New York City has delivered nearly $700,000 in relief for the first three owners to fully restructure their loans, and the Taxi and Limousine Commission (TLC) is poised to close deals with 13 more owners by the end of September, which would result in as much as $2.6 million in relief.
Mayor Bill de Blasio announced on Saturday that New York City’s $65 million Medallion Relief Program (MRP), which could result in $500 million of debt forgiveness for thousands of drivers, has begun delivering payments to medallion owners who are overwhelmed with debt. Nearly 800 medallion owners are in stages of renegotiations, a significant portion of which will be completed by the end of 2021.
“Medallion owners have worked tirelessly to keep New York City moving, and they deserve economic justice to make manageable payments and retire with dignity,” said Mayor Bill de Blasio. “This program is an innovative, powerful tool to connect debt forgiveness to New Yorkers who need it, and I’m excited to celebrate even more successes in the weeks and months to come.”
The program will provide $65 million in grants to economically distressed individual medallion owners, which includes $20,000 as a down payment to restructure loan principals and set lower monthly payments, as well as up to $9,000 for monthly debt relief payments.
Many medallion owners will have over $200,000 in debt forgiven, and loan payments reduced to about $1,500 or less per month. Some owners will achieve total debt erasure through settlements.