Relates to financial contributions by recipients of temporary housing assistance

18 Co-sponsors

• Eric Adams
• Neil D. Breslin
• Ruben Diaz
• Thomas K. Duane
• Pedro Espada Jr.
• Ruth Hassell-Thompson
• Shirley L. Huntley
• Jeffrey D. Klein
• Liz Krueger
• Velmanette Montgomery
• Suzi Oppenheimer
• Kevin S. Parker
• José Peralta
• Bill Perkins
• Diane J. Savino
• Eric T. Schneiderman
• José M. Serrano
• Antoine M. Thompson

BILL NUMBER:S5605C

Title of bill

An act to amend the social services law, in relation to establishing the savings plan demonstration project; and providing for the repeal of such provision upon expiration thereof

Purpose

To establish a savings plan for and ensure the protection of homeless families seeking temporary shelter from being overburdened by the state's requirement to make unrealistic rental payments.

Summary of provisions

Section 36 of the social services law is amended by adding a subdivision (c);

The bill prohibits New York City from charging contribution from temporary housing assistance recipients to offset shelter costs.

The bill establishes a savings plan for temporary emergency housing assistance recipients in New York City. In lieu of contributing their earned income to the cost of shelter, recipients who earn an actual income shall participate in a savings plan during their stay in shelter.

The office of temporary and disability assistance and the division of budget have the authority to approve the plan prior to implementation. New York City shall evaluate and report on such project.

Domestic violence and HASA shelters are excluded from the savings plan. Emergency housing assistance shall not be terminated for a recipient's failure to participate in the savings plan, unless the recipient separately fails to comply with conditions of eligibility that could result in the discontinuance of temporary housing assistance.

Any contribution made by a recipient shall be payable to him or her upon discharge from shelter or upon verification by the district of such discharge. Any contribution made by a recipient will be considered exempt as income or resources for purposes of benefits eligibility until the twelfth month following the month in which recipient ceases receiving temporary housing assistance.

Funds collected by the district shall be pooled, tracked individually, and maintained in a bank account at interest rates set by the chosen

institution. Any earned interest shall be distributed to a recipient.

Unearned income shall not be applied to the savings plan. The savings plan shall not be implemented in a way that would compromise the federal benefits of a recipient or any of his or her household members.

Justification

This bill requires that New York City implement a savings plan for individuals residing in temporary housing.

Individuals and families who turn to the New York City shelter system for temporary support generally do so because they are unable to pay rent. While many homeless individuals and families have no formal income, some individuals residing in temporary housing do work, have income, and are saving to once again be able to rent an apartment. Rather than forcing a client to pay rent for a shelter, a better policy to help the client regain self-sufficiency is a reasonable savings plan. The shelter system is very clearly a last resort and must be available for those that need it most without undue burdens.

Legislative history

New bill.

Fiscal impact on the state

None.

Effective date

Act will take effect on the one hundred eightieth day unless OTDA and DOB approve the plan earlier.