June 1, 2023

Program Helped More Than 100,000 Customers Save Money; Low-Income Homeowners Saved $5.2 Million

DEP Will Ramp Up Enforcement Actions, Including Possible Water Shutoffs, Against Those Who Continue to Withhold Payment

New York City Mayor Eric Adams and New York City Chief Climate Officer and Department of Environmental Protection (DEP) Commissioner Rohit T. Aggarwala today announced that the successful water bill amnesty program that ran from Jan. 30 through May 31 helped more than 100,000 New Yorkers reduce their debts while saving them more than $22 million in interest. Of the nearly 200,000 customers who owed money on late water bills when the program started, more than 50 percent participated in the popular program—bringing in nearly $105 million in payments from substantially past due accounts. Customers that don’t pay delinquent bills or enter into payment plans will face enforcement measures, including water service shutoffs or legal action.

“New York City has the best municipal drinking water supply on the planet and when we asked New Yorkers to do their part to help us maintain that water supply—by paying their unpaid water bills—an incredible number of them delivered,” said New York City Mayor Eric Adams. “Within just a few short months, our water bill amnesty program cleared the debts of more than 100,000 New Yorkers, saving them $22 million in interest, and leaving more money in working people’s pocket. Additionally, the $105 million we have recouped since the program began will help us maintain our critical water infrastructure and keep costs low for all New Yorkers. We will not hesitate to take stronger steps for those who continue to fail to pay their bills.”

“Everyone has to pay their fair share to support our indispensable water system and we’re thrilled that the millions we brought in will help keep future water rates low,” said Chief Climate Officer and DEP Commissioner Aggarwala. “However, those with chronically delinquent accounts who continue to withhold payment will face serious enforcement actions, that may include water service shutoffs.”

The approximately $105 million recouped through the program will be used by DEP to invest in the water system’s resiliency, maintain and upgrade critical infrastructure, and keep water rates low for all customers. Importantly, many of the customers who came forward to pay past due balances had not made any payments at all for well over a year. Getting these customers back on track will pay dividends for the long-term financial health of the water system.

During the program, DEP granted $5.2 million in billing credits to help low-income customers that already participate in New York State’s Low Income Homeowner Water Assistance Program (LIHWAP). While the Amnesty program is over, DEP will continue to help those homeowners by offering up to $30 million towards the forgiveness of up to $5,000 of the remaining delinquent balance for each property owner.

During the pandemic, DEP saw a significant increase in the number and balance of delinquent accounts—there were $1.2 billion in delinquent payments before the amnesty program started, which threated the operations and capital needs of a service the city could not survive without.

To maximize program exposure, DEP conducted extensive outreach efforts that included engaging with elected officials, community boards, business improvement districts, real estate companies, and property managers; the program was promoted via social media, traditional press, ethnic media, Taxi TV, and 311, and notified eligible customers through robocalls, billing inserts, direct mail, and email.

The water bill amnesty program generated the first sustained reduction in DEP’s delinquent accounts balance since the onset of the Covid-19 pandemic. Due in part to the money the amnesty program brought in, DEP was able to propose a 4.42 percent increase to the New York City Water Board for the upcoming fiscal year 2024. The proposed rate was less than the rate of inflation and would keep the cost of water in New York City well below the national average while helping to fund critical infrastructure and resilience projects.

One strategy that proved effective was targeting select locations to warn of an upcoming water shutoff by placing stickers on the front door and stenciling in the roadway where the excavation would take place to shut off the water. Over the past month, DEP has received nearly $1.5 million in payments from this enforcement initiative, including from 14 properties that have been stickered with water shutoff notices to date, with customers entering into another $1.5 million in payment agreements. Moving forward DEP expects to increase the use of this enforcement strategy, as well as legal action, for particularly egregious past due accounts. Ongoing enforcement efforts to ensure DEP continues to recover accounts receivable will be critical to ensuring that the 2025 water rate can be as low as possible.

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—which include 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.