On June 26, 2026, Gov. Kathy Hochul rolled out $45.9 million in new state funding to help build out supportive housing across New York, a fresh cash infusion aimed at pairing apartments with on-site services for people experiencing homelessness and other vulnerable renters. The money is intended to cover services and operating costs for hundreds of units under the Empire State Supportive Housing Initiative, known as ESSHI.
What the state announced
The new round of funding is being offered through ESSHI, with the governor’s office saying the money will help bring hundreds of supportive units online while paying for the services that keep tenants stably housed. In a press release from the Governor's Office, officials said this move continues funding increases approved in the FY2027 enacted budget and pushes New York’s total supportive housing commitment to 11,657 units so far.
Money, eligible uses and rates
According to the Office of Mental Health’s request for proposals, or RFP, projects in the New York City metro area can seek up to $34,000 per qualifying individual or unit each year, while developments in the rest of the state may request up to $31,000 per unit annually (OMH RFP). The program allows the money to be used for rental subsidies and other occupancy expenses, case management, primary and behavioral health services, employment and vocational training, child care assistance and crisis intervention.
How the awards will be allocated
The OMH solicitation for ESSHI’s tenth round states that funding for 1,400 “qualifying individuals” will be awarded through this RFP and emphasizes a Housing First, low barrier approach. As the RFP explains, “The State intends to develop a total of 20,000 units over a period of 15 years,” and projects that receive a conditional award are expected to line up capital financing within 24 months.
Advocates say it's helpful but not enough
Supportive housing advocates have greeted the new funding as a meaningful lift for providers wrestling with higher operating costs, while still pushing Albany for bigger structural fixes to stabilize aging programs and raise worker pay. The Supportive Housing Network of New York has described the new ESSHI round as a “game-changer” for tenants and providers and has called on lawmakers to follow it with long term solutions, according to the group’s statements and testimony to state lawmakers (Supportive Housing Network).
Why this matters
Research has found that permanent supportive housing cuts reliance on shelters, emergency rooms and jails while improving health and housing stability, evidence advocates routinely cite when they argue for steady operating support. Analysts at the Center on Budget and Policy Priorities and other scholars have documented those outcomes and urged policymakers to scale up proven supportive housing models.
Next steps for providers
OMH has posted the RFP and related application materials and held a bidders conference in mid June, and providers with capital plans linked to affordable new construction or rehab projects are eligible to throw their hat in the ring. Conditional awards will follow the schedule laid out in the solicitation, and applicants are directed to the Office of Mental Health’s RFP packet for full submission rules and deadlines.
Hoodline previously tracked the state’s earlier ESSHI rate hikes and the broader effort to shore up older programs; see the coverage of the earlier $45.9M boost for background on prior rounds and local reaction.
