The NYS Senate and Assembly released their one house budget bills over the weekend. Here is an update on where some of our advocacy priorities landed in both one houses.
EMPIRE STATE SUPPORTIVE HOUSING INITIATIVE (ESSHI) - $250 million
An additional $250 million in capital was earmarked for Year 6 of the state’s commitment to create 20,000 units over 15 years. This includes $186 million from Homes & Community Renewal and $64 million from OTDA’s Homeless Housing Assistance Program (HHAP). It also re-appropriates the $950 million for the first 5 years of capital funding and services and operating funding. The Senate and Assembly both included in their one house bills.
Office of Temporary and Disability Assistance Homeless Housing Assistance Program
HHAP was funded in the executive budget at $128 million, inclusive of the $64 million listed above. The Senate and Assembly both included in their one house bills.
OTDA Homeless Housing Prevention Services Program
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. This appropriation is funded at $42.6 million which is a $2.5 million increase from last year. The Senate and Assembly both included in their one house bills.
Office of Mental Health Supportive Housing $20 million
The executive budget preserves last year’s increase of $20 million for existing OMH residential programs, but added no additional funding. The Senate and Assembly both included in their one house bills.
Office of Mental Health Preservation Capital $60 million
The executive budget adds another $60 million to maintain and preserve community-based residential facilities that allow people with mental illness to live in the most integrated setting possible. The Senate and Assembly both included in their one house bills.
Codify Sales Tax Exemptions for Affordable Housing
The executive budget proposes to codify the eligibility of the sales tax exemption for not-for-profit Housing Development Fund Corporations, helping further support the development of affordable housing projects. The Senate and Assembly both included in their one house bills.
Creation of the Office of Addiction and Mental Health Services
The executive budget integrates the Office of Addiction Services and Supports and the Office of Mental Health into a new Office of Addiction and Mental Health Services that would begin in January, 2022. The Senate included a modified version of this in their one house budget bill and the Assembly omitted in their one house bill.
Hotel/Commercial Space Conversion Proposals
- The Governor proposed language in the budget to allow for conversion of hotel/commercial buildings to market rate housing with a 25% affordable housing component.
- Senator Kavanagh and Assembly Member Cymbrowitz introduced legislation (S.04937/A06262) that would modify the multiple dwelling law to allow for Class B hotels to be used for affordable housing to open up properties in M1 districts without going through the ULURP process.
- Senator Gianaris proposed a different piece of legislation (S.05257) called “Housing Our Neighbors with Dignity Act (HONDA)” which would amend the Housing Finance Law to create a fund to allow HCR to purchase dilapidated properties and transfer them to nonprofits to develop 100% affordable housing.
- Both the Senate and the Assembly omitted the Governor’s language.
- The Senate included the HONDA language, funding it at $250 million.
- The Assembly didn’t include either proposal in their one house bill.
1% Cost of Living Adjustment for OMH/OASAS
Both the Senate and Assembly included a 1% COLA that the Governor did not include in the Executive Budget. If included in the final budget, this would impact all residential programs.
The Legislature is expected to pass their one house budget bills this week and then the Governor and Legislature will begin negotiating. A final budget is expected to be passed by April 1st.