The HUD FY2016 fair market rent (FMR) for a 2-Bedroom apartment in New York City is $1,571. Yet, a 3-person family with children that earns Public Assistance only receives $400 in shelter allowance, about 1/4 of what they need. It's more or less impossible to rent an apartment for your family if you receive Public Assistance without some sort of additional (and rare) housing voucher like Section 8.
There are currently more than 80,000 people in New York State who receive PA and who pay rents 1.5x higher than their shelter allowance – including 21,000 who pay rents 2.5x higher. Home Stability Support is a statewide rental supplement that would enable New Yorkers at risk for homelessness to find an apartment and prevent eviction.
According to the Coalition for the Homeless, "HSS would cost $11,224 per year for a household of three in New York City – a mere fraction of the $43,880 it costs annually to provide temporary shelter to a homeless family."
New York State originally instituted the shelter allowance to pay the cost of housing for low-income individuals and families unable to otherwise afford rent, but the allowance has not kept up with rising rents in the past few decades since the law changed in 1975.
Citywide, the rapid FMR increase has been significant for most people but crippling for low-income individuals. Consider Kings County (aka Brooklyn). In 1983, the FMR for a 2-BR apartment was $420 (the current shelter allowance wouldn't even cover that). Now it's $1571. In 2008, 2-BR FMR increased by nearly 11%. In 1994, it increased by more than 20%. Last year, it rose by more than 6%.
This problem isn't new. It's just exploding. An article in The New York Times explored the very same issue more than 23 years ago:
Less than six weeks before Gov. Mario M. Cuomo must propose next year's state budget, his administration is considering pressing the Legislature for the first increase in rent subsidies for welfare recipients since 1988 . . . The rent subsidy, which is known as the shelter allowance, is so low -- $286 a month for a family of three in New York City -- that many families on welfare have been forced into homelessness, lawyers and other advocates for the homeless say. The median rent in the city, according to a recent report on housing vacancies, was $475 in 1991.
Back in December 1993, when the article was written, there were 5,100 adults and 7,500 children in the city's family shelters. Today, the population has more than tripled.
Even if you typically oppose subsidies that lift low-income families with children out of homelessness and poverty, check your small-government impulses for one moment and use the other parts of your brain: New York City is already paying a billion dollars just to warehouse people in temporary, substandard municipal shelters. We would save hundreds of millions of dollars to subsidize permanent housing for families – and that's not including all the attending social benefits of housing, especially for homeless children who have zero power over or responsibility for their living situation.