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Medicaid Is Now Paying Rent in New York: The 1115 Waiver Explained

House with For Rent sign

$500 million in Medicaid funding is now paying rent for qualifying New Yorkers. The money flows through a component of the state’s 1115 Medicaid Waiver called Health-Related Social Needs — and it went live in January 2025.

The concept: housing instability makes people sicker. Sicker people cost Medicaid more money. So Medicaid pays for housing to prevent the medical costs. The federal government approved New York’s $7.5 billion waiver amendment in January 2024. The housing piece covers up to six months of full rent per year for eligible Medicaid recipients.

Healthy Alliance and Central New York

The New York State Department of Health designated regional Social Care Networks to administer HRSN services on the ground. For Central New York, the Capital Region, and the North Country — 24 counties covering over 705,000 New Yorkers — that entity is Healthy Alliance Foundation, Inc.

Healthy Alliance builds and maintains a network of contracted community-based organizations that screen Medicaid members, determine HRSN eligibility, coordinate services, and submit claims for reimbursement. Their network has completed over 47,800 screenings and made over 95,000 service connections to date.

In the Syracuse area, Inclusive Alliance serves as a local partner. Their contact information: PO Box 12167, Syracuse, NY 13218. Phone: (315) 899-1043. Email: [email protected].

Healthy Alliance general contact: [email protected], (518) 379-0233. They hold monthly webinars on the third Wednesday of each month.

What It Covers

Rent or temporary housing — including landlord-paid utilities that are part of the lease — for up to six months. That six-month provision can be renewed annually on a rolling 12-month basis during the demonstration period, which runs through March 31, 2027.

The program also covers pre-tenancy and tenancy-sustaining services, housing transition navigation, and moving costs.

Services cannot duplicate what a member already receives from another program. But they can supplement existing assistance — wrapping around gaps that other programs do not fill.

Who Qualifies

The screening is five minutes. It covers housing, utilities, food security, transportation, employment, education, and interpersonal safety. Any Medicaid recipient found to have unmet health-related social needs through the screening process is potentially eligible.

Priority goes to individuals experiencing homelessness and those transitioning from institutional care or congregate settings. The overall waiver budgets $3.173 billion for HRSN services between 2025 and 2028.

For Property Managers

Rent payments flow through the Social Care Network’s contracted community-based organizations. The specific landlord enrollment and payment process is administered through those CBOs — Healthy Alliance coordinates the network, but each CBO handles direct landlord relationships and rent payments on behalf of eligible members.

The practical implication for a Syracuse-area landlord: a tenant on Medicaid may have their full rent covered for six months through this program, paid by a CBO in Healthy Alliance’s network, funded by Medicaid dollars. The tenant does not choose this program — they are screened and referred through their healthcare provider or social services contact.

Federal Risk

In March 2025, the Trump administration rescinded Biden-era guidance on HRSN services under Medicaid waivers. CMS has stated this does not nullify existing 1115 approvals — New York’s waiver remains active. But future expansion requests will be evaluated case-by-case. The waiver runs through March 2027. What happens after that depends on the federal administration’s posture toward Medicaid-funded housing at renewal time.

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