New York City Mayor Zohran Mamdani and City Council Speaker Julie Menin have reached a deal on a $125.8 billion budget for fiscal year 2027.
The big focus under the budget remains improving housing opportunities and affordability. Notably, it invests $175 million during fiscal year 2027, with a baseline of another $125 million in fiscal year 2028 on a new rental assistance program, which will be managed by the Department of Housing Preservation & Development.
Another core provision includes preserving more than 200 affordable units annually; fiscal year 2027 gets a $4.2 million commitment, with that number expanding to $17.5 million by FY 2030.
Other major housing allocations in the budget include a $2.3 million baseline to provide housing for victims of violence and to support homeowners in jeopardy of displacement.
Outside of housing, the budget invests in making transportation more affordable, health and safety, as well as parks and academics.
The official agreement comes about a month after Mamdani announced that the city was back on firm financial footing following fears of a 9.5 percent property tax hike. To close the gap, the Mayor and New York Governor Kathy Hochul agreed on a pied-à-terre tax, which imposes an annual surcharge on second homes in the city not listed as primary residences. Plus, additional city savings were found in cutting excessive overtime and seeking more efficient ways to deliver services without slashing them, according to Mamdani.
"We balanced this budget without resorting to austerity," the Democratic Socialist said in a statement.
"We protected the services New Yorkers rely on, while restoring honesty to the City's finances. We accelerated the affordability agenda by investing in housing, mental health services, parks, libraries and students of all ages. This agreement proves that fiscal responsibility and public excellence can go hand in hand."
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