Nonprofits Can’t Help Homeless People When Cities Pay Them Late

Nonprofits serving the most vulnerable New Yorkers are waiting. The city owes them hundreds of millions of dollars in cost reimbursements, and they’re racking up tens of millions in interest and fees to compensate.

In January, 275 nonprofit representatives sounded the alarm in a letter to the mayor’s office estimating that almost 20 percent of their agencies are technically insolvent, owing in no small part to chronically late payments on city-funded social services contracts. The city charter mandates that the comptroller “register,” i.e. sign off, on a contract, confirming that the city has funds to follow it through. According to data from the city comptroller, in fiscal year 2017 the city registered more than 90 percent of its social services contracts after the contract start date, with an average registration date of 210 days after the start date.