Mamdani Appeals Court Order Expanding Rental Assistance Program

New York City Mayor Zohran Mamdani announced that he is appealing a court decision that orders the city to dramatically expand a rental assistance program.

The move reverses a key campaign promise and sets up a clash with the City Council, Gothamist reported.

The appeal, which was filed Tuesday in the Court of Appeals, prolongs a nearly three-year-long legal battle over the program, which is considered a lifeline for New Yorkers experiencing homelessness, Gothamist noted.

The rental assistance program currently costs $1.2 billion, but laws passed in 2023 broadened eligibility for the housing vouchers, raising the projected cost of the program to $4.7 billion by 2030, the website reported.

Former Mayor Had Challenged Program

Ex-Mayor Eric Adams had challenged the program in court. He argues the city did not have the money to cover that price tag, and that the Council lacked the authority to expand housing vouchers.

With his appeal to New York’s high court, Mamdani is echoing Adams’ position that the Council illegally usurped the city’s powers to set social service policy, Gothamist said. At least for now, Mamdani also is looking to scale back a key campaign pledge to expand the social safety net to address the city’s housing crisis.

Gothamist noted that a $5 billion deficit has forced Mamdani to propose unpopular cuts to parks and libraries, as well as a property tax hike or tax increase on millionaires and corporations.

Last month, Mamdani said the city was trying to reach a settlement with housing advocates to limit the expansion of CityFHEPS — Fighting Homelessness and Eviction Prevention Supplement — because it is too expensive.

Housing advocates has said that the expansion is badly needed to address affordability and Trump administration cuts to federal rental assistance. The advocates also dispute the city’s projected cost of the program, saying it fails to account for savings from people avoiding the shelter system.

Legal Aid spokesperson Redmond Haskins called the arguments in the city’s appeal “unsound” and previously rejected by the mid-level appellate court.

“It is regrettable that the Mamdani Administration has chosen to continue this litigation rather than focus on ensuring that vulnerable New Yorkers can access the housing support they urgently need,” Haskins said in a statement.

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Picture of Lance Murray

Lance Murray

A veteran journalist with decades of experience in both online and print publishing, Lance Murray is Senior Editor of MortgagePoint. Has many years of experience as an editor, writer, photographer, designer, and artist. Most recently, he edited and wrote for an innovation website and a group of real estate-focused magazines.
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