NEW YORK CITY. "Our goal is nothing short of ending chronic homelessness through proven, cost- effective solutions like prevention and supportive housing - and we're taking a giant step in that direction today, said New York City Mayor Michael Bloomberg today as he announced a $1 billion, 9000- unit supportive housing commitment for persons experiencing chronic homelessness. "I thank Governor Pataki for his support in making New New York/New York III a reality. Investing in solutions and reducing reliance on expensive shelter is good for our neighborhoods, taxpayers, and, most importantly, homeless New Yorkers."

Mayor Bloomberg committed to funding and developing 12,000 units of supportive housing along with State, Federal and private partners in June 2004 when he announced the administration's plan to end chronic homelessness. The 9,000 units in the New New York/New York III agreement along with the more than 3,000 additional units being produced by the New York City Department of Housing Preservation and Development (HPD ), the State and Federal government will fulfill the administration's commitment to create 12,000 units for supportive housing and increase by over 50% the existing 20,000 units of supportive housing available in New York City.

United States Interagency Council on Homelessness Executive Director Philip Mangano, who joined Mayor Bloomberg for the unveiling of his plan in 2004, hailed the housing commitment, noting, "Mayor Bloomberg is a man who understands investments, and today he has made an unprecedented investment in the City's results- oriented plan to reduce and end chronic homelessness. The focus on partnership and places to live responds to the need for collaboration and a consumer-centric strategy that's good for all New Yorkers."

The first two NY/NY agreements produced units solely for single adults with mental illness and some history of homelessness, but the new pact targets a broader range of clients to better reflect the population of chronically homeless people on city streets and in shelters today. New New York/New York III includes units for clients with substance abuse disorders, HIV/AIDS, and mental illness. Also included for the first time are families with disabled heads of households and young people aging out of foster care and residential treatment.

New York/New York III will total approximately $1 billion over 10 years with annual operating expenses of $156 million once all 9,000 units are developed. A substantial portion of the $1 billion development cost will be in capital expenses, with additional funding from such sources as private equity and tax credits. Capital costs will be split evenly by the State and City. As part of the City's capital commitment, HPD is targeting over 25% of its Low Income Housing Tax Credit Allocation to supportive housing, dedicating units within some City-sponsored new construction to the formerly homeless, and operating with an increased capital budget to construct supportive housing. The estimated City share of operating expenses by year 10 is $35 million or 23% of the ongoing operating costs. 3,000 of the 9,000 units will be produced by the end of year two, and 5,700 by the end of year five.

An unprecedented intergovernmental partnership brought the agreement to completion, including the State's Division of Budget, Division of Housing and Community Renewal, Office of Mental Health, Office of Temporary and Disability Assistance, Department of Health, Office of Alcoholism and Substance Abuse Services, the Office of Children and Family Services and the AIDS Institute. City partners included the Office of Management and Budget, Department of Homeless Services, Department of Housing Preservation and Development, Human Resources Administration, Department of Health and Mental Hygiene, and the Administration for Children's Services.

The City's commitment comes just weeks after other reports of progress on its Plan. NYC Department of Homeless Services Commissioner Linda Gibbs recently announced the first closing of a city shelter whose capacity was deemed no longer necessary with the city's shelter census down by 9%. The 335-bed Carlton House closed this summer with its residents moved to permanent housing. The Bank of New York also recently announced a $500,000 grant over two years to support United Way of New York City's Housing Help Center, the first court-based homelessness prevention center in the United States. Open since January, the program aims to prevent the immediate threat of eviction and stabilize families to reduce the risk of future homelessness. The Housing Help Program is one of eight homelessness prevention initiatives included in Mayor Bloomberg's plan.