Savings Are Short In Public Housing

Nearly 100,000 public housing residents do not have bank accounts, opting instead to use check cashing services and store their money themselves, according to a new report by the City Council.

Council member Eric Gioia, a likely candidate for public advocate in 2009, warned today that these residents' inability to save money over the long term is creating "a permanent financial underclass." He added that fees at check cashing institutions and on money orders also drained income from poor New Yorkers, making the effects more pronounced.

According to the Council's findings, some 24% of all public housing residents in the city do not have savings or checking accounts.

The report recommends that Mayor Bloomberg expand financial education efforts and explore ways to bring more banks to public housing.