NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1504
SPONSOR: Rosenthal
 
TITLE OF BILL:
An act to amend the social services law, in relation to removing the
requirement that rent arrears be repaid
 
PURPOSE::
To remove the requirement that social service districts must recoup rent
arrears.
 
SUMMARY OF PROVISIONS::
Section one amends section 131-w of the social services law.
Section two establishes the effective date.
 
JUSTIFICATION::
The housing and homelessness crisis in New York State has only worsened
since the start of the COVIDI9 pandemic. In New York City alone, more
than 55,000 New Yorkers sleep in shelters each night. Over the course
of 2020, New York City's shelter system housed nearly 123,000 different
individuals. Concurrently, we are also facing an affordable housing
crisis in the state. More than 40 percent of renter households in the
City are considered rent burdened, meaning that they spend more than 30
percent of their monthly income on rent. A quarter of all households
are considered severely rent burdened as they spend more than 50 percent
of their income on rent. Looking specifically at low-income renters, a
report by the Community Service Society found that more than 70 percent
of low-income renters in New York City are rent-burdened. Individuals
who fall behind on rent payments and/or are at risk of becoming homeless
may be eligible to obtain an emergency assistance grant from their local
social service district, often referred to as a "one shot deal," which
will cover rental arrears and prevent eviction, provided that they can
supply proof of their ability to pay rent going forward.
However, current law requires that emergency grants of rental arrears be
repaid, a requirement that many low- and moderate-income families simply
cannot meet. The repayment requirement likely discourages many otherwise
eligible people from applying for this vital form of eviction prevention
assistance. Such emergency assistance grants are intended to provide
individuals a lifeline and enable them to remain in their homes, but a
requirement to repay rental arrears can cause further financial
distress. This legislation would remove the requirement that individuals
repay rental arrears and forgive arrears accumulated during the COVID-19
pandemic.
 
LEGISLATIVE HISTORY::
2023-24: A.5514 - Referred to Social Services; S.6181- Advanced to Third
Reading
2021-22: A.7048 - Referred to Ways and Means; S.6845 - Referred to
Social Services
 
FISCAL IMPLICATIONS::
Undetermined.
 
EFFECTIVE DATE::
This act shall take effect immediately.