Categories: Funding, New York State
01.13.2026
The Governor’s State of the State agenda includes important policy proposals that recognize the essential role supportive housing plays in New York’s housing, health, and homelessness response systems.
We appreciate this acknowledgment, particularly at a moment when supportive housing providers are facing unprecedented financial and operational pressures. Given the significant threats confronting our sector, we look forward to continuing to work with the Governor and the Legislature to secure targeted investments that address what is most at risk.
At the federal level, supportive housing could soon suffer funding cuts that will – if implemented – render thousands of currently safely housed individuals and families homeless. This moment calls for strong, coordinated state leadership to safeguard existing housing and protect New Yorkers with the most complex needs.
Most urgently, approximately 9,700 households rely solely on the New York State Supportive Housing Program (NYSSHP) under the Office of Temporary and Disability Assistance (OTDA). Until last year, NYSSHP had not received a significant funding increase since its inception nearly four decades ago.
While the $17.8 million increase enacted in last year’s state budget was an important first step, it addressed only a small portion of the long-standing underfunding in the program. This year, we are urging the State to invest $62.1 million in NYSSHP; without this investment, more than 9,000 households are at risk of losing their homes.
New Yorkers continue to grapple with overlapping housing affordability, mental health, and substance use crises. These challenges will only deepen if supportive housing units are forced offline and if the services that help people remain stably housed are reduced or eliminated.
We are encouraged by the governor’s announcement that the state will invest an additional $71 million to increase rates for supportive housing services overseen by the state Office of Mental Health (OMH) and the state Office of Addiction Services and Supports (OASAS). This commitment reflects a growing understanding that supportive housing requires adequate operating and service funding to succeed.
We are pleased to see $250 million in new capital funding to accelerate and expand affordable housing development in this fiscal year. As the Executive Budget is developed, we urge the State to ensure that supportive housing is fully included in these capital investments. Equally critical is a renewed focus on preserving the supportive and affordable housing we already have—much of it located in aging buildings facing rising insurance costs, deferred maintenance, and escalating operating expenses.
We welcome the Governor’s proposal to convene industry stakeholders to address New York’s skyrocketing insurance costs, which have become a significant barrier to both the development and preservation of affordable and supportive housing.
Lastly, we appreciate the Governor’s recognition that nonprofit providers delivering essential services on behalf of the State need timely and predictable reimbursement. However, we are disappointed that the proposal did not include a 2.7 percent targeted inflationary increase across human services contracts, which remains critical to sustaining nonprofit operations and the workforce.
We look forward to working with the Governor and the State Legislature in the coming months to ensure that urgently needed investments in supportive housing are included in the final budget. New York has long been a national leader in supportive housing, and maintaining that legacy will require decisive action at this critical moment.