Newark Severs Supply of Homeless Tenants from New York City

In a decision that affects some Newark landlords, the city settled a lawsuit against New York City, all but eliminating a program that resettled homeless families in Newark rentals.

The settlement cutting down the Special One-time Temporary Assistance program, or SOTA, was reached last week, Gothamist reported. The deal significantly limits the number of families that can be relocated to Newark.

New York City will now be able to relocate only seven homeless families to Newark every three months before needing to confer with its New Jersey neighbor. In the first four years of the program, which launched in 2017, at least 1,300 families were shifted from New York’s shelter system to Newark, more than any other recipient city.

SOTA allows New York City to pay one year’s rent to a landlord in another city to house a homeless family. For the de Blasio administration, it was an inexpensive way to move people out of its costly shelters.

Newark landlords also benefited, as they were able to get a year’s rent upfront without having to market their units. But some drew the attention of critics by providing decrepit apartments, and Newark’s political establishment was outraged that it had not been consulted by New York’s.

A blame game ensued, followed by litigation. New York officials noted that it was Newark’s responsibility to ensure its housing was up to code.

After Newark filed its lawsuit in 2019, New York City began reforming the program. The Department of Social Services started making payments monthly, rather than paying for a full year at once. Additionally, a hotline was set up for tenants, who had been reluctant to report problems with their units.

Under the settlement, the city will also share landlord data with Newark each quarter.

More than 7,500 families have been relocated under SOTA to New York, New Jersey and faraway places including Florida, Georgia and California.

— Holden Walter-Warner