Due a a settlement of a lawsuit brought forth by 4 families facing eviction, New York State will increase rent subsidies to low-income families based in New York City. The settlement will increase the aid under the Family Eviction Prevention Supplement by as much as 78% based on an article by the New York Times. The Times states that a family of three presently would be eligible for $850 a month but under the new subsidy will be eligible for $1,515 a month. The increase in the subsidy is the right direction as market rents have increased dramatically since the inception of the program in 2004 and allows individuals to be able to afford market rents. The increase will be the first one under the program and will will most likely go into effect in early April of this year. The basic shelter allowance will not be increased under the program.
The City of New York is confident that the new subsidies will curb the increase of homelessness in the City as rents have skyrocketed since the inception of the Family Eviction Prevention Supplement. Mayor De Blasio recently announced the opening of 90 new shelters which his administration hopes will curb the plight of the record 60,000 homeless individuals in the City.
A positive aspect of the subsidy increase would be property managers in New York City being more inclined into accepting more tenants under the program. As the amount is closer to market rents and guaranteed by the State, it will give more of an assurance that payments will be made and revenues will increase.