New York City is not contractually bound to continue funding a rent subsidy program for formerly homeless families and individuals that it seeks to discontinue due to budgetary constraints, a state appellate panel has ruled.

A 4-1 majority on a panel of the Appellate Division, First Department, held on March 20 that despite the language of various documents for the city’s Advantage Program—for example, a city-issued letter stating it “guarantees” a subsidy to recipients—no contract obligated the city to continue subsidies.

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