Hughes Hubbard Wins Groundbreaking Settlement in Rental Subsidy Class Action Against NYC

January 2025 – The firm won a major settlement in its pro bono rental subsidy class action litigation against New York City, in which the firm alleged the New York City Department of Social Services (DSS) was unlawfully terminating rental vouchers for low-income New Yorkers.

In April 2023, Hughes Hubbard and The Legal Aid Society filed a class action lawsuit in New York Supreme Court. The lawsuit centered on two programs – the Family Homelessness and Eviction Prevention Supplement (FHEPS) and the City Fighting Homelessness and Eviction Prevention Supplement (CityFHEPS) – which provide rent supplements to families facing eviction or homelessness.

On Dec. 23, 2024, Judge Lyle Frank certified a settlement class and granted final approval of a settlement that Hughes Hubbard and The Legal Aid Society negotiated over a period of several months. The settlement requires New York City to overhaul its policies and procedures regarding renewal, modification and restoration of rental subsidy benefits, so that low-income New York City families eligible for those benefits continue to receive them.

Terms of the settlement include requiring DSS to evaluate and correct any improper terminations of FHEPS or CityFHEPS; to modify its systems and procedures to prevent improper terminations of benefits in the future; to provide adequate notice and instructions to families regarding renewals, restorations and modifications of benefits; and to provide regular reporting to ensure it is complying with its obligations under the settlement.

This settlement is expected to positively impact the lives of thousands of low-income New York City residents.

Fara Tabatabai represented the plaintiffs alongside The Legal Aid Society.