CBC Report: CityPHEPS Hits $1 Billion

Since the October 2018 launch of the City Fighting Homelessness and Eviction Prevention Supplement (CityPHEPS) program, which consolidated several New York City rental subsidy programs into one, the voucher program has yet to alleviate the demand for shelter, while the cost continues to escalate. In fiscal year 2019, the cost of CityPHEPS was $25 million, and by fiscal year 2023 it ballooned to the anticipated cost of $636 million. At the end of 2024 there were approximately 52,000 voucher holders — 22,300 single adult households and 29,600 family households, and the cost in fiscal year 2025 (FY25) will be more than $1.1 billion according to the February 2025 report by the Citizens Budget Commission (CBC) — a cost that could further increase due to new vouchers issued through the end of June 2025 or rent increases of existing voucher holders. A further concern is the continued “practice of radical underbudgeting that obscures the city’s fiscal plans and outlook, having only budgeted $519 million for CityPHEPS in fiscal year 2026. Public officials had hoped that rental subsidy programs would decrease the number of New Yorkers entering shelter and save the city money in the long run. However, although the vouchers save money initially, “their total cost far outpaces the cost of shelter over a period of five years or longer.” Based on information within CBC’s report, while at the onset, the cost of a shelter stay and CityPHEPS are similar — at approximately $54.80 per day, or about $20,000 per year, due to the extended length of up to five years or possibly longer of the vouchers, the cumulative cost of the heavily subsidized CityPHEPS is much higher, even when accounting for households that cycle back to shelter. In addition, unlike shelter costs which are shared with the federal and state governments, CityPHEPS are entirely city-funded.

A further concern is the lack of transparency since the “city does not provide any performance data on CityPHEPS, which makes it difficult to understand the scope of the program, its effectiveness at relieving New Yorker’s housing burdens, or how well the DSS [New York City Department of Social Services] administers the program. It is time for the city to take a closer look at CityPHEPS before its high cost reaches a point where it significantly hinders the city’s ability to fund other programs and services. Another consideration may be to shift funds towards the creation of vocational training programs to help those that are able to elevate their financial situation, or going a step further establish a better understanding of what is fueling the rising cost of city housing that has made it unaffordable for a growing number of New Yorkers, including the disproportionate burden of real estate taxes on rental buildings compared to co-op and condominiums which are then passed on to the tenants.

Source:    https://cbcny.org/sites/default/files/media/files/CBCREPORT_FHEPS_02242025.pdf