A state appeals court has ordered New York City to expand its housing voucher program, rejecting the Adams administration’s previous attempts to block it. On Thursday, a five-judge panel ruled that the City Council had the legal authority to expand the CityFHEPS voucher program, overturning a 2024 decision that had sided with the mayor. The Council first passed the legislation package in May 2023 and overrode Adams’ veto of the bills, prompting the administration to sue over policy concerns and the program’s estimated $17 billion price tag.
CityFHEPS allows tenants to contribute 30 percent of their income toward rent, with the rest covered by the city. The program supports low-income New Yorkers who are homeless or at risk of eviction. Currently, about 52,000 households receive vouchers.
The legislation expands the program by removing the rule that requires unhoused individuals to spend at least 90 days in a shelter before qualifying for a voucher, allowing applicants to prove eviction risk with a rent demand letter, and increasing income eligibility from 200 percent of the federal poverty level to 50 percent of the area median income.
Rejecting Adams’ argument that the legislation conflicted with state law, the unanimous ruling found that only the mayor-controlled Department of Social Services had the right to change the voucher program, according to Gothamist. The previous ruling had found that the Council’s bill was invalid, “preempted by the state’s social services law,” and the Council had no authority to expand the program.
Appellate Judge John Higgit, in the ruling, rejected Adams’ claims that the Council’s voucher expansion violated city law:
“The FHEPS reform laws do not conflict, directly or indirectly, with State law. The mayor maintains that the City Council’s efforts to legislate on the subject of rental assistance conflict with the Social Service Law because that law delegated to the City DSS the authority to make policy decisions regarding rental assistance.”
Higgit continued: “We disagree with the Mayor that the City DSS is the social services district for the City, and the failure of this starting premise dismantles his conflict preemption position.”
Adams estimated the legislation would cost the city $17 billion over five years and argued it would make it harder for shelter residents to secure permanent housing by increasing competition for the few available units. The Council’s economists projected a $10 billion cost, while some housing advocates estimated it at just $3 billion, according to Crain’s.
City Hall spokesperson Liz Garcia told Crain’s the administration is reviewing its legal options. She added that the mayor has already taken steps to improve CityFHEPS, removing the three-month shelter stay requirement for shelter residents to use the vouchers, making nearly 8,000 more eligible.
“But 13,000 households are still trying to use their CityFHEPS vouchers to find permanent housing, and we must focus on them,” Garcia said. “Adding more vouchers will only make it harder for people to leave homeless shelters.”
She continued: “The affordable housing crisis won’t be solved by making people compete for nonexistent housing; it will be solved by building more housing—which the Adams administration has done at record levels—and actually connecting people who already have vouchers to homes.”
Adams vetoed parts of the legislation in June 2023, arguing it would be too costly for the city and could make it harder for homeless New Yorkers to secure housing. The City Council had passed the package the month before with a veto-proof majority.
That December, the city’s Department of Social Services sent a letter to the Council claiming the voucher reforms could not be implemented due to “substantial financial, operational, and legal issues,” according to The City.
In February 2024, the City Council filed a motion to join a class-action lawsuit brought by the Legal Aid Society against the Adams administration for failing to implement the new laws, which were set to take effect on January 9. In August 2024, a Manhattan Supreme Court judge rejected the lawsuit.
The most recent ruling marks a victory for the City Council and low-income New Yorkers struggling to afford the cost of living amidst a historic housing shortage.
Murad Awawdeh, president and CEO of the New York Immigration Coalition—which represents over 200 immigrant and refugee rights groups across New York—celebrated the court’s ruling.
“Today’s court ruling is a hard-fought victory for low-income New Yorkers who have been pushed to the edge by our city’s affordability and housing crisis,” Awawdeh said. “The expansion of CityFHEPS will provide thousands of families facing eviction and homelessness with a much-needed lifeline, offering the chance to build a home with stability and dignity.”
He continued: “All New Yorkers deserve to have the support they need to move from barely surviving to thriving–able to put down roots, contribute to their neighborhoods, and build stronger futures.”
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