To Address City’s Chronic Failure to Pay Nonprofits on Time, NYC Council Approves Major Reforms to Contracting and Payment Processes

Council also increases frequency of cooling tower testing in response to Legionnaires outbreak

Council advances pay equity efforts by improving wage transparency for large employers, prevent increases in rent burden for CityFHEPS voucher recipients, and improve radiator safety

City Hall, NY - The New York City Council voted to approve legislation that would reform the City's contracting and payment processes to address the longstanding problem of chronically delayed payments for nonprofits delivering critical services to New Yorkers. The package of bills emerged from Speaker Adrienne Adams 2025 State of the City address to resolve the issues that have resulted in service interruptions, organizations accruing debt, layoffs, and even organizations shutting down altogether. The Council also passed bills that would increase the frequency of cooling tower testing to prevent Legionnaires disease, improve wage transparency for large employers to advance pay equity, mandate safety inspections of steam radiators, and reverse a Department of Social Services' rule that would have made CityFHEPS voucher holders rent-burdened.

"Ensuring New Yorkers receive the services they need requires having the proper systems and procedures in place to pay the City's nonprofit service providers on-time," said Speaker Adrienne Adams. "Unfortunately, for years, the City has fallen well short of meeting this responsibility, threatening the stability of our nonprofit partners and putting workers and services in jeopardy. At my 2025 State of the City address, I made clear that addressing this yearslong issue would be a top priority for this Council. The passage of this key legislation today to provide advance payments and fix contract registrations delays are solutions that have been long needed. There remains more to be done to ensure a thriving human services nonprofit sector, and I look forward to the work ahead."

Reforming the City's Nonprofit Contracting and Payment Processes

For years, the City has failed to pay nonprofit organizations with city contracts to deliver services in a timely manner. These long-term issues have resulted in service interruptions and reductions, organizations accruing debt, layoffs of staff, and even the shutting down of longtime organizations. In her 2025 State of the City address, Speaker Adrienne Adams announced proposals to address the longstanding nonprofit contracting and payment delays to eliminate their threats to the delivery of essential services New Yorkers rely on and the stability of nonprofit organizations. The following bills represent the specific solutions that emerged to address the issues.

Introduction 1247-B, sponsored by Speaker Adrienne Adams, would require immediate advance payment of 50 percent of the value of a nonprofit's contract with the City as an advance upon registration by the comptroller. The bill excludes emergency contracts, specific contracts processed by the Department of Homeless Services (DHS) for temporary housing assistance, any contracts processed by the Mayor's Office of Criminal Justice (MOCJ), and residential foster care and emergency domestic violence contracts. The bill would also exempt contracts where advance payments conflict with state or federal law. It would also permit agencies to withhold advance payments from contractors who repeatedly failed to submit required invoices and establish a reclamation process for agencies to recover advance funds when goods or services are not received.

Introduction 1248-B, sponsored by Speaker Adams, would establish an Office of Contract Services, the head of which would be the Director of Contract Services, who would serve as the City Chief Procurement Officer. The Office would have the authority to coordinate citywide procurement activities for mayoral agencies, including reviewing contract guidelines, conducting pre-audit and post-audit reviews of contracts, and providing training and technical assistance on procurement matters. This action would codify the existing Mayor's Office of Contract Services into the City Charter and empower it with additional responsibilities.

Introduction 1249-A, sponsored by Council Member Justin Brannan, would require all human services-related city agencies to submit annual reports on contract registration during the previous fiscal year. An agency would be required to submit a corrective action plan if it registered 250 or more contracts or contracts valued at over $25 million in the previous fiscal year, and more than 50 percent of its contracts or contract value were registered 90 days or more after their start dates. These corrective action plans would analyze the causes of delays, specify improvements to be made, include implementation timelines, and set performance targets. The City Chief Procurement Officer would be required to submit an annual report to the Mayor and the Council analyzing citywide trends in the effectiveness of these corrective action plans.

"The City of New York needs to pay its damn bills on time. Nonprofits keep our city running and offer crucial supportive services to our most vulnerable neighbors," said Council Member Justin Brannan. "The City counts on them to pick up the pieces and fill in the gaps where government falls short, then turns around and, through layers of delays and excessive bureaucracy, effectively withholds payments for their services. The City forces some of its most important allies to operate in the red and take out loans just for its failure to pay them, undermining these nonprofits' ability to continue doing the necessary work we've hired them to do. Enough is enough. No more endless delays. We owe it to these unsung hero nonprofits, and the New Yorkers who rely on them, to get this done."

Increasing Frequency of Cooling Tower Testing for Legionella

Over the summer, the City experienced its worst Legionnaires outbreak in 10 years, which resulted in 114 diagnoses, 90 people hospitalized, and seven deaths. Legionella pneumophila, the bacteria that causes Legionnaires' disease, was discovered in 12 cooling towers of 10 buildings, including a city-run hospital and sexual health clinic in the Bronx. Local Law 77, passed after the 2015 Legionnaires outbreak, requires building owners to register and monitor water quality in cooling towers. However, the number of Department of Health and Mental Hygiene (DOHMH) water ecologists who conduct inspections has decreased to a near record low.

Introduction 1390-A, sponsored by Council Member Lynn Schulman, would amend New York City's cooling tower testing requirements by requiring building owners to test for the presence of microbes at least every month during periods of the year when cooling towers are in use. The bill further requires that all such testing be performed by, or under the supervision of, a qualified person. The bill would also require building owners to perform a biocide treatment of each cooling tower during warm weather, when there is an increased risk of legionella growth, as determined by the Department of Health and Mental Hygiene (DOHMH). Finally, the bill renews reporting requirements for DOHMH on cooling tower registrations, certifications, inspections, testing, and reported diagnoses of Legionnaires' disease.

"Every case of Legionnaires' disease is preventable, and this legislation ensures New York City takes every possible step to protect public health," said Council Member Lynn Schulman. "By strengthening testing and maintenance requirements for cooling towers, we're holding building owners accountable and giving the Department of Health the tools it needs to act quickly and transparently. I'm proud to stand with Speaker Adrienne Adams and my Council colleagues in advancing this common-sense legislation to keep all New Yorkers safe."

Advancing Pay Equity for Large New York City Employers

Introduction 982-A, sponsored by Council Member Tiffany Cabán, would require private employers with more than 200 employees working in the city to submit a pay data report to an agency designated by the mayor with the goal of improving wage transparency. The report would include demographic and occupational information, and would be submitted annually via a fillable, electronic form.

"Injustice persists when it's allowed to hide in the shadows," said Council Member Tiffany Cabán. "With this historic pay equity package, we're pulling back the curtain. By requiring large employers to report pay data and mandating rigorous, public analysis, we're giving policymakers the information needed to close wage gaps at their root. These bills are about accountability and equity for New Yorkers, especially the women and people of color who have been underpaid and undervalued for generations. When we shine a light on inequity, we create the conditions to end it."

Introduction 984-A, sponsored by Majority Leader Amanda Farías, would require a designated agency, in coordination with the Commission on Gender Equity and other relevant agencies, to conduct an annual pay equity study on private employers with 200 or more employees. The study would use the pay data information submitted by employers to evaluate whether there are disparities in compensation based on gender and race or ethnicity. The agency would be required to submit a report to the Mayor and the Council on the findings of the study, and it would also publish the information contained in the pay reports.

Capping CityFHEPS Voucher Holder's Rent Contributions to 30% of Income

Earlier this year, the Department of Social Services proposed new rules that would increase a CityFHEPS voucher holder's rent contribution from 30% to 40% of their gross income after their fifth year in the program, which would make them rent burdened by definition. The rule change prompted concerns from voucher holders and advocates, who expressed that it would lead to nearly 30,000 New Yorkers facing higher rents.

Introduction 1372, sponsored by Deputy Speaker Diana Ayala, would require that the rent contribution for CityFHEPS recipients not exceed 30 percent of the household's total monthly income, regardless of whether the household receives public assistance or has earned income.

"CityFHEPS is a lifeline for tens of thousands of New Yorkers to find permanent housing and exit homelessness," said Deputy Speaker Diana Ayala. "Yet, the Adams administration's misguided rent hike could make it harder for these families to afford basic necessities or even jeopardize their housing. I'm proud the Council is taking action today to reverse the mayoral administration's new rule and prevent additional rent burden on some of our most vulnerable New Yorkers."

Providing Timely Notifications in the Emergency Rental Assistance Process

Introduction 1232-A, sponsored by Council Member Chris Banks, would require the Human Resources Administration (HRA) to make available, as a part of the application for emergency assistance grants for rental assistance, processes by which applicants may authorize HRA to send a text or email notification to the applicant and/or the building owner or a managing agent designated by the building owner upon the approval of the application. The notification to applicants would inform them that a determination on their application has been reached and how to access the determination using ACCESS HRA. The notification to building owners or managing agents would not contain identifiable information about the applicant but would inform them how to access certain details about the determination via a secure web portal.

"I'm proud of Int. 1232 and look forward to seeing it pass," said Council Member Chris Banks. "Government is supposed to be efficient and responsive, and this legislation ensures it works the way it should. In my district, we've seen an influx of HRA-related cases where the most common frustration is, 'I'm not sure what my status is,' or 'I haven't heard back yet.' That's simply unacceptable. Int. 1232 will change that - not just for our constituents, but for management as well."

Identifying Air Conditioning Availability in City Shelters

Introduction 1208-A, sponsored by Council Member Jennifer Gutiérrez, would require the Commissioner of Social Services and the Commissioner of Housing Preservation and Development to issue a biannual report to the Mayor and the Council on the availability of air conditioning in homeless shelters. The report would include information on which shelters have any air conditioning, the location of air conditioners, the type of air conditioning provided, repair needs, which shelters installed air conditioning during the past reporting period, and which shelters are planning to install air conditioning within the next reporting period. The report would have to be posted on the Department of Social Service's website. The bill would also require that the respective Council Member be notified within 30 days of any outage of air conditioning for 72 hours or more at a shelter in their district. In addition, it will require a one-time study, assessing the needs required to install air conditioning in shelters that do not have it.

"We know that extreme heat is now one of the deadliest weather-related hazards we face," said Council Member Jennifer Gutiérrez. "For New Yorkers in shelters, many of whom are already vulnerable, a heat wave shouldn't become a death sentence. This reporting will give the Council ways not just to hold agencies accountable, but to be partners in solutions. With this bill we are ensuring that our vulnerable New Yorkers are accommodated appropriately."

Ensuring Radiator Safety Inspections

Most New York City residential buildings are heated via steam radiators, but no inspections are required to ensure the radiators have no defects or damage. In December 2016, Ibanez Ambrose and Scylee Vayoh Ambrose, two young sisters sleeping in their Bronx apartment bedroom, were exposed to steam from a radiator with a separated valve and suffered fatal injuries. In January 2024, Binyomin Zachariah, an infant in a Brooklyn apartment, also passed away due to steam inhalation and burns from a faulty radiator.

Introduction 925-A, sponsored by Council Member Farah Louis, would require biennial inspections of steam radiators located in apartments where a child under 6 resides and in the common areas of such buildings. If an inspection reveals a defect or damage to a steam radiator, the building owner would be required to correct it within 14 days. Discovery of any condition considered hazardous to life or safety would require the building owner to remove the steam radiator from service within 24 hours of the inspection and repair or replace the steam radiator within 7 days. Building owners would be required to maintain records of each inspection and be subject to civil penalties for insufficient recordkeeping. Inspection requirements would not apply to owner-occupied condominiums and cooperatives.

"I am proud to advance Introduction 925, Ben-Z's Law, which responds directly to the needs and safety concerns of the communities I represent," said Council Member Farah N. Louis. "This legislation is a common sense and lifesaving measure that ensures the City will conduct regular inspections of steam radiators, protect children from preventable harm, and hold building owners accountable for unsafe conditions. As a Council, we must be responsive to the crises that continue to endanger families in their own homes, and we must ensure that the administration fully and swiftly implements this law so that every New Yorker, regardless of where they live, can count on safe, well-maintained housing."

Providing Notifications to Housing Connect Applicants

Introduction 1265-A, sponsored by Council Member Pierina Sanchez, would require the Department of Housing Preservation and Development (HPD) to improve the user-friendliness of the Housing Connect web portal for affordable housing lotteries by notifying users by email and text message when there are important updates to their applications, such as when users must submit additional documentation for an application, and by allowing users to designate a representative to also receive such notifications. The bill would also streamline existing notifications concerning newly listed units by only notifying users of housing for which they are eligible to apply. Finally, HPD would be required to conduct a study on the best means of serving users who require the assistance of representatives and to submit a report with recommendations to the Mayor and the Council.

"As we continue to face a housing crisis, Int. 1265-A will make applying to affordable housing a little easier for New Yorkers," said Council Member Pierina Sanchez. "Every day, dozens of constituents enter my office seeking to secure a safe and affordable apartment through Housing Connect - a process that can be confusing and overwhelming. By passing Int. 1265-A, we will ensure that applicants receive only the most relevant information through tailored text and email notifications. The legislation also establishes a new 'representative' role who can receive notifications on the applicant's behalf so that they do not miss important deadlines and action steps. To chart a path for collaborative, long-term change, Int. 1265-A requires the NYC Department of Housing and Preservation Development (HPD) to solicit feedback from organizations providing application assistance and submit recommendations to make the housing lottery more accessible, especially for digitally divided New Yorkers."

Establishing Cool Pavement Pilot

Introduction 928-B, sponsored by Council Member Sandy Nurse, would require the Department of Transportation, in consultation with the Department of Health and Mental Hygiene, the Department of Environmental Protection, and the Mayor's Office of Climate and Environmental Justice, to conduct a pilot project on the use of cool pavement. Cool pavement is pavement or pavement coatings designed to keep temperatures cooler than traditional asphalt. The pilot will begin in September 2026, run for two years, and include at least one neighborhood in each borough that has high summer surface temperatures and low median income. The agencies would be required to submit a report to the Mayor and the Council on the results of the pilot project.

"No one should die from preventable, heat-related illness and yet the city is not using all the tools available to fight extreme heat," said Council Member Sandy Nurse. "We know extreme heat does not impact all communities equally. Communities with less tree coverage, less green spaces, and that can't afford the high utility costs of air conditioning bear the brunt of rising temperatures. Today's passage of my bill, Intro 928, pushes the city to take more action against the climate crisis and build a resilient city for all zip codes."

Expanding Home Access to Broadband Internet

Introduction 1122-A, sponsored by Council Member Jennifer Gutiérrez, would require the Office of Technology and Innovation (OTI) to develop and publish on its website an internet master plan for the City to improve access to broadband internet in homes throughout the City. The plan would need to be updated every 5 years and address the City's efforts to expand access to low-cost broadband internet, prioritizing access for underserved areas. This bill would also create an internet advisory board, which would be responsible for reviewing plans and making recommendations to improve them. OTI would also be required to post an annual report online detailing any progress made in plan implementation.

"Today we correct yet another mistake of Mayor Eric Adams," said Council Member Jennifer Gutiérrez. "The Internet Master Plan was globally recognized because it was bold, comprehensive, and community-driven. We lost four years when this administration abandoned it, leaving families disconnected and affordable programs sidelined. Today we recommit to building public infrastructure, holding providers accountable, and ensuring every New Yorker has affordable, reliable internet. The internet is not a luxury - it's the foundation."

Land Use:

Arverne East UDAAP Amendment & Article XI - would amend a previously-approved HPD development, composed of 11 buildings and approximately 1,320 affordable units, to increase homeownership units and to provide real property tax exemption to both homeownership and rental units in Majority Whip Selvena N. Brooks-Powers' district.

Station Plaza Jamaica City Map Change - would facilitate the construction of two pedestrian plazas in Downtown Jamaica as part of the Station Plaza Enhancement Project in Council Member Dr. Nantasha Williams' district.

Claremont House: 1640 Anthony Avenue - would facilitate the development of a new, 13-story building with 65 affordable homeownership units in Council Member Oswald Feliz's district.

535 Morgan Avenue Rezoning - would facilitate the opening of a supermarket in a vacant, one-story retail building in Council Member Jennifer Gutierrez's district.

Finance:
Preconsidered Resolution, sponsored by Council Member Justin Brannan, would establish a new partial 40-year, Article XI tax exemption for an 80-unit project in Council Member Rafael Salamanca Jr.'s district.

Rules:

Resolution 1058-A, sponsored by Speaker Adrienne Adams, would amend the Rules of the Council to improve clarity and consistency with Council practices and precedent

Preconsidered Resolution, sponsored by Speaker Adrienne Adams, making changes to the chairs and membership of certain committees of the Council.

###