Governor Kathy Hochul has announced that more than $45 million will be allocated through the Empire State Supportive Housing Initiative (ESSHI) to support services aimed at helping New Yorkers experiencing homelessness. The ninth round of ESSHI funding includes 200 conditional awards, which are expected to provide services and operating expenses for up to 8,389 additional units of supportive housing across the state. These units will serve a range of populations, including older adults, survivors of domestic and gender-based violence, veterans, chronically homeless families, and individuals with mental illness or substance use disorders.
“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 funding round includes 54 projects in New York City, 21 on Long Island, and 125 in other regions north of the metropolitan area. According to state officials, this represents the largest number of awards given in a single round since ESSHI began. The increase follows a 53 percent rise in annual program funding secured by Governor Hochul as part of the FY26 Enacted Budget.
With these changes, applicants can now request $34,000 annually per unit or qualifying individual in New York City’s five boroughs as well as Suffolk, Nassau, Westchester, Rockland and Putnam counties—an increase from previous rates. Other areas statewide can apply for up to $31,000 per unit or individual each year.
The initiative funds rental assistance and supportive services for various groups such as homeless veterans and their families; survivors of domestic violence; older adults who are disabled or frail; young adults with histories involving incarceration or foster care; people with intellectual or developmental disabilities; those reentering communities after prison; individuals living with HIV/AIDS; people facing serious mental illness or substance use disorders; among others.
Permitted uses for funding include rental subsidies and occupancy costs; staff dedicated to locating eligible individuals needing housing; health services (both primary care and behavioral); employment training programs; educational support initiatives; parenting skills development; child care assistance counseling; crisis intervention resources; children’s advocacy services; as well as costs associated with maintaining stable housing.
Since its inception in 2016, ESSHI has funded nearly 10,300 units of supportive housing statewide. The Office of Mental Health leads procurement efforts for this funding alongside an interagency workgroup representing eight state agencies serving vulnerable populations.
Awards are conditional upon projects securing capital funding for new construction or rehabilitation efforts intended to create integrated affordable supportive housing options.
State officials emphasized research indicating that permanent supportive housing can reduce demand on shelters and emergency medical facilities while improving employment rates and overall wellbeing among recipients. They also noted positive impacts on neighborhoods through both new construction projects and rehabilitation of existing buildings.
New York State Office of Mental Health Commissioner Dr. Ann Sullivan stated: “The Empire State Supportive Housing Initiative helps connect a range of residents with stable and dignified housing, which is an important step toward successful recovery for those living with mental illness, substance use challenges, and more. This program helps reduce demand on emergency services while providing at-risk New Yorkers better access to needed supports. This round of awards demonstrates ongoing need and interest in providing access to stable housing in communities statewide.”
New York State Office of Temporary and Disability Assistance Commissioner Barbara C. Guinn said: “We are grateful for Governor Hochul’s strong support of the Empire State Supportive Housing Initiative and for acknowledging the power of supportive housing to transform the lives of some of our most vulnerable fellow New Yorkers. ESSHI is a vital resource that funds rents and essential support services for thousands of New Yorkers who have experienced homelessness. The funding increases secured by Governor Hochul will strengthen housing stability and providers’ ability to continue delivering the services that make ESSHI unique and effective.”
New York State Division of Homes and Community Renewal Commissioner RuthAnne Visnauskas added: “Supportive housing is one of the most effective tools we have to break the cycle of homelessness and instability. With this $45.9 million round of funding through the Empire State Supportive Housing Initiative, we are ensuring that more than 8,300 New Yorkers—including veterans, older adults, survivors of domestic violence, and individuals living with serious mental illness or substance use disorder—can access safe, affordable homes paired with the services they need to thrive. Governor Hochul’s leadership and the expansion of ESSHI funding demonstrate our shared commitment to building stronger, healthier communities.”
Other state agency leaders echoed similar sentiments about how expanded investment would improve outcomes across multiple sectors affected by homelessness.
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