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06.06.2024
On June 4th, 2024, the Network and members testified at the New York City Council’s Committee on Contracts hearing highlighting the impacts of late contract payments and the challenges with PASSPort system implementation:
"Despite the essential services provided, the nonprofits we represent wait years for reimbursement from the city,” said Network Executive Director Pascale Leone. “This forces providers to take out costly loans to cover salaries and other expenses, diverting funds away from direct services,"
"As of today, Breaking Ground is owed $23 million from the Department of Homeless Services,” said Breaking Ground President and Chief Executive Officer and Network Board Chair Brenda Rosen. “During 2023, we paid $830 thousand in unreimbursed interest expense on our lines of credit and continue to pay $90 thousand per month in 2024. Based on payment delays, it is a constant struggle to meet payroll demands and keep vendors,"
"At any given time, the Fortune Society has millions of dollars incurred in out of pocket expenses for services that can't be reimbursed because contracts haven't been executed,” said Fortune Society Policy Council Lily Shapiro. “In the face of delays to deliver services, we are forced to draw on lines of credit with 8-9% interest."
"Urban Pathways is currently owed approximately $3.9 million from the city on New York City Department of Homeless Services (DHS) and Department of Health and Mental Hygiene (DOHMH) contracts, mainly from the inability to submit invoices,” said Urban Pathways Director of Policy Nicole McVinua. “Some DHS funds owed are also due to delays to getting budget modifications approved.”
Read the Network’s full testimony HERE. Thank you to our members for your advocacy.