Hated cluster site housing program to receive $200M in funding

Contracts with four vendors will be extended through 2024

New York /
Dec.December 14, 2015 08:39 AM

Though the mayor’s own chief investigator called for cutbacks to the much-maligned cluster housing program, it’s not going away. In fact, the housing program for the homeless will soon receive $200 million from the city.

The Department of Homeless Services proposed four contracts in the Bronx and Brooklyn totaling more than $200 million over four-and-a-half years, with an option to extend through 2024, Crain’s reported.

The cluster site program seeks to move homeless New Yorkers out of shelters and into private apartment buildings, offering subsidies to landlords. Many of the sites have been criticized for their poor maintenance and security conditions, and the program as a whole has been cited for reducing the number of rent-stabilized units on the market.

Two of the organizations set to win contracts — Acacia Network and Bushwick Economic Development Corp. (BEDCO) — were taken to task earlier this year by the Department of Investigation for dangerous and unsanitary conditions.

Acacia told Crain’s the problems — broken elevators, broken glass and puddles of urine in common spaces — have been corrected.

The city has 3,079 units of cluster housing, down slightly from last year. The de Blasio administration said it cleared 83 percent of the more than 10,000 violations at cluster houses.

The city paid $95 per month on average for residents at Acacia apartments — nearly three times what market-rate tenants pay in those neighborhoods, Department of Investigations Commissioner Mark Peters said.

City officials say they’re working on a solution to phase out the program, but with record numbers of families in shelters, have had trouble moving away from cluster houses. [Crain’s]Ariel Stulberg


Related Articles

arrow_forward_ios
CORE Services Group CEO Jack Brown (CORE, iStock)
NYC dropping homeless shelter operator after reported mismanagement, ethics violations
NYC dropping homeless shelter operator after reported mismanagement, ethics violations
Gov. Gavin Newsom (Getty)
California Gov. Newsom wins recall election; homeless, housing crises loom
California Gov. Newsom wins recall election; homeless, housing crises loom
(iStock)
Tenant activists fight each other over vouchers
Tenant activists fight each other over vouchers
The city claims that an increase in crime is the reason for evicting Mary's Kitchen, but have declined to provide any evidence that the operation led to increased crime in the area (Getty)
This SoCal city is canceling the lease on its only homeless services provider
This SoCal city is canceling the lease on its only homeless services provider
DHS Commissioner Steven Banks. (Getty, Google Maps)
City to open Soho homeless shelter
City to open Soho homeless shelter
(Ulmer Nest)
German designers roll out weatherproof shelter pods
German designers roll out weatherproof shelter pods
“Torture song”: Landlord apologizes for blasting Barney theme to deter homeless
“Torture song”: Landlord apologizes for blasting Barney theme to deter homeless
“Torture song”: Landlord apologizes for blasting Barney theme to deter homeless
LA Mayor Eric Garcetti (Getty)
LA pays big bucks to build tiny homes for homeless
LA pays big bucks to build tiny homes for homeless
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...