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The Network’s Statement in Response to Governor Hochul’s 2025-26 Executive Budget

Categories: New York State

The Network’s Statement in Response to Governor Hochul’s 2025-26 Executive Budget image

01.22.2025

We deeply appreciate Governor Hochul’s proposed investments in supportive housing outlined in her 2025-26 Executive Budget.  New York’s supportive housing community plays a crucial role in combatting homelessness, and the resources she has allocated reflect a critical step forward. 

However, as the demand for services and units continues to rise, the proposed funding does not fully address the scale of the need. 

The need to preserve existing New York State Supportive Housing Program (NYSSHP) units is particularly acute. The program’s outdated funding, unchanged for almost 40 years, places 9,000 units at risk of going offline. While the Governor’s proposed $17.8 million is a positive start, it falls far short of the $32 million the Network has identified as necessary to stabilize these units. We remain committed to working with our legislative leaders to secure this vital funding during the budget process.  

We are deeply grateful for the Governor’s recognition that the current Empire State Supportive Housing Initiative (ESSHI) per-unit rate is too low, inhibiting production of desperately needed units. Her proposed rate increase, from $25,000 to $31,000, with an additional $3,000 for those in the New York City metro area, will undoubtedly help spur the construction of the more than 10,000 units left in the initiative. However, thousands of already inhabited units are struggling with the current low rates, threatening tenants with a return to homelessness. We implore the Governor to extend her proposed increases to all ESSHI units - not just new construction - to ensure the program’s long-term viability.
 
We welcome the Governor’s proposed $25 million increase for the Homeless Housing and Assistance Program (HHAP), though this only scratches the surface in the face of an historic increase in homelessness - both in New York City and across the state. 

In addition, the 2.1 percent increase contemplated in the Executive Budget for essential social services sector workers, while welcome, is not in keeping with inflation and does not come close to the 7.8 percent contract rate and COLA increases sought by our colleagues across the behavioral health and human services community. 
 
Finally, we are grateful for the proposed $11.9 million increase in state Office of Mental Health (OMH) Supported Housing programs, which will help keep pace with rising property costs statewide. 

We thank the Governor for her recognition of the importance of supportive housing and her commitment to addressing the worsening homelessness crisis. In the coming weeks, we look forward to working closely with her administration and the Legislature to ensure the final budget agreement is best positioned to assist New Yorkers in need and support our community’s mission-driven workforce in the coming year.


 

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