LSNYC, MinKwon & PA James Reach Legal Settlement to Protect Elderly and New Yorkers With Disabilities

 
March 8, 2016, NEW YORK—Legal Services NYC, MinKwon Center for Community Action, and Public Advocate Letitia James today announced an important settlement with the NYC Department of Finance that will help thousands of low-income elderly New Yorkers and New Yorkers with disabilities. The settlement, involving ten plaintiffs, will resolve a policy that resulted in significant rent increases for many of the most vulnerable New Yorkers, who were left in the dark about how to retain their Senior Citizen Rent Increase Exemption (SCRIE) and the Disability Rent Increase Exemption (DRIE) subsidies after the loss of a spouse or parent. (Photo: MinKwon Executive Director Grace Shim with plaintiffs Ms. Yi and Ms. Chae) 

Press coverage:New York Times, Gothamist, NBC News, Curbed

“Every New Yorker deserves to live in a safe home and this settlement marks progress in defending the elderly and disabled living in our increasingly unaffordable city,” said Public Advocate Letitia James. “SCRIE and DRIE benefits are critical to thousands of New Yorkers who otherwise cannot afford basic housing. When we saw this disturbing practice, we had a moral responsibility to address it and I’m pleased that we were successful in reaching this settlement with the administration.”
 
In 2015, the Department of Finance (DOF) quietly instituted a new policy that an individual had to follow to keep their rent subsidy after a family member died. Under the policy, an application to takeover SCRIE or DRIE benefits from a deceased spouse or head of household had to be submitted 60 days after a family member died. DOF instituted the policy with no warning or explanation to potential beneficiaries. As a result, many of the most vulnerable New Yorkers were unable to comply and thus lost this much-needed rent subsidy.
 
Under the terms of the settlement:

• DOF has reinstated the prior frozen rent rate for both the plaintiffs and any other SCRIE/DRIE beneficiary;
• DOF has discontinued the policy of only allowing a 60 day window restriction on submitting an application for the benefit takeover;
• DOF will now provide additional information about the process to takeover the rent freeze, which will be printed on both the subsidy sign-up and renewal forms;
• Notices about an upcoming subsidy expiration will include re-application information and time limit and will be sent to beneficiaries prior to the expiration, rather than after (Prior to the settlement, information about the 60 day limit and how to apply to takeover the benefit was virtually unavailable);
• The information will now be available in many languages;
• DOF attempted to locate any person affected by the 60 day rule to reinstate their prior rent;
• Anyone who was denied the benefit takeover between May 2014 and June 2015 as a result of missing the 60 day deadline can re-apply and will be reconsidered; and
• Each plaintiff received financial compensation for the damages.

“The SCRIE/DRIE recipients who were affected by this problem were among the most vulnerable residents of our city—low-income elderly and/or disabled adults who have only just lost a spouse or parent,” said Christine Clarke, Staff Attorney at the Civil Rights Justice Initiative at Legal Services NYC. “The settlement we achieved helps ensure that no secret procedural glitch will cause these vulnerable people to lose a necessary, homelessness-preventing subsidy, ensuring that they can keep their homes while mourning their loss. This settlement is a great victory for all of us, and one that I think all parties can and should be proud of.”

“This settlement will benefit low-income, elderly tenants across New York City, especially those with limited English proficiency. This is a huge win, not only for the tenants we represented in this lawsuit, but for the larger community,” said Grace Shim, Executive Director of the MinKwon Center for Community Action. “We initiated this lawsuit last summer in response to widows being unfairly disenfranchised. Nearly a year later, we are pleased to see that these vulnerable New Yorkers are now protected, and will also have better language access in the process.”

“If it were not for this action, there would be many other possible victims stripped off of their rights,” said Ms. Young Ok Yi, one of the plaintiffs. “For us senior citizens who cannot speak or read English well, many of those fundamental procedures that sustain our daily lives have been rather difficult to follow.”

“I am very grateful to continue living in the home where so many precious memories of my husband reside,” said Ms. Jung Ja Chae, another plaintiff. “Thanks to this settlement, I do not have to worry about finding a new home for my puppy and myself.” 
 
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Contact: Kate Whalen, 646-442-3654, kwhalen (at) legalservicesnyc.org