Governor Hochul Announces $45.9 Million Funding Available to Develop Additional Supportive Housing Units Statewide

Governor Kathy Hochul today announced the availability of $45.9 million through the Empire State Supportive Housing Initiative or 'ESSHI,' which funds supportive services to help provide stable housing for New Yorkers experiencing homelessness. Funding is available to support hundreds of additional units that 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.

"For those experiencing homelessness, supportive services and a stable home can be life-changing," Governor Hochul said. "The Empire State Supportive Housing Initiative continues to help individuals connect with support and recover from challenges in a safe environment."

ESSHI 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.

The FY 2027 Enacted Budget continues Governor Hochul's FY 2026 53 percent increase in funding for the initiative, allowing projects to 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 and Suffolk, Nassau, Westchester, Rockland and Putnam counties. Developments in other areas of the state are eligible for up to $31,000 annually per unit or qualifying individual.

This boost in funding resulted in 200 conditional awards for projects statewide - the most ever issued by the initiative - including 54 projects in New York City, 21 projects on Long Island and 126 projects in locations north of the metropolitan area. To date, New York State has committed to 11,657 safe and permanent units as part of the Empire State Supportive Housing Initiative launched in 2016.

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 who 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, and has 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, "Maintaining dignified, stable housing and accessing supportive services is an important aspect of recovery for individuals living with mental illness and other challenges. The Empire State Supportive Housing Initiative has provided these critical connections for thousands of New Yorkers, reflecting Governor Hochul's ongoing commitment to enabling all residents to live and thrive in their community."

New York State Health Commissioner Dr. James McDonald said, "Everyone deserves a safe place to call home. I thank Governor Hochul for her continued commitment to expanding supportive housing across New York. Stable housing is essential to good health, and this investment will help some of our most vulnerable New Yorkers access the support and services they need to live healthier, more secure lives."

New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said, "Individuals experiencing homelessness often face challenges that can severely impede their ability to secure and maintain stable housing. Supportive housing reduces homelessness by enabling individuals to obtain and retain housing through the combination of affordable housing and the provision of robust services. Governor Hochul recognizes the Empire State Supportive Housing Initiative's power as an essential component of our efforts to reduce homelessness and provide new hope and opportunity to some of our most vulnerable fellow New Yorkers."

New York State Division of Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "In New York, we pride ourselves on helping those in need and increasing the supply of affordable homes. For those experiencing homelessness and requiring supportive services, finding stable housing can be especially challenging. We are immensely grateful that Governor Hochul is working to remove those barriers by investing in the Empire State Supportive Housing Initiative. This $46 million commitment helps ensure that New York's historic housing investments will be inclusive to all, regardless of circumstances."

New York State Office of Addiction Services and Supports Commissioner Chinazo Cunningham said, "Investments like this support individuals who need additional housing help because of things like substance use disorder, which can be an important part of their recovery. Governor Hochul has made it a priority to expand housing options across the state, and ensure all New Yorkers have a safe place to call home. We are grateful for this continued support and look forward to more expansions to supportive housing options in communities across the state."

New York State Office for People With Developmental Disabilities Commissioner Willow Baer said, "New Yorkers with disabilities deserve access to affordable and safe supportive housing that can make a real difference in their social and physical well-being. Governor Hochul's investment in the Empire State Supportive Housing Initiative is providing more than just funding; it's affording people the opportunity to live with dignity and inclusion in their communities."

New York State Office for the Prevention of Domestic Violence Executive Director Kelli Nicholas Owens said, "Safe, stable housing is essential for survivors of domestic and gender-based violence. Too often, survivors face the impossible choice between remaining in an abusive situation or risking homelessness. The Empire State Supportive Housing Initiative helps connect survivors to housing and critical services, including counseling, case management and other supports that promote long-term safety, stability and healing. We thank Governor Hochul for her continued commitment to expanding these vital resources for New Yorkers."

New York State Office of Children and Family Services Commissioner Dr. DaMia Harris-Madden said, "Supportive housing restores dignity and hope for those who have fallen on hard times and struggle to secure housing. I have seen how transformative projects such as these are on the lives of many New Yorkers, especially unhoused youth who have aged out of foster care or are grappling with mental health issues. Governor Hochul's investments in the Empire State Supportive Housing Initiative demonstrate her commitment to including all New Yorkers in her affordability agenda. I am proud that she continues to invest resources that promote the physical, mental, psychological and economic well-being of the most vulnerable New Yorkers."

State Senator Samra G. Brouk said, "Every New Yorker deserves access to safe, stable, and dignified housing. Supportive housing is a cornerstone of a strong mental health system, and connects people with the services they need while providing the stability that makes recovery possible. This investment through the Empire State Supportive Housing Initiative will expand access to housing and supportive services for New Yorkers experiencing homelessness, living with mental illness or substance use disorders, survivors of violence, veterans, and other vulnerable communities. I am grateful to Governor Hochul for continuing to prioritize supportive housing, and I look forward to working together to ensure every New Yorker has the opportunity to live with stability, dignity and hope."

Supportive Housing Network of New York Executive Director Pascale Leone said, "Supportive housing is one of the most effective tools we have to address homelessness because it combines stable, affordable housing with the services people need to thrive. This new round of ESSHI funding, made possible by Governor Hochul's historic investment in the program, will help bring hundreds of additional supportive housing units online and ensure providers have the resources to deliver the critical services that make these homes successful. We thank Governor Hochul and our partners in the legislature for recognizing that investing in supportive housing creates lasting solutions to homelessness across New York."