Governor Releases Executive Budget - Funds Year 6 of ESSHI

Categories: New York State

Governor Releases Executive Budget - Funds Year 6 of ESSHI image


The Governor released the 2022 Executive Budget yesterday outlining his proposed budget for the upcoming year. Given the state’s unprecedented challenges -- including a multi-billion dollar budget deficit and uncertainty about federal relief -- supportive housing fared comparatively well.

Critically important, the executive budget funds significant capital funding at both HCR and OTDA to keep the Empire State Supportive Housing Initiative open for business for the upcoming year, funding Year 6 of the Governor’s 20,000 unit/15 year commitment. The budget book, meanwhile confirms the state’s intention to make good on the entire 20,000 unit commitment. See here for a statement on this commitment by the Campaign for NY/NY Housing.

The Governor presented two very different budget scenarios depending on federal funding. He said that if the federal government provides $6B in aid, the state will cut existing programs by 5%. If, however, federal aid comes in at $15 billion, there will be no cuts. It is unclear whether existing housing programs would be subject to cuts under the “worst case scenario.” We will update our members as the picture becomes clearer. 

Here is our first analysis of the various budget areas important to the supportive housing community. 

The Executive Budget commits an additional $250 million in capital for the upcoming year – Year 6 of the Governor’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. 

Office of Temporary and Disability Assistance Homeless Housing Assistance Program
HHAP stays funded at $128 million.  This program was historically funded between $30-60 million, and last year the state doubled it to $128 million.  The Executive proposes maintaining it at $128 million again this year, inclusive of the $64 million listed above. 

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.

Office of Mental Health Supportive Housing $20 million
OMH preserves last year’s increase of $20 million for existing OMH residential programs.

Office of Mental Health Preservation Capital $60 million
The 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.

Home’s and Community Renewal Housing Trust Fund (HTF)
HTF remains flat-funded as last year’s final budget, $44.2 million

Codify Sales Tax Exemptions for Affordable Housing
The 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.
Creation of the Office of Addiction and Mental Health Services
To better serve people with addiction and mental illness, the Executive Budget integrates the Office of Addiction Services and Supports and the Office of Mental Healthinto a new Office of Addiction and Mental Health Services.
The Legislature is scheduled to hold joint legislative budget hearings starting later this month and will negotiate a final budget with the Governor by April 1st.

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