Sunday, May 10, 2009

New York Charging to Live In Homeless Shelters

Dissenting Justice has this incredible news. See Pathetic News Item: "Liberal" New York City Charging Homeless People to Stay at Shelters!

The law permits the city to charge a rental amount of up to 50% of the individual's salary.As one would expect, advocates for the poor oppose the policy, which has already led to sad circumstances for homeless individuals. Consider the experience of Vanessa Dacosta, whom the article highlights. Dacosta is a single mother who lives in a city shelter. She makes $8.40 per hour and $800 per month as a cashier at Sbarro pizzeria. The city has informed Dacosta that she must pay $336 in monthly rent to the shelter or vacate the premises.Dacosta spends $400 a month on childcare.

The rental policy will force her to live on $64 per month after she pays her rent and childcare. Sadly, Dacosta would bring home about the same amount of money if she did not work at all. Without a job, she would have to struggle to pay for childcare, but she would not have to pay rent to the city. This policy clearly creates perverse incentives for people who, like Dacosta, are fortunate enough to find employment and who want to escape the shelter by saving money to pay for rent.

This policy makes not sense. It just keeps people in homeless shelters forever.

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