City Officials Warn Proposed FEPS Changes Could Increase Evictions and Homelessness

New York City officials and advocates voiced their concerns regarding proposed changes to the City Fighting Homelessness and Eviction Prevention Supplement (City FEPS) program during the Fiscal Year 2026 Executive Budget Hearing. A key issue is the potential increase in tenant cost burdens that could lead to more evictions for families relying on City FEPS.

Proposed changes would raise the tenant’s share of rent from 30% to 40% of their income for those renewing after five years. Testimony indicated that such a move could entrench rent burdens into city policy, worsening the financial strain for families already struggling to keep up with rising living costs. Advocates argue that this shift would likely result not only in more families facing eviction but also in an increase in homelessness within the city (Source: https://youtu.be/2dy3l5ipTQY&t=1964).

Several strategies are being discussed to mitigate potential evictions associated with this cost burden increase. The City Department of Social Services (DSS) indicated its commitment to ensuring the sustainability of City FEPS while also looking for ways to control costs. This includes implementing rent reasonableness measures to protect against landlords overcharging for units. Recent changes to the augmented City FEPS aimed to prevent landlords from taking advantage of the program, which had previously allowed vouchers to be used for higher-rent units. DSS officials emphasized that sustaining the program is a priority, which may include reallocating voucher assistance to those facing eviction (Source: https://youtu.be/2dy3l5ipTQY&t=5886).

Support for the program has grown over the years, with testimony highlighting that City FEPS has moved thousands of households out of shelters and into permanent housing. In the previous calendar year, more than 10,200 households transitioned to stable housing using City FEPS vouchers, reflecting a significant increase from earlier years (Source: https://youtu.be/2dy3l5ipTQY&t=1799).

Advocates and council members are pressing for a reaffirmation of the $215 million commitment made under the “City for All” initiative. This funding is estimated to keep approximately 7,500 households housed, directly countering the proposed cost burden increase that could jeopardize current tenants’ stability (Source: https://youtu.be/2dy3l5ipTQY&t=12689).

As the city navigates its budget and housing support strategies, officials face mounting pressure to protect vulnerable households from eviction. The proposed increases to tenant rent obligations pose a significant challenge, prompting council members and community advocates to demand more substantial action to keep families in their homes (Source: https://getlocalpost.com/2024/12/19/city-addresses-critical-housing-shortage-with-comprehensive-legislative-package-for-renters/).