Testimony: Raising Rents for Voucher Holders Will Backfire

Testimony: Raising Rents for Voucher Holders Will Backfire

Samuel Stein

Thank you for the opportunity to testify about the proposed CityFHEPS rule changes. My name is Samuel Stein, and I am a senior policy analyst at the Community Service Society of New York (CSS). CSS is an independent nonprofit organization that has been addressing the most urgent issues facing low-income New Yorkers for over 180 years, including the city's chronic housing unaffordability crisis.

The Human Resources Administration (HRA) has proposed three significant rule changes. In the interest of time, I will focus my remarks on one: the proposal to increase rent contributions for certain CityFHEPS voucher holders. For the record, however, CSS supports the expansion of the Unlocking Doors Initiative, which offers capital support to improve rent stabilized housing units without raising rents. We also applaud efforts to help pregnant New Yorkers find stable homes quickly, although we have concerns about the methodology of the proposed study, which will be discussed in greater detail by the Coalition for the Homeless in their testimony today.

CSS is deeply concerned about both the impacts and the efficacy of the proposed rent contribution increase for income-earning CityFHEPS voucher holders who have been in the program for more than five years. The median single individual affected by this change would pay an additional $576 in rent annually, while the median family with children would be obligated to pay $384 more each year-money that will no longer be available for food, medicine, and other essential expenses.

Despite the harm such increases would cause, the projected financial savings are minimal. At a recent hearing, the HRA projected that this proposal would yield just $11 million in savings-roughly 0.01% of the City's annual budget. Yet even these modest savings may never materialize. Many formerly homeless voucher holders may be unable to meet the new rent standards, prompting increased reliance on emergency financial assistance from the city in the form of "one shot deals" to cover rent arrears.

Additionally, even a small number of long-term CityFHEPS recipients returning to the shelter system could negate the projected savings. For example, if just one percent of these households is forced to re-enter a shelter for the average length of stay, the associated costs would likely offset any budgetary gains. If a higher percentage returns to homelessness, the city will increase its overall costs.

A housing assistance program should not impose greater burdens on the very people it was designed to support. Rather than penalizing long-term housing stability, the city should be focused on strengthening CityFHEPS to ensure it continues to provide effective, lasting support for those working to maintain a foothold in one of the most expensive housing markets in the country.

Issues Covered

Affordable Housing

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