Categories: New York City
07.01.2024
On June 30th, Mayor Adams released the FY25 Adopted Budget, totaling $112.4 billion, which is over $5 billion more than the FY24 Adopted Budget. We are pleased to see that the City Council and Adams Administration heeded the calls of the sector to increase investments across the portfolio. The budget includes an additional $128 million in capital funding to develop more congregate supportive housing as part of the Network’s NYC 15/15 Reallocation Plan, the hard-fought cost of living adjustments for city-contracted human service workers, and the restoration of funds that will expand the Justice Involved Supportive Housing Initiative. These budget increases are a significant win, thanks to the persistent advocacy of the sector.
NYC 15/15 Reallocation
The FY25 Adopted Budget allocates $2 billion for developing and preserving affordable and supportive housing. This includes $128 million over FY25 and FY26 specifically for additional congregate supportive housing. A portion of these funds will be directed towards new capital under NYC 15/15 – following the Network’s NYC 15/15 Reallocation Plan, which urges the city to prioritize congregate development over scattered site housing due to the latter's ongoing failure to meet production goals.
Other HPD programs subject to this investment are as follows:
|
Supportive Housing - Rehab, DHS Clusters |
$75,000,000 |
|
Extremely Low & Low-Income Affordability |
$136,124,000 |
|
LIHTC Year 15 |
$2,133,000 |
|
Multi-family Preservation Loan Program |
$22,805,000 |
|
Multi-family Rental- Mix and Match |
$235,000,000 |
|
Neighborhood Construction Program |
$25,000,000 |
Human Services Contract Increases/COLA
In a notable victory for advocates, the adopted budget includes $8.6 million for a 3% cost-of-living adjustment (COLA) for nonprofit human service workers, as part of a $741 million investment in the city’s human services workforce. Over the next three years, workers will see more than 9% wage increase through annual COLAs. For more information on the city’s COLA implementation and eligible contracts, see here.
Expanding Justice Involved Supportive Housing (JISH)
Another notable victory is the restoration of $6.4 million to support the Justice Involved Supportive Housing Initiative. This funding will be used to support new and existing JISH units*.
B-HEARD
B-HEARD (Behavioral Health Emergency Assistance Response Division) is a mental health crisis response pilot program launched in 2021, with initial funding at $18 million. In subsequent years, funding has been reduced with the FY25 Adopted Budget funding the program at $12 million.
Department of Health and Mental Hygiene
DOHMH overall agency funding has remained flat at $1.1 billion from the FY24 Adopted Budget. However, funding for mental health services increased by 38%, from $159 million to $218 million.
Department of Homeless Services
City funding for DHS decreased by 13% from the FY24 Adopted Budget, going from $2.7 billion to $2.3 billion, which includes reductions made in the Modified Budget (November Plan).
Housing Preservation and Development (HPD)
HPD’s expense budget, which covers staffing for programs like NYC 15/15 and rental assistance administration, has seen a significant increase in city investment from FY24 to FY25. The budget has grown by 92%, rising from $550 million to just over $1 billion in FY25. These increases are likely the result of increased federal funding.
Department of Social Services
The Department of Social Services (DSS, which includes HRA and HASA) saw a modest increase from the FY24 Adopted Budget, with city funding hovering at $9.4 billion.
HASA: Funding for case management, transitional housing, permanent supportive housing and other programs, saw a decrease in funding of 24% between FY24 and FY25, decreasing from $186 million to $140 million.
Domestic Violence Services: Funding for temporary housing, emergency shelter and supportive services, prevention, legal assistance, education, counseling, advocacy, and outreach has increased by 44% over FY24’s Adopted Budget. The budget has risen from $49 million to $70 million, which includes an increase from the FY25 Executive Budget, in which the proposed funding was $58 million. This increase is likely due to the recently announced pilot, Project Home.
Substance Abuse Services: Funding for substance abuse assessment, clinical case management, comprehensive case management and the Recovery Incentive Program saw a 22% increase from FY24’s Adopted Budget, increasing from $15 million to $18 million.
As we receive information, we will update the Network membership. For questions, please contact Tierra Labrada, tlabrada@shnny.org
*This summary has been updated with a correction; the $6.4 million will not be to create 500 additional units but rather to fund the unawarded and existing JISH units.