Providers warn NYSHIP underfunding is forcing closures as state and advocates call for $62M boost

Providers from the Supportive Housing Network and multiple nonprofit operators told the joint fiscal committees that the New York State Supportive Housing Program (NYSHIP) does not cover modern service and operating costs, creating an existential threat to units that house people exiting homelessness.

What providers reported: Several organizations described program-level shortfalls that forced them to choose between hiring case managers or paying for on-site security; one upstate operator closed NYSHIP units after absorbing more than $1 million in losses. The Supportive Housing Network asked the legislature to invest $62.1 million to bring NYSHIP funding closer to parity with newer programs (such as EShai) that fund service rates above $30,000 per unit per year.

Policy asks: Advocates requested (a) $62.1 million to raise NYSHIP rates and stabilize providers, (b) an end to a five-year competitive rebidding requirement (move to automatic renewals like other programs to preserve continuity of care), (c) expansion of the Homeless Housing Assistance Program (HHAP) to $281 million to meet capital demand, and (d) a 2.7 percent targeted inflationary increase across human services contracts.

Why it matters: Supportive housing serves New Yorkers with serious behavioral-health or other complex needs; sudden closures would return formerly housed tenants to shelters or the streets, reversing years of investment and increasing Medicaid and shelter costs.

Where this is in the process: The governor included some increases in last year's budget; providers say those gains are insufficient and that there were projects wait-listed in the most recent HHAP round. Advocates warned that without further state action more providers will lose units and demand will outstrip available capital this year.