November 7, 2005

NYC mayor, NY gov earmark $1 bln to house homeless

NEW YORK (Reuters) - New York City Mayor Michael Bloomberg
and New York Gov. George Pataki said on Monday they had
earmarked $1.0 billion to spend over 10 years on housing for
the homeless.

The money would go to build 9,000 units of supportive
housing in New York City under the "New York/New York III"

"Investing in solutions and reducing reliance on expensive
shelter is good for our neighborhoods, taxpayers, and, most
importantly, homeless New Yorkers," Bloomberg said in a

The program's annual operating expenses will total $156
million once all 9,000 units are developed.

Much of the total $1.0 billion cost will be in capital
expenses, with additional funding from such sources as private
equity and tax credits.

Capital costs would be split evenly by the state and city,
and the estimated city share of operating expenses by year 10
is $35 million or 23 percent of the ongoing operating costs.

New York/New York I and II, which were signed in 1990 and
1999, have produced some 5,300 units of supportive housing for
people with mental illness and some history of homelessness.

Including these units, there are an estimated 20,000 units
of supportive housing in New York City, the statement said.

New York/New York III will include housing units for
clients with substance abuse disorders, HIV/AIDS, and mental
illness, and for the first time, families with disabled heads
of households and young people aging out of foster care and
residential treatment.