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Housing Advocates Press for $32M to Shore Up Older Supportive Housing Contracts
Summary
Advocates urged lawmakers to increase funding for underfunded supportive housing stock (NYSHIP) after testimony that thousands of units built under older contracts lack operating and service funding and are at risk of closure or sale to market-rate developers.
Supportive housing providers and advocates told the legislative human services hearing the state must act to preserve older supportive housing units and ensure operating funding for programs that serve formerly homeless and otherwise vulnerable households.
The Supportive Housing Network of New York and operators including New Destiny outlined a two-track need: (1) build more high-quality supportive housing and (2) preserve and modernize existing units built under older programs. They said roughly 7,000–9,000 units — particularly those funded under earlier NYSHIP contracts — lack a dedicated operating subsidy or sufficient service funding and risk deterioration, reduced services or conversion to market-rate housing.
Advocates praised the governor’s proposed $17.8 million increase for NYSHIP in the executive budget but called that a partial step. They urged the Legislature to add $32 million in the enacted budget and enact the Supportive Housing Modernization Act. The bill would authorize a five-year plan and targeted operating supports to the most underfunded NYSHIP sites and align funding with contemporary program costs.
Speakers gave examples of at-risk properties: century-old buildings serving dozens or hundreds of formerly homeless adults with minimal on-site staff and deferred maintenance; these sites face capital repairs and operating deficits. Providers said the operating shortfall for some properties is the barrier that prevents the state from deploying available capital preservation funds — projects cannot secure long-term financing without reliable operating streams.
On new development, advocates noted that ESHI (the Empire State Supportive Housing Initiative) rates remain too low for construction and that rates for New York City and the rest of the state are out of step with costs. Advocates want the Legislature to both shore up the older stock and fund new units at realistic operating rates to ensure long-term viability.
Ending: Supportive housing operators asked lawmakers to prioritize a preservation-first strategy paired with realistic operating rates for new projects; they asked for a $32M targeted increase and passage of the Supportive Housing Modernization Act to protect NYSHIP units at highest risk.
