NYS Legislature Passes SFY 20-2021 Budget - Supportive Housing Analysis

Categories: New York State

NYS Legislature Passes SFY 20-2021 Budget - Supportive Housing Analysis image


Voting remotely, the NYS Legislature has passed the SFY 20-2021 budget, which mostly mirrors what the Governor proposed in January for supportive housing. This is an unprecedented time with the state facing a great deal of uncertainty about future revenue and COVID-19-related costs. Given our current circumstances, we are grateful to the state for maintaining existing supportive housing service and development funding levels.

We also understand this budget could change over the next few weeks as lawmakers determine how much federal aid will be coming into the state and if they can maintain the existing revenue projections. If the state doesn’t have enough revenue to cover expenses, the Division of Budget is authorized to make across the board cuts.

Here is our analysis of the various budget areas important to the supportive housing community that is included in the final budget. 


Included in the final SFY 20-2021 budget is a re-appropriation of the state’s $2.5 billion five-year housing and homelessness plan that includes funding for 6,000 units of supportive housing over five years. This will fund the last year of the five-year commitment, the first tranche of the Governor’s promise of 20,000 units over 15 years. There was no language or funding included in the budget that commits or funds the remaining 14,000 units.


Homeless Housing Assistance Program (HHAP) - $128 million. This is a $64 million increase from last year's budget. HHAP has long been under-funded and oversubscribed. We are thrilled to see this need reflected in the final budget.

Homeless Housing Prevention Services Program - $42.6 million. This is a $2.8 million INCREASE from last year’s final budget. 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. The Network is advocating that this additional funding be used for COVID-19 costs that will exceed current program budgets.


OMH Supportive Housing - $20 million
The budget adds a $20 million INCREASE from last year’s final budget for existing supported housing and single residence occupancy programs.

OMH Preservation Capital - $60 million
The budget adds another $60 million in capital to maintain and preserve community-based residential settings that allow people with mental illness to live in the most integrated setting possible.


Housing Trust Fund (HTF) - $44.2 million
HTF remained flat-funded at last year’s final budget level.


Medicaid Redesign Team Supportive Housing Program (MRT) - $63 million 
This program was cut significantly in the executive budget. The proposed budget was $26 million but was restored to $63 million in the 30 day amendments, rescuing existing MRT supportive housing programs including more than 1,700 existing scattered site units under OMH, OASAS, DOH and AIDS Institute. The final budget maintains the $63 million budget.


The final budget includes prevailing wage requirements for construction projects in which the total project costs are at least $5 million and 30% of a project is financed by public funds. The legislation takes effect January 1, 2022. Exempt from the legislation is:

The language outlines the makeup and responsibilities of the public subsidy board as follows:


The budget did not support a 3% increase for all human services contracts for the next five years. 
Due to COVID-19, the budget also includes language giving the state the ability to make across-the-board cuts if there is not enough revenue to cover expenses. This will be evaluated on a rolling basis throughout the year starting in mid-April, mid-June and in December.

Supportive housing providers are on the front lines of this pandemic. We can’t do this alone and need a strong partnership with our government partners in order to keep our tenants and staff safe and out of our overtaxed healthcare system. We will continue to keep our members informed as events unfold. Thank you to all of you for the superhuman work you are doing and to our local and state officials supporting us through this challenging time.

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