New York, NY – May 14, 2009 – (RealEstateRama) — New York City Comptroller William C. Thompson, Jr. today called the City’s recent decision to require working families residing in Department of Homeless Services’ (DHS) shelters to pay rent toward the cost of being housed short-sighted, ill-considered and disconnected from the struggles of less fortunate New Yorkers.
“In light of the current economic downturn and the surge in foreclosures, many more families are finding it increasingly difficult to remain in their homes,” Thompson said. “As families confront unprecedented financial hardships and homelessness, those entering the shelter system need an opportunity to recover and to access necessary services in order to obtain permanent housing.”
In a letter to Mayor Michael Bloomberg – available at www.comptroller.nyc.gov – Thompson said he is troubled by the City’s unquestioning embrace of this policy and the failure to seek relief from its mandates.
Even though the City claims it is implementing this policy pursuant to State regulation, Thompson questioned both the timing of this decision, given that the regulation dates to 1995, and the means by which it is being implemented.
“Taking a portion of a family’s limited income as rent is quite simply counter-productive,” he said. “The more families pay to be sheltered, the longer they will need to remain in a shelter – at a greater cost to the City – as they struggle to accumulate financial resources necessary to secure a new place to live.”
In the meantime, Thompson recommended that, instead of requiring shelter residents to pay up to half their income in rent to the City, the Administration should work with each family to create a realistic budget that covers necessary expenses. Any money the City charges for rent should instead be deposited into savings accounts that families could use exclusively for permanent housing.
“It is misguided, at best, to believe that families enter the shelter system for any other reason than out of desperation,” Thompson said. “Rather than burdening families in crisis, the City should offer constructive assistance that allows families to return to a firmer financial footing and move back into their own homes.”
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