Proposed rule would increase rent burden for some CityFHEPS recipients in sixth year
A proposed rule change that would increase rent obligations for some New York City housing voucher recipients is facing backlash from a coalition of tenant advocacy groups and real estate industry representatives.
The rule, introduced by mayor Eric Adams’ administration, would raise the rent contribution for certain CityFHEPS (City Family Homelessness and Eviction Prevention Supplement) voucher recipients from 30% to 40% of their income if they have earned income and are renewing the voucher for a sixth year.
Originally expected to affect one-quarter of voucher holders, city officials now estimate that the adjustment would apply to just 3% to 4% of recipients, approximately 1,800 households in the next fiscal year.
According to the city’s Department of Social Services, the goal is to promote “a gradual transition off CityFHEPS as they achieve self-sufficiency.”
Commissioner Molly Wasow Park added that a “financially sustainable approach is better than having to make harder decisions down the line which could impact extensions or the issuance of new vouchers.”
However, housing and homelessness advocacy groups, including shelter provider Win, the Legal Aid Society, Community Service Society, Coalition for the Homeless, and VOCAL-NY, argue the change risks pushing more families toward eviction and back into the shelter system.
“We don’t need to make changes to that program which are going to force more people to be unable to pay their rent, face evictions and end up in shelter or on the street,” said Christine Quinn, CEO of Win and former New York City Council speaker.
This coalition, joined by the Real Estate Board of New York (REBNY), a group typically aligned with landlord interests, will voice its opposition at a public hearing scheduled for May 30. REBNY’s involvement reflects landlords’ interest in maintaining stable rental income via housing vouchers, especially for small- and mid-sized property owners.
“There are a lot of small- and medium-sized building owners who really are the pipeline for the apartments that our staff helps our clients find,” Quinn said. “For those landlords, vouchers can be a very stable source of income.”
The CityFHEPS program has become a cornerstone of the city’s housing assistance framework, helping 31,000 New Yorkers secure or retain housing last year. But the program’s cost has ballooned, with spending increasing from $253 million in fiscal year 2021 to a projected $1.25 billion this year. The Adams administration argues that changes are needed to preserve the program's viability.
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In a statement, City Hall spokesperson William Fowler criticized Quinn and others for opposing cost controls while benefiting from city contracts.
“The proposed change would only apply to those with a steady job, after receiving CityFHEPS payments for five years, allowing us to focus our resources on the city’s most vulnerable while protecting the long-term financial stability of the program overall.”
The Adams administration is also currently in a legal dispute with the City Council over the scope of eligibility for CityFHEPS vouchers. Although some eligibility expansions, like removing the 90-day shelter requirement, have been enacted, advocates argue that broader reforms are still needed.
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