The city's Department of Homeless Services plans to temporarily cover rent for about 1800 families who lost their Section 8 housing vouchers.

REPORTER: Yesterday, the city's Housing Authority acknowledged it revoked the vouchers, citing a shortfall in federal funds. Homeless Services Commissioner Rob Hess says the city is trying to prevent any more families from becoming homeless.

HESS: We don't think there's any reason to panic. At this point we're having a lot of discussions with NYCHA and our congressional folks as well as with our state counterparts to uh in the state case to figure out a temporary solution.

REPORTER: The formerly homeless families were about to transition from a city and state voucher to the Section 8 program, when those vouchers were revoked. Hess says he's negotiating with the state to extend their old vouchers. Manhattan Borough President Scott Stringer applauds the city for working to help some families, but he says another 1200 still need relief.