FY 2025 New York State Budget Passes

Categories: Funding, New York State

FY 2025 New York State Budget Passes image


The New York State FY 2025 budget was signed by the Governor on April 20th 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 three of the five-year affordable housing plan to create and preserve 100,000 affordable homes – including funds to preserve supportive housing.

Notably the budget does not include an additional $32 million for the New York State Supportive Housing Program (NYSSHP). See below for further details.

Existing Programs

New York State Supportive Housing Program (NYSSHP)
NYSSHP funds services for over 20,000 supportive housing units across the State, 9,000 of which depend solely on NYSSHP funding to provide services. Along with Solutions to End Homelessness Program (STEHP) and the Operational Support for AIDS Housing (OSAH) program, NYSSHP is funded within OTDA’s Homeless Housing Prevention Services Program. Unfortunately, the Senate’s addition of $32 million to the program to begin the process of raising funding levels to modern standards was not included in the final budget.

The final budget funds all three programs at $53.6 million, a $2.8 million increase over last year (5.5%). 

Cost of Living Adjustment (COLA)
The final budget included a 1.5% COLA for programs at OMH, OASAS, OPWDD, OCFS, OTDA, and SOFA, as included in the Executive Budget. The final budget adds a additional, targeted 1.7% for wage increases limited to the workforce only.  This falls short of the full 3.2% COLA that advocates, including the Network supported. As in prior years, the New York State Supportive Housing Program (NYSSHP), funded through OTDA, is not included in the COLA.

Empire State Supportive Housing Initiative (ESSHI)
ESSHI is the State’s commitment to create 20,000 units of supportive housing over 15 years and is currently in its eighth year. The budget appropriates $210 million for ESSHI services and operating, which is level funding over last year. This appears to be sufficient funding for all existing programs and those coming online next year at the current $25,000 rate.

Five-Year Housing Plan
The budget continues investments in year three of the five-year affordable housing plan, which includes the Supportive Housing Opportunity Program, Supportive Housing Preservation Program, and other capital funding in the Multifamily programs.

The Low-Income Housing Trust Fund is flat-funded at $44.2 million.

Homeless Housing Assistance Program (HHAP)
OTDA’s HHAP provides capital funding for supportive housing and shelters across the state. The budget includes $128 million, which is level funding over last year.

Mental Health Investments
The final budget continues last year’s $1 billion investment in mental health programs, including 3,500 new housing units, 1,500 of which are permanent supportive housing.

OMH Capital Improvement Fund
The OMH capital budget includes the annual $60 million for capital development and property acquisition construction and rehabilitation of existing facilities and $25 million for predevelopment costs.

OMH Supported Housing
Building on prior commitments to fund actual costs for mental health housing, referred to as “property pass-through,” the budget includes $43 million to support rising rents in scattered site housing and other programs.

New Programs

Preventing Insurance Discrimination in Affordable Housing
The budget includes Article VII language to amend the insurance law to prohibit insurance carriers from inquiring or considering tenants’ source of income or the existence of affordable housing programs in the decision to issue or continue insurance for real property.

Improving Mental Health Admission and Discharge Decisions by Hospitals
OMH and DOH will codify recent guidance to hospitals to provide better mental health risk assessments and screenings and ensure that coordination with community-based services are taking place. The budget includes $7 million in funding to expand surveillance and regulatory compliance activities toward this effort.

Mental Health Services and the Criminal Legal System
The budget includes various proposals to provide additional mental health support for people involved in the criminal legal system. $8.2 million is proposed for mental health specialists and peers in mental health courts, $2.8 million to provide housing and supports to people with mental illness experiencing homelessness and/or involved in the criminal legal system, and $14.6 million to expand Forensic Assertive Community Treatment (FACT) Teams.  

Up to $1.5 Million Available for a Daniel’s Law Pilot

This funding will implement a pilot program to begin a statewide health response for crisis calls utilizing peers and professionals.


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