Categories: Funding, New York State
01.22.2014
Budget bolsters MRT, NYSSHP, HHAP, other key housing programs
Governor Andrew Cuomo released his fourth executive budget yesterday, and it is an extremely positive one for supportive housing!
The SFY 2014-15 Executive Budget Proposal provides major infusions of new capital for supportive housing development, large allocations of new supportive housing subsidies for high-cost Medicaid recipients and modest but significant increases to key supportive housing programs like the NYS Supportive Housing Program (NYSSHP), Solutions to End Homelessness Program (STEHP) and NYS Office of Mental Health Supported Housing.
The Network would like to thank Governor Cuomo and his staff, the Division of Budget and all of our State agency leaders who worked tirelessly to put this budget together. We deeply appreciate your continuing commitment to supportive housing. We are confident the Legislature will also share the governor’s commitment to provide safe and secure housing for some of our most vulnerable citizens. The Network and its members will do our best to help secure passage of the budget in the next few months.
"This is a budget that shows a serious commitment to housing and supporting some of New York’s most vulnerable citizens,” says Network Executive Director Ted Houghton. “We are particularly pleased with the massive $260 million, two-year allocation for the DOH Medicaid Redesign Team Supportive Housing Program. This investment of State dollars will provide a stabilizing foundation of affordable housing and supports that will be particularly effective when the federal government approves the State’s waiver application to transform its Medicaid program.”
Budget highlights of particular interest to supportive housing providers include:
Department of Health/Medicaid Redesign Team
MRT Supportive Housing Fund: $260 million (over two years)
The executive budget funds the Medicaid Redesign Team (MRT) Supportive Housing Fund at $260 million over two years. The budget allocates $100 million for SFY 2014-15 and $160 million for SFY 2015-16. This marks a $14 million increase from last year’s funding level. This fund will continue to provide service funding, rent subsidies and capital dollars to create supportive housing for high-cost Medicaid recipients. The MRT Affordable Housing Workgroup will work with State agencies to determine the most effective and efficient way to spend these funds on housing-based interventions to improve care and reduce Medicaid spending. Specific program recommendations for the allocation plan will be drafted and finalized in the next few months.
Office of Temporary and Disability Assistance
Homeless Housing Prevention Services Program: $30.3 million
The executive budget KEPT WHOLE the Homeless Housing Prevention Services Program that funds NYSSHP, STEHP and the Operational Support for AIDS Housing Program. This funding will keep all existing supportive housing and homelessness prevention programs whole at the baseline of last year’s final adopted budget level. We would like to thank the governor’s office and the NYS Office of Temporary and Disability Assistance (OTDA) for their support for this critical services and operating program. We will ask the Legislature to increase this funding further to fund new supportive housing programs opening up this year.
Homeless Housing Assistance Program: $63 million
The executive budget proposes to DOUBLE the Homeless Housing and Assistance Program (HHAP) capital development program for supportive housing from last year’s level of $33 million. This is the first time HHAP has ever been doubled; the program has remained constant at approximately $30 million over the past ten years.
Homes and Community Renewal
Low Income Housing Trust Fund: $46.7 million
The executive budget proposes INCREASING the Housing Trust Fund by $11.5 million. These funds can be used for capital construction of both supportive and affordable permanent housing.
Federal Sandy Capital Funds: $100 million
In addition to the increases to HHAP and the Housing Trust Fund (both funded with State General Fund dollars), the State has allocated an additional $100 million in federal capital housing funds related to Hurricane Sandy to the Housing Trust Fund Corporation.
State Low Income Housing Tax Credit Program: $8 million
The budget calls for a two-year extension of the State Low Income Housing Tax Credit Program. Funding will remain at last year's level of $8 million.
Office of Mental Health (OMH)
Increased OMH Supported Housing Rates for Downstate
There is a $6.5 million appropriation to INCREASE downstate scattered-site supported housing rates. This will support a $550 annual increase to the stipends for Westchester, NYC and Long Island to bring the current rate from $14,493 per unit, per year to $15,043. While the increase is modest, it is the first increase seen in years, and it will help providers in high-cost housing markets continue to provide quality housing and services that help people with mental illness remain stably housed.
Savings: Two Sources Identified
Deferred planned Cost of Living Adjustments (COLA)/trend increases: expected to save $76 million
The executive budget defers the planned 2% annual human services COLA and maintains existing rates for other programs, avoiding $76 million of new costs.
Funding from restructuring inpatient services: expected to save $30 million
In addition to the increase in the supported housing rate, this funding will support the development of 200 new supported housing units for residents of nursing homes (a total of 600 by the end of 2015), 500 new supported housing beds for individuals in adult homes (a total of 1,750 by the end of 2015) and 300 new beds for the homeless housing program in New York City (a total of 3,200 by the end of 2015).
New York/New York III
New York/New York III Supportive Housing Agreement budget information for most agencies is not readily discernable in the executive budget. We have confirmed that NYS Office of Children and Family Services (OCFS) NY/NY III funding is maintained at last year’s level of $2,137,000. We've also confirmed that the Department of Health AIDS Institute is funded at $9.1 million, which is enough to fund all current residences and new residences opening this year. We expect that this will also prove true for NY/NY III funds at OMH and the NYS Office of Alcoholism and Substance Abuse Services (OASAS). We will confirm as soon as we have additional information.
Other Critical Funding for the Homeless and Housing Community
Pay for Success/Social Impact Bonds
The executive budget includes $25 million for a new appropriation for “Pay for Success initiatives” to “improve performance outcomes related to homeless housing and preventive services programs for supportive housing services for single adults, families and young adults between the ages of 18 & 25 aging out of foster care, rapid re-housing services to homeless households, essential services to persons residing in shelters and services to prevent at-risk household from becoming homeless.” This amount is in addition to last year’s $30 million Pay for Success commitment, which has been increased to $100 million this year (for a combined total of $125 million).
What's Happens Next?
We’d like to thank our members for their hard work in making supportive housing programs so effective and their efforts to promote the model as a cost-effective solution to homelessness and high healthcare costs. Thanks to your efforts and that of our allies at the Association for Community Living, Homeless Services United, CSH, CBHA, NYAPRS and many others, your good work has been recognized by Governor Cuomo and the NYS government in this year’s SFY proposed budget.
The budget must now be passed by the Legislature and signed by the governor no later than March 31. The Senate and the Assembly will hold budget hearings and negotiate with Governor Cuomo over the next few weeks. On February 11, the governor will release a 21-day amendment that will include technical fixes. This year’s 21-day amendment is expected to include an additional $81 million from the recent JPMorgan Chase settlement that will likely be allocated to new housing-related programs.
The Network’s advocacy in the upcoming weeks will focus on supporting the governor’s proposed initiatives outlined above. We are currently planning two advocacy days this year: Tuesday, February 11 and Tuesday, March 18. We will provide more information soon. We encourage all Network members to participate in these events.
Photo credit: Associated Press