The City Council has approved a resolution to file a lawsuit to try and stop a new Bloomberg administration policy that would require adults seeking shelter to prove they have no other options.
It's not clear when the lawsuit will be filed.
"This policy will do nothing but promote homelessness," Councilwoman Helen Foster said Tuesday.
Those who support the lawsuit say the city did not follow procedure set forth in the City Charter for making such a policy change.
Department of Homeless Services Commissioner Seth Diamond said his agency was transparent about the new policy and violated no laws.
"This is the right policy for taxpayers," he said. "People who have alternate places to stay are not homeless."
DHS officials had previously said the policy will save $4 million a year, reserving shelter space for people who truly need it.
Council sources told NBC New York this is the first time the City Council has sought to file an independent lawsuit against the Bloomberg administration, but it is not the first legal challenge against the policy.
The Legal Aid Society has already asked a State Supreme Court judge who oversees city shelter policy to review the legality of the new plan.
Both sides are expected to submit written arguments and return to court Dec. 9 in that case.