New York is committing more than $45 million in new funding to expand supportive housing across the state, with 200 conditional awards approved to support services and operating costs for up to 8,389 additional housing units.
The funding is being distributed through the Empire State Supportive Housing Initiative, known as ESSHI, and targets New Yorkers experiencing homelessness, including veterans, survivors of domestic and gender-based violence, older adults with disabilities, chronically homeless individuals and families, and people living with serious mental illness or substance use disorders.
This ninth round of ESSHI funding represents the largest number of awards issued in a single round of the program. Of the 200 projects funded, 54 are located in New York City, 21 on Long Island, and 125 in regions north of the metropolitan area.
The funding increase follows a 53 percent boost in annual ESSHI funding included in the fiscal year 2026 enacted state budget. Under the new structure, projects in New York City, Suffolk, Nassau, Westchester, Rockland and Putnam counties can receive up to $34,000 annually per unit or qualifying individual, an increase of $9,000. Developments in other parts of the state are eligible for up to $31,000 annually per unit or qualifying individual, a $6,000 increase.
ESSHI funding can be used for rental assistance and a wide range of supportive services designed to help residents remain stably housed. Eligible uses include occupancy costs, health and behavioral health services, employment and vocational training, educational assistance, parenting support, child care assistance, crisis counseling, reentry services for individuals coming from incarceration, and services for people living with HIV or AIDS.
The initiative serves populations including homeless veterans and their families; survivors of domestic and gender-based violence; frail or disabled older adults; young adults with histories of incarceration, homelessness or foster care; individuals with intellectual or developmental disabilities; and people with serious mental illness or substance use disorders.
Since its launch in 2016, ESSHI has funded nearly 10,300 units of supportive housing statewide. The New York State Office of Mental Health serves as the lead procurement agency, working with an interagency group of eight state agencies that serve vulnerable populations.
Awards announced this week are conditional and dependent on each project securing capital funding for new construction, adaptive reuse of non-residential properties, or rehabilitation of unregulated residential properties to create integrated affordable supportive housing.
State officials cited research showing that permanent supportive housing reduces reliance on shelters, hospitals, emergency rooms, prisons and jails, while also improving employment, school attendance and overall physical and mental health outcomes. Supportive housing projects also contribute to neighborhood revitalization through new construction and building rehabilitation.
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