Photo Courtesy of Wikimedia/AFL-CIO
“The City-backed guarantee is a groundbreaking program that will save and change lives,” said Bhairavi Desai, executive director, NYTWA.
By Forum Staff
Mayor Eric Adams and City Taxi and Limousine Commission Chairman and Commissioner David Do on Tuesday announced a finalized agreement with Marblegate Asset Management—the largest taxi medallion lender in the five boroughs—and the New York Taxi Workers Alliance on the operational terms of a program that will provide hundreds of millions of dollars in debt relief to more than 3,000 medallion owners under an enhanced version of the Medallion Relief Program announced last year: Medallion Relief Program +.
Tuesday’s agreement allows medallion lenders and owners to move forward with renegotiated loan agreements that include a city-funded loan guarantee—providing essential debt relief and lower monthly payments to medallion owners at a critical time in the sector’s history.
The City, TLC, Marblegate, and NYTWA reached the deal to implement MRP+ and restructure outstanding loans to a maximum principal balance of $200,000 despite recent economic uncertainty, significant inflation, and rising interest rates. Medallion owners can begin the loan restructuring process immediately and begin closing on restructured loans on Sept. 19.
Rapidly changing economic conditions—including inflation and rising interest rates—required adjustments to the original proposed deal. Under Tuesday’s finalized agreement, Marblegate will restructure outstanding loans of eligible taxi medallion owners to a maximum principal balance of $170,000, after the application of a $30,000 grant that will be used as a down payment on the restructured loans. The restructured loans will also be guaranteed by a loan loss reserve fund. 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 percent or less, fully amortized over no more than 25 years—capping monthly payments at $1,234. The TLC published rules that will codify these terms.
“We are finally at the starting line of a new life for thousands of drivers and our families,” said Bhairavi Desai, executive director, NYTWA. “The City-backed guarantee is a groundbreaking program that will save and change lives. We are thankful to City Hall, the TLC, the Mayor’s Office of Management and Budget, the Law Department, and Marblegate for burning the midnight oil to set up this historic program to address the crisis of debt across the industry. As we collectively work to end this crisis and hit restart, we look forward to working with all lenders. I congratulate all our union members who chose to organize, and not despair, and won back their lives. Against the darkness of a crushing debt, their courage remained the light, and today, the triumph is fully theirs.”
Medallion owners are encouraged to sign up for free legal representation and financial counseling through TLC’s Owner/Driver Resource Center (https://portal.driverresourcecenter.tlc.nyc.gov/). Other lenders who would like to learn more should also visit the resource center.
“By the city guaranteeing their loans, 3,000 yellow cab drivers have new hope to renegotiate medallion debt,” said Assemblywoman Jenifer Rajkumar (D-Woodhaven). “These drivers owe an average of $500,000 but may only earn $50 a day. As the first South Asian woman elected to New York state office, I applaud the City for addressing issues in an industry whose workforce is more than 20 percent South Asian immigrants and 94 percent immigrants overall. Many of them come to me with stories of crushing medallion debt. Now, relief for all of them is available by simply contacting the TLC.”
