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A00501 Summary:

BILL NOA00501
 
SAME ASSAME AS S00602
 
SPONSORMagnarelli (MS)
 
COSPNSRZinerman
 
MLTSPNSRDavila
 
Add §131-ww, amd §§131-w & 131-r, Soc Serv L
 
Relates to the payment of shelter and rent arrears; provides that all shelter arrears payments authorized for applicants to receive an emergency grant to pay for rent, property taxes or mortgage arrears shall be limited to once every year unless the district determines at its discretion that additional shelter arrears payments are necessary based on the individual circumstances.
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A00501 Actions:

BILL NOA00501
 
01/08/2025referred to social services
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A00501 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A501
 
SPONSOR: Magnarelli (MS)
  TITLE OF BILL: An act to amend the social services law, in relation to the payment of shelter and rent arrears   PURPOSE OR GENERAL IDEA OF BILL: This bill would amend certain eligibility criteria for accessing emer- gency grants to pay for rent, property taxes, or mortgage arrears.   SUMMARY OF PROVISIONS: Section 1: Amends the Social Service Law to create a new section 131-ww. Section 131-ww specifies that emergency grants for rental, mortgage, and property tax arrears will be available to applicants once every year (current regulations specify no more than once every five years) unless the district uses discretion to allocate more funding. This section also states that applicants will not be required to demonstrate an ability to pay shelter expenses or prove that they can make repayments. The section ends by instructing the commissioner to promulgate regulations in line with the requirements of this section of law. Section 2: Amends section 131-w of the social services law to increase the gross household income cap from 125% to 200% of the federal income official poverty line. Section 3: Amends subdivision 1 of section 131-r of the social services law to change the way in which lottery winnings can be used to claw back emergency grants for rental, mortgage, and property tax arrears. Pres- ently, there is a lookback window of 10 years, and any winnings in excess of $600 may be clawed back. This bill changes the lookback window to five years and increases the threshold at which winnings may be clawed back to $20,000. Section 4: Establishes the effective date.   JUSTIFICATION: New York State's housing costs arrears eligibility guidelines have been in place for decades and apply an outdated set of standards to those seeking funds to stay in their home. These antiquated standards are far too narrow, and as a result, thousands of individuals who need help are unable to access it. New York State is battling a dual housing and homelessness crisis. As rents continue to rise throughout the state, many families are struggl- ing to keep up. While New York saw a sharp decline in the number of evictions during the pandemic moratorium, eviction filings are now rising at a startling pace. From their low of 69,346 filings during the peak of the pandemic in 2021, statewide filings have risen drastically to 212,464 in 2023. Evictions are disruptive for the community at every level. For individ- uals, a forced move can take a toll both financially and on their health. At the community level, evictions disrupt the social cohesion of neighborhoods. Constant churn in residents makes it much more difficult for neighbors to get to know and trust one another. Upstate New York has been hit particularly hard by the housing and cost of living crisis. As a result, rather than coming about due to the actions of a tenant or the lapse of a lease, most evictions are a result of a tenant's inability to pay. In Buffalo City Court for example, over the last 5 years, 85% of evictions were filed due to non-payment. Just last year, in Erie County at large, non-payment was the cause of 83% of eviction warrants that were issued. This figure is on par with many other large counties throughout the state. That means that for most people facing an eviction, the only thing that will keep them in their homes is access to housing costs arrears funds. Eviction proceedings are costly and time consuming for everyone involved: tenants, landlords, and the courts. None of the parties leaves the court feeling like they achieved their ideal outcome. Avoiding a court case is better for all parties. Not only is housing court time consuming and costly, forcing families out of their homes and into the shelter system also generates huge costs to the state and localities. For each household in the shelter system the state pays almost $13,000 in total. Given that the average eviction is filed for a sum as small as $1,200, making housing costs arrears funds more accessible will ultimately be a cost saving measure for the state. Since these funds are already dispersed and only going unused due to obsolete restrictions, enacting this bill will result in no addi- tional cost to the state.   LEGISLATIVE HISTORY: 2024: A.9372-A   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect immediately.
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A00501 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           501
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 8, 2025
                                       ___________
 
        Introduced  by M. of A. MAGNARELLI, ZINERMAN -- Multi-Sponsored by -- M.
          of A. DAVILA -- read once and referred  to  the  Committee  on  Social
          Services
 
        AN  ACT  to amend the social services law, in relation to the payment of
          shelter and rent arrears

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1. The social services law is amended by adding a new section
     2  131-ww to read as follows:
     3    § 131-ww. Shelter arrears. 1.  Applicants  may  receive  an  emergency
     4  grant  to  pay  for  rent, property taxes or mortgage arrears once every
     5  year unless the district determines at its  discretion  that  additional
     6  shelter  arrears  payments are necessary based on the individual circum-
     7  stances.
     8    2. In an application for an  allowance  to  pay  shelter  arrears,  an
     9  applicant shall not be required to demonstrate an ability to repay shel-
    10  ter  expenses, rent, property taxes, or mortgage payments going forward,
    11  nor shall a district consider an applicant's ability  to  make  payments
    12  under any repayment agreement.
    13    3.  Unrepaid  shelter expenses shall have no bearing on an applicant's
    14  eligibility to receive additional loans.
    15    4. The commissioner shall promulgate regulations consistent with  this
    16  section.
    17    §  2. Section 131-w of the social services law, as added by chapter 41
    18  of the laws of 1992, is amended to read as follows:
    19    § 131-w. Limitations in the payment of rent arrears.  Districts  shall
    20  not  provide  assistance to pay rent arrears, property taxes or mortgage
    21  arrears for persons not eligible for home relief, aid to dependent chil-
    22  dren, emergency assistance to needy families with children or  emergency
    23  assistance  for  aged, blind and disabled persons, except to persons who

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01309-01-5

        A. 501                              2
 
     1  are without income or resources immediately available to meet the  emer-
     2  gency  need[,]  and  whose  gross  household income does not exceed [one
     3  hundred twenty-five] two hundred percent of the federal income  official
     4  poverty  line  [and who sign a repayment agreement agreeing to repay the
     5  assistance in a period not to exceed twelve months.  The districts shall
     6  enforce the repayment agreements by any  legal  method  available  to  a
     7  creditor,  in  addition  to any rights it has pursuant to this chapter].
     8  The department shall promulgate regulations to  implement  this  section
     9  which  shall,  among other things, [establish standards for the contents
    10  of repayment agreements and] establish standards to ensure that  assist-
    11  ance is provided only in emergency circumstances.
    12    §  3.  Subdivision  1  of section 131-r of the social services law, as
    13  added by chapter 81 of the laws of 1995 and as designated by chapter 340
    14  of the laws of 2003, is amended to read as follows:
    15    1. Any person who is receiving or has received,  within  the  previous
    16  [ten]  five  years, public assistance pursuant to the provisions of this
    17  article, and who wins a lottery prize of [six hundred]  twenty  thousand
    18  dollars  or  more  shall reimburse the department from the winnings, for
    19  all such public assistance benefits  paid  to  such  person  during  the
    20  previous [ten] five years; provided, however, that such crediting to the
    21  department  shall  in no event exceed fifty percent of the amount of the
    22  lottery prize. The commissioner shall enter into an agreement  with  the
    23  director  of the lottery, pursuant to section sixteen hundred thirteen-b
    24  of the tax law, for the  crediting  of  lottery  prizes  against  public
    25  assistance  benefits. Nothing herein shall limit the ability of a social
    26  services district to make  recoveries  pursuant  to  section  [104]  one
    27  hundred four or section [106-b] one hundred six-b of this chapter.
    28    § 4. This act shall take effect immediately.
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