BILL NUMBER: S6845

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the social services law, in relation to removing the
requirement that rent arrears be repaid

 
PURPOSE:

To remove the requirement that social service districts must recoup rent
arrears.

 
SUMMARY OF PROVISIONS:

Section one amends section 131-w of the social services law.

Section two establishes the effective date.

 
JUSTIFICATION:
              

The housing and homelessness crisis in New York State has only worsened
since the start of the COVID19 pandemic. In New York City alone, more
than 55,000 New Yorkers sleep in City shelters each night, and more than
17,000 of these individuals are children. Over the course of 2020, New
York City's shelter system housed nearly 123,000 different individuals.
Homelessness has reached levels not seen since the Great Depression and
the lack of affordable housing is a major cause.

Concurrently, we are also facing an affordable housing crisis in the
state. More than 40 percent of renter households in the City are consid-
ered rent burdened, meaning that they spend more than 30 percent of
their monthly income on rent. A quarter of all households are considered
severely rent burdened as they spend more than 50 percent of their
income on rent. Looking specifically at low-income renters, a report by
the Community Service Society found that more than 70 percent of low-in-
come renters in New York City are rent-burdened. 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," which will
cover rental arrears and prevent eviction, provided that they can supply
proof of their ability to pay rent going forward.

However, current law requires that emergency grants of rental arrears be
repaid, a requirement that many low- and moderate-income families simply
cannot meet. The repayment requirement likely discourages many otherwise
eligible people from applying for this vital form of eviction prevention
assistance. Such emergency assistance grants are intended to provide
individuals a lifeline and enable them to remain in their homes, but a
requirement to repay rental arrears can cause further financial
distress, essentially preventing a renter from ever getting ahead. This
legislation would remove the requirement that individuals repay rental
arrears and forgive any arrears provided during the COVID-19 pandemic.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Undetermined.

 
EFFECTIVE DATE:
This act shall take effect immediately.