Funding Assists Veterans, Individuals With Serious Mental Illness or Substance Use Disorder, Domestic Violence Survivors and Older Adults With Disabilities
Governor Kathy Hochul today announced the availability of $45.9 million through the Empire State Supportive Housing Initiative, a program that funds supportive services to help stably house New Yorkers experiencing homelessness. As part of the FY26 Enacted Budget, Governor Hochul secured the first increase in funding for the program since its creation in 2016, providing significantly higher rates for these units, which serve adults experiencing homelessness, survivors of domestic and gender-based violence, veterans and chronically homeless families and individuals living with a mental illness or substance use disorder.
“Supportive services are a vital component of our efforts to ensure all New Yorkers have a safe, stable place to call home,” Governor Hochul said. “By expanding the funding available through the Empire State Supportive Housing Initiative, we can help individuals experiencing homelessness get the help they need to remain stably housed within their community.”
Projects may now apply for up to $34,000 annually per unit or qualifying individual in the New York City metropolitan area, which includes all five city boroughs, Suffolk, Nassau, Westchester, Rockland and Putnam counties — an increase of $9,000 over the previous rate. Developments in other areas of the state are eligible for up to $31,000 annually per unit or qualifying individual, which is an increase of $6,000 over the previous rate.
Since taking office, Governor Hochul has made landmark investments to expand supportive housing statewide as part of her $25 billion five-year plan to create and preserve 100,000 affordable homes statewide, including 10,000 homes with support services for vulnerable populations. To date, the Empire State Supportive Housing Initiative has financed supportive services and operating costs for more than 9,600 units of safe and permanent housing.
This initiative provides operating funding for supportive service providers serving homeless veterans and their families; survivors of domestic and gender-based violence; older adults who are disabled or frail; young adults with a history of incarceration, homelessness, or foster care; chronically homeless individuals and families; individuals with intellectual or developmental disabilities; individuals reentering the community from prison; and those living with HIV or AIDS, serious mental illness or substance use disorders. The State Office of Mental Health serves as the lead procurement agency for the funding, which is dispersed by an interagency workgroup of eight state agencies serving vulnerable New Yorkers.
Funding may be used for rental assistance and services to eligible target populations to ensure their housing stability. Permissible uses include rental subsidies and other occupancy costs; services or staff to identify and locate eligible individuals that need housing; primary and behavioral health services; employment and vocational training; educational assistance, parenting skills development and support; child care assistance counseling and crisis intervention; children’s services, including educational advocacy, support and counseling; and costs associated with services that help individuals and families remain stably housed.
Research has shown that permanent supportive housing reduces the demand for shelters, hospital beds, emergency rooms, prisons and jails, in addition to having a positive effect on employment, school attendance and mental and physical wellbeing. Supportive housing projects can also positively impact neighborhoods through new construction or by rehabilitating existing buildings.
New York State Office of Mental Health Commissioner Dr. Ann Sullivan said, “By coupling supportive services with welcoming and dignified housing, we can help people living with mental illness and substance use, our veterans and many others provide them with the support, which will enable them to live and thrive in their community. Governor Hochul’s advocacy for the Empire State Supportive Housing Initiative has connected thousands of New Yorkers to the services they need for a successful recovery.”
New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said, “The funding available through the Empire State Supportive Housing Initiative is vital to providing safe, affordable housing with resident support services so that individuals and families that have experienced homelessness can stabilize their lives and thrive. The increased funding for this program will enable providers to continue to offer a range of services that empower residents to begin working toward achieving a brighter future for themselves and their families.”
New York State Division of Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “All New Yorkers deserve stable, supportive, and affordable homes where they can live independently. This investment in supportive housing will ensure providers have the resources they need to help vulnerable communities — from individuals experiencing homelessness, to people with a history of incarceration, to those living with mental illness. Thank you to Governor Hochul for this vital expansion of the Empire State Supportive Housing Initiative. We’re looking forward to working with our partners as we improve affordable and supportive housing across the state.”
New York State Office of Addiction Services and Supports Commissioner Chinazo Cunningham said, “These programs provide vital assistance to individuals impacted by substance use disorder by offering them a safe place to live, and helping connect them to services that support their recovery and overall well-being. Together with our partner agencies, we are strengthening Governor Hochul’s vision of a safer and healthier New York by helping to advance these services and bring much-needed resources to communities across the state.”
New York State Health Commissioner Dr. James McDonald said, “Housing is one of the most important social determinants of health, and without a safe and stable place to live, it’s much harder for people to stay healthy. This funding will help more New Yorkers get the support they need to live safely in their communities. I thank Governor Hochul for her unwavering commitment to improving the health and well-being of all New Yorkers.”
New York State Office for People With Developmental Disabilities Commissioner Willow Baer said, “Supportive housing allows people with developmental disabilities to live as independently as possible in their communities and is a cornerstone of services provided by OPWDD. Thank you to Governor Hochul and the Empire State Supportive Housing Initiative for continuing to provide these life-changing opportunities for community inclusion.”
State Senator Samra G. Brouk said, “Individuals experiencing homelessness need support services to feel safe and stable. As Chair of the Senate Committee on Mental Health, I know that safe housing leads to improvements in individual outcomes and community safety. This $45.9 dollar investment in our underserved communities demonstrates that New York State understands the intersection between housing, safety, and mental health–I applaud Governor Hochul for her dedication to expanding supportive housing for our most vulnerable populations.”
Assemblymember Jo Anne Simon said, “Increased funding for supportive housing is a lifeline for New Yorkers facing mental illness, homelessness, trauma, or complex health challenges. Supportive housing doesn’t just provide a roof; it offers stability, dignity, and a foundation for long-term wellbeing. Thank you to Governor Hochul for increasing funding for this critical investment in our communities.”
Supportive Housing Network of New York Executive Director Pascale Leone said, “This historic investment in ESSHI is a game-changer for New York supportive housing tenants and providers – especially in the face of devastating cuts at the federal level. By securing the first rate increase in the program’s history, Governor Hochul is ensuring that providers have the resources they need to deliver high-quality, life-changing services to some of the most vulnerable New Yorkers. This increase reflects the rising costs of creating and operating supportive housing as well as the growing complexity of tenant needs post-pandemic. It will help ensure that formerly homeless individuals and families can stay stably housed for years to come.”
