Mayor Mamdani recently released his preliminary FY 2027 budget – a $127 billion plan that both increased the budget to account for known spending that was underbudgeted in the past, and attempted to decrease significant outyear deficits. There is little change to the housing budget in this plan. We have been told that there will be housing budget changes in the executive plan later this spring after they have developed their housing plan.
This budget plan added money to better project spending on homeless shelters and rental assistance, adding $586 million this year and roughly $1 billion in the following years for shelter costs and added $711 million this year, $1.6 billion next year (FY27), $2.1 billion in FY28, $2.5 billion in FY29 and $2.6 billion in FY30 for City FHEPS. Before the budget additions for City FHEPS, the city had been budgeting around only $1 billion this year and $600 million in the outyears for City FHEPS. By our calculation, with the additional money the City is now budgeting $2.3 billion for City FHEPS next year and $2.7 billion to $3 billion in the following years.
In the housing capital budget, Mayor Mamdani added $670 million next year for the PACT program, which converts NYCHA funding to Section 8 funding in some developments, bringing up the FY2027 budget for PACT conversions to $1 billion.
HPD’s expense budget next year appears to decrease significantly, from $2 billion to $1.5 billion. However, this can be explained by two things: first, City funding for HPD is decreasing for their Emergency Housing program as HPD is winding down their shelters serving people seeking asylum. Second, the agency is maintaining a conservative estimate for federal funding until they know more about FY 2027 federal budget. Federal HUD funding increased in FY 2026, thanks in large part to advocacy from NYHC and our partners showing the impact of housing cuts in districts across the state.