More than 3,000 yellow and limousine taxi drivers have benefited from a historic agreement that will provide millions of dollars in relief to the debt of the owners of medallions (special licenses to drive these vehicles).
This was announced on Tuesday by the mayor of New York, Eric Adams, and the president and commissioner of the Commission of Taxis and Limousines (TLC), David Do, who announced the newly finalized agreement with Marblegate Asset Management, the city’s largest taxi medallion lending company, and the New York Taxi Workers Alliance (NYTWA).
As announced, the agreement is an improved version of the Medallion Relief Program announced last year and thousands of taxi drivers will finally receive the long-awaited relief after many years of battle.
“Our taxi drivers are the vital element that keeps the heart of the city beating from New York. They were promised a path to a better life with these taxi medallions, but quickly found themselves falling into a pit of financial despair. The enhanced version of the Medallion Relief + (MRP+) program that we are announcing will provide life-changing debt relief for over 3, drivers who deserve economic justice,” Mayor Adams said in a statement.
New conditions
The new terms of debt forgiveness allow lenders and medallion owners to move forward with renegotiated loan agreements, which include a city-funded loan guarantee, which will provide essential debt relief and lower monthly payments to medallion owners at a critical time the sector is going through.
The city, TLC, Marblegate and NYTWA reached a new agreement to implement the MRP+ and restructure outstanding loans up to a maximum balance of $200,000 despite recent economic uncertainty , significant inflation VAT and rising interest rates, medallion owners can begin the loan restructuring process immediately and begin closing on restructured loans on 19 September 2022.
“The terms of the final program represent months of hard work by the TLC, various city agencies, NYTWA representatives and the Marblegate team,” said Andrew Milgram, Managing Partner and Chief Investment Officer of Marblegate Asset Management. .
Monumental advertisement
“New York City taxi drivers are some of the most self-sacrificing workers in the nation and they are entrusted with the duty of taking passengers to their destination safely and quickly,” said Congressman Adriano Espaillat. “Today’s announcement is monumental and sends a clear message that New York City will not leave vulnerable taxi drivers behind.”
Senator Charles Schumer said: “I am proud to have helped negotiate agreements between multiple medallion lenders and the NYTWA for much-needed debt relief for taxicab workers. The medallion debt crisis has dragged on for years, wiping out lives and livelihoods. I commend Mayor Adams for reaching an agreement to provide critical debt relief for 3 other 000 medallion owners.”
Points of the agreement
Among the points of the agreement reached, the following stand out:
- The restructured loans will be guaranteed by a reserve fund for bad loans.
- Borrowers with lower loan balances are also eligible to participate in the program.
- The final terms for the restructured Marblegate loans will include an interest rate of 7.3% or less, fully amortized in no more than 19 years, with a monthly payment cap of $1,234.2022