Ditching decades-long barrier for homeless families could save NYC millions: Study

Some homeless New York families are required to spend months in a shelter before they become eligible for a voucher for more permanent housing. And removing the decades-long requirement could save the city millions as it currently faces economic uncertainty, according to a new study out Monday.

“There is no good reason for it: it costs money, it causes more trauma and it reduces the amount of time people have to look for housing,” said Christine Quinn, president and CEO of Win, which provides shelter and supportive services for homeless families with children and authored the study.

Homeless families with children must spend three months in a homeless shelter before they can access a CityFHEPS housing voucher, in what is known as the city’s 90-Day Rule. It’s been a source of frustration for some politicians and homeless advocates who say that shelters require more money to upkeep – and prolongs a psychologically challenging period for young children.

The push to end the requirement is being compounded by the city’s ongoing economic uncertainty. Mayor Eric Adams already called for steep budget cuts across various agencies in anticipation of the ongoing influx of migrants into the city now that a pandemic-era measure that previously quelled these numbers is now expired. Advocates are now calling for the adoption of legislation – backed by half of the City Council – that would end this rule.

Ditching the 90-day-rule could save the city “tens of millions of dollars,” according to Quinn.

“Three months out of a little child’s life is a great deal of time,” Quinn said. “So beyond just the inhumanity of it, it costs the city money. Putting someone in permanent housing – with a voucher – is significantly cheaper than it is to pay for someone in a shelter, and even cheaper than the most expensive welfare hotel option.”

Housing a singular family of three in a traditional shelter costs the city $188 per night – and the number climbs to $383 if it's an emergency hotel shelter, according to the analysis from Win. In contrast, the city would spend $72 a night if it gave that same family a housing voucher – and it would open up space in shelters for the other tens of thousands of homeless New Yorkers.

“If we intend to solve the bottlenecks within our shelter system, then we must take a look at all the policies in place that are contributing to that bottleneck, including the 90-day rule,” Councilmember Diana Ayala, who represents parts of Manhattan, including El Barrio and East Harlem, and is the bill’s primary sponsor, said in a press release.

The mayor’s office said it will be reviewing the report.

“This administration has implemented a wide range of reforms to cut the red tape and significantly strengthen and expand access to CityFHEPS, the only city-funded rental assistance in the country. We also continue to make investments in social services and support for shelter clients, providing dedicated case management and equipping them with the tools that will truly help stabilize their lives and position them for long-term housing stability," a City Hall spokesperson told Gothamist on Sunday. "The scope of this work is reflected in the declining rate of clients who are placed in subsidized housing and return to shelter year-on-year. "

This story has been updated with a comment from the mayor's office.

By

Giulia Heyward

Published May 14, 2023

Modified May 14, 2023