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Published on January 24, 2025
New York City's Rental Assistance Facing $500M Shortfall in Mayor Adams' Proposed BudgetSource: Unsplash/Jon Tyson

Amid Mayor Eric Adams' promises to tackle the homelessness crisis with a compassionate approach, his latest budget submission raises eyebrows with a significant underfunding of rental assistance programs. According to Gothamist, the CityFHEPS voucher program, designed to prevent homelessness and assist those in shelters, faces a $500 million shortfall in the proposed budget despite being funded over $1 billion in the current fiscal year.

The Citizens Budget Commission, a leading watchdog, echoes the concern over the mayor’s financial plan for housing assistance. "It is a big cliff," said Sean Campion, the commission's director of housing and economic development studies, referring to the gap between this year's and next year’s funding for CityFHEPS. Meanwhile, Christine Quinn, former City Council speaker and current head of a family shelter and supportive services provider, criticized the city's approach, stating, “It is intellectually dishonest and fiscally irresponsible.” Nevertheless, a spokesperson for the mayor assured that their administration is “moving in the right direction at an unprecedented rate,” in a statement obtained by Gothamist.

Adding to the fiscal scrutiny, the New York Post reports that the mayor's proposed budget overall might be in worse shape than it appears. With a $114.5 billion price tag, the budget projects an appearance of controlled spending. However, the Citizens Budget Commission warns that next year's spending "does not reflect reality," being short nearly $4 billion, a situation highlighted as the city gears itself for future potential shortfalls and hard financial choices. Andrew Rein, the commission's president, points out actual spending growth way above inflation, stating, "Hard choices and better management are needed to improve New Yorkers’ quality of life," according to a New York Post op-ed.

On the ground, the implications of underfunding such programs directly impact New Yorkers in need. Stephanie Rudolph, an attorney with the Legal Aid Society’s Homeless Rights Project, told Gothamist, "Some people will qualify the minute they move into a shelter, but then don't see a shopping letter for months and months.” This delay undoubtedly puts additional stress on those the program was crafted to serve, who are already navigating the complexities of homelessness. The issue becomes a thornier conundrum when observed through the lens of fiscal efficiency, as Quinn remarked, “a night in a shelter is more than three times the cost of a night in a permanent apartment that you're paying for with a voucher.”