Categories: Funding, New York State
01.19.2022
The Governor released the SFY 2023 $216.3 billion Executive Budget yesterday. It includes substantial provisions, many of which the Network advocated for, to help existing supportive housing programs as well as continuing to expand new supportive housing development across New York State.
Below is the Network’s first glimpse of the budget. We will update our members as we learn more details.
For Existing Programs:
A Cost Of Living Adjustment (COLA). The Executive Budget includes 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. At this time, the NYS Supportive Housing Program (NYSSHP) funded at OTDA is not included in the COLA.
Increased Funding for Existing Office of Mental Health Housing Programs. The Executive Budget makes a two-year commitment of an additional $104 million - $65 million in FY 2023 and $39 million in FY 2024 – for existing community-based residential programs across NYS including contracts administered by DOHMH in NYC. OMH plans to distribute these funds in part by 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. As part of Governor Hochul’s plan to grow the healthcare workforce by 20 percent over the next five years, bonuses will be provided to frontline direct care and clinical workers in the Mental Hygiene sector. The Executive Budget includes over $200 million in State resources to fund these bonuses for the community workforces providing services on behalf of OMH, OASAS and OPWDD. This retention program will provide an up to $3,000 bonus to full-time workers who remain in their positions for one year, and pro-rated bonuses for those working fewer hours.
Increased Funding for the OTDA Homeless Housing Prevention Services Program (HHPS). HHPS is funded at $47,981,000 which is a $2.8 million increase 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 Nonprofit Infrastructure. The Executive Budget provides an additional $50 million for the Nonprofit Infrastructure Capital Investment Program. The Nonprofit Infrastructure Capital Investment Program (NICIP) makes targeted investments in capital projects that improve the quality, efficiency, and accessibility of nonprofit human services organizations that provide direct services to New Yorkers.
Minimum Wage. The Executive Budget leverages an additional $40.7 million in State funds to support minimum wage increases for staff at nonprofits’ programs that are licensed, certified, or otherwise authorized by OPWDD, OMH, and OASAS.
Expanding New Housing Capital:
New 5 Year Affordable Housing Plan. The Budget advances a new $25 billion, five-year Housing Plan to create and preserve 100,000 affordable homes, including 10,000 supportive housing units.
Funding includes $5.7 billion in capital resources, $8.8 billion in State and Federal tax credits and other federal allocations, $11 billion to support the operation of shelters and supportive housing units and to provide rental subsidies. 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 existing 3,000 supportive housing units throughout the State, toward the creation of 20,000 units over 15 years; the budget also includes an additional $110 million for the Empire State Supportive Housing Initiative (ESSHI).
- 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 Conversion
The budget includes language allowing 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, as long as the units are subject to applicable rent stabilization laws and agreements. Alterations must follow regulations for Class B hotels.
The Legislature will now convene a series of budget hearings and begin negotiating with the Governor to have a final budget completed by April 1. We will update our members with advocacy activities over the next several months.