City rent vouchers can't make you pay more than 30% of income

CityFHEPS is the city’s rental voucher for people and families leaving shelter or at risk of losing their homes. The tenant pays part of the rent, and the city pays the rest up to the program limit. This law caps the tenant’s share at 30% of the household’s total monthly gross income, measured when the voucher is approved or renewed. The cap applies whether the income comes from a job, public assistance, or both. Voucher holders don’t need to apply separately for the cap; it applies automatically.

In September 2025, the Department of Social Services began charging 40% of income to households with earnings that renewed beyond their fifth year. Households receiving Supplemental Security Income or including someone older than 60 were exempt. The department said the rule would affect about 3,100 households in the first year. Advocates warned that the higher charge could put them at greater risk of eviction.

Deputy Speaker Diana Ayala sponsored the bill to undo that rule. The Council passed it 42–7 in October 2025. Mayor Eric Adams vetoed it in November, arguing the program had to stay affordable for the city. On December 4, 2025, the Council overrode his veto 40–7, and the cap took effect in March 2026. The city had expected the 40% rule to save about $11 million a year; keeping the 30% cap gave up those projected savings. CityFHEPS had cost about $1.25 billion in the prior fiscal year.