NYC will forgive water bill late fees and interest under amnesty program: source

Late fees and interest attached to overdue water bills will be forgiven starting Monday under an amnesty program being launched by New York City’s Department of Environmental Protection, the Daily News has learned.

People who owe money on past due water bills would still be on the hook to pay for the water they’ve used under the program, but will get a pass on all late fees and interest if they pay off the entirety of the principal, Mayor Adams and city officials told The News.

“This water amnesty program will enable property owners to settle their debts at a reduced cost, while providing the Department of Environmental Protection with the necessary funds to operate the city’s vital water supply and treatment system,” Adams said. “I encourage all eligible customers to take advantage of this limited-time savings program we’re proud to offer.”

The grace period for the program will begin Monday and last until April 30.

About 200,000 bill payers — or nearly one out of four water customers in the city — are currently behind on their water bills. The total owed stacks up to approximately $1.2 billion, 85% of which is from residential properties.

The amnesty program will work on a sliding scale. If customers pay off the entirety of the principal owed, they’ll be forgiven for 100% of the interest and late fees owed, the official said. If they pay off 50% of the principal, they’ll have 75% of the interest forgiven. Paying off a quarter of the principal will result in the city forgiving 50% of the interest.

One official said the program is not part of the mayor’s austerity measures, but that it’s in line with his broader efforts to find savings given the current fiscal climate.

“This falls under trying to do everything that we can to recoup money,” the source said. “It’s a fiscally responsible move for both us and also for homeowners who are going to save money that they otherwise wouldn’t save.”

The Department of Environmental Protection is also floating the possibility of additional assistance for people with low incomes. If a customer is enrolled in the state’s Low Income Water Assistance Program and has already received $5,000 in assistance through it, the city will match that amount with an additional $5,000.

“This program allows customers to save money and start fresh in the new year,” said DEP Commissioner Rohit Aggarwala. “At the same time, it should serve as a reminder to those who have chronically delinquent accounts and have been withholding payment — that won’t be allowed to continue.”