New York City’s social services agency will soon allow low-income residents with city-issued housing vouchers to rent apartments in Buffalo, Binghamton, or any other part of the state under new rules intended to reduce record-high levels of homelessness, Adams administration officials told Gothamist on Tuesday.

Under the plan, the city — for the first time — will pay the rent for families and individuals with CityFHEPS housing subsidies outside the five boroughs, where prices are lower and affordable housing is potentially more abundant, according to Department of Social Services Commissioner Molly Park.

The decision comes as New York City’s homeless shelter population continues to surge — largely driven by newly arriving migrants — and as median rents citywide reach new highs, all while the number of low-cost apartments dwindles. The move also comes as the Adams administration is trying to roll back New York’s unique right-to-shelter rules, which guarantee a shelter bed for anyone in need.

“These reforms will give longtime New Yorkers the ability to move out of our city’s shelter system to other parts of the state with more affordable housing options,” Mayor Eric Adams told Gothamist in a statement. “We hope our partners across the state will greet these longtime New Yorkers with open arms and good job opportunities.”

The CityFHEPS program covers the bulk of the rent for New Yorkers moving from shelters to permanent housing, and, in some cases, for low-income tenants facing eviction. Recipients pay 30% of their income toward rent, while the city covers the rest.

But current rules limit voucher holders’ housing search to the five boroughs. Park said this is a serious disadvantage compared to other subsidies, such as the federal Section 8 program, which allows people to move anywhere in the U.S. where they can find housing.

“Housing mobility is a fundamental right that most of us take for granted,” Park said. “The more options we can give people for housing, the more likely we're going to be able to help households move out of shelter.”

Park said the ability to move out of town with a CityFHEPS voucher will help a range of New Yorkers, including families who entered shelters to escape domestic violence and people pursuing jobs elsewhere in the state. She said the city will adjust its maximum payment standards based on local fair market rates set by the federal government.

The city plans to issue the emergency rule by early next week, and it will take effect immediately after that, she said.

Since starting the current CityFHEPS program in 2019, DSS has issued more than 30,000 housing vouchers, Adams said in June. But most recipients struggle to quickly find available apartments or landlords willing to accept the subsidies, while many encounter administrative obstacles that slow their moves. About 6,300 households used the vouchers to secure apartments last year, a record high, according to DSS.

But with more than 100,000 people now staying in city homeless shelters, the program is fueling major divisions between Adams and the City Council, which passed a package of bills to expand access to the vouchers and eliminate a rule requiring people to remain in shelters for at least 90 days before they can receive a voucher.

Adams ended the 90-day requirement by executive action before vetoing the remainder of the legislation, saying it would cost too much and create additional competition for scant housing. The Council voted to override his veto, but Adams has said his administration may sue to block the reforms.

The tens of thousands of recently arrived migrants staying in city homeless shelters do not qualify for the vouchers.

Park said it was unclear how many people with CityFHEPS vouchers would opt to leave the city. For years before the recent wave of migrants, the vast majority of shelter residents became homeless while living in the five boroughs, typically because they could not afford rising rents, according to data reported by City Limits.

The change to the voucher program “creates opportunity, and if that opportunity works for even some, that is terrific,” Park said.

At an unrelated news conference in Albany, Gov. Kathy Hochul endorsed the change, telling reporters that she and the mayor's office were in communication over the expanded voucher program.

"It's not sending people against their will all across the state in buses," Hochul said. "This is just one more opportunity to try and, as we talked about, open the back door to get more people out of the shelters and into apartments."

The expansion of CityFHEPS also recalls another city-issued subsidy that allows homeless New Yorkers with a steady income to move outside the five boroughs with the city paying their rent for a year.

But landlords outside of New York City exploited the Special One-Time Assistance program by collecting a year of rent upfront and then letting apartment conditions deteriorate before evicting tenants, many of whom returned to city homeless shelters. Newark, New Jersey, sued to block New York City from paying rent for SOTA recipients in Newark before striking its ordinance and settling with the Adams administration earlier this year.

DSS has changed the program rules to mandate stricter inspections and pay rent each month rather than one lump sum. But as Gothamist has reported, some SOTA tenants are still losing their apartments after landlords jack up rents or decline to renew their leases.

Park said the agency learned from the SOTA setbacks and will require strict inspections either in-person or via live video walking tours before approving apartments. She also pointed out that CityFHEPS is a five-year subsidy with an opportunity for renewal if the household meets the income eligibility requirements.

“This is something that has been requested of us from clients for a long time,” Park said.

She said the city has the governor's support and will defend the new rule in the face of any potential backlash from communities outside the five boroughs. Many communities have already been hesitant to spur housing development or accept migrants moving out of New York City.

“But I'm going to choose to believe the best of my fellow New York state residents, and that we won't see significant opposition,” Park said. “What we are doing is helping households achieve the stability that they want and deserve, and doing it in a way that is consistent with the rights that so many of us have.”

Additional reporting by Jon Campbell.

This story was updated to include a response from Gov. Kathy Hochul.