Categories: Funding, New York City
02.26.2026
On February 17, 2026, Mayor Zohran Mamdani released the City’s FY2027 Preliminary Budget totaling $127 billion. The administration identified a $12 billion inherited budget deficit, attributing it in part to prior underfunding in key areas, including supportive housing. Through a combination of agency savings, use of reserves, increased revenues, and $1.5 billion in additional State support, the City reports that it has reduced the projected deficit to $5.4 billion. To close the remaining gap and balance the adopted budget, the Mayor has proposed a 9.5% property tax increase. The administration has indicated that this increase could be reconsidered if the State authorizes higher taxes on high-income earners and profitable corporations.
The Mayor’s full budget presentation can be found here.
FY27 Budget Documents can be found here.
Supportive Housing Recognized As “Unfunded Need / Mandate” in FY26 and FY27
The FY27 Financial Plan Summary identifies $82 million in FY26 for supportive housing, with the funding baselined in the outyears. This amount appears on the DOHMH expense line, tied to supportive housing service contracts. However, it is unclear whether this funding is intended to support existing units, units currently in the pipeline, or funding related to NYC 15/15 reallocation efforts. The Network will continue to monitor this issue closely and provide updates as additional details become available.
New Investments in Homeless Services
The Financial Plan Summary and Press Release detail new investments in homeless services including:
- $11.9 million to add an additional site to the Bridge to Home Program
- $31.1 million to expand Compassionate Outreach, connecting street homeless NYers to shelter and services
Capital Plan
The Financial Plan Summary shows the Five-Year Capital Plan totaling $113 billion, including $17.4 billion for housing. The Preliminary Capital Budget shows approximately $211 million for the Supportive Housing Loan Program in FY27 with incremental increases in the outyears.
The NYC Council is expected is to hold Preliminary Budget Hearings through March. The NYC Council Calendar can be found here: https://legistar.council.nyc.gov/Calendar.aspx
The Mayor is expected to release the Executive Budget in April.
The Network will continue to monitor the budget documents and update membership accordingly.