News from New York State Office of Temporary & Disability Assistance

For more information contact: Michael Hayes or Anthony Farmer, 518-474-9516

Public Housing Authorities Receive Financial Boost

Now On Par With Private Housing Providers

ALBANY, NY (10/12/2007; 1313)(readMedia)-- An increase to shelter allowances provided to public housing authorities serving families on public assistance has been approved by the State Office of Temporary and Disability Assistance (OTDA) and will be implemented with this month’s payments, Governor Eliot Spitzer and OTDA Commissioner David A. Hansell announced Friday.

“For too many New Yorkers the middle class is becoming unreachable and the high cost of housing is the main culprit,” Governor Spitzer said. “By increasing the public housing allowance we are helping to ensure the viability of public housing for our low-income families and laying the foundation of their economic security.”

Commissioner Hansell said the changes are the result of legislation signed by Governor Spitzer in August that creates parity between public and private housing providers with respect to shelter allowance assistance, increasing public housing funding by as much as $40 million annually once it is fully phased in.

New York City Mayor Michael Bloomberg said the approval is welcome news to the city.

“By signing the shelter allowance bill, Governor Spitzer gave our city's public housing a huge shot in the arm and is helping ensure long-term stability and improvements for 405,000 New Yorkers,” Bloomberg said.

Landlords receive a “shelter allowance” from the state to cover rents paid by tenants who are on public assistance. Previously, this subsidy was distributed unequally, with the size of stipends provided to private landlords being much larger than that given to public housing authorities – sometimes nearly three times greater, depending on family size. These two shelter allowance rates are now equalized, ending the disparity between both types of housing providers.

The shelter allowance increase will be phased in over three years – immediately rising to 50 percent of the maximum level provided to private landlords, and then increasing to 75 percent in 2008-09, and 100 percent in 2009-10.

Hansell said the move is part of the Governor’s efforts to strengthen and grow the middle class.

“A key part of the Governor Spitzer’s Economic Security Agenda is combating the high cost of housing in New York State,” said Hansell. “Affordable housing will go a long way toward helping low-income families achieve some level of self sufficiency and hopefully movement to the middle class.”

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