Governor Hochul Announces More Than $45 Million to Fund Supportive Housing Statewide

Boost in Funding Leads to the Empire State Supportive Housing Initiative Providing 200 Conditional Awards for More Than 8,300 Units Statewide

Housing to Serve Veterans, Individuals with Serious Mental Illness or Substance Use Disorder, Domestic Violence Survivors and Older Adults with Disabilities

Governor Kathy Hochul announced conditional awards of $45.9 million through the Empire State Supportive Housing Initiative or ‘ESSHI,’ a program that funds supportive services to help stably house New Yorkers experiencing homelessness. The program’s ninth round of funding resulted in 200 awards, which will fund services and operating expenses for up to 8,389 additional units of supportive housing to serve older adults, survivors of domestic and gender-based violence, veterans and chronically homeless families, and individuals with a mental illness or substance use disorder.

“Expanding supportive housing options for New Yorkers experiencing homelessness is a key step in helping vulnerable residents in their recovery,” Governor Hochul said. “Continued investments in the Empire State Supportive Housing Initiative allows more New Yorkers to get and maintain stable housing within communities of their choice. This effort will help individuals and families move from crisis to long-term stability and independence, pairing compassion with proven solutions that enable them to rebuild their lives with dignity.”

This year’s awards include 54 projects in New York City, 21 projects on Long Island, and 125 projects in locations north of the metropolitan area. These conditional awards –the most issued in a single round of the program –came after Governor Hochul secured a 53 percent increase in annual funding for the program as part of the FY26 Enacted Budget. View the awardees here.

With the increase, applicants were able to seek $34,000 annually per unit or qualifying individual in all five city boroughs, Suffolk, Nassau, Westchester, Rockland and Putnam counties — an increase of $9,000 over the previous rate. Likewise, developments in other areas of the state could apply for up to $31,000 annually per unit or qualifying individual, a $6,000 increase.

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 and/or substance use disorders.

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.

ESSHI has provided funding to nearly 10,300 units of supportive housing since the program was established in 2016. 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.

Awards are conditional and are contingent on a project securing capital funding for new construction, the adaptive reuse of non-residential property, or the rehabilitation of unregulated residential property to create integrated affordable supportive housing.

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.