New York, NY —

Starting this fall, working homeless families will be expected to pay a fee to stay in a city shelter. The money will go into an interest-bearing savings account, and when families leave the shelter, they'll get the money back.

State Sen. Daniel Squadron sponsored legislation to make the savings accounts possible. Squadron says the goal is to get people out of the shelters quickly and into their own apartments.

"A savings plan is a big part of reaching that goal," Squadron says. "It means that as folks move from shelter into housing, it's a lot more likely that housing will be stable and permanent because they're going to have money in the bank."

Initially, the city was going to keep the fee, but opposition from Squadron and other elected officials, as well as homeless advocates, led to the savings account compromise.

About 20 percent of homeless families are expected to pay and recoup shelter fees. Homeless Services Commissioner Seth Diamond says the average contribution will likely be $200 a month. Typically, families stay in a shelter 10 months.