August 21, 2025 The Legal Aid Society, together with the Coalition for the Homeless, Women in Need, and Neighbors Together, today won a lawsuit upholding an injunction preventing the City of New York from abruptly eliminating the longstanding Unit Hold Incentive for property owners renting to CityFHEPS voucher holders. The ruling by Justice Lyle E. Frank of the New York State Supreme Court ensures that, unless and until the City follows proper rulemaking procedures under the State Administrative Procedure Act, the Department of Social Services (DSS) is barred from rescinding this critical incentive program. The Unit Hold Incentive has long served as a lifeline for unhoused New Yorkers by covering rent while a CityFHEPS voucher application is processed — helping to secure apartments, shorten shelter stays, and make the transition to permanent housing possible for thousands of families and individuals each year. “This ruling is a resounding victory for homeless families and individuals who depend on the CityFHEPS program to escape shelter and secure stable housing,” said Pavita Krishnaswamy, Supervising Attorney in the Civil Law Reform Unit at The Legal Aid Society. “The Adams Administration’s sudden decision to end the Unit Hold Incentive threatened to slam the door on countless New Yorkers desperately seeking homes. The court rightly recognized that such a move cannot be made without following the law, and that the stakes are far too high for our clients and their families.” “DSS’s unit hold incentive is a key tool for helping vulnerable New Yorkers move out of shelter and into permanent homes of their own,” said Christine C. Quinn, President & CEO of Win. “New Yorkers are crying out for change – yet it seems the Adams Administration will go to the ends of the Earth, including through frivolous legal action, to make life even more difficult for New Yorkers in need. We are pleased that a judge has again ruled the unit hold incentive must be preserved and look forward to seeing Mayor Adams and DSS fully comply with the law.” “Today’s ruling preserves a key incentive designed to bring families into stable, affordable housing,” said Dave Giffen, Executive Director of the Coalition for the Homeless. “The only solution to homelessness in our city is making homes available and accessible. The Adams Administration’s unlawful effort to terminate the unit hold incentive was a brazen attempt to shut families out of housing, and we are grateful to the court for ensuring this life-changing policy remains in effect for New Yorkers who need it.” Advocates stressed that the ruling is not only a legal win but also a moral imperative amid a worsening homelessness crisis, with more than 85,000 New Yorkers — including 31,000 children — currently in the shelter system. The organizations urged the City to abandon its attempt to dismantle the policy and instead strengthen pathways into permanent housing.
