Adams Extends Successful Water Bill Debt Forgiveness Program

Adams Extends Successful Water Bill Debt Forgiveness Program

Photo Courtesy of Ed Reed/Mayoral Photography Office

The City is extending the successful water bill amnesty program announced in January for an additional month — through May 31, 2023 — to help New Yorkers save money while also clearing debt.

By Forum Staff

Mayor Eric Adams and Chief Climate Officer and City Department of Environmental Protection (DEP) Commissioner Rohit Aggarwala on Monday announced that the City is extending the successful water bill amnesty program announced in January for an additional month — through May 31, 2023 — to help New Yorkers save money while also clearing debt. The limited-time program — initially scheduled to last just 90 days — has already brought in more than $80 million from delinquent accounts and has helped New York customers clear their debts, saving them $12 million in interest so far. Of the nearly 200,000 customers with a late water bill, approximately 86,000 — more than 40 percent — participated and saved money. To date, DEP has also granted low-income homeowners a total of $4.2 million in billing credits as part of the program.

Money recouped through this program is used to invest in making the city’s water system more resilient, maintain and upgrade critical infrastructure, and keep water rates low. Customers that do not pay delinquent bills or enter payment plans will face enforcement measures, including water service shutoffs.

DEP supplies more than 1 billion gallons of high-quality drinking water and treats 1.3 billion gallons of wastewater for more than 9 million New Yorkers every day. The water system’s expenses — including maintenance, repairs, and capital upgrades — are directly funded by revenue collected from water bills. Customers pay about $0.01 per gallon in both water and sewer charges, and the average New York City household uses about 70,000 gallons of water per year.

The water bill amnesty program has generated the first sustained reduction in DEP’s delinquent accounts balance since the COVID-19 pandemic, Adams noted.

To maximize program exposure, the city conducted extensive outreach efforts that included engaging with elected officials, community boards, business improvement districts, real estate companies, and property managers; promoted the program via social media, traditional press, ethnic media, Taxi TV, and 311; and notified eligible customers through robocalls, billing inserts, direct mail, and email. Promotional materials were also posted at all of DEP’s customer service borough offices.

During the pandemic, DEP saw a significant increase in the receivable balance of delinquent accounts — there were $1.2 billion in delinquent payments before the amnesty program started — which threatens the operations and capital needs of a service the city could not survive without. Data shows that 85 percent of customers who set up a payment plan stay on it and successfully clear their debt. Increased enforcement, including possible water service shutoffs, will be the key to driving long-term delinquencies down even further.

For customers with a seriously delinquent balance of more than $1,000 for more than a year, the amnesty program offers three options:

  • If 100 percent of the principal bill is paid, 100 percent of interest will be forgiven;
  • If 50 percent of the principal bill is paid, 75 percent of interest will be forgiven; or
  • If 25 percent of the principal bill is paid, 50 percent of interest will be forgiven.

Customers who owe less than $1,000 are still eligible to receive amnesty on 100 percent of their interest if they pay their total bill. All customers who participate in the water amnesty program and leave a remaining outstanding balance will be required to enter into a payment agreement with DEP.  To receive amnesty and confirm eligibility, or for more information, customers should visit DEP’s water amnesty website, call (718) 595-7000, or visit a borough office.

 

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