The Real Estate Board of New York to Joint Legislative Public Hearing on 2025 Executive Budget Proposal: Mental Hygiene

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The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association. Founded in 1896, REBNY represents commercial, residential, and institutional property owners, builders, managers, investors, brokers, salespeople and other organizations and individuals active in New York City real estate. We appreciate the opportunity to provide testimony in support of the Executive Budget Proposal for Fiscal Year 2026 (Executive Budget) regarding modernizing our mental health system and supporting the Office of People with Developmental Disabilities (OPWDD), Office of Mental Health (OMH), Office of Addiction Services and Supports, State Council on Developmental Disabilities, and Justice Center for the Protection of People with Special Needs.

The Executive Budget seeks to shift $2.3 billion in spending from the Department of Health to OPWDD and OMH budgets to expand available services, improve access to care, and protect vulnerable individuals in New York State. This is a fiscally responsible way to allocate additional resources that are needed to address persistent challenges within our mental health support systems. The COVID-19 pandemic only compounded these challenges – approximately 1 in 5 New Yorkers struggle with mental illness, according to a recent OSC report.1 Specifically, the New York State Comptroller found that:

- More than 3.2 million adult New Yorkers struggled with a mental illness in 2022, with the largest impact among 18 to 25-year-olds at 30% of that age group.

- The rate of severe mental illness for adults was about 5%, or 783,000 people. For those between 18 and 25 years of age, the rate was 8.6%.

- In December 2023, the ratio of inpatient psychiatric beds to population was about 1 to 2,084 in New York City.

The State has a responsibility to identify New Yorkers with severe and untreated mental illness, and these statistics confirm that bold action is necessary. New York City must increase and expand the support services and facilities for people requiring mental health services who are homeless, unsheltered, or stay in public spaces like our subways. To do so, the proper tools must be put in place to identify those eligible to receive services including modifying the standards for involuntary commitment and strengthening the statute pertaining to Assisted Outpatient Treatment.

REBNY hopes to be an informational asset to you as you explore the development of additional housing for independent living opportunities and clinical assessment hubs, and expansion of street outreach teams. REBNY also looks forward to working with the Executive, the New York State Senate and Assembly, and all stakeholders during this budget process to determine how the industry can support the State’s effort to help New Yorkers in need.

Thank you for considering these points.