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AGENCY TESTIMONY
CityFHEPS program changes and cost management
0:26:15
·
127 sec
Commissioner Park explains the proposed changes to the CityFHEPS program and the rationale behind these adjustments to manage costs and ensure program sustainability.
- CityFHEPS has grown to be the second-largest rental subsidy program in the nation
- Program budget increased from $250 million in 2021 to $1.2 billion in 2025
- Proposed rule change for those renewing after 5 years with employment income:
- Increase household contribution from 30% to 40% of monthly income
- Other cost management measures:
- Scaling back the augmented CityFHEPS program for higher-rent units
- Implementing rent reasonableness checks to prevent overcharging
- Changes aim to ensure long-term sustainability of the CityFHEPS program
Molly Wasow Park
0:26:15
I understand the concerns that this proposed rule change has raised, and I want to take a moment to really address this head on.
0:26:23
Since its inception in 2018, CitiFeps has grown to become the second largest rental subsidy program in the nation behind only NYCHA's Section eight program.
0:26:33
As a result, the budget for the program has ballooned from $250,000,000 in 2021 to 1,200,000,000.0 this year.
0:26:41
So in other words, that is a fivefold increase in spending in the space of four years.
0:26:47
With the threat of federal cuts to other housing subsidy programs losing, DSS in coordination with OMB has strategically pursued a variety of measures to manage the cost of the city FEPS program including this proposed rule change.
0:27:00
So what the rule change does is for those renewing at year six, so people who have received after the five year standard term of the voucher, and who have employment income, DSS is proposing to change the baseline household contribution from 30% of the household's monthly income to 40% of households monthly income.
0:27:23
This is one of only several changes that DSS is making to the program to address the significant growth in costs and ensure the program is sustainable going forward.
0:27:32
Some other examples along with HPD, we have scaled back the augmented CityFepps program where the voucher can be used in higher rent units, and we are implementing rent reasonableness to make sure landlords are not overcharging us for units.
0:27:46
Just speaking personally, critical program.
0:27:52
It is something investing in the program and growing it has been really a hallmark of my tenure as commissioner.
0:28:00
But I also think it is really important that we are thinking about responsible financial management so that CityFepps can continue to serve as a lifeline going forward.
0:28:10
It is really, I think, one of the most important things that I can do as commissioner to make sure that CityFepps remains a strong program and that does mean making some changes so that we can bend the cost curve.
0:28:21
Next slide.