Categories: Funding, New York State
02.02.2023
The Governor released the SFY 2024 $221.6 billion Executive Budget yesterday. 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 advances funding for year two of the five-year affordable housing plan to create and preserve 100,000 affordable homes.
The Governor also proposes to make major investments in the mental health care system, including 3,500 units of mental health housing.
A new Housing Compact would create a variety of initiatives to expand housing by 800,000 units in a ten-year timeframe.
Existing Programs
A Cost of Living Adjustment (COLA)
The Executive Budget includes a 2.5 percent COLA to some human services providers in FY 2024. The COLA applies to OMH, OASAS, and OPWDD programs. A few OCFS, OTDA, and SOFA programs are also included. Again this year, the NYS Supportive Housing Program (NYSSHP) funded at OTDA is not included in the COLA.
Increased funding for the OTDA Homeless Housing Prevention Services Program (HHPS)
HHPS is funded at $50,781,000 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 (included 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% programs. The New York State Housing Trust Fund remains at $44.2 million
Emergency Rental Assistance Program (ERAP)
There is no new ERAP funding added to the executive budget. The state proposes continuing 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 beds 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 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.
Housing Compact Proposal
The Budget requires all cities, towns, and villages to achieve new home creation targets on a three-year cycle. Localities that do not meet targets can instead implement “Preferred Actions” that create zoning capacity to achieve the growth targets. A new $250 million planning grant program is proposed to provide smaller communities with resources to plan housing development. Other proposals include accessory dwelling units, basement apartment conversions, commercial conversions to housing, and lifting the residential Floor Area Ratio cap in New York City to allow for increased density.
Migrant Humanitarian Aid
The budget provides $1 billion to NYC to assist in emergency services to shelter newly arriving migrants.
The Network is continuing to gather further detail on the proposed budget and will follow up with any pertinent updates.