Publications

02/23/2025

Crisis, Corruption, and Cuomo: How New York’s Botched Rent Relief Program Fueled the Housing Affordability Emergency

Published By

Popular Democracy, New York Communities for Change, and Make the Road Action

During the COVID-19 pandemic, former New York Governor Andrew Cuomo rose to prominence nationally through his daily briefings, frequent media appearances, and even a book release about leadership in a crisis. But his mishandling of New York’s emergency rental assistance for working-class renters during the pandemic tells a vastly different story. As families across the state faced widespread job loss and economic precarity, millions struggled to make rent. After Congress passed the Emergency Rental Assistance program, New York received $2.7 billion in federal funding to support renters with back rent and temporary rental assistance. Cuomo and his administration failed to effectively administer this program at every turn: by June 2021, New York was the only state in the country that failed to distribute any funding to help tenants keep up with their rent payments.

Cuomo used sweeping emergency pandemic authority to award a lucrative no-bid contract to his preferred consulting firm, Guidehouse, to administer Emergency Rental Assistance. After receiving $115 million in taxpayer dollars, Guidehouse’s efforts were plagued by poor implementation, a slow rollout, and leaks of renters’ personal information. During this time, a high-ranking Cuomo advisor joined that same consulting firm, raising alarms regarding potential conflicts of interest. As New York State announced it would stop accepting new applications due to lack of funds, Guidehouse’s CEO touted their “38% margins” from running the rental assistance program.

Cuomo’s negligence in overseeing Emergency Rental Assistance meant that many families could not secure support they desperately needed. According to New York State data, as of July 2023, residents submitted 405,605 applications for assistance with rent arrears. By October 2024, only 282,711 rent arrears applications had received payments – suggesting that roughly 30% of those applications are still not paid out. Audits of this program showed troubling racial and economic disparities. Cuomo’s political decisions reverberate years later, as working Black and Latine families across the state continue to struggle with skyrocketing rents and financial precarity.