JERSEY CITY, N.J. (CBSNewYork) — There’s a stunning development in the ongoing battle between New York City and a number of cities in New Jersey which have been forced to take in thousands of New York City’s homeless.

Mayor Steven Fulop of Jersey City, one of the cities that has sued over the Special One-Time Assistance (SOTA) program, says the municipalities are in settlement talks.

He says it will mean New York City has to come up with money to compensate New Jersey for taking in the homeless families.

“Money is definitely going to be a part of the conversation,” he said. “Because we’re using our resources to provide services for people that they’re relocating from New York City.”

Through SOTA, New York City pays the landlords one year’s rent to house homeless families.

Jersey City says it has nearly 200 families in SOTA homes.

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