A state judge struck down a class-action lawsuit filed on behalf of low-income New Yorkers attempting to force Mayor Eric Adams to implement a package of legislation expanding access to city-funded rental assistance vouchers. But the New York City Council, which passed the measures, pledged to appeal the decision.
Manhattan Supreme Court Judge Lyle Frank ruled on Thursday that the Council lacked the authority to expand access to the CityFHEPS voucher program for people facing eviction or homelessness to New Yorkers who earn above what current rules allow. Tenants who receive CityFHEPS assistance typically pay 30% of their income toward rent, and city-funded vouchers cover the rest.
Attorneys for the city “established that the City FHEPS reforms laws are invalid” because state law empowers local social services agencies — not legislative bodies like the City Council — to set eligibility rules, Frank wrote in his decision.
The ruling is a win for Adams, who vetoed the measures in June 2023. His administration pointed to state law to justify blocking the measures and claimed they would cost billions of dollars to enact. But the City Council voted to override Adams’ veto and said expanding the program would help thousands in need of housing help.
“While we are glad that the court agrees with our administration that these laws went beyond the City Council’s legislative authority, we are hopeful that our partners in the Council will join us in remaining committed to working to connect New Yorkers in need with safe, affordable, permanent housing,” Adams said in a statement.
The ruling also marks a serious setback for low-income New Yorkers struggling to pay rent as the availability of affordable apartments plummets to new lows and as rents around the five boroughs continue to surge.
The nonprofit Legal Aid Society sued the city in a class-action case in February, naming four low-income New Yorkers excluded from the CityFHEPS program. The lawsuit’s goal was to force the Department of Social Services to implement the rules passed by the Council and help more people facing homelessness get rent aid.
New York City’s shelter population and median rents are at record highs, with evictions rising sharply following a pandemic-related freeze that ended in 2022. City marshals have completed more than 19,000 residential evictions since the start of last year, city data shows.
Robert Desir, an attorney at the Legal Aid Society, said the judge’s decision on Thursday “will have a devastating impact on thousands of New Yorkers on the brink of eviction or already experiencing homelessness, and it will cost the city millions of dollars on shelter costs.”
Desir said his organization is considering appealing the decision.
Rendy Desamours, a spokesperson for the City Council, said in a statement that the Council would pursue an “immediate appeal” of the judge’s ruling.
“It’s unfortunate that Mayor Adams’ administration has fought to delay help to New Yorkers that can prevent them from evictions and homelessness amidst a housing crisis,” Desamours added.
Council Deputy Speaker Diana Ayala, who chairs the legislature’s general welfare committee and represents parts of East Harlem and the South Bronx, called the decision “obviously disappointing.”
“It’s disappointing to the thousands of families waiting for a voucher and on the verge of eviction and whose apartments could be saved today if this law was in effect,” she said.
Adams has previously complained about the potential cost of expanding the CityFHEPS program to more New Yorkers, though the Council has disputed the administration’s calculations.
At a press conference on Monday, Adams defended his decision to block the legislation from taking effect.
“When you look at the number of people who currently are in possession of CityFHEPS vouchers … and now you want to add on a substantial increase with people having CityFHEPS vouchers, you’re going to overburden the program,” he said. “There’s so many programs and incentives that we need to do to make sure we don’t get people removed from their apartment.”
Molly Park, commissioner of the Department of Social Services, pointed to other city assistance for low-income renters, including “one-shot deal” emergency grants to cover back rent and free legal representation.
“We have a spectrum of services to do that,” she said. “Expanding CityFHEPS really is using a sledgehammer for something that can have much more surgical intervention.”
Both the one-shot deal program and the city’s right to counsel in housing court are plagued by funding shortfalls and bureaucratic problems. As Gothamist previously reported, the city’s social services agency denies most emergency assistance grants for people facing eviction.
Roughly 11,000 households currently use CityFHEPS vouchers to help pay their rent, according to city statistics.
This story was updated to include a statement from Mayor Eric Adams and the New York City Council.