Categories: Funding, New York State
01.25.2017
An analysis of areas important to the supportive housing community.
Governor Cuomo released his SFY 2018 executive budget on January 17th which starts the clock ticking for budget season in Albany! Here is our first analysis of the SFY 2017-2018 budget areas important to the supportive housing community.
5 YEAR HOUSING & HOMELESSNESS PLAN
The executive budget includes a re-appropriation of last year’s $1.97 billion five year housing and homelessness plan with funding for 6,000 units of supportive housing and 50,000 units of affordable housing over five years. We will be entering year two of this commitment on April 1st. The language adds an additional $526 million bringing the total five year budget to $2.5 billion. It also removes the requirement included in last year’s budget that the executive and legislative leaders negotiate a Memorandum of Understanding (MOU) in order to spend the money. The programs listed in the budget as part of this $2.5 billion appropriation include:
- Supportive Housing. $950 million for the construction of 6,000 supportive housing units throughout the State;
- New Construction. $601 million for new construction or adaptive reuse of rental housing affordable to households that earn up to 60 percent of area median income (AMI);
- Senior Housing. $125 million for developing or rehabilitating affordable housing targeted to low-income seniors, aged 55 and above;
- Rural and Urban Community Investment Fund (CIF). $45 million for mixed-use affordable housing developments that may include retail, commercial or community development components;
- Middle Income Housing. $150 million for new construction, adaptive reuse, or reconstruction of rental housing affordable to households that earn up to 130 percent of AMI;
- Affordable Housing Preservation. $177 million for substantial or moderate rehabilitation of affordable multi-family rental housing currently under a regulatory agreement;
- Mitchell-Lama Rehabilitation. $100 million to preserve and improve Mitchell-Lama properties throughout the State;
- Public Housing. $125 million for substantial or moderate rehabilitation and/or the demolition and replacement through new construction of public housing authority developments outside of New York City;
- Small Building Construction. $62.5 million for rehabilitation and/or the demolition and replacement through new construction of buildings of 5 to 40 units;
- Home Ownership. $41.5 million for promoting home ownership among families of low and moderate income and stimulating the development, stabilization, and preservation of New York communities;
- Mobile and Manufactured Homes. $13 million for mobile and manufactured home programs;
- Main Street Programs. $10 million for stimulating reinvestment in properties located within mixed-use commercial districts located in urban, small town, and rural areas of the state;
- New York City Housing Authority (NYCHA). $100 million for projects and improvements at housing developments owned or operated by NYCHA.
In addition to the capital funding, $124.5 million for service and operating expenses for the first 6,000 units over the next five years was also re-appropriated from last year’s budget. This includes $74.5 million from JPMorgan settlement funds and an additional $50 million from last year’s budget. There is no new funding committed for services and operating in this year’s budget.
As a reminder: at the end of the 2017 session in June, the Governor and legislative leaders only signed off on a $150 million MOU for 1,200 units of supportive housing (the first year of the 15 year, 20,000 unit commitment). The rest of the $1.82 billion is still subject to a still-to-be negotiated MOU. Even though the Governor’s new budget removes the MOU language, there is nothing preventing this MOU from being signed now or any time before a new budget is enacted on April 1st.
OFFICE OF TEMPORARY & DISABILITY ASSISTANCE
- Homeless Housing Assistance Program (HHAP) - $64 million - $500,000 INCREASE
The executive budget funds the HHAP capital development program at $64 million which is a $500,000 INCREASE from last year. A new provision added to this year’s budget allows up to $1 million of HHAP funding to be used for emergency shelter repairs in local social services districts with a population of less than five million. Also, while not part of this appropriation line, it should be noted that HHAP did not receive any additional MRT funding. Until last year, $10 million in MRT capital had been added to HHAP in each of the previous 3 years. - Homeless Housing Prevention Services Program - $35.38 million - $600,000 INCREASE
The executive budget increased the Homeless Housing Prevention Services (HHPS) Program by $600,000 from last year’s final budget. HHPS funds the New York State Supportive Housing Program (NYSSHP), the Solutions to End Homelessness Program (STEHP) and the Operational Support for AIDS Housing (OSAH) Program.
HOMES & COMMUNITY RENEWAL
- Housing Trust Fund - $65.2 million - $11 million INCREASE
The executive budget proposes INCREASING the Housing Trust Fund by $11 million, up from $54.2 million last year. These funds can be used for capital construction of both supportive and affordable housing.
DEPARTMENT OF HEALTH/MEDICAID REDESIGN TEAM
- MRT Supportive Housing Fund - $63 million - $20 million DECREASE
The MRT Supportive Housing Fund has been cut by $20 million this year. This cut will not impact any existing programs. It will impact programs outlined in the allocation plan that have not yet begun and will put a moratorium on programs that were not fully implemented. It’s important to note that no existing programs will be impacted by this and therefore no housing units currently funded with MRT will be lost or cut. We will follow up as more information becomes available.
OFFICE OF MENTAL HEALTH
- Provides $10 million to enhance support for existing residential programs. The budget increases funds for supported housing and single residence occupancy programs. This investment will help preserve access and maintain existing housing capacity as the State brings new housing units on line through the Empire State Supported Housing Initiative. It is anticipated that the State will follow past practices for rate increases based on greatest need. We will update our members as more information becomes available.
- Invests $11 million in community reinvestment dollars based on the elimination of State psychiatric beds that have been unused for over 90 days.
- Supports 280 additional community beds. OMH will develop 280 community-based, scattered site supported housing units in the same geographic area by reconfiguring 140 State-operated residential beds.
Minimum Wage Increases for Direct Care Workers
The executive budget invests $17 million to support the direct cost of FY 2018 minimum wage increases for direct care, direct support, and other workers at nonprofits that provide services on behalf of OPWDD, OMH, and OASAS.
Delays Cost of Living Increases for Staff
The budget defers the COLA increase for 2017 until 2018.
The budget now must be passed by the legislature and signed by the Governor no later than March 31st. In the next few weeks, the Senate and the Assembly will hold budget hearings and negotiate with the Governor.
The Network’s advocacy in the upcoming weeks will focus on the proposed initiatives outlined above. We are currently planning a March 1st Advocacy Day. We encourage all Network members to participate. Please email Steve Piasecki to register.