CITYFHEPS IN THE COMMUNITY OVERVIEW

NOVEMBER 20, 2024

3:00 - 4:00 P.M.

PRESENTATION FOR HOUSING COURT ANSWERS

AT FORDHAM LAW SCHOOL�

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PRESENTED BY:

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SUSAN C. BAHN (SHE/HER)

SCBAHN@LEGAL-AID.ORG

© The Legal Aid Society (November 2024)

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Background: The the Main Players, and the Policy Framework

The Players: The NYC Human Resources Administration

• The New York City Human Resources Administration (HRA) is dedicated to fighting poverty and income inequality by providing City residents in need with essential benefits such as Cash Assistance, food assistance, and Emergency Rental Assistance.
• As the largest local social services agency in the country with over 14,000 staff, HRA helps more than 3 million New Yorkers annually through the administration of more than 15 major public assistance programs.
• Since 2017 HRA is under the Department of Social Services (DSS), which also includes the Department of Homeless Services (DHS) that is charged with providing shelter and rehousing services for NYC.

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HRA Vendors and OverSight

• Homebase – HRA contracts with non-profit providers for homelessness preventions services to assist households in the community to avoid shelter entry. Homebase serves over 25,000 households annually and helps households in the community enroll for rental assistance and provides as-needed aftercare for households on HRA subsidies.
• Office of Civil Justice – oversees the City’s civil legal services programs including Universal Access (free legal services, established by Local Law, provided to any City resident facing eviction, regardless of income or immigration status). In 2023, 98,077 individuals and 43,716 households were provided with free legal assistance.

Relevant Government and Not-for-Profits Related to Homelessness Prevention for CityFHEPS

Gov’t Agencies and Units

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HRA’s Homeless Prevention Administration Units include:

• Rental Assistance Program (RAP) – processes CityFHEPS applications, renewals, and modifications located at East 16^th Street
• Landlord Ombudsman Services Unit (LOSU) –CityFHEPS checks and Housing Court Reports

Not-For-Profits

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HomeBase:

• A network of private nonprofits tasked with preventing homelessness & funded by City DSS
• Only HomeBases are able to process CityFHEPS move applications. Also do CityFHEPS stay cases and other rent arrears. Demand is extremely high.
• Two legal services organizations (LAS and LSNYC) have been authorized to submit CityFHEPS to stay applications for their housing clients since April 2023.

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NYS Constitutional Mandate for Rent/Shelter

NYC Has A Right to Shelter

• In NYC, there is a right to shelter for homeless men (Callahan), women (Eldredge), & families (McCain & Boston), among others, based on NYS Constitution Art XVII, § 1
• On September 10, 2024 there were 87,685 homeless people including 63,074 individuals in homeless families with minor children, were sleeping each night in NYC’s main DHS system. NYC Daily Report
• Primary cause: lack of affordable housing
• Immediate/trigger causes: eviction, overcrowding, DV, job loss, & hazardous conditions.
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Homes Are the Most Affordable Solution to Homelessness

The cost of housing a single person in shelter in 2023 was $138/day or over $50,000 a year. Source: NYC Ind. Budget Office.

The cost of a studio with CityFHEPS is at most $2624/m or $31,488,/yr and the cost of a one bedroom is at most $2696/m or $32,352/yr in 2024 before the tenant pays 30% of their gross income towards the rent.

The CityFHEPS Program

NEW YORK CITY FIGHTING HOMELESSNESS EVICTION PREVENTION SUPPLEMENT

CityFHEPS Overview

• Rental housing subsidy for certain New Yorkers – larger program to move out of shelter and smaller program to stay or move in the community
• For New Yorkers who qualify, CityFHEPS can help to solve two common problems faced by tenants in nonpayment housing cases:
• 1) It can pay off rental arrears that have accumulated. The bulk of the funds are a loan that must be paid back or recouped.
• 2) It can help pay a portion of a family’s rent going forward.
• CityFHEPS can also be used to help an eligible household who cannot stay in their apartment due to a nonpayment or holdover move in the community (or anywhere in NYS) with a “shopping letter.”

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History of the CityFHEPS Program ��

The New York City Fighting Homelessness and Eviction Prevention Supplement program (“CityFHEPS”) was established in late 2018 to streamline and consolidate several different pre-existing programs into CityFHEPS:

• LINC 1, 2, 3, 4, 5 (LINC 6 remains separate)
• SEPS
• CityFEPS (created in 2015)
• CityFHEPS can be used to rent a room if there is no minor child in the household, to rent a SRO or an apartment. Households can be comprised of single adults, adult couples or families as well as families with minor children.
• CityFHEPS was expanded in 2023 to allow households to move anywhere in New York State at that county’s Fair Market Rent levels.
• CityFHEPS also replaced HUD’s Tenant-Based Rental Assistance Program (TBRA) in 2023-24
• Please note the “H” is silent in CityFHEPS and FHEPS.

CityFHEPS Law

• The CityFHEPS rules are in Chapter 10 of the Rules of the City of New York which is published by American Legal Publishing. The rules were promulgated through the New York City’s Administrative Procedure Act. The rules are a work in progress and each year there can be small or large changes.
• CityFHEPS is comprised of three rental programs:
• 1. Tenant based rental assistance program described in subchapter A of Chapter 10
• 2. Project based rental assistance program described in subchapter B of Chapter 10 and
• 3. Unit Repair program described in subchapter C of Chapter 10 that permits limited funds to be distributed to landlords to be reimbursed for necessary repairs to vacant rent stabilized apartments to be rented to households with CityFHEPS shopping letters.

The Basics

• CityFHEPS is a rental subsidy program that pays a portion of rent for qualifying households.
• Maximum income at application is 200% of the federal poverty level.
• Eligibility in the community is very limited: households must be facing homelessness AND fall into one of several criteria.
• Can be used to STAY in one’s current home, or to MOVE to a new home.
• Households that qualify for FHEPS (FHEPS first rule) cannot get CityFHEPS.
• See 68 RCNY §§ 10-03 et seq., 10-10, 10-12.

Restrictions

• Cannot qualify with most Section 8 vouchers (which are already set to one’s income)
• Cannot live in NYCHA apartment (also has rent calibrated to income)
• Cannot receive ACS rent subsidy
• When applying, cannot have cash assistance in “sanction status” for child support or work, etc.
• At least one member of the household needs to have immigration status.
• Everyone in the home must have income (unless they do not have immigration status): this includes ongoing cash assistance, other benefits such as SSI, or employment income.
• Everyone who qualifies for cash assistance must be on cash assistance.

CityFHEPS to Stay

• Appropriate where a household is facing eviction due to owing back rent but would be able to stay in their current home if they can pay the arrears and ongoing rent.
• If the household qualifies for CityFHEPS, the program can pay the arrears and then start paying an ongoing monthly subsidy based on the rent and the household income.
• Processing of CityFHEPS is done mostly by a homebase that serves the household’s zip code and since April 2023 Legal Aid and LSNYC can process CityFHEPS to stay for their clients.
• Requirements:
• Repairs be completed as part of settlement of the case.
• A lease or agreement for at least one year from commencement of the subsidy, or that the apartment is rent-regulated.

See 68 RCNY §§ 10-03 et seq.

CityFHEPS to Move

• Appropriate where a household qualifies for CityFHEPS, but would not be able to stay in their current apartment due to a holdover case or lack of lease.
• ONLY HomeBase can process CityFHEPS to Move applications.
• A household is referred to HomeBase, which processes a shopping letter for the household to use to look for a new apartment.
• There is a 5 step process including a review of 5 data bases for violations, an inspection following Section 8 list of items, an application with lots of attachments must be submitted all at one time and signed by the tenant.

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• See 68 RCNY §§ 10-10 et seq.

Finding a HomeBase Program

• Use the locator to find a household’s HomeBase (assigned by zip code):
• nyc.gov/site/hra/help/homebase-locations.page. Clients should call for an appointment.
• Wait time can be months due to lack of staff. Some HomeBases take first 10 walk-ins each day. Others have 6 month wait lists but are supposed to triage for emergencies.
• Advocacy may be needed to obtain an expedited appointment due to a court deadline or need for a shopping letter or to process a new apartment. Get your client into HomeBase immediately after intake for CityFHEPS or FHEPS to move.

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CityFHEPS in the Community is Very Limited

See 68 RCNY §10-03 (a)(6)(B)

At Risk of Eviction or Homelessness Defined:

Within the last 12 months the household was evicted or lived/lives in a NYC residence that was/is

• the subject of an eviction proceeding, or
• is a subject of a rent demand, or
• is the subject of a government vacate order, or
• is the subject of a foreclosure action, or
• is subject of health and safety reasons as determined by a City agency.

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• 68 RCNY §10-03(a)(6)(B)

Active APS Case or Community Guardianship

Adult Protective Services (APS) will write a letter documenting they are approving or denying an APS service. APS will also submit the application.

The three services they generally provide are:

• Financial Services for someone in receipt of SSI or SSD (not cash assistance)
• A Guardian Ad Litem for a court case
• A “deep clean” of a residence.

Always consult with a supervisor before involving APS.

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68 RCNY §10-03(a)(6)(B)(i)

Three Less-Common Paths to Eligibility

CityFHEPS Subsidy

• The amount of a CityFHEPS monthly subsidy is based on:
• Number of people in the household;
• Number of rooms in the apartment;
• Program rent levels;
• Household income; and
• Utilities.

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CityFHEPS 2024 Rent Levels

• Since 2021, CityFHEPS rent levels have been tied to NYCHA Section 8 rent levels.
• CityFHEPS rent levels increase most years in January.
• The City is appealing to Hud about a decrease in Fair Market Rents for 20225

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Link to HRA page with full rent levels.

CityFHEPS Utility Credits

• To even the playing field for tenants who pay their own utilities, CityFHEPS now pays a utility credit. This changed in November 2023 for new applicants and for CityFHEPS recipients who renew.
• For families with employment income, the credit is the amount that was deducted from the maximum rent level.
• Ex.: For a 1-bedroom apartment where tenant pays gas and electric (most common in NYC), the deduction from the maximum rent level was $112. The tenant will be mailed a check for $112 each month, if they pay their own gas and electric.
• For a 2-person family on cash assistance that rents the same apartment, they will get the same utility credit amount, minus the amount they receive in utility benefits.
• Ex.: In the same apartment as above, the credit is $112. A family of 2 with cash assistance gets $39.50 per month in HEA/SHEA. So they will be mailed a check for $72.50 each month.

Rent Reasonableness Test

Once you calculate how much rent CityFHEPS will pay for a given apartment, based on number of countable people and who pays utilities, there may be a further reduction on the maximum rent level: whether the rent amount is considered reasonable.

• The test looks at the rent charged for a particular apartment and compares it to rent for similar units in the building and in the neighborhood.
• The City uses www.affordablehousing.com to compare other apartments in the database.

The purpose of the test is to ensure that landlords are not raising rents to the maximum rent levels under CityFHEPS, even where the market rate for that apartment in that neighborhood would be lower.

Rent Reasonableness Test, Cont’d

• HRA applies the test at the time of leasing/enrolling AND at the time of a rent increase.
• The test is currently on hold for CityFHEPS to Move applications while program staff are re-trained.
• It is currently in use for rent increases.
• The test doesn’t apply if the apartment is rent regulated. It will apply for Section 610 of the Public Fiance Law for increases for CityFHEPS recipients.
• The landlord can challenge the finding, using a form provided by HRA.

CityFHEPS Arrears are Mostly a Loan

• It is very important to explain to the tenant that money from HRA for back rent is usually a loan above what the household size would receive if they were on CA – they will require a repayment form to be completed.
• There are two different shelter allowance schedules:
• Households with minor children (under 18 or under 19 and still in high school or it’s full time equivalent) It is very important to explain to your client that money from HRA for back rent is usually a loan above what the household size would receive if they were on CA – they will require a repayment form to be completed
• There are two different shelter allowance schedules:
1. Households with minor children (under 18 or under 19 and still in high school or it’s full time equivalent)
2. All other households without minor children: singles, couples, adult families, etc.
• Two unrelated households living together can each obtain back rent if they have a rental obligation.

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Paying Back CityFHEPS Arrears

• For all people applying to stay in an apartment and who have arrears, HRA will pay to the landlord as a grant the equivalent of the shelter allowance for the household size. If the shelter allowance for a mother with two minor children is $400/m and the rent is $1400/m, $400 is a gift and $1000 is a loan. If the rent arrears were for 10 months then the household will have to pay back $10,000.
• A single cash assistance recipient will be recouped at the rate of 10% of their $398/m grant or $39.80/m for a very long time. The funds will be taken out of the cash part of the grant. The household can request the recoupment be decreased to 5%/m.

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• A household with work or Social Security retirement income will be expected to pay a loan of $12,000 back at the rate of $1000/m for 12 months. The household can negotiate with HRA to pay a lower amount through Claims and Collections.

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CityFHEPS to Stay Applications

• Required Documents:
• The CityFHEPS application requires over a dozen forms to be submitted. There are about 4 forms that need to be signed by the head of household, and about 3 that need to be submitted by the landlord.
• Proof of arrears, eligibility, and ability to stay in the apartment for at least 1 year will be required.
• If the tenant is not in receipt of cash assistance and has other income a single issuance cash assistance case must be opened through the regular cash assistance application process to is opened to issue the arrears and then the cash

CityFHEPS to Stay Applications, Cont’d

• Inspection:
• After all tenant and documents are submitted, there is:
• A database check for violations and other issues (e.g. vacate orders, certificate of occupancy, etc)
• An in-person inspection of conditions in the apartment
• If the apartment passes, the application is submitted to HRA for approval.
• * For applications by LAS/LSNYC, there is no inspection of the apartment, BUT it is expected as part of the housing court representation that all the repairs are done.

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CityFHEPS to Move Applications

• CityFHEPS to Move applications mirror to Stay applications, except that no arrears are paid
• Households applying to CityFHEPS to Move are typically facing holdover cases in Housing Court, in which the landlord seeks to terminate the tenancy rather than collect rental arrears, if any.
• CityFHEPS to Move applications can only be completed by HomeBase. Due to long waits, it is best to refer a client ASAP.
• Once a household is receiving CityFHEPS, they are not able to move with the subsidy unless they get approval from HRA that there is a health or safety reason to move or a holdover case and are given a shopping letter and then return with an apartment to be processed.

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• 68 RCNY §10-10

Annual Renewal of CityFHEPS

• CityFHEPS recipients must renew their subsidy every year (by filing the CityFHEPS Renewal Request, Form DSS-7e)
• Starting at the first renewal, the household income requirement increases from 200% of the federal poverty level to 80% of the Area Medium Income (AMI).
• CityFHEPS regulations state that subject to funding, households will receive 4 renewals (68 RCNY §10-08(a)).
• Starting in year 5, renewals are considered on case-by-case basis.
• 68 RCNY §10-08

More on Renewals

• The renewal form is short and asks for an update on household composition, income, and rent.
• The renewal form and documentations can be submitted by AccessHRA, mailed, emailed, or delivered in person to the HRA Rental Assistance Program (RAP) Unit:
• Email: RAPrenewals@hra.nyc.gov
• Mail or deliver in person:

CityFHEPS

NYC Human Resources Administration

109 East 16th Street, 10th floor

New York, NY 10003

Renewal After 5 Years

• Subject to funding, CityFHEPS can be renewed after 5 years if the household is in compliance with the rules, is otherwise eligible, and is:
• 60 years or older;
• Receiving or determined potentially eligible for federal disability benefits; or
• For good cause.

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• 68 RCNY §10-08(c)

Lawsuits Seeking Processing Changes and Implementation of CityFHEPS

TOLLIVER V. PARKER

• In April 2023, the Legal Aid Society sued New York City Department of Social Services in a class action lawsuit for failure to process CityFHEPS renewals in a timely and adequate manner and to timely and adequately process FHEPS restorations and modifications.
• The settlement should be signed by the court in December, 2024.

VINCENT V. ADAMS

• In February 2024, tenants sued Mayor Adams in a class action case for refusing to implement a package of bills to expand CityFHEPS that were passed by the City Council in summer of 2023. City Council joined the plaintiffs shortly after.
• The new laws the lawsuit sought to force implementation of include:
• Local Law 99: ending utility deductions
• Local Law 100: increasing income maximum from 200% FPL to 50% AMI
• Local Law 101: expanding eligibility to people at risk of eviction (without additional eligibility category)
• Local law 102: eliminating the work requirement.
• On Aug. 1, 2024, the judge granted the mayor’s motion to dismiss the case. Plaintiffs are appealing the decision.

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Section 610 of the Finance Law

Certain New Buildings Have 610 Financing

• Note landlords in these building can change their regulatory agreement with HPD or HCR and obtain permission to raise the rent stabilized rents to the NYCHA Section 8/FHEPS/CityFHEPS/HASA levels while the tenant has a rent subsidy.
• The landlords can only raise the rent when there is a new lease and must notify the tenant about the change in the law and the rent decreases to the old rent if the subsidy ends.

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• This is causing confusion for the landlords on the process for getting permission and not knowing the rules for increasing the individual rent for each household based on the number of bedrooms, the number of countable tenants, the utilities the tenant pays.
• This is causing confusion for the tenants as their rent stabilized leases are increasing dramatically and the rules are confusing.

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Questions?