NEW YORK, NY — Mayor Zohran Mamdani moves forward with a legal challenge against a City Council-backed expansion of a rental assistance program, bringing the case to the state’s highest court after reversing a campaign promise to drop the suit.
The City’s Law Department filed late Tuesday to take the dispute over the CityFHEPS voucher program to the New York Court of Appeals, continuing a legal strategy first used under former Mayor Eric Adams.
The case centers on whether the City Council has the legal authority to expand CityFHEPS, a rental assistance program that helps low-income residents secure housing.
The administration argues the council exceeded its legal powers in passing the 2023 laws.
The appeal challenges a ruling from the Appellate Division, First Department, which sided with the council and advocacy groups, including Legal Aid Society, in upholding the expansion.
Legal Aid criticized the latest move.
“It is regrettable that the Mamdani Administration has chosen to continue this litigation rather than focus on ensuring that vulnerable New Yorkers can access the housing support they urgently need,” a spokesperson for the organization stated.
The administration has also raised concerns about the cost of the expanded program. City Council estimates put the price at roughly $10 billion over five years, a figure officials say the city cannot sustain.
Mamdani said last month he would walk back his campaign pledge to end the lawsuit, citing budget constraints, and instead seek a negotiated agreement with lawmakers and advocates on a revised expansion.
A spokesperson for the Mayor said the decision to appeal followed stalled negotiations ahead of a court-imposed March 25 deadline.
“We are committed to reaching a settlement that keeps New Yorkers stably housed and delivers a balanced budget,” spokesperson Joe Calvello said. “As the budget process advances, we will continue working toward a resolution while advancing a comprehensive, whole-of-government response to the city’s housing and homelessness crisis.”