MAYOR ADAMS, TLC, MARBLEGATE ASSET MANAGEMENT, NYTWA ANNOUNCE HISTORIC TAXI MEDALLION DEBT RELIEF PROGRAM DEAL, PROVIDING HUNDREDS OF MILLIONS OF DOLLARS IN RELIEF TO NYC MEDALLION OWNERS

 

Agreement Clears Way for More Than 3,000 Medallion Owners to Access Meaningful Debt Relief

 

Medallion Owners Can Close on Restructured Loans Starting September 19^th

 

City, NYTWA, Marblegate to Hold Events Promoting Immediate Restructurings in September

New York City Mayor Eric Adams and New York City Taxi and Limousine Commission (TLC) Chair and Commissioner David Do today announced a finalized agreement with Marblegate Asset Management — the largest taxi medallion lender in the city — and the New York Taxi Workers Alliance (NYTWA) 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 + (MRP+). Today’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 September 19, 2022.

 

“Our taxi drivers are the lifeblood that keep New York City’s heart pumping. They were promised a path to a better life with these taxi medallions but quickly found themselves going down a pit of financial despair. The enhanced version of the Medallion Relief Program we are announcing today will deliver life-changing debt forgiveness to more than 3,000 drivers who deserve economic justice,” said Mayor Adams. “Our taxicab medallion owners and drivers have always kept New York City moving, and it is finally time we pay it forward with real debt relief for owners in need. We are likely putting tens of thousands of dollars back into the pockets of these owner-drivers and showing them what real relief looks like. I am proud that this administration was, once again, able to ‘Get Stuff Done’ for an industry that has given New Yorkers so much.”

 

“Today’s agreement provides much-needed debt relief for thousands of hard-working taxi drivers and individual medallion owners who have served New Yorkers and visitors for decades,” said Deputy Mayor for Operations Meera Joshi. “Whether after 9/11, during Hurricane Sandy, delivering meals during the pandemic, or providing transportation for passengers with disabilities, these professional drivers have always kept New York City moving.”

 

“Today, we finally have a concrete deal to get medallion owners the relief they desperately need,” said TLC Chair and Commissioner David Do. “I am incredibly proud of how hard the TLC and our partners — both lenders and medallion owners — have worked to get us to this point under very challenging economic circumstances, and I am looking forward to closing loans in the weeks to come.”

 

Rapidly changing economic conditions — including inflation and rising interest rates — required adjustments to the original proposed agreement. Under today’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.

 

Medallion owners are encouraged to sign up for free legal representation and financial counseling through TLC’s Owner/Driver Resource Center. Other lenders who would like to learn more should also visit the resource center.

“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.”

 

“The finalization of this program represents months of hard work by the TLC, multiple city agencies, representatives from NYTWA, and the Marblegate team,” said Andrew Milgram, managing partner and chief investment officer, Marblegate Asset Management. “While we are all proud of this program, it is critical that we move forward quickly to get drivers’ loans restructured. With a rapidly changing economy, it is vital drivers act in the month of September to realize meaningful debt forgiveness and a sizable reduction in their monthly loan payments. The more drivers that participate, the more this is a win for taxis — and a testament to the tenacity of NYTWA executive director Bhairavi Desai and the drivers who have succeeded in working with Mayor Adams, the TLC, and Senator Schumer to forever change the lives of these medallion owners.”

 

“Our medallion owners are an important part of our city, but many have struggled to stay afloat financially in this economic climate,” said Bronx Borough President Vanessa L. Gibson. “With this announcement, many of our overburdened medallion owners will finally receive the critical debt relief and support to remain operational and successful in today’s changing economy. I want to thank Mayor Eric Adams, New York City Taxi and Limousine Commission Chair and Commissioner David Do, Marblegate Asset Management, the New York Taxi Workers Alliance, and all of the driving advocates who pushed this important program forward and brought it into fruition. I look forward to working with them to ensure our medallion owners continue to receive the support they need and deserve.”