City Hall has so far refused to carry out the package of bills passed by the Council in 2023, which would expand CityFHEPS eligibility to any income eligible household at risk of eviction, among other changes.
Mayor Eric Adams’ administration must implement a package of laws passed by the City Council to expand eligibility for the city’s rental subsidy program, an appeals court ruled Thursday—overturning an earlier ruling that sided with City Hall in its refusal to carry out the changes.
A panel of judges in the Supreme Court of the State of New York’s Appellate Division issued the latest ruling, siding with lawmakers and the Legal Aid Society, which had sued the Adams administration on behalf of New Yorkers who it says would be eligible for rental subsidies under the Council’s expansion but have been unable to access the aid due to City Hall’s stonewalling.
“Today’s unanimous appellate decision is a critical moment for thousands of New Yorkers struggling with housing insecurity,” said Robert Desir, staff attorney in the Civil Law Reform Unit at The Legal Aid Society, in a statement Thursday. “At a time when affordability remains one of the most pressing challenges in New York City, this decision marks a significant step toward a housing system that is accessible and fair for all.”
Mayor Adams had initially vetoed the package of bills when the Council first passed them in 2023, saying expanding eligibility for the City Family Homelessness and Eviction Prevention Supplement program, or CityFHEPS, would be too costly and would increase competition for existing voucher holders trying to find apartments. The Council then overrode his veto.
But City Hall still refused to carry out the laws, one of which would increase the income eligibility threshold for CityFHEPS—from 200 percent of the poverty line to 50 percent of area median income, equal to $81,000 a year for a four-person household. Another piece of the legislation would extend eligibility to any income eligible household “at risk of eviction,” demonstrated with a rent demand letter, even if the tenant does not yet to have an eviction case in court.
A spokesperson for the mayor’s office said that they are currently reviewing their legal options.
“The Adams administration has utilized CityFHEPS more than any prior administration—helping an unprecedented number of New Yorkers obtain permanent housing last year,” First Deputy Press Secretary Liz Garcia said in a statement.
“But 13,000 households are still trying to use their CityFHEPS vouchers to find permanent housing, and we must focus on them. Adding more vouchers will only make it harder for people to leave homeless shelters,” Gracia added. “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.”
The administration has sought in recent months to rein in its spending on CityFHEPS, in which voucher holders typically pay up to a third of their income on rent, with the subsidy covering the rest. The program’s budget grew from $253 million in fiscal year 2021 to $1.25 billion in fiscal year 2025, as it serves more people than ever, with 55,000 households currently enrolled.
But housing advocates and current voucher holders argue it costs less to keep New Yorkers housed with vouchers than pay for shelter stays and the other societal costs of homelessness.
“What is the cheaper one here?” said Diana Ramos, a member of the Urban Justice Center’s Safety Net Activists. “And why wouldn’t you help someone who’s getting evicted stay in their place? You know, it helps all the way around. The landlord gets their money, the person stays in their apartment.”
Ramos is a voucher holder herself, having used CityFHEPS to move from shelter to her current apartment about three years ago. Hunting for an apartment that would take her voucher was tough, she said, but “at least I have a roof over my head, and I’m out of shelter, which was starting to really affect my mental health.”
Adolfo Abreu, the housing campaigns director for the advocacy group VOCAL-NY, said City Hall could potentially appeal Thursday’s ruling, but hopes the administration will instead focus on carrying out the new laws.
“This is the time for us to engage in implementation, and talk about who are the populations that we’re serving,” Abreu said. “Instead of just saying simply ‘no,’ we can provide support.”
The Adams administration had argued in court that New York State’s Social Services Law precludes city lawmakers from legislating on public assistance reforms. But the appeals court disagreed in its ruling Thursday.
“We conclude that the City Council was not preempted from legislating in the field of rental assistance,” Justice John R. Higgitt wrote. “In fact, the City Council has many times exercised its legislative power in the social services realm.”
The court ordered the Adams administration to present the package of expansion laws to the State’s Office of Temporary and Disability Assistance (OTDA) for approval.
“It is unfortunate that for two years Mayor Adams’ administration stood in the way of removing barriers to housing vouchers that keeps New Yorkers in their homes,” City Council Speaker Adrienne Adams said in a statement Thursday. “We urge the mayor to finally prioritize implementation of the reform laws to help more New Yorkers find housing stability.”
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