The Federal Emergency Housing Voucher Program (EHV), originally scheduled to run until 2030, may be terminated early between 2025 and 2026, causing significant impact on approximately 16,000 tenants and 5,000 landlords in New York City who rely on this assistance.
Established by the federal government in 2021 in response to the escalating housing crisis during the COVID-19 pandemic, the EHV allocated a budget of $5 billion to assist about 60,000 vulnerable tenants nationwide in maintaining stable housing. These tenants include victims of domestic violence, human trafficking, homelessness, and those living in shelters.
However, the federal government announced this spring that due to inflation and soaring rental costs, the project’s funding is expected to be depleted by 2025-2026, with no provision for continued funding in the current congressional budget proposal.
New York City is reported to be the worst affected city in the United States, with approximately 16,105 households reliant on EHV assistance, receiving an average of around $1,900 per month, which covers about 80% of the city’s average rent ($2,300).
Moreover, around 5,700 residential buildings across New York State participate in the program, with 5,000 located in the city, nearly half in the Bronx and about a quarter in Brooklyn. If the assistance is terminated, these landlords may face difficulties in collecting rent, financial disruptions, and potentially have to evict tenants who cannot afford the rent.
Housing advocates are currently lobbying Congress to include an extension of the subsidy in the budget. Should Congress fail to allocate funds for the continuation of the program, advocacy groups will turn to the city and state governments for financial assistance. However, officials have pointed out that if the city were to bear the burden alone, it would increase annual expenditures by around $175 million.
Currently, the average annual income of EHV recipients in New York City is approximately $18,000. Without the subsidy, it would be nearly impossible for them to sustain their current housing situation. The discontinuation of the federal assistance could potentially result in a significant increase in homelessness among tenants.