Senate Bill S6181

                                 
BILL NUMBER: S6181A

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:

This bill would remove the requirement that social service districts
must recoup rent arrears.

 
SUMMARY OF SPECIFIC PROVISIONS;US OFF;:

SECTION 1 AMENDS SECTION 131-W OF THE SOCIAL SERVICES LAW TO REMOVE THE
REQUIREMENT THAT SOCIAL SERVICE DISTRICTS MUST RECOUP RENT ARREARS.

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 SEVERELY 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. 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 INDI-
VIDUALS REMAIN IN THEIR HOMES, BUT A REQUIREMENT TO REPAY RENTAL ARREARS
CAN CAUSE FURTHER FINANCIAL DISTRESS, ESSENTIALLY PREVENTING A RENTER
FROM EVER GETTING AHEAD.

 
LEGISLATIVE HISTORY:

2021-2022: 56845 (KAVANAGH) / A7048A (ROSENTHAL) -- SOCIAL SERVICES /
SOCIAL SERVICES

2023: 56181 (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.