Categories: Funding, New York City
04.08.2025
On April 1, 2025, the New York City Council released its response to the Mayor's FY26 Preliminary Budget, proposing an additional $4.4 billion in expense spending to fill budget gaps, reverse cuts, and boost funding for critical programs. They're also recommending $2.8 billion for capital investments and plan to use a $1.9 billion surplus to meet emerging needs and build up reserves for unexpected risks.
The Network is disappointed that the Council did not specifically address the need to reallocate funding for the 6,000 unawarded scattered site units under the NYC 15/15 initiative to develop and preserve congregate supportive housing. The Network estimates the cost of the reallocation as $307 million in capital and $72 million in expense, which includes an increase in operating rates for new and existing units.
Late Payments to Nonprofits
The Network appreciates the Council acknowledging the challenges with late contract payments to nonprofit service providers, calling on the administration to add the following in the FY26 budget:
- $1.5 million in baseline funding to the MOCS Help Desk for an additional 20 positions. The Help Desk currently has 18 budgeted positions, of which 14 are filled; an additional 20 positions would aid in clearing the backlog of help desk requests.
- $1.9 million in baseline funding to MOCS's budget overall for another 20 positions, bringing the total MOCS headcount to 242 in FY26. The additional personnel will be used to resolve contracting delays that lead to late payments.
- $250,000 to MOCS's budget for the PASSPort system for maintenance and upgrades to improve the functionality of the system.
HPD
At the end of 2024, prior to passing the City of Yes for Housing Opportunity, the Council negotiated $5 billion in new funding for housing, infrastructure, and operations ($4 billion from the City and $1 billion from the State), but in order to support the increased development, is urging the administration to:
- Reduce HPD’s staff vacancy rate to 5%, prioritizing preservation and development roles; and
- Release updated, simplified, and consolidated subsidy term sheets by June 30, 3025.
Justice Involved Supportive Housing
The Network and our partners have been advocating for improvements to JISH, and are pleased that the Council included an additional $26.6 million to create the remaining 380 units, to fulfill the City’s previous commitment to provide 500 supportive housing units for individuals leaving Rikers. This funding will be used to increase service rates for new and existing units.
Mental Health Continuum and Crisis Response
The Network and our partners have also been advocating for building up the mental health continuum and for a peer-led crisis response system, and appreciate the council calling on the administration to add the following in the FY26 budget:
- $4.5 million to hire 60 well-paid peer specialists to staff the City’s multi-agency mental health and crisis response teams.
- $7 million for the creation of a step-down program for Assertive Community Treatment clients who have progressed in their recovery and require less-intensive services.
- $30 million for the creation of a pilot step-down under the Intensive Mobile Treatment program for clients who have progressed in their recovery and require less-intensive services.
- $6 million to support the opening and operation of Crisis Respite Centers, in accordance with Local Law 118-2023, to provide individuals experiencing mental crisis increased access to community-based, peer run, facilities as alternatives to hospitalization.
The Executive Budget is expected to be released soon, with final council hearings occurring in May. The Network will continue to monitor the City budget process and will update members accordingly. If you have any questions, contact Tierra Labrada at Tlabrada@shnny.org.