Council hearing spotlights bill to require quarterly advances for certain human-service contracts

The City Council's Committee on Contracts on Oct. 23 heard competing views on Intro. 1392, a bill sponsored by Speaker Adrienne Adams to require quarterly advances for certain human-service contracts and to pilot advances for large contracts. Speaker Adams said the bill would stop nonprofits from "collectively pay[ing] millions of dollars on bridge loans because our procurement process isn't working the way it should." She described the proposal as a way to give providers predictable cash flow so they can focus on services rather than borrowing costs.

Adams described the bill's mechanics: beginning Jan. 1, 2026, covered agencies would provide at least 25% of a contract's annual value each quarter for contracts with the Department of Homeless Services (DHS) for temporary housing assistance and the Mayor's Office of Criminal Justice. For multi-year contracts the advances would continue in subsequent years, and the bill would launch a pilot on Jan. 1, 2027 for contracts over $1 million. Adams said the bill includes…