(The Center Square) — New York City will dramatically expand its housing voucher program after a state appeals court rejected Mayor Eric Adams’ effort to block the move he says will cost the city’s taxpayers more than $17 million.
The ruling by the Appellate Division of New York’s Supreme Court overturns a lower court ruling that sided with the Adams administration over its decision not to implement a package of laws passed by the City Council to expand eligibility for the city’s rental subsidy program.
“The City Council, as the legislative branch of city government, has the right to pass local laws crafting putative shelter supplements,” Justice John R. Higgitt wrote for the First Division appellate panel.
A City Hall spokeswoman criticized the ruling, saying that adding more vouchers to the program will cost New York City taxpayers an estimated $17 billion over the next five years and “make it harder for people to leave homeless shelters.”
“The affordable-housing crisis won’t be solved by making people compete for nonexistent housing,” Adams spokeswoman Liz Garcia said in a statement. “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 Democratic-led City Council approved a package of bills last year allowing New Yorkers facing eviction to apply for rental vouchers and eliminate a rule requiring people to stay in shelters for 90 days before they are eligible to receive a voucher. It also prohibits landlords from deducting utility bill charges from a voucher and raises the cutoff income level to qualify for assistance, among other changes.
Adams, a Democrat, vetoed the proposal, saying it would be too costly to the city. He estimated it would cost $17 billion over the next five years, $7 billion more than the council had initially projected.
But the council overrode Adams’ veto by a vote of 42-8 in July, ordering the mayor to implement the changes. Adams refused, and the council responded with a lawsuit claiming he is legally bound to implement the law. The council also joined a class action lawsuit by several low-income New Yorkers against Adams over his “failure” to enact the new requirements.
The Adams administration argued in court filings that state law prevents the City Council from making major changes to public assistance programs. But the panel of judges disagreed in its ruling.
“We conclude that the City Council was not preempted from legislating in the field of rental assistance,”wrote. “In fact, the City Council has many times exercised its legislative power in the social services realm.”
Under the CityFHEPS program, a household must have a gross income at or below 200% of the federal poverty level and face eviction. About 36,000 households use the program, according to the city.
In 2023, the city spent nearly $500 million on the program, almost double what it spent in 2021, according to the city’s Independent Budget Office.
