S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7612
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 14, 2019
                                ___________
 
 Introduced by M. of A. HEVESI -- read once and referred to the Committee
   on Social Services
 
 AN ACT to amend the social services law, in relation to eliminating rent
   for homeless shelters
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 36-c of  the  social  services  law,  as  added  by
 section 1 of part K of chapter 58 of the laws of 2010, the section head-
 ing,  subdivisions 1 and 2 as amended by section 1 of part DD of chapter
 56 of the laws of 2018, is amended to read as follows:
   § 36-c. Savings plan for the city of New York. 1. [Notwithstanding any
 other provision of law to the contrary, in any]  IN  A  social  services
 district  with a city having a population of five million or more, [the]
 SUCH social  services  district  [shall]  MAY  conduct  a  demonstration
 project  as  set forth in this section, and shall evaluate and report on
 such project annually, pursuant to a plan  approved  by  the  office  of
 temporary  and  disability  assistance  and  the  division  of budget. A
 comprehensive report shall be provided to the  governor,  the  temporary
 president  of  the  senate  and  the speaker of the assembly by December
 thirty-first, two thousand twenty-one. Such report shall include but not
 be limited to information regarding the [program] PROJECT  such  as  the
 number  of  participants for the previous three years; the percentage of
 participation as measured by the number of participants making  contrib-
 utions  into  such savings plan; the average amount payable to a partic-
 ipant upon leaving the [program] PROJECT; the average length of  time  a
 participant  remained  in the [program] PROJECT; AND the number of situ-
 ations in which the participant [moved out  of  the  program]  LEFT  THE
 PROJECT  but  reengaged  in  the  [program]  PROJECT within the previous
 twelve months[; the number of participants leaving the program voluntar-
 ily and the number of participants removed due to failure to comply; and
 any other demonstrated outcomes of such program].
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06131-01-9

 A. 7612                             2
 
   2. [Such] IF SUCH social services district[, in lieu of applying  that
 portion  of  a  temporary  housing  assistance recipient's earned income
 that, but for the provisions of this section, would be applied to reduce
 the need for the  shelter  component  of  temporary  housing  assistance
 provided in a temporary emergency shelter, shall direct such a recipient
 to  participate  in  a savings plan with such funds and, as long as such
 funds are not withdrawn, they shall not be applied to  reduce  the  need
 for  the  shelter  component of the temporary housing assistance granted
 for the duration of his or her residence in temporary emergency shelter;
 provided,] IMPLEMENTS A SAVINGS PLAN DEMONSTRATION PROJECT  PURSUANT  TO
 THIS  SECTION,  RECIPIENTS  OF  TEMPORARY HOUSING ASSISTANCE WITH EARNED
 INCOME SHALL BE DIRECTED TO CONTRIBUTE NO  MORE  THAN  FIVE  PERCENT  OF
 THEIR  MONTHLY  EARNED  INCOME  INTO  A  SAVINGS PLAN ESTABLISHED BY THE
 DISTRICT IN ACCORDANCE WITH SUBDIVISION THREE OF THIS SECTION.  PROVIDED
 however,  that  the  provisions  of  this  section shall only apply to a
 person receiving temporary housing assistance  in  a  shelter  or  other
 facility  overseen  by the New York city department of homeless services
 or the New York city department of housing preservation and development.
 Failure by a recipient of temporary housing assistance to contribute  to
 such  a savings plan shall NOT IN ITSELF result in the discontinuance of
 temporary housing assistance[.  Provided  however,  such  discontinuance
 shall  be  immediately  curable by compliance with this section], UNLESS
 THE RECIPIENT SEPARATELY FAILS TO COMPLY WITH CONDITIONS OF  ELIGIBILITY
 THAT COULD RESULT IN THE DISCONTINUANCE OF TEMPORARY HOUSING ASSISTANCE.
   3. In such social services district, any such funds collected from the
 earned income of a recipient of temporary housing assistance while he or
 she is residing in a temporary emergency shelter PURSUANT TO SUBDIVISION
 TWO  OF  THIS  SECTION, shall be deposited in a savings plan approved by
 the office of temporary and disability assistance and  the  division  of
 budget;  shall  be  payable  to the recipient for the recipient's use to
 facilitate his or her transition to, or stabilize his or  her  residence
 in,  permanent  housing  upon  his or her discharge from shelter or upon
 verification of such recipient's date of  discharge  from  shelter;  and
 shall  be  considered  exempt  as income or a resource until the twelfth
 month following the month in which the recipient ceases receiving tempo-
 rary housing assistance in temporary emergency shelter. Funds  collected
 in  such  savings  plans  shall  be RECORDED IN A RECEIPT ISSUED TO EACH
 RECIPIENT, INCLUDING THE DATE, THE ACCOUNT, AND THE FORM OF PAYMENT, AND
 SHALL BE pooled, tracked individually, and maintained in  a  savings  or
 money-market account at interest rates set by the institution with which
 such  funds  are  deposited.  Any  savings  and interest accrued in such
 account or accounts shall be distributed to a temporary housing  assist-
 ance  recipient upon his or her discharge from temporary emergency shel-
 ter or upon verification of such  recipient's  date  of  discharge  from
 shelter,  in  accordance  with the provisions of this section. THE LOCAL
 SOCIAL SERVICES DISTRICT SHALL ALSO PROVIDE EACH RECIPIENT  WITH  (A)  A
 MONTHLY  ACCOUNTING  OF THE EARNED INCOME SUCH RECIPIENT HAS CONTRIBUTED
 TO THE SAVINGS ACCOUNT AND THE  INTEREST  ACCRUED  ON  THEIR  INDIVIDUAL
 CONTRIBUTIONS  PURSUANT TO THIS SECTION; AND (B) A FINAL ACCOUNTING UPON
 THE RECIPIENT'S DISCHARGE  FROM  TEMPORARY  EMERGENCY  SHELTER  OR  UPON
 VERIFICATION OF SUCH RECIPIENT'S DATE OF DISCHARGE FROM SHELTER.
   4.  Such  social services district shall [be deemed in compliance with
 section one hundred thirty-one-a of this chapter  for  reimbursement  of
 expenditures  made  for  temporary housing assistance] NOT BE IN CONTRA-
 DICTION TO THE  PROHIBITIONS  IN  SUBDIVISION  SIXTEEN  OF  SECTION  ONE
 HUNDRED  THIRTY-ONE-A OF THIS CHAPTER, provided the district is conduct-

 A. 7612                             3
 
 ing the project fully in accordance with the provisions of this section.
 Unearned income of a recipient of temporary housing assistance  in  such
 social  services  district shall not be applied to the savings plan, and
 shall not be required to be applied to that portion of the shelter costs
 not  paid  for  with  public  assistance.   Temporary housing assistance
 recipients shall not be required to contribute to the cost of such shel-
 ter, as provided for in this section.  Such project shall not be  imple-
 mented so as to compromise the federal benefits of a recipient or any of
 his or her household members.
   §  2.  Section 131 of the social services law is amended by adding two
 new subdivisions 21 and 22 to read as follows:
   21. THE OFFICE OF TEMPORARY AND DISABILITY ASSISTANCE  SHALL  PROHIBIT
 ANY  PUBLICALLY FUNDED PROVIDER OF TEMPORARY HOUSING ASSISTANCE, INCLUD-
 ING BUT NOT LIMITED TO THOSE DEFINED IN SUBDIVISION SIXTEEN  OF  SECTION
 ONE HUNDRED THIRTY-ONE-A OF THIS TITLE FROM REQUIRING RECIPIENTS OF SUCH
 ASSISTANCE  TO PARTICIPATE IN WORK ACTIVITIES, INCLUDING BUT NOT LIMITED
 TO THOSE DEFINED IN SECTION THREE HUNDRED THIRTY-SIX OF THIS CHAPTER, AS
 A CONDITION TO RECEIVE TEMPORARY HOUSING ASSISTANCE FROM SUCH PROVIDER.
   22. A. NO SUCH PROVIDER OF TEMPORARY HOUSING ASSISTANCE, AS DEFINED IN
 SUBDIVISION SIXTEEN OF SECTION ONE HUNDRED THIRTY-ONE-A OF  THIS  TITLE,
 SHALL  REQUIRE  RECIPIENTS OF SUCH ASSISTANCE TO CONTRIBUTE TO A SAVINGS
 PLAN, EXCEPT AS REQUIRED PURSUANT TO SECTION THIRTY-SIX-C OF THIS  CHAP-
 TER.
   B.  ANY  TEMPORARY  HOUSING ASSISTANCE PROVIDER FOUND TO BE COLLECTING
 INCOME, ROOM AND BOARD OR ANY OTHER TYPE OF CONTRIBUTION IN VIOLATION OF
 THIS SECTION OR SUBDIVISION SIXTEEN OF SECTION ONE HUNDRED  THIRTY-ONE-A
 OF THIS TITLE, SHALL, AFTER NOTICE AND AN OPPORTUNITY TO BE HEARD BY THE
 DEPARTMENT,  BE  REQUIRED  TO RETURN ANY FUNDS COLLECTED IN VIOLATION OF
 THIS SECTION TO SUCH RECIPIENT AND MAY BE SUBJECT TO A CIVIL PENALTY NOT
 TO EXCEED FIVE HUNDRED DOLLARS FOR EACH VIOLATION. THE DEPARTMENT  SHALL
 ADOPT  PROCEDURES  IN ACCORDANCE WITH THE STATE ADMINISTRATIVE PROCEDURE
 ACT FOR ASSESSMENT OF PENALTIES PURSUANT TO THIS SECTION. SUCH PROCEDURE
 SHALL INCLUDE THE OPPORTUNITY FOR AN ADMINISTRATIVE APPEAL. ANY PROVIDER
 FOUND TO HAVE VIOLATED THIS SECTION AND WHO  IS  SUBSEQUENTLY  FOUND  TO
 HAVE  VIOLATED  THIS  SECTION  FIVE OR MORE TIMES WITHIN ONE YEAR OF THE
 INITIAL FINDING MAY BE DETERMINED, AT THE DISCRETION OF  THE  DEPARTMENT
 AND  TAKING  INTO  CONSIDERATION  THE GEOGRAPHIC AVAILABILITY OF SIMILAR
 SERVICES, TO BE INELIGIBLE TO RECEIVE PUBLIC FUNDING FOR A PERIOD NOT TO
 EXCEED FIVE YEARS.
   C. ANY PROVIDER WHICH HAS BEEN DEEMED  INELIGIBLE  TO  RECEIVE  PUBLIC
 FUNDING  PURSUANT  TO  THIS  SECTION  MAY APPLY TO THE DEPARTMENT FOR AN
 ORDER DISCONTINUING SUCH DISQUALIFICATION.  THE  APPLICATION  SHALL  SET
 FORTH  THE  GROUNDS,  INCLUDING  THAT  THE PROVIDER HAS TAKEN SUFFICIENT
 ACTIONS TO REMOVE FROM RESPONSIBILITY OFFICERS AND EMPLOYEES WHO ENGAGED
 IN THE ACTIONS THAT FORMED THE BASIS OF THE VIOLATION, THAT THE PROVIDER
 HAS TAKEN APPROPRIATE AND SUFFICIENT ACTIONS TO ENSURE THAT THE  ACTIONS
 THAT  FORMED  THE BASIS OF THE VIOLATION ARE UNLIKELY TO RECUR, AND THAT
 IT WILL NOT BE IN THE PUBLIC INTEREST TO CONTINUE THE DISQUALIFICATION.
   § 3. Paragraph a of subdivision 8  of  section  131-a  of  the  social
 services  law  is  amended  by  adding  a new subparagraph ix to read as
 follows:
   (IX) ALL EARNED INCOME OF A RECIPIENT OF TEMPORARY HOUSING  ASSISTANCE
 PAYABLE TO SUCH RECIPIENT PURSUANT TO SECTION THIRTY-SIX-C OF THIS CHAP-
 TER  OF THE SOCIAL SERVICES LAW FOR TWELVE MONTHS PRECEDING THE TIME THE
 RECIPIENT CEASES TO RECEIVE TEMPORARY HOUSING ASSISTANCE IN A  TEMPORARY
 EMERGENCY SHELTER.

 A. 7612                             4
 
   §  4.  Section 131-a of the social services law is amended by adding a
 new subdivision 16 to read as follows:
   16.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO
 THE CONTRARY, A HOMELESS INDIVIDUAL OR FAMILY APPLYING FOR OR  RECEIVING
 TEMPORARY HOUSING ASSISTANCE SHALL NOT BE REQUIRED TO PAY ROOM AND BOARD
 OR  CONTRIBUTE  ANY  EARNED  OR  UNEARNED  INCOME, AVAILABLE BENEFITS OR
 RESOURCES TO ELIMINATE THEIR NEED FOR TEMPORARY HOUSING ASSISTANCE OR AS
 A CONDITION TO RECEIVE TEMPORARY HOUSING ASSISTANCE FROM SUCH  PROVIDER.
 FOR  THE PURPOSES OF THIS SUBDIVISION, ANY PROVIDER OF TEMPORARY HOUSING
 ASSISTANCE OR SHORT-TERM HOUSING SHALL INCLUDE, BUT NOT BE LIMITED TO, A
 FAMILY SHELTER, A CLUSTER SITE APARTMENT, A SHELTER FOR ADULTS, A UNITED
 STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASSISTED TRANSITIONAL
 HOUSING SHELTER, A PUBLIC HOME,  A  HOTEL,  AN  EMERGENCY  APARTMENT,  A
 DOMESTIC  VIOLENCE SHELTER, A RUNAWAY AND HOMELESS YOUTH SHELTER, A ROOM
 AND BOARD SHELTER, A SAFE HAVEN SHELTER, A VETERANS  SHORT-TERM  HOUSING
 SHELTER,  A CRIMINAL JUSTICE SHORT-TERM HOUSING SHELTER, OR A SAFE HOUSE
 FOR REFUGEES, ASYLEES, OR TRAFFICKING  VICTIMS  OPERATING  IN  NEW  YORK
 STATE.
   §  5.  This  act shall take effect on the thirtieth day after it shall
 have become a law; provided, however, that the amendments to subdivision
 3 of section 36-c of the social services law made by section one of this
 act shall be deemed to have been in full force and effect on  and  after
 April 1, 2018. Provided, further, that the amendments to section 36-c of
 the social services law made by section one of this act shall not affect
 the repeal of such section and shall be deemed repealed therewith.