it is able to live up to its promise.

While there is significantly more work to be done on the budget front, the legislative session achieved real results for New Yorkers at risk of foreclosure and for the communities they live in. A huge congratulations to our partners in advocacy, particularly New Yorkers for Responsible Lending and the Empire Justice Center.

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How one New York homeowner triumphed over foreclosure

by Center for NYC Neighborhoods on 1 Comment

Pamela Litzsey-Thomas

For Pamela Litzsey-Thomas, going into foreclosure on her Niagara Falls home was just another in a series of financial setbacks that included losing her job and getting inundated with medical bills after she was struck by a bus. “I just kept feeling like I was being slapped in the face,” she said.

But Litzsey-Thomas refused to give up the house where she lived with her young son, even as her attempts to get a loan modification were stymied. Like hundreds of homeowners across the state, help finally came in the form of the New York State Mortgage Assistance Program (NYS-MAP).

In 2014, the Office of Attorney General Eric Schneiderman launched NYS-MAP to keep families out of foreclosure. In less than three years of operation, the program has loaned $18 million to homeowners and prevented more than 650 foreclosures.

Litzsey-Thomas  secured a NYS-MAP loan in 2015 that helped her to reinstate her affordable mortgage after receiving help from Legal Services for the Elderly, Disabled or Disadvantaged of Western New York, Inc. LSED is a member of the New York State Attorney General’s Homeowner Protection Program, a network of over 85 organizations dedicated to providing homeowners with free, qualified mortgage assistance relief services across New York.

For Litzsey-Thomas, getting the NYS-MAP loan was transformational. “I can breathe again,” she said recently in a phone interview.

Her story is all too familiar among NYS-MAP recipients: one marked by personal and financial challenges that threatened to spin out of control.

After going out on medical leave that year because of a difficult pregnancy, she was laid off from her job upon returning to work in 2011; temporary jobs weren’t enough to patch together a sustainable income. Before she could get caught up, she was impossibly behind on her mortgage.

In June 2012, she fell into further financial difficulties when she was struck by a bus and had to undergo a series of intensive surgeries. Her physician told her she wouldn’t be able to go back to work. Her family’s income is now limited to her Department of Social Services benefits, but she is able to afford her mortgage and bills now. She now subsists off of her limited Department of Social Services benefits.

“When the MAP program came along, I was like, ‘Wow.’ I said, ‘Okay, that was my blessing, my godsend, after all my patience,” she said. “I don’t have to worry about where we are going to sleep. I don’t have to worry about that. I have weathered the storm.”

The Center for New York City Neighborhoods and the Empire Justice Center administered the NYS-MAP program, which is currently closed to applications.

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How to defeat the blight of ‘zombie homes’ in New York

by Center for NYC Neighborhoods on 0 Comments

EastNY

Thousands of “zombie homes” continue to blight communities across New York, but housing advocates are praising the Assembly’s recent passage of legislation that would go a long way toward attacking the problem.

But some policy experts also say the legislation, which now faces a battle in the Senate, provides only some solutions to the problem. They say it will take a “blend” of legislation to prevent and maintain vacant and abandoned properties, as well as assist local municipalities with dealing with them.

Empire Justice Center’s Kirsten Keefe created a “blueprint” of active legislation that could do so. Here are five key pieces:

  1. The Abandoned Property Neighborhood Relief Act (A.6932A/S.4781A): This bill, introduced by Attorney State General Eric Schneiderman, was approved by the Assembly last week and would require banks and other mortgage lenders to maintain properties during the foreclosure process, which in some cases can take about three years. It will also create a state public registry, and it authorizes localities to take enforcement action. Fines of up to $1,000 per day can be levied for properties that aren’t properly maintained.
  2. The Community Restoration Fund: This fund would help avert foreclosures by acquiring distressed properties at a discount and passing on the savings to homeowners through affordable modifications, where possible. In cases where there is no feasible debt restructuring, the Fund could instead help a homeowner find new housing and then rehabilitate or demolish the property depending on the needs of each neighborhood. The Center is a member of New Yorkers for Responsible Lending, a coalition of statewide housing groups that is supporting the fund.
  3. Zombie Remediation Act of 2016 (A.9655/S.7295): This legislation would allow municipal governments to compel banks to complete foreclosure proceedings or discharge the mortgage for any certified abandoned property.
  4. Land bank legislation (A.7848/S.5776): Allow land banks to enter abandoned properties and examine them with the possibility of acquiring them.
  5. Mandatory settlement conferences: (A.1298/S.5242): The legislation makes mandatory settlement conferences more efficient in an attempt to avoid foreclosures that lead to abandonment of properties.

For a fuller description of the bills, and their potential impact, check out this chart from Empire Justice Center:

Vacant property legislation

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‘Nudging’ homeowners through loan modifications with text messages

by Center for NYC Neighborhoods on 0 Comments

A text message to a homeowner

For many homeowners working to get a loan modification, just staying on top of deadlines and paperwork can be tedious, complicated, and overwhelming — even when they are working with a professional housing counselor.

That’s why the Center for NYC Neighborhoods is partnering with Neighborhood Housing Services of Bedford-Stuyvesant on an innovative one-year pilot program to assess whether routine text-messages to clients’ mobile phones about their loan modification can “nudge” them toward being better stewards of their own financial decisions. These text-message prompts are combined with traditional face-to-face housing counseling or phone calls from the counselors.

The concept is based on a growing body of academic scholarship in behavioral economics that looks at methods of encouraging people through small, purposeful interventions in their daily activities. American economist Richard Thaler popularized the use of behavioral economics with his best-selling book “Nudge: Improving Decisions About Health, Wealth, and Happiness.” New Yorkers are probably most familiar with how behavioral economics are applied through the City’s efforts to reduce exposure to foodborne illness through its system of letter grades for restaurants. In that case, the letter-grade system acts to nudge consumers toward restaurants that are likely to have been well maintained, generally sanitary, and therefore safe.

Applying such interventions to financial skills — such as paying down high-interest credit cards or making regular savings deposits — is a growing field of practical inquiry.

Carolee Lewis of Jamaica, Queens, is one of the clients at NHS Bed-Stuy who has agreed to participate in the pilot program, which runs through September. The 71-year-old retired registered nurse approached the organization after her home went into foreclosure in the fall of 2015. NHS Bed-Stuy recommended a loan modification.

She said receiving text messages on her cell phone has eased the process, especially since she lives far from the offices of NHS Bed-Stuy.

“It reminds me of what’s going on, what they are about to do,” said Lewis, who has already received four text prompts through the program that officially launched in March. She says the organization also notifies her of workshops she might be interested in and makes it easy for her to respond to messages.

“It’s easier to text,” she said. “Sometimes they’re busy, and they can’t call me right away.”

Some example text prompts to clients in the program may include messages such as “Call your mortgage servicer to verify receipt of application for modification” or “Reminder from NHS Bed Stuy: Submit bank statements and pay stubs to us.”

A pair of researchers were hired to design and analyze the pilot program, with the aim of collecting data that will help to evaluate whether text-message “nudges” can be effective and integrated into future foreclosure counseling.

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Free home elevation program in NYC could lower flood insurance costs

by Center for NYC Neighborhoods on 0 Comments

homebeingelevated (1)

One of the few guaranteed methods for lowering increasingly expensive homeowner flood insurance is to elevate homes, but there is little public funding to help pay for the costly retrofits.

But in a much-praised move, the State has announced a $7.5 million pilot program that will elevate homes owned by lower- and middle-income families in low-lying areas of Staten Island and Gerritsen Beach and Sheepshead Bay, Brooklyn, completely free of charge. The deadline to pre-apply is May 15, 2016.

Eligible homeowners must not have received elevation funds from other programs; they must live in the 100-year floodplain; and they must be able show their homes were damaged by Hurricane Sandy but still habitable.

To learn more about whether you’re in the floodplain, your flood risk and about flood insurance rates, go to FloodHelpNY.org

The primary goal of Project UPLIFT is to safeguard homes in surge-vulnerable neighborhoods from future storms. But elevating homes will also save families tens of thousands of dollars in flood insurance. Homeowners are seeing increases in their flood insurance payments of between 5 and 25% this year alone. Those rate increases have become a financial burden to the tens of thousands of low- and middle-income families who live along the 520 miles of New York City waterfront.

Even more alarming, for the first time this year, homeowners who have allowed their flood insurance policies to lapse more than 90 days will have to reinstate them at the higher full-risk rate, which will likely mean paying out thousands of dollars more to cover their homes.

Follow this link to apply for the program: Project UPLIFT

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NYC communities want real estate speculators to ‘cease and desist’

by Center for NYC Neighborhoods on 0 Comments

cash for home

The handwritten note was posted at what appeared to be a long abandoned home in East New York. “Dear property owner,” the sign read in black ink, “I am interested in buying your property ALL CASH.”

Throughout the neighborhood, and in communities that have increasingly attracted the interest of developers from the east Bronx to southeast Queens, such signs have become commonplace. Residents of these neighborhoods also complain of aggressive brokers or their proxies going door-to-door offering cash or calling repeatedly with offers to buy out homeowners.

The aggressive speculation has gotten so bad, say residents and some policymakers, that they are calling on the state to impose “cease and desist” zones that would allow homeowners to opt-in to a no-solicitation registry. On Thursday, the New York Department of State plans a hearing in Bayside to hear from the public about a proposal to designate all of Queens such a zone. A previous hearing for a new cease and desist zone in the Bronx was held on April 20.

The state already has a cease and desist law, but it’s been at least a decade since any part of New York City has been declared a cease and desist zone. State Sen. Tony Avella is sponsoring a bill that would designate all of Queens such a zone for 10 years. “Our residents have the right to enjoy the peace and quiet that our borough is known for, and that includes peace and quiet from obnoxious solicitations,” Avella said in a statement.

Read our report on how house flipping is making homeownership unaffordable in New York City.

 

Another state senator, Jeff Klein of the Bronx, is also supporting the re-establishment of cease and desist zones in the city because of “unsavory brokers.” “They try to stir people up to get them to sell,” said Klein to the Bronx Times. “The over-solicitation always worries people.”

Aggressive real estate speculation can also have longterm consequences for affordability in these neighborhoods, since buyers often flip homes to make a profit, inflating home prices and making it more expensive for renters in small homes.

As part of its East New York rezoning deal, the City agreed to “support the community’s efforts to study the feasibility of establishing a Cease and Desist Zone.”

The real estate industry is paying attention. In a post on its website about the hearing, the Long Island Board of Realtors called on its members to turn out and to let the [Department of State] know that “we will not give in to this unfair targeting of our industry.”

The Board also proposed talking points for its members. The zone, one bullet-point read, “will have a severe impact on REALTORS® ability to make a living as they rely heavily on advertising to acquire listings.” Another reads, “Our solicitations are always courteous and provide homeowners with valuable information about recent home sales and values in the neighborhood.”

But it’s clear that residents in many of the neighborhoods where speculation has dramatically increased in recent years are growing tired of the constant inquiries and sales pitches.

Michael McNerney, the president of the Country Club Civic Association in east Bronx, told the Bronx Times that solicitations to homeowners are being mailed, dropped off and attached to fences and doors. He said one solicitation included a cake recipe.

“We believe that homeowners should have the right and entitlement to sell their homes on their own terms and their own conditions without being coerced,” McNerney told the Bronx Times.

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House flipping is a flop for NYC neighborhoods

by Center for NYC Neighborhoods on 5 Comments
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While house flipping has become popular entertainment on TV, for many affordable New York City neighborhoods it is a reality show that too often ends with families displaced from their communities.

In neighborhoods like East New York in Brooklyn and Jamaica in Queens, properties that working- and middle-class New Yorkers could once dream of owning are being bought by LLCs and resold, often in a span of a few months, for immense profits.

This fuels displacement as house prices inflate, attracting more affluent residents from outside the community and leaving locals priced out — hallmarks of gentrification. Meanwhile, properties that were once family-owned become income-generating investments for speculators.

The Center for NYC Neighborhoods analyzed the impact of real estate speculation on the owners and tenants of small homes throughout the five boroughs, and found that while house flipping declined after the 2008 housing crash, today it is creeping back up — and making housing less affordable in several Brooklyn and Queens neighborhoods that have long been havens of affordability for working New Yorkers.

“There’s a real rush to make money in our neighborhoods because you can get such a higher return here and what that’s doing is creating these false markets,” Christie Peale, executive director of the Center for NYC Neighborhoods, told NY1.

READ THE FULL REPORT

 

The Center examined property flipping of 1-4 unit homes in New York City from 2003 to 2015 and found that speculation has become dramatically more profitable in recent years. In 2015, flipped properties produced a median resale profit of $215,000, or a 75% gross return on investment. In some cases, investors saw profits of 200 to 300%.

Not only does this mean that flipping is putting homes out of reach of working- and middle-class buyers, it’s also depleting a vital source of affordable rental units. That’s because investors who buy these small homes, which are often divided into apartments for multiple families, are likely to raise rents to capitalize on the increasing popularity of the neighborhoods.

East New York homes

The Center also found that neighborhoods in Brooklyn and southeast Queens had more flips than other parts of New York City. East New York — a community being reshaped by development as it undergoes a rezoning that the City says will generate more affordable housing in the neighborhood — had the highest number of flips in 2015. Bedford-Stuyvesant in Brooklyn, Jamaica, St. Albans and Springfield Gardens in Queens, also had high numbers of flips.

But Brooklyn is seeing some of the most rapid changes, with higher profit margins than any other borough in the city. Four of the top five neighborhoods with the largest gross returns from flipping were located in Brooklyn. Cypress Hills led all neighborhoods in 2015 with a median gross return of 125%.

Flipping also had a particularly powerful impact on sales prices in the borough. For all 2015 flips in Brooklyn, the median price of the first sales was affordable to family with a low-downpayment mortgage making about $74,000, or 95%, of Area Median Income. However, after the flip, the median price of the second sale was affordable to a family with the same low-downpayment mortgage making $127,000, or 163%, of AMI.

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Goldman Sachs’ $5 billion settlement to expand help to NY homeowners

by Cristian Salazar on 1 Comment

New York homeowners will be able to tap into expanded financial assistance after Goldman Sachs agreed to a $5 billion settlement over its past lending practices leading up to the Great Recession with a mortgage working group led by New York Attorney General Eric Schneiderman.

Hundreds of millions of dollars in settlement funds will be used to help struggling homeowners, particularly through the State’s Mortgage Assistance Program (NYS-MAP), Schneiderman’s office said.

“These dollars will immediately go to work funding proven programs and services to help New Yorkers keep their homes and rebuild their communities,” the state attorney general said in a statement. “We’ve witnessed the incredible impact these programs and services can have in helping communities recover from the financial crisis.”

“We are pleased to put these legacy matters behind us,” Michael DuVally, a Goldman Sachs spokesman told HousingWire. “Since the financial crisis, we have taken significant steps to strengthen our culture, reinforce our commitment to our clients, and ensure our governance processes are robust.”

Under the settlement, $480 million will go toward families and communities in New York State, specifically for mortgage assistance, principal forgiveness, land banks and land trusts, and the creation and preservation of affordable rental housing.

Those funds will also “facilitate a significant expansion” of the NYS-MAP program that has helped hundreds of New Yorkers so far to restructure their debts and keep their homes, Schneiderman’s office said. Since December 2014, NYS-MAP has helped 668 borrowers to avoid foreclosure. Homeowners apply through a partner organization in the Attorney General’s Homeowner Protection Program. The Center currently administers the program on behalf of the Attorney General’s Office. According to the settlement documents, Goldman Sachs agreed to allocate funds for debt restructuring “consistent with the terms and conditions” of NYS-MAP.

The Attorney General’s Office estimates that several thousand more homeowners could avoid foreclosure with the expansion of NYS-MAP due to the Goldman Sachs settlement.

Schneiderman’s office provided this breakdown of the relief under the settlement: $220 million for debt restructuring; $30 million for land banks and land trusts; $30 million for code enforcement; $150 million for first-lien principal reduction; and $50 million for the creation and preservation of affordable housing.

The settlement was negotiated by the Residential Mortgage-Backed Securities Working Group, which previously reached agreements with J.P. Morgan Chase, Bank of America, Citibank and Morgan Stanley.

To learn more about NYS-MAP, homeowners can reach the Center by dialing 311 in New York City and asking for the Center for NYC Neighborhoods or by dialing 855-HOME-456.

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New national flood insurance rates kick in; lapsed policies could results in thousands more in costs

by Center for NYC Neighborhoods on 0 Comments

Screen Shot 2016-04-04 at 2.45.58 PM

For the second year in a row, many homeowners in New York City and across the country will get hit with another costly increase to their flood insurance premiums starting April 1, 2016, when their policies begin to be renewed. And, for the first time, homeowners in the high risk flood zones whose policies have lapsed for more than 90 days will have to reinstate them at the higher full-risk rate — which could mean thousands of dollars in additional costs.

New Yorkers are particularly affected by the new flood insurance rules under the Biggert-Waters Flood Insurance Reform Act of 2012 and the Homeowner Flood Insurance Affordability Act that the U.S. Congress passed in 2014. New York City, surrounded by 520 miles of waterfront, has more residents living in high-risk flood zones than any other city in the United States. Unlike most other coastal communities, the vast majority of New York City’s waterfront homes were built long before the National Flood Insurance Program’s flood maps for New York City were put in place in 1983 and special guidelines for construction were set.

In this year’s guidance about the rate increases, FEMA stated, “It is important to note that nearly 80% of NFIP policyholders are minimally impacted by [Congressional changes to the program].” Unfortunately, in New York City, that ratio is the reverse because of how many older buildings the City has: about 80% of the properties in New York City’s high-risk flood zones were built before the first flood map was adopted and they face the biggest increases in the cost of their insurance.

Here’s a summary of the changes policyholders can expect:

Primary Homes: When you renew your policy for your primary home, your insurance rate could increase by up to 18%. However, unlike last year, homeowners in the highest risk flood zones should only see an increase in their premiums of up to 5%. If your home was substantially damaged in Hurricanes Sandy or Irene, you will see a rate increase of 25% annually until your premium reaches the full-risk rate.

Second Homes & Businesses: If you renew a policy for a second home or a business in the high risk flood zones, your rate will increase by 25% annually until your premium reaches the full-risk rate.

Annual Charge: In addition to this rate increase, you will be charged a “Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) surcharge.” For primary homes, the charge is $25. For businesses and second homes, the charge is $250.

What You Can Do:

If you see increases on your policy that are above the increases outlined here, call your broker and make them explain how they are getting to the new, higher rates.

With the HFIAA surcharge, you will automatically be charged $250 — the second-home rate — unless you prove the home is your primary home. You will receive a notice from your agent that will require you to submit proof.* If you do not provide this documentation within 30 days of the date of the notice, you will be charged $250 per year.

Learn more at the Center for NYC Neighborhoods’ flood insurance website, FloodHelpNY.org. It’s New York’s go-to source for everything you need to know about flood insurance and your flood risk. Have questions? Call our Homeowner Hotline at 646-786-0888.

*Driver license, automobile registration, proof of insurance for a vehicle, voter registration, documents showing where your children attend school, or homestead tax credit form for primary residents.

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