The Legal Aid Society, together with Coalition for the Homeless, Women In Need, Neighbors Together, and individual plaintiffs, filed a lawsuit to stop the New York City Department of Social Services (DSS) from eliminating a key incentive that helps homeless New Yorkers secure permanent housing.

The lawsuit challenges DSS’s sudden decision to end its longstanding “unit hold” incentive—a payment to landlords that ensures apartments are held for prospective tenants while CityFHEPS housing voucher paperwork is processed.

The litigation seeks to block DSS from implementing the policy change and requests a preliminary injunction to require continued payment of unit hold incentives while the case is litigated. The Petitioners argue that, with over 85,000 New Yorkers in shelter—including 31,000 children—the stakes could not be higher.

“For years, DSS’s unit hold incentive has played a critical role in moving thousands of homeless New Yorkers out of shelter and into stable homes,” said Pavita Krishnaswamy, Supervising Attorney in the Civil Law Reform Unit at The Legal Aid Society.

“Eliminating it without notice or explanation not only defies the law—it defies basic common sense and compassion,” she continued. “This abrupt policy change will extend shelter stays, break up families, disrupt education, and cost the City far more in the long run.”