(a) Definitions Specific to this Section.
(1) Applicant means a medallion owner that is applying for a Grant, Supplemental Grant, or Supplemental Loan Deficiency Guaranty.
(2) Application means a written request in a form satisfactory to the TLC, supplemented by all requested supporting documents, made by an Applicant to the TLC to determine the eligibility of an Applicant for a Grant, Supplemental Grant, or Supplemental Loan Deficiency Guaranty.
(3) Grant means one or more disbursements from the Medallion Relief Program for purposes of restructuring a medallion loan.
(4) Loan Restructure means the new terms agreed to by the Applicant with their lender for the medallion loan.
(5) Program Administrator means the entity selected by the TLC to receive Applications and distribute Grants, Supplemental Grants, and provide Supplemental Loan Deficiency Guaranties.
(6) Supplemental Grant means one or more disbursements from the Medallion Relief Program for purposes of supporting payments on loans restructured under the Medallion Relief Program.
(7) Supplemental Loan Deficiency Guaranty means a guaranty on the principal balance of Loan Restructure that meets the criteria established in subdivision (e) of this section provided by the Program Administrator to the Applicant's lender.
(b) Grant Eligibility Criteria. To be eligible for a Grant, an Applicant must satisfy the following criteria:
(1) Applicant must be a Medallion Owner;
(2) Applicant must possess an interest in no more than six (6) medallions;
(3) Applicant may not apply for more than one Grant per medallion in which the applicant has an interest;
(4) Only one Applicant may apply for a Grant for any particular medallion;
(5) Applicant must have acquired the interest in the medallion for which the Applicant seeks a Grant no later than March 9, 2021.
(6) Applicant's Application must contain a Loan Restructure that meets the following minimum standards:
(i) Reduce principal owed by at least 40% and a monthly payment under $2,000, or
(ii) Reduce principal owed by at least 30% and a monthly payment under $1,750, or
(iii) Reduce principal owed by at least 20% and a monthly payment under $1,500.
(iv) A Loan Restructure may be submitted with an Application if it does not meet the above minimum standards if:
A. The loan principal is reduced by at least 10%, and
B. The Loan Restructure contains other features, as determined by the Program Administrator, that are favorable to the Applicant, including extended payment terms, waiver of penalties and/or fees, absence of a confession of judgement, and other features the Program Administrator deems appropriate.
(c) Supplemental Grant Eligibility Criteria. To be eligible for a Supplemental Grant, an Applicant must satisfy the following criteria:
(1) Applicant must have received a Grant for a Loan Restructure.
(2) Applicant must demonstrate a discrete and resolvable economic or other personal hardship that the Program Administrator determines would temporarily and substantially hinder the Applicant from making the totality of the initial payments on the Applicant's Loan Restructure. Examples of such hardships include but are not limited to:
(i) Applicant does not have a Vehicle attached to the Medallion.
(ii) Applicant is temporarily unable to drive the Applicant's Taxi.
(d) Selection Criteria. Grant and Supplemental Grant funds will be awarded in order of completed applications received until such time as the funds are exhausted or TLC's agreement with the Program Administrator terminates.
(e) Supplemental Loan Deficiency Guaranty Eligibility Criteria. To be eligible for Supplemental Loan Deficiency Guaranty, an Applicant must satisfy the following criteria:
(1) Applicant must be eligible to receive a Grant provided in accordance with subdivision (b) of this section, meeting the criteria established in paragraphs (1) through (5) of that subdivision; and
(2) Applicant's Application must contain a Loan Restructure that meets the following minimum standards:
(i) Remaining principal balance of $170,000 or less,
(ii) A fixed interest rate of 7.3% or less,
(iii) Fully amortized over no less than 10 years and no more than 25 years,
(iv) Does not contain personal guaranties or guaranties other than the Supplemental Loan Deficiency Guaranty, and
(v) Level monthly loan payments do not exceed $1,235.00.
(3) Any recipient of a Supplemental Loan Deficiency Guaranty who fails to make payments in accordance with the Loan Restructure will be prohibited from acquiring an interest in a medallion for a period of five years from the date of default.
(Added City Record 10/14/2021, eff. 10/14/2021; amended City Record 3/24/2022, eff. 4/23/2022; amended City Record 9/29/2022, eff. 9/29/2022; amended City Record 1/30/2023, eff. 1/30/2023)