Residents displaced from their rent-stabilized apartments following a Jan. 10 fire at 2910 Wallace Ave. can now apply for low-interest disaster loans from the federal Small Business Administration, Gov. Kathy Hochul announced March 14.
The disaster was officially declared by the federal government on March 13, which made loans of up to $100,000 available for tenants to replace property lost or damaged in the fire. Interest rates can be as low as 2.563% and top out at 5.125% for those who could obtain credit elsewhere, according to an SBA spokesperson. Borrowers will pay no interest for 12 months, and no payment is due until the twelfth month after initial loan disbursement.
“Families, homeowners and businesses can now rely on federal funding to help them rebuild and recover, because when disaster strikes, we work hard to ensure there are resources available for everyone to get back on their feet,” said Hochul in announcing the assistance.
However, not everyone affected by the fire is celebrating the news.
Yolanda Richardson, who leads the tenant association, told the Bronx Times the loans are “like a slap in the face” to residents who were displaced through no fault of their own.
FDNY found that the fire was caused by faulty electrical wiring, and the landlord, Ved Parkash, has a lengthy history of hazardous housing code violations across his real estate portfolio. The building is expected to be under repair for the next two years, Richardson said.
She lived at 2910 Wallace Ave. for over 25 years and is scheduled to be moved this week from a hotel to a family center in the Bronx with her one-year-old granddaughter.
Richardson and other tenants held a recent rally outside their damaged building to demand more ongoing assistance for the 250 residents now scattered across the city, but the SBA loans will likely help only a few, she said.
When information about the loans landed in the tenants’ WhatsApp chat, Richardson said some did apply but others like her were upset about having loans as their only option.
“Most people prepare” ahead of taking on such major debt, but tenants had no opportunity to do so, she said.
Richardson said she doesn’t feel comfortable adding to her current debt and will not apply for an SBA loan. She said grants or housing vouchers would be more welcomed, especially since new immigrants receive housing and other necessities — or the negligent property owner should have to pay the tenants’ loans.
“Where is the real help?” Richardson said.
Tenants interested in learning more about the loans can see information and apply online here. They may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected]
Reach Emily Swanson at [email protected] or (646) 717-0015. For more coverage, follow us on Twitter, Facebook and Instagram @bronxtimes
