What's happening
This bill removes the requirement for rent arrears repayment for recipients in social services districts within New York City.
Why it matters
Eliminates the obligation for New York City residents who receive government assistance for rent arrears to repay those funds. , potentially reducing financial strain for low-income households and helping prevent eviction cycles.
Creates a disparity in policy between New York City and other parts of the state. , as only districts in municipalities with less than five million residents will still require repayment agreements—highlighting a targeted approach to address unique urban housing challenges.
Applies retroactively to assistance provided since March 13, 2020. , meaning eligible recipients who received help during the COVID-19 crisis and after may now be relieved of repayment obligations, possibly impacting both individual finances and administrative processes.
May affect local government budgets and administrative burdens. , as New York City’s social services district will no longer need to track, collect, or enforce repayment of rent arrears, potentially allowing more resources to focus on direct aid but reducing repayment revenue streams.
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Who cares
Headline styles
End Rent Repayment Requirement
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 27
No co-sponsors yet.
History
- Reported and committed to finance
- Referred to social services
- Reported and committed to finance
- Print number 1458a
- Amend (t) and recommit to social services
- Referred to social services
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End Rent Repayment Requirement
In Assembly Committee · Social Services · Sponsor Linda Rosenthal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1458--A
2025-2026 Regular Sessions
IN SENATE
January 10, 2025
Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when printed to be committed to the Committee on Social Services -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the social services law, in relation to removing the requirement that rent arrears be repaid for social services districts located in a municipality with a population of five million or more
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 131-w of the social services law, as added by chapter 41 of the laws of 1992, is amended to read as follows:
§ 131-w. Limitations in the payment of rent arrears. [Districts] Local social services districts shall not provide assistance to pay rent arrears, property taxes or mortgage arrears for persons not eligible for home relief, aid to dependent children, emergency assistance to needy families with children or emergency assistance for aged, blind and disabled persons, except to persons who are without income or resources immediately available to meet the emergency need, whose gross household income does not exceed one hundred twenty-five percent of the federal income official poverty line and, for social services districts located in a municipality with a population of less than five million, who sign a repayment agreement agreeing to repay the assistance in a period not to exceed twelve months. The districts shall enforce the repayment agreements by any legal method available to a creditor, in addition to any rights it has pursuant to this chapter. Local social services districts located in a municipality with a population of five million or more shall not require a recipient to repay assistance provided to pay rent arrears. The department shall promulgate regulations to implement this section which shall, among other things, establish standards for the contents of repayment agreements for applicable social services
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04179-04-5
districts and establish standards to ensure that assistance is provided only in emergency circumstances.
§ 2. This act shall take effect immediately and shall be deemed in effect on and after March 13, 2020 and shall apply to any assistance provided to pay rent arrears on and after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the social services law, in relation to removing the requirement that rent arrears be repaid for social services districts located in a municipality with a population of five million or more
Purpose
This bill would remove the requirement that New York City must recoup emergency rental assistance for covering rent arrears.
Summary of specific provisions
Section 1 amends section 131-w of the social services law to specify that the requirement to recoup rent arrears would apply for social services districts located in a municipality with a population of less than five million.
Section 2 establishes the effective date.
Justification
New York state is facing an affordable housing crisis in the state. According to an August 2021 report released by the NYS Comptroller and using data from the 2019 American Community Survey, 78% or 946,000 of New York City's 1 2 million low-income rental households were rent-bur- dened, defined as households with an annual income at or below 80% Area Median Income (AMI) paying more than 30% of their income towards rent. The same report also stated that 47% of all renter households in New York state were rent-burdened.
In New York City, an analysis by the Community Service Society on the city's 2021 Housing Vacancy Survey data found that 55% or 1,196,100 households were rent-burdened in 2021, with a third of New York City renter households -- overwhelmingly low-income tenants -- deemed severe- ly rent burdened or paying more than half of their income towards rent.
For these New Yorkers, any circumstances that put them behind on rent would put them in the difficult situation of not being able to repay their arrears. Rental assistance can be a lifeline that keeps them from homelessness.
This legislation removes the requirement that emergency grants for rental arrears must be repaid in New York City. Individuals who fall behind on rent payments and/or are at risk of becoming homeless may be eligible to obtain an emergency assistance grant from their local social service district, often referred to as a "one shot deal," covering rental arrears provided that they can supply proof of their ability to pay rent going forward. However, current statute states that emergency rental assistance must be repaid. Many low- and moderate-income families simply cannot meet this requirement, which likely discourages many otherwise eligible people from applying for this vital form of eviction prevention assistance. Such emergency assistance grants are intended to help individuals remain in their homes, but a requirement to repay rental arrears can cause further financial distress, essentially preventing a renter from ever getting ahead. Outside of New York City since October 2024, the Shelter Arrears Eviction Forestallment program (SAEF), administered by OTDA, provides emergency rental assistance for the payment of rent arrears. SAEF assistance is not subject to repayment or recoupment unless the applica- tion submitted was fraudulent, or otherwise identified as ineligible.
Legislative history
2021-2022: S6845 (Kavanagh) / A7048A (Rosenthal) -- Social Services / Social Services
2023: S6181A (Kavanagh) -- Social Services reported to Finance / A5514 (Rosenthal) -- Social Services
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall be deemed in effect on and after March 13, 2020 and shall apply to any assistance provided to pay rent arrears on and after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.