BILL NUMBER:  S6433

 TITLE OF BILL :  An act to amend the social services law, in relation
to the calculation of the shelter allowance for persons and families
residing in housing subsidized under section 8 of the United States
housing act of 1937

 SUMMARY OF PROVISIONS :

Section 1 of the bill would amend subdivision 2 of section 131-a of
the Social Services Law by adding a new paragraph c-1, which would
require that the shelter allowance for a person or family receiving
federal low-income housing assistance under section 8 of the United
States Housing Act of 1937 ("Section 8") be equal to the local agency
maximum monthly shelter allowance prescribed by regulations of the New
York State Department of Social Services.

Under section 2 of the bill, the bill would take effect on April 1,
2018.

 REASONS FOR SUPPORT :

The New York City Housing Authority (NYCHA) is one of three agencies
that administers the Section 8 federal low-income housing assistance
program in the City of New York. Under the Section 8 program, the
federal government provides rent subsidies to low-income families to
              

enable them to afford decent, safe, and sanitary housing. The tenant's
share of the rent is based on the tenant's income; the administering
agency pays the subsidy portion. The tenant's share and the subsidy
portion together represent the monthly rent.

Some individuals participating in NYCHA's Section 8 program receive
public assistance, which includes a shelter allowance. For these
Section 8 participants, the shelter allowance represents the tenant's
share of the rent.

In New York State, the formula for determining the shelter allowance
for households on public assistance who participate in the Section 8
program is set forth in rules established by the New York State Office
of Temporary and Disability Assistance (OTDA) . Under OTDA's rules,
there are two possible formulas that can be used to calculate a
tenant's share. 18 NYCRR § 352.3(d)(2). One formula, set forth in
section 352.3(d)(2)(ii)(b), defines the shelter allowance as being
equal to the maximum local agency monthly shelter allowance, a figure
that is established by OTDA in section 352.3(a). This formula applies
to those public housing agencies that had utilized the local agency
shelter maximum schedule to determine the shelter allowance as of
October 1, 2004. The other formula, which applies to other public
housing agencies, including NYCHA, is set forth in section
352.3(d)(2)(ii)(a) and defines the shelter allowance as equaling 30%
of the tenant's applicable standard of need, a figure that aggregates
certain housing-related grants and allowances derived from four
different schedules, one of which is the maximum local agency monthly
shelter allowance.

Accordingly, under the first formula, if the rent is $1000 a month for
a family of four, the shelter allowance would be $450 a month, and the
Section 8 subsidy would be $550 a month. Under the second formula, the
shelter allowance would be only $248 a month, and the Section 8
subsidy would be $752 a month.

Under the current grant and shelter allowance amounts set forth in
OTDA's regulations, the shelter allowance calculated using the second
formula will always be lower than the shelter allowance calculated
using the first formula. Accordingly, any agency that administers a
Section 8 subsidy program and is required to utilize the second
formula will always pay higher subsidy amounts than agencies that are
permitted to calculate tenant shares using the first formula. NYCHA is
an agency that has been required to pay higher subsidy amounts under
the second formula.

Since the enactment of OTDA's rule in 2005, federal funding for the
Section 8 program has steadily declined in spite of escalating housing
costs. In the face of these declines, coupled with the increased cost
of housing in New York, NYCHA has been able to assist fewer low-income
New Yorkers who are seeking affordable housing assistance, including
those who reside in shelters.

Enacting the amendment proposed in this bill would put NYCHA on equal
footing with other housing authorities and agencies that provide
low-income housing assistance by uniformly calculating the shelter
allowance using only the maximum local agency monthly shelter
allowances set forth in OTDA's rules. This will increase the subsidy
dollars available to NYCHA and other agencies currently utilizing the
second formula, and will thus allow those agencies to provide Section
8 assistance to a greater number of low-income families in need of
affordable housing.

Accordingly, the Mayor urges the earliest possible favorable
consideration of this proposal by the Legislature.

Respectfully submitted,

SHERIF SOLIMAN Director

AC: 5/3/17