DSS Commissioner Molly Wasow Park told the Council that the administration plans a set of changes to the City Family Eviction Prevention Subsidy (CityFEPs) to limit program growth and promote long-term sustainability. The most prominent proposal in the recently published rule package would change the baseline tenant contribution for households renewing in their sixth year from 30% of income to 40% for households with earned income.

"This is one of only several changes that DSS is making to the program to address the significant growth in costs and ensure the program is sustainable going forward," Park said. The agency's budget documents show CityFEPs spending rose from about $250 million in 2021 to about $1.2 billion in FY25.

DSS emphasized it will apply an expansive definition of "good cause" for renewals and said most households currently do renew at year six. Commissioner Park estimated the rule change would save roughly $11 million per year once fully implemented.

Separately, Park outlined a new pilot program included in the same rule package called Creating Real Impacted Births (CRIB). CRIB would randomize eligible pregnant people into program arms: immediate access to rental subsidy (CityFEPs), a Pathway Home cash subsidy option for family placements with friends/family, and a control group receiving standard services. Park said the department expects to launch the pilot over the summer and that a main outcome will be births occurring in shelter versus in permanent housing.

Councillors and advocates pushed back on both items. Council members and nonprofit speakers warned increasing the tenant share could push working families into rent burden and back into shelter; the council asked for data on who would be affected and urged DSS to consider alternatives. Several nonprofit and provider witnesses asked for the $215 million previously tied to CityFEPs commitments (a council-administration agreement referenced during the hearing) to be preserved in the adopted budget.

DSS insisted the change is part of a broader strategy that also includes rent reasonableness, changes to the augmented CityFEPs tier, and administrative reforms to speed lease-up and reduce program cost growth.

What the city will do next: DSS said the rule change was published in April and will be followed by agency guidance and implementation steps; the department said it will communicate with voucher holders and partners and will continue to meet with council staff and stakeholders.