The Real Estate Board of New York to The Committee on General Welfare Regarding the FY 2026 Preliminary Budget

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The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association representing commercial, residential, and institutional property owners, builders, managers, investors, brokers, salespeople, and other organizations and individuals active in New York City real estate. REBNY thanks the committee for the opportunity to provide testimony at today’s hearing on the Preliminary Budget for Fiscal Year 2026.

Housing vouchers are pivotal in mitigating homelessness, increasing housing stability, and improving long-term health, social, and economic outcomes. The Department of Social Services (DSS) oversees multiple rental assistance programs, including the City’s primary voucher program, the City Fighting Homelessness and Eviction Prevention Supplement Program (CityFHEPS). CityFHEPS intends to help New Yorkers living in shelters and those at risk of homelessness secure permanent housing. In practical application, however, the CityFHEPS program is flawed, and voucher holders find their opportunities limited. REBNY frequently hears from members – owners and agents – working with voucher holders that the process has proven cumbersome, lengthy, and convoluted. A 2024 audit released by the State Comptroller found that it takes an average of 292 days – almost 10 months – for a CityFHEPS voucher holder to find an apartment.

The policy conversation around vouchers covers a wide array of stakeholders in addition to voucher holders themselves. In 2024, REBNY and Women in Need (Win) co-authored Housing More New Yorkers, a policy paper outlining the challenges facing the City’s voucher programs and the subsequent legislative fixes. REBNY and Win share a common goal: Improving the voucher process and helping voucher holders find stable housing. To that end, our organizations agree that the Council must make policy changes to reduce delays that prevent voucher holders from securing housing, move past outdated processes, and eliminate inefficiencies in lease-up procedures. Unfortunately, limited capacity at DSS has delayed processing times, slowed moves from shelter into permanent housing, and impacted the success of CityFHEPS.

Adequate staffing and agency funding are prerequisites for addressing administrative delays and other challenges within the City’s voucher programs. However, DSS staffing remains below pre-pandemic levels and above the City average at 9.1 percent. In addition, the Comptroller’s report on the FY 2026 Preliminary Budget found that the Human Resources Administration’s (HRA) monthly rental assistance costs have grown at an average of 4 percent since FY 2022, warranting additional funding than what is currently proposed for FY 2026.

REBNY commends Speaker Adams for her commitment to addressing CityFHEPS’ bureaucratic and administrative barriers in her State of the City Address. However, as City fiscal challenges remain, ensuring that funding is robust for voucher programming will more than pay for itself. We urge the administration to ensure that DSS receives the resources and support necessary to fill vacancies rapidly

and promptly provide housing assistance to voucher holders. REBNY looks forward to working with the Council and all other stakeholders to advance solutions and get more New Yorkers into homes.

Thank you for considering these points.