NEW YORK – New York Attorney General Letitia James released the following statement after the City of New York announced an agreement between the city, the New York Taxi Workers Alliance (NYTWA), and Marblegate Asset Management — the largest medallion lender — “to supplement the city’s Medallion Relief Program (MRP) with a city-funded deficiency guarantee to achieve greater principal reduction and lower monthly payments”:
“Taxi workers are the lifeblood of New York City and now many finally have an agreement that treats them with respect and will help them dig out of the rabbit hole of financial ruin. These taxi medallions were marketed as a pathway to the American Dream, but instead became a trapdoor of despair for medallion owners. The proposal announced yesterday would provide a fiscally fair and responsible way to support the recovery of the taxi medallion industry by guaranteeing loans written down to no more than $170,000. This relief package not only lays out the best way to support the needs of a community that has been economically devastated but will help to ensure justice is finally delivered. We must also continue fighting alongside the NYTWA to ensure more agreements, like this one, are secured for all medallion owners.”
According to New York City, “under the agreement, Marblegate will restructure outstanding loans to a principal balance of $200,000, which will be constituted as a $170,000 guaranteed loan, plus a city grant of $30,000. The terms of the new loan will include a five-percent interest rate and a 20-year, fully amortizing term. This restructuring will cap debt service payments at $1,122 per month for eligible medallion owners.
“The city will provide funding for a guarantee on the principal and interest for these loans and will work with all other medallion lenders to achieve the same terms.”