April 12, 2021 -- NYC, NY -- Housing Works praises the April 7, 2021, NYC Council’s Response to the Fiscal 2022 Preliminary Budget and Fiscal 2021 Preliminary Mayor’s Management Report, which proposes a restoration of full funding to the Indirect Cost Rate Initiative (which offsets administrative and other costs for human services nonprofits), and calls for raises for non-profit employees. Housing Works also calls upon the Council to expand on this proposal by passing a local law enshrining the federally-approved indirect rate and requiring the city to provide regular wage increases to non-profit contractors commensurate with those negotiated with city employees.
The Indirect Cost Rate Initiative required the City to pay not-for-profit contractors their federally approved rate as part of the 2019-2020 City Budget. But last year, the rate was capped at 10%, as part of the myriad cuts that sought to balance the City budget on the backs of the most vulnerable New Yorkers. This forced non-profits to scramble for funding to remain operational at a time of unprecedented need for communities across the city.
“It is appalling that in the midst of a pandemic, the Mayor of New York City forced significant cuts to the Indirect Rate of vital safety net social service, housing, and health care providers at a time when they were addressing the needs of residents most at risk of COVID 19," said Charles King, co-founder and CEO of Housing Works, Inc. "The City Council should enact a law that prevents any mayor from doing this in the future.”