NYC Housing Court Confronts Case Backlog, Trump Budget Cuts

June 11, 2025, 9:00 AM UTC

That New York City’s housing court is in need of reform is something lawyers and tenant advocacy groups across New York agree on. But even with division over what changes are needed, there is widespread concern that the Trump administration’s federal funding cuts could decimate the court.

A New York State Bar Association panel is working to finalize a report that will make recommendations for how to fix longstanding court issues, including the rent dispute case backlog the court’s more than 50 judges contend with. The draft version of the report that was presented in April—and later tabled by the panel without being released—sparked pushback from legal aid organizations, which said they weren’t consulted during the drafting process even though they represent the majority of litigants in housing court.

The draft also didn’t mention the proposed federal budget, which includes a $33.6 billion cut to the US Department of Housing and Urban Development, of which nearly $27 billion includes cuts to state rental assistance block grant programs. It’s understandable that’s not in the panel’s draft report that was in the works long before President Donald Trump took office, said Richard Swanson, the new president of the New York County Lawyers Association.

The panel is back to the drawing board and negotiating with legal aid groups, and will likely present another draft in October. That could give the bar association’s Real Property Law Section time to include discussion about how HUD spending cuts will impact tenants and landlords.

“If we’re going to be in an era with the current administration where we’re cutting programs, it’s not clear that dealing with housing court’s structure on the other end is going to be meaningful,” Swanson said.

With federal money dwindling, more staff for the city’s Department of Social Services—which houses the agency that processes benefits applications—should be a priority, said Steven Banks, former commissioner of the social services department.

“If people don’t get their benefits because there aren’t enough staff to provide them with benefits, they end up in housing court facing eviction,” said Banks, who recently left his position leading the Paul Weiss pro bono practice to be a solo public interest attorney.

Rent Nonpayment Cases

How to handle nonpayment of rent cases, which make up much of the workload in housing court, is a key issue, said Sateesh Nori, board member of the New York County Lawyers Association.

“The place is being crushed under the weight of nonpayment cases—the extensions of time, the motion practice, the delays caused by the agencies, and charities who fund some of the rent assistance,” Nori said.

The number of active eviction cases in New York City has risen from approximately 33,000 cases to 177,000 cases since the expiration of the pandemic eviction moratorium in January 2021, according to a May 2025 report from the city comptroller’s office. That spike has led to judges having less time for matters like nuisance cases and illegal Airbnb rentals.

The draft report recommends establishing a separate non-payment part in the court that would allow tenants to pay any money owed to landlords and quickly resolve their cases. Tenants could establish plans with their landlords with court assistance, said John Ketcham, a legal policy fellow and director of cities at the Manhattan Institute.

Placing some cases through a separate non-payment part would essentially strip tenants of their opportunity to defend themselves, argued Jenny Laurie, executive director of Housing Court Answers. There are many tenants, she said, whose concerns need to be addressed, such as incorrect rent or poor building conditions.

The bar association committee also recommended legislation to increase the number of judges and expand existing court spaces. It also calls for funding to enhance the city’s universal access-to-counsel program, which guarantees tenants a free attorney in housing court—an initiative Laurie said “fell apart” during the pandemic.

Even as evictions spiked, the rate of representation has hovered below 50%, according to the comptroller’s report. The report cites management failures at City Hall and a lack of funding that’s limited right-to-counsel providers’ ability to keep up with demand.

Given the increase in renters representing themselves in housing court, Laurie said a separate nonpayment part makes it easier on landlords rather than tenants.

“It’s taking advantage of them to say those cases should be streamlined,” she said.

To contact the reporter on this story: Beth Wang in New York City at bwang@bloombergindustry.com

To contact the editors responsible for this story: Alex Clearfield at aclearfield@bloombergindustry.com; Patrick L. Gregory at pgregory@bloombergindustry.com

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