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The Network’s Statement in Response to the Passage of the 2026-2027 State Budget

Categories: New York State

The Network’s Statement in Response to the Passage of the 2026-2027 State Budget image

05.28.2026

The Network released the following statement in response to the passage of the 2026-2027 State Budget.

We commend Governor Hochul and the State Legislature for their continued commitment to supportive housing and for advancing several important investments in this year’s final budget. 

At a time of growing economic and federal uncertainty, these investments reflect a recognition of the critical role supportive housing plays in promoting stability, health, and community safety across New York. At the same time, significant work remains to strengthen and preserve New York’s existing supportive housing portfolio for the long term.

We are encouraged by the $50 million increase for the Empire State Supportive Housing Initiative (ESSHI), the continuation of the $25 million supportive housing stabilization fund within the Homeless Housing Assistance Program (HHAP), a 2.7% targeted inflationary increase (TII) for behavioral health programs, and an additional $8 million investment in Daniel’s Law pilots. 

However, thousands of existing ESSHI units remain funded at outdated rates that no longer cover escalating operating costs. HHAP’s core funding also remains significantly oversubscribed amid growing demand for supportive housing development. In addition, funding for the state’s original supportive housing initiative, the New York State Supportive Housing Program (NYSSHP), still falls far short of the investment needed to stabilize nearly 10,000 at-risk units statewide.

We appreciate the TII investment, which helps nonprofits keep pace with rising costs and support staff salaries in an increasingly difficult workforce environment. We will continue to advocate for the increase to be extended to all human services programs currently excluded from the adjustment, including NYSSHP.

The budget includes an additional $250 million awarded to the Division of Housing and Community Renewal (HCR) to complete the state’s five-year housing capital plan. We look forward to learning more about how these resources will be deployed to address the supportive housing portfolio’s growing preservation and recapitalization needs. Additionally, the budget preserves the much-needed $71 million increase proposed for Office of Mental Health (OMH) and Office of Addiction Services and Supports (OASAS) supportive housing programs, - including SRO models.

 We remain deeply grateful to our legislative champions and partners in government for fighting for stronger investments in supportive housing throughout this year’s budget process. The Network remains unwavering in our commitment to ending homelessness and protecting supportive housing tenants, providers, and staff across New York.
 

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