Categories: Funding, New York State
05.03.2023
The New York State FY 2024 budget passed May 3rd, one month past the deadline of April 1st. It continues the state's full commitment to the Empire State Supportive Housing Initiative, a 15-year plan to develop 20,000 units of supportive housing. The budget also continues funding for year two of the five-year affordable housing plan to create and preserve 100,000 affordable homes – including funds to preserve supportive housing.
Notably, the budget also contains the Governor’s proposed plan to invest $1 billion in the state’s mental health system, including 3,500 units of mental health housing.
However, the Governor’s proposed Housing Compact -- which would have created 800,000 new homes across the state in ten years -- was not approved.
Existing Programs
A Cost of Living Adjustment (COLA)
The final budget provides a 4% COLA for behavioral health and some human services providers -- up from the Governor’s proposed 2.5% boost. The COLA applies to OMH, OASAS, and OPWDD programs as well as a few OCFS, OTDA, and SOFA programs. Again this year, the NYS Supportive Housing Program (NYSSHP) at OTDA was not included in the COLA.
The budget also includes a plan to increase the minimum wage to $17/hour in the metro area, $16/hour in the Rest of State by 2027. Future increases are to be tied to the Consumer Price Index.
Increased funding for the OTDA Homeless Housing Prevention Services Program (HHPS)
HHPS is funded at $50.8 million a $2.8 million increase (5.6%) from last year. 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.
Increased Funding for Existing Office of Mental Health Housing Programs
The Executive Budget includes the $39 million funding that was committed last year to enhance funding and help offset rising costs.
Empire State Supportive Housing Initiative
The Empire State Supportive Housing Initiative annual allocation rose to $210 million to fully fund the operating and services for all open units and those coming online in the coming fiscal year.
Five-Year Housing Plan (including Preservation Capital)
NYS HCR progresses on to year two of the $25 billion, five-year affordable housing plan, which includes the Supportive Housing Opportunity Program, a Supportive Housing Preservation Program and other capital funding in the Multifamily 9% and 4% LIHTC programs. The New York State Housing Trust Fund remains at $44.2 million.
Emergency Rental Assistance Program (ERAP)
The Legislature added $389 million for Emergency Rental Assistance, specifically targeting people who applied for assistance, are eligible and reside in public or subsidized housing.
The budget also includes $40 million to fund legal services statewide for eviction prevention.
Office of Temporary and Disability Assistance Homeless Housing Assistance Program (HHAP}
The budget funds the Homeless Housing Assistance Program at $128 million, same as last year.
OMH Capital Improvement Fund
The OMH budget includes $275 million in capital funding for predevelopment, preservation and maintenance of OMH programs. This includes OMH funded supportive housing programs.
New Programs
New Office of Mental Health Housing Resources
Governor Hochul is investing $890 million in capital to build 2,150 new residential settings for people with mental illness who need varying levels of supports. This includes 500 new Community Residence – Single Room Occupancy (CR-SRO) units, 900 Transitional (120 Day) Step-Down Beds, and 750 congregate supportive housing apartments. The Governor’s plan also calls for 600 licensed Apartment Treatment beds and 750 scattered site supportive housing apartments, which do not require capital funding for a total of 3,500 new units throughout the State.
Migrant Humanitarian Aid
The budget provides $1 billion to NYC to assist in emergency services to shelter newly arriving migrants.