The Governor and Legislature came to an agreement on a final $220 million state budget late last week and passed it this weekend. For supportive housing, the final budget is largely reflective of the Executive budget that was proposed in January. Below is the Network’s first glimpse of the budget. We will update our members as we learn more details.
5.4% Cost Of Living Adjustment (COLA). The final budget includes the Executive’s proposal for a 5.4 percent, across-the-board COLA to human services providers in FY 2023. The COLA applies to OMH, OASAS, OCFS, OTDA, OPWDD and SOFA voluntary operated programs but unfortunately, doesn’t include the OTDA NYS Supportive Housing Program (NYSSHP).
Increased Funding for the OTDA Homeless Housing Prevention Services Program (HHPS). While, NYSSHP wasn’t included in the COLA, the appropriation that funds NYSSHP – HHPS – did receive a $2.8 million increase, funded at $47,981,000. HHPS funds NYSSHP, the Solutions to End Homelessness Program (STEHP) and the Operational Support for AIDS Housing (OSAH) Program.
Empire State Supportive Housing Initiative. The final budget funds ESSHI at $110 million.
Increased Funding for Existing Office of Mental Health Housing Programs. The final budget funds $65 million for existing community-based residential programs across NYS including contracts administered by DOHMH in NYC.
OMH Property Pass Through. The final budget includes language extending property pass-through provisions to OMH’s unlicensed residential programs – including scattered site programs – to offset rising property costs.
Healthcare and Mental Hygiene Worker Bonuses. The final budget includes funding to provide bonuses for “certain frontline healthcare and mental hygiene practitioners, technicians, assistants and aides that provide hands-on healthcare services to individuals whether the person works full-time, part-time on a schedule or temporary basis, or as an independent contractor that receives an annualized base salary of $125,000 or less.” Starting on October 1, 2021, through every six month interval ending on March 31, 2024, the person would qualify for a bonus payment of up to $1500 depending on the number of hours worked but is capped at $3,000. For the specific budget language, including the list of eligible staff, see here. We will provide our members with more information on this, as details emerge.
New 5 Year Affordable Housing Plan/10K Supportive Housing Commitment. The final budget advances a new $25 million, five-year Housing Plan to create and preserve 100,000 affordable homes, including 10,000 supportive housing units. The plan expands on existing State programs and creates new ones, including providing $4.5 billion in capital funding for the following:
- Supportive Housing. $1.5 billion for the construction of 7,000 new supportive housing units and the rehabilitation of 3,000 existing supportive housing units throughout the State, toward the creation of 20,000 units over 15 years;
- Multi-Family New Construction. $1 billion 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. $300 million for developing or rehabilitating affordable housing targeted to low-income seniors, aged 60 and above;
- Middle-Income Housing. $90 million for new construction, adaptive reuse, or reconstruction of rental housing affordable to households that earn between 60 and 130 percent of AMI;
- Community Investment Fund. $80 million for mixed-use affordable housing developments that may include retail, commercial or community development components;
- Public Housing Preservation. $150 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;
- Multi-Family Preservation. $450 million for substantial or moderate rehabilitation of affordable multi-family rental housing currently under a regulatory agreement;
- Mitchell-Lama Preservation. $120 million to preserve and improve Mitchell-Lama properties throughout the State;
- Small Building Rehab. $60 million for rehabilitation and/or the demolition and replacement through new construction of buildings of 5 to 40 units;
- Accessory Dwelling Units. $85 million for the creation or rehabilitation of Accessory Dwelling Units (ADUs), including backyard cottages, attics, garages, and basements;
- Manufactured Homes. $20 million for mobile and manufactured home programs;
- Homeownership Programs. $400 million for promoting home ownership among families of low and moderate income and stimulating the development, stabilization, and preservation of New York communities. This includes a $50 million pilot for affordable homeownership opportunities that prioritize resident control;
- Electrification. $250 million to weatherize and electrify New York’s housing stock, including through all-electric, high-performance equipment for heating and air-conditioning, alternative energy sources, and other energy-efficient best practices.
Office of Temporary and Disability Assistance Homeless Housing Assistance Program (HHAP). The budget also funds the Homeless Housing Assistance Program at $128 million, same as last year.
Homes & Community Renewal Housing Trust Fund. HCR also funds the Housing Trust Fund at $44.2 million as in previous years.
Office of Mental Health Preservation Capital Program. The final budget includes $60 million to maintain and preserve existing OMH community-based residential facilities.
Hotel Conversions/HONDA. The final budget omitted the Governor’s proposal to allow any Class B hotel located within or near a residential zoning district in New York City to use the existing certificate of occupancy to convert to permanent residences. However, the final budget includes $100 million in additional funding for the Housing Our Neighbors with Dignity Act (HONDA). HONDA is capital funding that can be used to convert vacant hotels to affordable/supportive housing. This new HONDA funding can be used statewide.
Housing Access Voucher Program. While the Legislature made a big push to include the Housing Access Voucher Program in the budget, the final budget did not include it.
Emergency Rental Assistance Program (ERAP). The final budget added $800 million for ERAP and $125 million for the landlord portal.
Thank you to Governor Hochul and her team, Assembly Speaker Heastie, Assembly Chairs Linda Rosenthal and Steve Cymbrowitz, all of Assembly central staff, Senate Majority Leader Stewart-Cousins, Senate Chairs Kavanagh and Persaud and all of the Senate central staff for their leadership and commitment to expanding supportive housing in New York State. Thank you to all of our members who helped advocate this year! We look forward to continuing the conversation on NYSSHP and hotel conversions, during the second half of session!