(Just The News)—New York City Mayor Zohran Mamdani is putting plans to expand the city’s housing voucher program on hold as his new administration grapples with budget shortfalls.
More than 60,000 families rely on the City Fighting Homelessness and Eviction Prevention Supplement program, known as CityFHEPS, to help pay their rent. Participants are required to pay 30% of their income toward it. Mamdani’s plans called for expanding the program and dropping a lawsuit filed by his predecessor, Eric Adams, that challenged a law, expanding eligibility for the housing vouchers.
But at a budget briefing this week, Mamdani told reporters his administration needs more time to develop a plan to expand the program after learning of a projected $12 billion revenue shortfall for the next fiscal year.
To reduce the budget gap, Mamdani said he will pursue a campaign pledge to raise taxes by 2% on millionaires and increase the combined corporate tax rate to just over 22%, making it the highest rate in the nation. Gov. Kathy Hochul, a Democrat, who is seeking reelection this year, has ruled out support for higher taxes in the city.
The democratic socialist and former Queens Assemblyman has blamed former Mayor Eric Adams for leaving a budget deficit and former Gov. Andrew Cuomo, his chief rival in November’s mayoral election, for not doing enough to help the city as governor. Both have denied responsibility for the Big Apple’s revenue shortfalls.
“The prior administration mismanaged not only the budget, but also, frankly, housing and assistance programs,” Mamdani said in remarks Wednesday. “Looking forward, we want to make sure that we balance New Yorkers’ access to medium- and long-term housing, while also crafting a sustained and balanced budget.”
Adams wanted to raise tenant rents under CityFHEPS to 40%, arguing the city needs to contain the program’s costs, which rose to more than $1.25 billion last year. But the City Council rejected his plan.
Meanwhile, the City Council failed to muster enough votes on Thursday to override Adams’ objections to the Community Opportunity to Purchase Act, which would give nonprofits and private developers a first crack at buying distressed apartment buildings to redevelop them for affordable housing. Mamdani had championed the bill on the campaign trail.
Adams vetoed the legislation on his final day in office amid opposition from real estate industry and landlord groups, who said the changes would increase red tape and contribute to a shortage of affordable housing.
Despite support for the measure, and a last-ditch effort by Mamdani to bring it up for a vote Thursday, Council Speaker Julie Menin didn’t have the two-thirds majority needed to override the veto.
Backers of the measure said they were undeterred by the failure to override Adams veto, and vowed to keep pushing for its passage.
“The bottom line is this: if we do not have stronger protections to keep working class New Yorkers here, they will continue to leave,” Councilmember Sandra Nurse said in a statement. “I look forward to working with Speaker Menin on re-introducing the bill and passing it this year.”
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