Capital for New or Expansion of Psychiatric Residential Treatment Facilities for Children and Adolescents

The New York State Office of Mental Health (OMH) has issued a Request for Proposals to support the capital development and expansion of Psychiatric Residential Treatment Facilities for children and adolescents. OMH is a state agency responsible for overseeing mental health services across New York, and this initiative represents part of a broader statewide effort to expand access to behavioral health care for youth. The funding is intended to address capacity gaps in key regions, particularly in the Hudson River and New York City areas, where demand for residential treatment services is highest. The purpose of this funding opportunity is to provide capital and program development support for the acquisition of property, construction of new facilities, or renovation of existing structures to establish or expand Residential Treatment Facilities. These facilities provide voluntary, sub-acute inpatient psychiatric care for youth with significant mental health needs. The program emphasizes trauma-informed, family-centered, and evidence-based care designed to stabilize youth and support their return to home and community environments. Eligible proposals must demonstrate a clear connection between the capital project and the ability to deliver high-quality clinical services to the target population. Funding under this opportunity includes both capital development support and one-time program development grant funds. Capital funding may be used for costs such as planning, construction, renovation, and equipment necessary to complete the project. Program development funds are available to support start-up expenses such as staffing, equipment, and minor facility adjustments. However, these funds cannot be used for ongoing operational expenses such as rent or mortgage payments. Capital funding is structured as interest-free construction financing that must be repaid through a bond mortgage arrangement, with OMH covering the annual debt service. Eligibility is limited to not-for-profit organizations with 501(c)(3) status that currently operate OMH-licensed psychiatric, residential, or community-based services for youth with mental health conditions. Applicants must also meet prequalification requirements within the Statewide Financial System and demonstrate experience serving children or transition-age youth with serious emotional or psychiatric needs. Additional requirements include the ability to obtain licensure, accreditation, Medicaid enrollment, and partnerships with approved educational programs to provide on-site or nearby schooling services for youth in care. Applications must be submitted through the Statewide Financial System, and all required documentation must be uploaded according to strict formatting guidelines. The submission process includes completion of a proposal template, staffing plan, certifications, and supporting documentation. Applicants must also notify relevant local government units of their intent to apply and provide proof of this notification. Evaluation of proposals is based on both technical and financial criteria, including program design, implementation strategy, capital planning, organizational performance, and financial viability. Proposals must achieve a minimum score to be considered for funding. The application timeline includes a release date in mid-July, a bidders conference in late July, a deadline for questions in early August, and a final submission deadline in mid-September. Award notifications are anticipated in early November, with contracts expected to begin the following summer. The capital contracts have a five-year term, while program development grants have a two-year term. The program is not described as recurring, and funding is contingent on state appropriations. Applicants are advised to begin the submission process early to ensure compliance with all requirements and deadlines.

Begin SFS prequalification early; submit at least 48 hours before deadline; ensure all documents meet formatting rules; clearly link capital project to clinical capacity; verify all required attachments are included