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PUBLIC TESTIMONY
Testimony by Eric Lee, Director of Public Policy at Volunteers of America Greater New York
3:40:32
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Eric Lee, Director of Public Policy at Volunteers of America Greater New York (VOAGNY), testified about the fiscal challenges faced by the organization due to delayed payments on city contracts. He emphasized the need for timely reimbursements and additional staff to address backlogs in contract processing.
- VOAGNY is owed approximately $40 million for city contracts dating back to FY2017
- The organization has spent $1 million in non-reimbursable interest this fiscal year due to contract delays
- Lee supports Council Member Brandon's bill (Intro 514) to make interest reimbursable to nonprofits
Eric Lee
3:40:32
Hi.
3:40:32
Good afternoon.
3:40:33
Thank you deputy speaker Ayala and members of the committee for allowing me the opportunity testify today.
3:40:39
My name is Eric Lee.
3:40:40
I'm the director of public policy at Volunteers of America Greater New York or VOAGNY.
3:40:46
We are 100 and a 128 year old anti poverty organization serving more than 12,000 adults and children annually through our 70 plus programs, including affordable and supportive housing and shelter throughout New York City, Northern New Jersey, and Westchester.
3:41:02
I will submit written testimony with more details, but I would like to use my time to focus on the fiscal challenges that VOA GNY is facing with our city contracts.
3:41:13
We've we've been providing shelter since 1991 when DHS first first started contracting with nonprofits to do family shelter.
3:41:20
We operate five transitional housing, programs as well as three crisis shelters for families with children serving over 670 families, as well as a single women's employment shelter, single men's shelter, as well as a safe haven, and our Housing First DHS pilot program placing people from the street directly into supportive housing.
3:41:42
As federal uncertainty grows, New York City must meet the moment and shore up our human services safety net to restore the fiscal health of city contracted nonprofit providers and to blunt the impact of federal cuts and delays.
3:41:55
VOA GNY is grateful for this committee's commitment to improving the procurement process as well as for the city's efforts to try to pay our, our contracts.
3:42:05
But to date, we are still owed approximately $40,000,000 for city contracts dating as far back as FY seventeen.
3:42:12
Timely reimbursements are critical to maintaining our ability to continue to answer the city's call to stand up new programs and to maintain the flow of our development pipeline for affordable and supportive housing, sites.
3:42:25
To that end, MOCs, DSS, and DHS need additional headcount to eliminate the backlog for pending budget amendments and modifications, new needs requests, form 65 a, as well as pending invoices.
3:42:37
And just one final point, we have spent $1,000,000 in interest, which is not reimbursable this fiscal year because of city contract delays, and we forecast 1,500,000.0, next year if we're not able to get these payments on time.
3:42:52
And we support, council member Brandon's bill five one four, which would make this interest reimbursable to our, nonprofit.
3:42:59
Thank you.