As the most populous city in the United States, New York City offers a wealth of opportunities for residents and businesses. Unfortunately, the current economic climate has made it difficult for many people to make ends meet. This is where the New York City Deferred Payment Agreement (DPA) comes in.
What is a Deferred Payment Agreement?
A Deferred Payment Agreement is an agreement between the City of New York and eligible property owners that allows them to defer payment of property taxes and other charges. This program was created to help property owners who may be struggling financially due to reasons such as medical expenses, job loss, or unexpected expenses.
How does it work?
Property owners who are struggling financially can apply for the DPA program and if approved, can defer their property taxes and other charges. Interest is charged on the deferred amount at a rate of 7% per year but is not compounded, meaning it is only charged on the deferred amount and not on the interest itself.
Once the property owner`s financial situation improves, they can repay the deferred amount in full or in installments, depending on their financial situation. The DPA program offers a flexible repayment plan that takes into account the property owner`s ability to pay.
Who is eligible?
To be eligible for the DPA program, a property owner must meet the following criteria:
– The property must be their primary residence
– They must have owned the property for at least one year
– They must be current on any existing mortgage payments
– They must have a financial hardship that is preventing them from paying their property taxes and charges
It is important to note that the DPA program does not forgive any property taxes or charges, but simply defers them until the property owner`s financial situation improves.
Benefits of the DPA program
The DPA program provides several benefits to property owners who are struggling financially, including:
– Provides a flexible repayment plan that takes into account the property owner`s ability to pay
– Allows property owners to defer their property taxes and other charges and avoid the risk of foreclosure
– Helps property owners maintain their primary residence and avoid displacement
– Offers a lower interest rate than other loan options for property owners who may not qualify for traditional loans
The New York City Deferred Payment Agreement program is an excellent option for property owners who are struggling financially and need help deferring their property taxes and charges. Though it is important to note that interest is charged on the deferred amount, the program offers a flexible repayment plan and provides a way for property owners to avoid foreclosure and maintain their primary residence. If you are a property owner in New York City facing financial hardship, it is highly recommended that you explore the possibility of participating in the DPA program.