Tuesday

10-21-2025 Vol 2120

Court Ruling Protects Unit Hold Incentive for NYC Homeless Families and Individuals

In a significant legal victory for homeless families and individuals in New York City shelters, a court ruled on Thursday that landlords must continue holding apartments for prospective tenants while their housing paperwork is processed.
This ruling upholds a temporary restraining order that prevents Mayor Eric Adams and the city’s Department of Social Services (DSS) from eliminating a unit hold incentive that involves one-month rent payments to landlords.
The purpose of this incentive is to ensure that apartments are available for those transitioning from shelters to permanent housing while their applications are being processed.
The Legal Aid Society, which represents Win (Women in Need) shelters alongside various advocacy groups, filed a lawsuit against DSS on June 25 after the agency announced plans to discontinue the unit hold incentive.
DSS argued that the need for the incentive was diminished due to faster processing times, but the plaintiffs contended that the unit holds are essential for helping individuals exit the shelter system.
On August 21, the court issued a ruling that marked the second victory for the plaintiffs.
This legal battle began when DSS initially planned to end the program on June 30, which had been in place since 2017.
A preliminary injunction was subsequently granted, allowing the unit-hold payments to remain in effect during the litigation period.
Christine Quinn, the president and CEO of Win and former speaker of the NYC Council, praised the judge’s decision and criticized the actions of the Adams administration.
“New Yorkers are crying out for change, yet it seems the Adams administration will go to the ends of the Earth, including through frivolous legal action, to make life even more difficult for New Yorkers in need,” Quinn stated.
She emphasized the importance of the unit hold incentive as a critical tool for relocating homeless individuals into permanent housing.
According to Quinn, eliminating this policy would lead to longer stays in shelters, particularly affecting vulnerable children.
A spokesperson for DSS responded to the court ruling, claiming that the unit hold incentive served merely as a temporary fix addressing the insufficient mechanisms for processing rental subsidies.
The spokesperson highlighted a technological overhaul initiated last year intended to modernize outdated systems that were contributing to processing delays.
DSS asserted that the full implementation of the new processing system aims to streamline application tracking while achieving fiscal efficiencies.
Court documents indicate that DSS’s attempt to eliminate the unit hold program appears “arbitrary and capricious,” lacking a clear rationale.
The documents further suggest that discontinuing the unit holds would exacerbate the homelessness crisis, extend shelter stays, and ultimately lead to increased costs for the city.
DSS also raised concerns regarding the financial implications of the rental voucher program, known as the City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS).
A recent report estimated that the costs of the voucher program would exceed $1.1 billion in 2025, significantly rising from $250 million per year since the current administration took office.
DSS pointed out that while funding for CityFHEPS is increasing, other governmental levels have been reducing financial support for rental subsidy programs, pressuring the city to adopt a fiscally sustainable approach.
The spokesperson concluded with a call for advocacy groups to push for greater funding at the state and federal levels to sustain crucial rental subsidies.
As of now, it remains unclear whether DSS will appeal the court’s ruling.

image source from:amny

Charlotte Hayes