Mayor Eric Adams recently released his FY 2026 Preliminary Budget, which included new housing funding agreed to as part of City of Yes and City for All agreement with the City Council and additional funding to combat homelessness. NYC’s investment in housing capital is at a record high.
The budget includes an additional $1 billion in city funding for housing capital, including roughly $825 million for HPD and $175 million for NYCHA as part of the City of Yes and City for All agreements. An additional $1 billion for housing capital for the city was allocated in the governor’s executive proposal detailed above.
Overall, City of Yes and City for All committed to an additional $5 billion, with $1 billion coming from the state. The funding commitment included $2 billion for housing capital and $2 billion for infrastructure and additional expense funding for various programs.
Next year’s capital budget allocates most capital funding for new construction of affordable housing – $1.1 billion, along with $875 million for HPD funding for RAD / PACT, $585 million for special needs housing and $491 million for preservation of affordable housing. The City’s capital budget allocates $1.1 billion to NYCHA for repairs and rehab of public housing.
The City’s capital budget for housing programs decreases dramatically in the outyears, going from $3.3 billion for HPD in 2026 and $1.1 billion for NYHCA, then decreases to $1.9 billion for HPD in the outyears and down to less than $500 million in 2027 and roughly $200 million in the following years for NYCHA. We remain concerned about this declining and inadequate funding in future years and will report on this in more detail in the future.
The expense budget adds funding from the City of Yes and City for All agreement for additional staffing at HPD, DOB and DCP. According to NYHC analysis, this budget adds funding for 153 additional positions at the three agencies (HPD – 77; DOB – 66; DCP – 10). The budget also adds $550,000 for additional staffing at the Commission on Human Rights, including enforcement staffing for housing discrimination enforcement. The expense budget also adds $7.6 million per year for the Anti-Tenant Harassment Protection program.
NYHC is continuing to dig into the budget to track and compare the proposed spending against all the promises made in City for All.
To combat homelessness, the mayor’s proposed budget includes roughly $45 million per year starting next year to add 900 new Safe Haven beds, which are a type of shelter with fewer requirements and help people move from being unsheltered into shelter and housing. The budget also adds $6 million per year to add 100 Runaway and Homeless Youth beds and more than $70 million per year for additional street outreach and sheltering support.
The budget also includes $554 million this year for additional shelter costs due to rising shelter census and $325 million this year for CityFHEPS rental assistance.