PRESS RELEASE
Progress in State Budget for Mental Health Housing Providers
Final State Budget Includes 2.7% Targeted Inflationary Increase to Protect Critical Community Programs
(Clifton Park, N.Y.) – The Association for Community Living (ACL) today praised Governor Kathy Hochul and state legislative leaders for including significant investments in New York’s community-based mental health housing system in the adopted Budget, including a 2.7% Targeted Inflationary Increase (TII) for community-based providers and approximately $71 million in funding for New York State Office of Mental Health (OMH) housing.
Combined with additional housing-related investments included in the budget, the final agreement represents more than $100 million in support for housing and residential mental health services statewide. ACL noted that the investments reflect a growing recognition among state leaders of the essential role community-based housing plays in supporting individuals living with serious mental illness and strengthening communities across New York.
These investments marked meaningful progress for a system that has faced years of underfunding, even as providers have worked to meet increasing demand and rising costs across nearly every aspect of operations, including staffing, utilities, food, insurance, and transportation.
Community-based mental health housing programs serve tens of thousands of New Yorkers through supportive housing, community residences, and apartment treatment programs—helping individuals with serious mental illness maintain stability, avoid hospitalization, and remain connected to their communities. Despite their effectiveness, many providers have continued to operate under growing financial strain as reimbursement rates have not kept pace with inflation.
“We appreciate Governor Hochul and legislative leaders for recognizing the importance of investing in community-based mental health housing and including the 2.7% increase our field identified as a critical need from the beginning of the budget process,” said Emil Slane, Executive Director of ACL. “These investments will help providers continue delivering stable housing and essential services to tens of thousands of New Yorkers, while also acknowledging the very real financial pressures organizations continue to face.”
Importantly, the Targeted Inflationary Increase is expected to provide flexibility for providers to address a range of rising operational expenses, rather than being restricted solely to workforce costs. That flexibility is critical as organizations continue managing increased costs associated with housing operations, transportation, insurance, utilities, food, and other essential services.
Sustained investment in community-based services remains critical not only for individuals and families, but for the broader healthcare system. These programs reduce reliance on more costly emergency and institutional care, resulting in better outcomes for residents and long-term savings for the state.
“This budget moved the conversation forward, but it does not end it,” Slane added. “Ensuring long-term stability will require continued, predictable investment that keeps pace with inflation and recognizes the essential role these programs play across New York State.”
With more than 100 member agencies supporting nearly 50,000 individuals with serious mental illness, ACL remains committed to strengthening the state’s mental health housing system through ongoing advocacy, partnership, and engagement with policymakers.
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