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State Appeals Court Orders New York City to Implement Rental Subsidy Expansions

The decision compels Mayor Adams to seek state approval for four laws removing utility deductions, eliminating shelter-stay prerequisites, lifting income conditions, widening eligibility thresholds, broadening CityFHEPS access.

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Mayor Eric Adams is pictured at a presser in the Bronx DA’s office announcing the indictment of 19 gang members for 12 shootings including a murder Monday, June 23, 2025 in Manhattan, New York. (Barry Williams/ New York Daily News)
Eric Adams

Overview

  • The appellate panel unanimously overturned a Manhattan Supreme Court ruling and directed the Adams administration to enact four 2023 CityFHEPS expansion laws.
  • Local Laws 99–102 would abolish utility allowances, eliminate shelter-stay requirements, waive work and income conditions, and raise eligibility from 200% of the federal poverty level to 50% of area median income.
  • Mayor Adams resisted the measures on cost grounds after cutting CityFHEPS funding from $1.25 billion in fiscal 2025 to $519 million for fiscal 2026.
  • The court ordered the city to submit an implementation plan to the State Office of Temporary and Disability Assistance for review and approval.
  • Legal Aid Society and City Council advocates called for immediate enforcement of the expansions to prevent thousands of additional evictions among low-income renters.