ESSHI Rates Are Up — But Are They Enough?Here’s what providers really need to know (beyond the headlines)

Jessica Bryan
Jun 5
3 min read

🆕 What’s New in ESSHI Round 9?

Governor Hochul just released the Empire State Supportive Housing Initiative (ESSHI) Round 9 RFP, committing $45.9 million in services and operating funding to support 1,400 new supportive housing units statewide.

This year marks a historic shift in the program — for the first time since ESSHI launched in 2016, the per-unit service and operating rate has increased.

New Funding Rates:

Region	Previous Rate	New Rate (Round 9)
NYC Metro Area	$25,000/unit/year	$34,000/unit/year
Rest of State	$25,000/unit/year	$31,000/unit/year

🔁 A 2% annual inflationary increase is anticipated, but subject to future appropriations.

Quick RFP Highlights:

Five-year renewable contracts
Must secure capital funding within 24 months
Priority points for targeting chronic homelessness, survivors of DV, and high-need behavioral health populations
Projects must use Housing First and comply with Olmstead integration standards
Must include CoC or LGU support letters and align with local housing need data

But Will the New Rates Cover Actual Costs?

Let’s break it down by region using current 2025 HUD Fair Market Rent (FMR) and market data:

📍 New York City

2025 HUD FMR for 1BR: $2,927/month → $35,124/year
Median Manhattan rent: ~$4,800/month → $57,600/year
ESSHI cap: $34,000/year

👉 Even HUD’s “affordable” benchmark exceeds the ESSHI cap. Market rent is dramatically higher. In NYC, the new ESSHI rate helps — but providers still face major gaps unless they stack funding smartly.

📍 Buffalo (Erie County)

2025 FMR for 1BR: $1,029/month → $12,348/year
Typical market rent: $900–$1,300/month
ESSHI cap: $31,000/year

👉 ESSHI leaves room for both rent and services in Buffalo. This region can stretch ESSHI funds further, but rising wages and service needs still require layered funding for quality staffing.

📍 Albany (Albany County)

2025 FMR for 1BR: $1,086/month → $13,032/year
Typical market rent: $1,000–$1,400/month
ESSHI cap: $31,000/year

👉 Like Buffalo, Albany has a manageable gap. ESSHI covers the basics, but providers need flexible operating strategies and creative resource partnerships.

Labor & Operations: Still Tight

The increased rate still struggles to fully cover:

Rising salaries for case managers, peer staff, and clinical supervisors (often $45K–$65K+ annually)
Utility costs, security, and building maintenance
Low-barrier staffing ratios needed to serve post-pandemic behavioral health and substance use challenges

In short, this is a long-overdue correction — but not yet enough to stabilize high-cost regions or complex service models without additional investment.

Braided Funding: Turning ESSHI Into a Stronger System

Forward-thinking agencies are blending ESSHI with other sources to build more sustainable housing solutions:

Examples of Braided Funding Models:

Medicaid (through MCOs or Health Homes) – to cover clinical and behavioral health services
ESG or CoC funding – for outreach, case management, or housing navigation
CDBG or HOME – for supportive services, admin, or property management subsidies
County mental health contracts – to fund peer support or harm reduction roles
Philanthropic funds – to pilot innovative staffing or engagement strategies
HHAP or HTFC – to lock in capital and reduce long-term operating risk

How I Can Help

As a housing consultant with deep knowledge of HUD, NYS, CoC, OMH, and state capital funding streams, I help providers:

🔍 Develop competitive ESSHI proposals aligned with scoring criteria and regional needs
📈 Design braided funding plans that stretch ESSHI further
💸 Structure staffing models that actually work under these rates
📋 Conduct compliance reviews and readiness audits
🧑‍🏫 Train your team on housing-first implementation and file best practices

Yes — ESSHI budgets allow consulting expenses under the 15% admin cap. My support is not just helpful, it’s eligible.

Key Dates

RFP Release: June 4, 2025
Questions Due: June 16, 2025
Proposals Due: July 15, 2025 at 2:00 PM EST
Conditional Awards: Expected September 4, 2025

Book a Free Consultation

Let’s talk about how you can maximize Round 9 funding and build a smarter, sustainable housing solution — in Buffalo, NYC, Albany or beyond.

👉 Click here to schedule a free consult (insert link to your booking calendar or email)