The New York City Housing Authority is the nation’s largest public housing system, providing affordable homes for hundreds of thousands of residents while managing a vast portfolio of aging infrastructure. This page covers CBC’s work on NYCHA’s operating budget gaps, capital repair needs, the Permanent Affordability Commitment Together (PACT) program, the Preservation Trust, and strategies for improving management efficiency and rent collection.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
The City should deliver for NYCHA residents by maximizing PACT, the Preservation Trust, and new infill development as the most viable strategies to swiftly repair and rebuild.
Fix or replace deteriorating buildings with PACT and the Preservation Trust.
Improve management effectiveness and efficiency, and publicly track progress and impact.
Negotiate savings, boost productivity, and modernize property management through collective bargaining.
Overhaul the rent collection process.
Key Data
In April 2025, the CBC reported that NYCHA relied on $1.4 billion in federal operating support for public housing in the prior year, while $2.7 billion in federal funds supported more than 133,000 housing vouchers across NYCHA and the City.
According to testimony from March 2024, NYCHA's public housing operating budget gap reached $791 million in 2023, which was nearly unchanged from the $789 million shortfall recorded in 2022.
As of March 2024, NYCHA's five-year capital needs ballooned to $60 billion, or $373,000 per unit, while its 20-year capital needs reached $78 billion, or $483,000 per unit.
Based on the 2023 New York City Housing and Vacancy Survey reported in March 2024, 43% of public housing residents reported three or more housing condition issues, such as heat outages or mold.
In May 2023, the CBC reported that NYCHA's rent collection rate plummeted from roughly 90% pre-pandemic to 63%, costing the authority between $350 million and $400 million annually in foregone revenue.
Mayor Mamdani's "Block by Block" housing plan prioritizes the New York City Housing Authority by utilizing PACT, the Preservation Trust, and new infill development to address repair and rebuilding needs. This approach aims to increase housing production through as-of-right development near transit and streamlined review processes while leveraging state and federal resources.
Recommendations related to New York City Housing Authority (NYCHA)
The City should deliver for NYCHA residents by maximizing PACT, the Preservation Trust, and new infill development as the most viable strategies to swiftly repair and rebuild.
Mayoral candidates for 2025 have provided responses regarding the efficiency and quality of city agencies, with several identifying the New York City Housing Authority as a priority for reform. While the responses cover broader fiscal topics like the $111 billion five-year capital program and the $1.2 billion CityFHEPS housing voucher program, candidates specifically offer strategies for improving agency performance, including targeted capital repairs and governance changes.
Recommendations related to New York City Housing Authority (NYCHA)
Candidates propose accelerating NYCHA capital repairs and governance reform to improve housing stability.
Mayoral candidates suggest that the city must target capital funding toward NYCHA repairs and green infrastructure.
Candidates emphasize the need to overcome the constant gridlock of bureaucracy at NYCHA to deliver critical services to residents.
The New York City Housing Authority requires modernization to reduce costs, accelerate repair timelines, and secure necessary capital through initiatives like RAD/PACT and the Preservation Trust. This approach aims to improve the agency's operational efficiency and financial sustainability to better serve residents.
Recommendations related to New York City Housing Authority (NYCHA)
The next mayor should modernize NYCHA by cutting costs, speeding up repairs, and quickly unlocking capital through RAD/PACT and the Preservation Trust.
The New York City Housing Authority faces significant financial risk from potential federal budget cuts, as it relies on $1.4 billion in annual federal operating support and $2 billion in federal funding for over 96,000 housing vouchers. To prepare for these and other looming federal reductions, the city must adopt more disciplined fiscal practices, including accurate budget estimating and increased reserves, to protect essential services.
Key Data
$1.4 Billion
— Annual federal operating support for the New York City Housing Authority.
$2 Billion
— Federal funding for housing vouchers administered by the New York City Housing Authority.
96,000
— Number of housing vouchers administered by the New York City Housing Authority.
The New York City Housing Authority relies heavily on federal support, receiving $1.4 billion in operating subsidies and nearly $2 billion for Section 8 housing vouchers in 2024. Potential federal funding cuts threaten these critical resources, which are essential for maintaining public housing properties and supporting thousands of low-income households.
Key Data
$1.4 billion
— federal public housing operating subsidies received by the New York City Housing Authority last year, comprising 45 percent of its operating budget.
$2.7 billion
— federal funds that supported more than 133,000 housing vouchers across the New York City Housing Authority and the City.
$730 million
— annual federal capital subsidies received by the New York City Housing Authority for public housing properties.
$2 billion
— federal funds received in 2024 to pay rental subsidies for over 96,000 units through the New York City Housing Authority's Section 8 Housing Choice Voucher program.
$60 billion is how much NYCHA plans to invest in its infrastructure over 5 years. Facing ongoing challenges such as budget gaps, weakening rent collection, and deteriorating physical conditions, NYCHA CEO Lisa Bova-Hiatt and Chair Jamie Rubin shared their strategies for managing the nation's largest public housing system.
Lisa Bova-Hiatt was appointed Chief Executive Officer (CEO) of the New York City Housing Authority by Mayor Eric Adams on July 6, 2023. Lisa has more than 25 years of experience in the public sector. She joined NYCHA in February 2020 as General Counsel, where she led the Authority's Law…
The New York City Housing Authority faces a persistent $791 million operating budget gap driven by rising expenses and high rent delinquency, with 46.5% of households behind on payments as of October 2023. Additionally, the agency struggles with massive infrastructure needs, requiring $60 billion over five years to address deteriorating conditions that affect 43% of residents who report three or more housing issues.
Recommendations related to New York City Housing Authority (NYCHA)
Fix or replace deteriorating buildings with PACT and the Preservation Trust.
Improve management effectiveness and efficiency, and publicly track progress and impact.
Negotiate savings, boost productivity, and modernize property management through collective bargaining.
Overhaul the rent collection process.
Key Data
$791 million
— The gap between public housing expenses and core operating income in 2023.
46.5%
— The share of households behind on their rent as of October 2023.
43%
— The percentage of public housing residents who reported three or more housing condition issues in the 2023 survey.
$60 billion
— The total five-year capital needs for NYCHA developments.
$511 million
— The amount of federal capital funds diverted in 2022 and 2023 to fill the operating budget gap.
$1.5 billion
— The total personnel costs for NYCHA in 2023.
The New York City Housing Authority faces a staggering $60 billion in five-year capital needs, with repair costs per unit more than doubling since 2017 due to inflation and expanded project scopes. To address these immense financial requirements, the city and state must identify additional funding sources and streamline renovation processes to ensure projects remain financially feasible.
Recommendations related to New York City Housing Authority (NYCHA)
The State and City should seek to streamline the process as much as possible and not introduce additional steps that could delay the renovation process.
NYCHA and the City need to identify additional subsidy sources to make projects financially feasible as loans fund a smaller share of total costs.
The City and State will need to tap additional sources of financing to help close future PACT and Preservation Trust deals.
NYCHA will need to raise additional sources of capital through infill development and phased redevelopment, where feasible, to support its capital program.
Key Data
$60 billion
— NYCHA's total investment needs over the next five years.
$78 billion
— NYCHA's total twenty-year investment needs.
$373,000
— The five-year investment need per unit.
$483,000
— The twenty-year investment need per unit.
10%
— The average annual rate of inflation for unaddressed needs since 2017.
$1.5 billion
— The amount of City capital subsidies included in the Fiscal Year 2024 Executive Budget for future PACT projects through fiscal year 2026.
New York State Budget Fiscal Year 2024 Major Actions and Fiscal Risks As of First Quarter Update New York City Fiscal Year 2024 Adopted Budget and Outlook
The New York City Housing Authority faces a severe fiscal crisis, with a $789 million operating shortfall in 2022 driven by rising costs and a plummeting rent collection rate. To achieve solvency, the agency must implement structural reforms, including comprehensive building renovations, improved management efficiency, collective bargaining savings, and an overhaul of its rent collection processes.
Recommendations related to New York City Housing Authority (NYCHA)
Fix or replace deteriorating buildings with Permanent Affordability Commitment Together (PACT) and the Preservation Trust.
Improve management effectiveness and efficiency, and publicly track progress and impacts.
Negotiate savings and increase productivity through collective bargaining.
Overhaul the rent collection process to ensure residents pay rent on time.
Key Data
$789 million
— The 2022 operating revenue shortfall for the New York City Housing Authority.
$1,481
— The monthly per-unit operating cost for the New York City Housing Authority in 2022.
63 percent
— The rent collection rate for the New York City Housing Authority as of February 2023.
$40 billion
— The estimated capital investment needed to bring public housing units to a state of good repair.
$350 million to $400 million
— The annual cost of a 65 percent rent collection rate compared to the pre-pandemic norm.
$152 million
— The total overtime spending by the New York City Housing Authority in 2022.
Kathryn Garcia serves as Director of State Operations and Infrastructure, where she oversees over 70 state agencies and authorities, including the MTA and Port Authority. Kathryn has over 14 years of government experience delivering services that New Yorkers rely on every day. Previously, she served as the Commissioner of the…
The New York City Housing Authority faces a significant financial crisis with rent arrears exceeding $450 million as collection rates have plummeted from 90 percent to below 65 percent. To ensure long-term viability, the authority must improve operational efficiency and property management while leveraging programs like the Rental Assistance Demonstration and the Preservation Trust to address deteriorating infrastructure.
Recommendations related to New York City Housing Authority (NYCHA)
Any one-time State aid provided to address arrears should be conditioned on NYCHA devising and implementing a plan to return its rent collection rate to pre-pandemic levels.
Given the State’s massive $15 billion to $20 billion structural deficit, any aid provided to NYCHA should be offset by savings found elsewhere so it does not exacerbate the State’s long-run fiscal instability.
NYCHA should fix its deteriorating buildings through the Rental Assistance Demonstration (RAD) and the Preservation Trust.
NYCHA should improve property management and increase productivity through collective bargaining changes in its labor agreements.
The State could help NYCHA reduce costs by reforming the Scaffold Law, and it should increase the Trust’s unit cap when needed.
The federal government can support NYCHA by increasing funding for Tenant Protection Vouchers and providing procurement flexibility.
Key Data
90 percent
— The previous norm for NYCHA's rent collection rate before the pandemic.
65 percent
— The rent collection rate has fallen to below this level.
$450 million
— The amount of accumulated rent arrears currently owed to NYCHA.
$15 billion to $20 billion
— The size of the State's massive structural deficit.
59,811
— The number of households that requested rent decreases between March 2020 and February 2022.
35 percent
— The portion of occupied units that requested rent decreases between March 2020 and February 2022.
The New York City Housing Authority faces a structural budget gap driven by rising operating costs, deferred maintenance, and a record-low rent collection rate of 64 percent. To achieve solvency, the agency must implement structural reforms, including improved property management and increased rent collection, rather than relying on unsustainable non-recurring revenue and subsidies.
Recommendations related to New York City Housing Authority (NYCHA)
NYCHA should fix deteriorating buildings through the RAD program and the Preservation Trust.
NYCHA should improve property management to address operational inefficiencies.
NYCHA should boost rent collections to ensure adequate revenue.
NYCHA should negotiate savings and increased productivity through collective bargaining.
Key Data
$1,500
— The average cost to operate NYCHA’s public housing per unit per month.
64%
— The all-time low rent collection rate recorded in December 2022.
$454 million
— The amount of unpaid rent accrued by 46 percent of NYCHA households as of December 2022.
$789 million
— The amount of non-operating sources used to balance the 2022 budget, representing 28 percent of the total revenue budget.
$152 million
— The total overtime spending by NYCHA in 2022.
80%
— The percentage by which NYCHA's operating costs exceed those of privately owned rent-regulated buildings.
As Chief Housing Officer, Katz oversees the Department of Housing Preservation and Development, the New York City Housing Authority, the Housing Development Corporation, the Mayor’s Office of Housing Recovery Operations and the Mayor’s Office to Protect Tenants. Katz most recently served as executive director of the research nonprofit Citizens Housing…
New York City's housing plan needs to prioritize operational improvements and zoning reforms to address the city's housing shortage and affordability crisis. By setting clear production goals and streamlining development processes, the city can better meet the immense demand for housing across all income levels and neighborhoods.
Recommendations related to New York City Housing Authority (NYCHA)
The City should identify the specific operational and policy actions needed to achieve goals for housing-related service delivery and production.
The City should set goals for total housing production (inclusive of both income-restricted and market-rate units), the net growth in housing units citywide, and the net change by community district.
Doubling production will require broad-based rezonings to increase as-of-right development capacity in every neighborhood.
The City should track and publish outcome metrics, such as the share of rent burdened households or the homeownership rate for various groups, to monitor the effectiveness of both demand- and supply-side policies.
The City should identify responsible parties, set implementation milestones and performance metrics, and create and implement a management accountability process to track and manage progress.
Key Data
20,000
— Number of city vacancies that could be appropriately allocated to help implement housing plans.
560,000
— Estimated number of housing units New York City needs by 2030 to meet existing needs and future population growth.
50,000
— Number of housing units that need to be permitted annually to meet growth needs.
40%
— Amount fewer permits for housing units issued per resident in New York compared to San Francisco.
20%
— Percentage of the city’s residential lots that have enough capacity to make it worthwhile to develop under current zoning.
22,000
— Number of vacant positions in the city that could be used to help improve basic operations like speeding up approval times.
The New York City Housing Authority has spent $1.2 billion on mandated improvements since 2018, yet residents still face poor living conditions, with 42% of households reporting three or more maintenance deficiencies. To improve fiscal sustainability and operational efficiency, the federal government should grant regulatory waivers and the monitor must advocate for long-overdue labor reforms and transparent performance reporting.
Recommendations related to New York City Housing Authority (NYCHA)
HUD should grant regulatory waivers that free up funding for NYCHA, such as permission to reinvest savings from reducing energy consumption, and that improve operations, such as waivers from onerous and outdated rules that prohibit the use of design-build, construction manager-build, or best value capital procurement for federally funded capital projects.
The monitor should appeal to HUD for federal regulatory relief that improves operations or frees up funding for implementation.
The monitor should identify and advocate for long-overdue work rule reforms, broader job descriptions, fringe benefit savings, operational changes, and other actions that would boost productivity and bring NYCHA’s operations in line with other property managers.
The monitor should publish data on NYCHA’s progress towards meeting specific benchmarks laid out in the agreement.
The monitor should publicly report its approved budget.
Key Data
$1.2 billion
— spent through calendar year 2021 on agreement implementation, primarily remediating lead, responding to heat outages, improving compliance with federal regulations, and addressing other immediate needs
$933 million
— in City operating support from City fiscal years 2018 through 2021, nearly the amount required over the whole ten-year agreement period
$32 million
— in fees for the monitor and its sub-contractors to date
42 percent
— of NYCHA households report three or more serious maintenance deficiencies
15 percent
— of renters in privately-owned buildings report three or more serious maintenance deficiencies
6 percent
— of owner occupants report three or more serious maintenance deficiencies
The New York City Housing Authority requires the passage of the Preservation Trust legislation to secure federal Tenant Protection Vouchers and fund comprehensive renovations for its 400,000 residents. This legislative action is essential to ensuring a transformative future for the city's public housing stock.
Recommendations related to New York City Housing Authority (NYCHA)
State lawmakers should support the New York City Housing Authority (NYCHA) Preservation Trust.
State lawmakers should pass the Trust legislation to allow NYCHA to secure federal Tenant Protection Vouchers and oversee renovations.
Key Data
400,000
— Number of residents living in New York City Housing Authority (NYCHA) public housing.
The RAD/PACT program has successfully financed $3.2 billion in capital improvements for thousands of residents, yet the remaining 110,000 units require the passage of the Preservation Trust legislation to secure necessary funding. Without this legislative action and federal approval for Tenant Protection Vouchers, the authority cannot address the rapid deterioration of its housing stock.
Recommendations related to New York City Housing Authority (NYCHA)
The Council should join NYCHA and City Hall in lobbying for State and federal actions needed to pass the Preservation Trust.
New York State must pass the proposed Preservation Trust legislation (S6999A/A7805) to preserve the remaining 110,000 public housing units.
NYCHA should accelerate and maximize the pace of Section 8 conversions through the RAD/PACT program.
NYCHA should take advantage of underutilized land to raise revenue through infill development or air rights sales.
NYCHA should improve operations and construction management to address the capital crisis.
NYCHA should fully integrate into the City’s affordable housing strategy to address the capital crisis.
Key Data
$32 billion
— The amount of NYCHA's capital needs documented in the 2018 report.
90 percent
— The portion of NYCHA's portfolio at risk of deteriorating to poor conditions by 2027 without action.
14,742 units
— The number of units NYCHA had completed or was in the process of renovating as of February 2022.
20,426 units
— The number of units in the pipeline for renovation as of February 2022.
62,000 units
— The maximum number of units NYCHA can convert under its federal cap.
$3.2 billion
— The amount in capital improvements financed through RAD conversions.
The New York City Housing Authority faces significant financial instability, with operating expenses exceeding revenues and a rent collection rate that dropped from 88% in February 2020 to 70% by January 2022. To address these challenges, the city and state should approve the Preservation Trust to generate capital investment and implement labor productivity increases to align operating costs with industry standards.
Recommendations related to New York City Housing Authority (NYCHA)
The City and State should approve the Preservation Trust, which has the potential to generate much needed capital investment and to deliver significant operating savings and productivity improvements.
NYCHA needs to redouble efforts to boost labor productivity and bring operating costs closer to peer housing authorities and private property managers.
NYCHA should convert from Section 9 funding to alternative federal funding programs like Section 8 or Tenant Protection Vouchers to raise capital to renovate buildings and restore habitability.
NYCHA must implement procurement reforms proposed as part of the Preservation Trust legislation to ensure that it can get more and better value for its capital dollar.
Key Data
$2.7 billion
— Public housing operating expenses in NYCHA’s calendar year 2022 adopted budget.
70%
— NYCHA’s rent collection rate as of January 2022, down from 88% in February 2020.
$1.2 billion
— Amount NYCHA has spent in operating funds since 2018 on various action plans mandated under the HUD settlement agreement.
35%
— Reduction in NYCHA’s operating reserves in 2021 and 2022.
$330 million
— NYCHA's operating reserves, representing 1.3 months of operating costs.
38%
— Percentage by which 2022 monthly operating costs are higher than the $943 per unit in rent and operating subsidy.
The New York State budget fails to include necessary support for the New York City Housing Authority, which provides the city's most deeply affordable housing. Legislative action is required to approve the NYCHA Preservation Trust bill, enact procurement reform, and increase financial support for public-private partnerships to stabilize the authority.
Recommendations related to New York City Housing Authority (NYCHA)
The State should approve the proposed NYCHA Preservation Trust bill to help stabilize the authority.
The State should enact procurement reform to help stabilize the New York City Housing Authority.
The State should increase financial support for Rental Assistance Demonstration (RAD) public-private partnerships to bring in capital and new management for the New York City Housing Authority.
The enacted budget should include provisions to help stabilize the New York City Housing Authority, which provides the City’s most deeply affordable housing.
The New York City Housing Authority has seen significant increases in city subsidies, which are not considered fiscally sustainable in the long term. To ensure future financial stability, the agency must implement necessary reforms rather than relying on continued growth in city funding.
Recommendations related to New York City Housing Authority (NYCHA)
The New York City Housing Authority should implement reforms to achieve fiscal stability rather than relying on continual increases in city subsidies.
The New York City Housing Authority requires urgent state action to stabilize its future, specifically through the approval of a Preservation Trust bill and procurement reforms. Additionally, increasing financial support for public-private partnerships like the Rental Assistance Demonstration program is essential to facilitate the renovation of 110,000 public housing units.
Recommendations related to New York City Housing Authority (NYCHA)
The State should approve the proposed Preservation Trust bill.
The State should enact procurement reform to reduce costs by allowing the use of construction manager-build and construction manager-at risk procurement rules.
The State should increase financial support for Rental Assistance Demonstration (RAD) public-private partnerships that bring in capital and often new management.
The State should provide tax-exempt bonds and Low-Income Housing Tax Credits through the NY Housing Finance Agency and the New York City Housing Development Corporation to facilitate building and unit quality improvements.
Key Data
110,000
— Number of public housing units that the Preservation Trust would allow the New York City Housing Authority to renovate.
New York State should facilitate housing development to address affordability challenges and improve the New York City Housing Authority's capital stock and management. Key strategies include approving the proposed Preservation Trust, enacting procurement reform, and increasing financial support for public-private partnerships to renovate public housing units.
Recommendations related to New York City Housing Authority (NYCHA)
The State should help improve the New York City Housing Authority (NYCHA) by approving the proposed Preservation Trust, enacting procurement reform, and increasing financial support for Rental Assistance Demonstration (RAD) public-private partnerships.
The Preservation Trust would allow NYCHA to partner with construction management and design firms to bring in new capital resources and oversee renovation of 110,000 public housing units.
Procurement reforms would reduce NYCHA’s costs by allowing it to use construction manager-build and construction manager-at risk procurement rules.
Increasing financial support for RAD conversions at NYCHA by providing tax-exempt bonds and Low Income Housing Tax Credits would facilitate building and unit quality improvements to the benefit of tenants.
Key Data
110,000
— Number of public housing units the Preservation Trust would allow NYCHA to oversee the renovation of.
The New York City Housing Authority faces over $40 billion in capital needs due to years of underinvestment, requiring significant increases in city funding and structural reforms to improve procurement and operations. To ensure long-term viability, the authority must implement organizational changes and pursue alternative funding models like the Preservation Trust and Section 8 conversions to effectively manage repairs and reduce costs.
Recommendations related to New York City Housing Authority (NYCHA)
State lawmakers should act swiftly to grant NYCHA authorization to use construction manager-build or construction manager-at risk procurement methods, even if the Trust is not speedily authorized.
NYCHA’s federal monitor, along with NYCHA and the City, should strongly advocate for HUD to grant waivers from restrictive federal public housing procurement rules for both its annual Section 9 subsidies and any additional federal funding NYCHA receives under the Build Back Better bill.
City and State lawmakers should create the Preservation Trust, since it will provide NYCHA with additional options to finance needed capital investment.
NYCHA must manage renovated properties well by implementing new organizational structures, quality controls, staffing plans, and accountability measures to operate like a modern and effective property management organization.
Key Data
$40 billion
— NYCHA's total capital needs due to years of underinvestment, mismanagement, and cost inflation.
$4.6 billion
— Planned capital commitments for NYCHA in the Fiscal Year 2022 Adopted Capital Commitment Plan through fiscal year 2031.
$257 million
— Total capital funding committed by the City to NYCHA in the decade prior to the recent increase (fiscal years 2006 through 2015).
$2.2 billion
— Amount the City was required by the settlement agreement to invest in NYCHA through fiscal year 2027.
$300 million
— City capital funding included in the Department of Housing Preservation and Development’s capital plan for PACT projects.
39 percent
— Amount by which NYCHA's per-unit operating costs were higher than private sector costs in 2015.
The New York City Housing Authority faces over $40 billion in capital needs due to years of underinvestment and rising costs, while its operating expenses remain high compared to private properties. To address these challenges, the administration should support the authority's transformation plan, advocate for state legislation to improve operations, and secure federal funding to implement necessary reforms.
Recommendations related to New York City Housing Authority (NYCHA)
The Administration should support NYCHA's operational transformation efforts to modernize property management and adopt best practices.
The Administration should advocate for State legislation to improve operations and reform procurement rules for the housing authority.
The Administration should lobby for federal funding and authorization to implement the authority's transformation plan.
Key Data
$40 billion
— Capital needs at the New York City Housing Authority due to years of underinvestment, cost inflation, and costs for lead abatement.
Managing the City’s fiscal crisis well will be a critically important duty of the next Mayor and a primary determinant of how the city survives the current crisis, and ultimately thrives in the future. Managing NYC’s Fiscal Crisis: A CBC Mayoral Candidate Forum featured a 10-minute conversation with each candidate,…
The New York City Housing Authority faces a precarious financial future, with total repair needs exceeding $40 billion and a growing backlog of over 483,000 outstanding work orders. Compounding these challenges are declining rent collection rates and a reliance on one-time, non-recurring resources to balance the budget while addressing critical issues like lead paint remediation.
Key Data
$40 billion
— The total repair needs for the New York City Housing Authority, a figure that the agency and the City cannot fund on their own.
$2.8 billion
— The estimated cost over 20 years to remediate and ultimately abate properties with lead paint.
483,000
— The number of outstanding work orders in December 2020, representing a 40 percent increase from the same time the previous year.
82 percent
— The rent collection rate by November 2020, which has been declining steadily since 2016.
$152 million
— The estimated cost of pandemic response efforts, including additional expenses and lost revenue.
20,000
— The number of households for which NYCHA has processed rent reductions since March 2020.
The proposed New York City Public Housing Preservation Trust aims to preserve 110,000 units of deeply affordable housing by transitioning them to a more lucrative funding stream, though its success depends on operational reforms and financial transparency. To be effective, the Trust requires flexibility in management and procurement, rather than importing the existing restrictive policies and high operating costs that currently burden the housing authority.
Recommendations related to New York City Housing Authority (NYCHA)
The Trust legislation should be structured with enough flexibility so that the most cost-effective approaches and tools are available.
The Trust should publish detailed, timely data on both its past financial performance and its budget outlook to ensure financial transparency and accountability.
The Trust should avoid importing NYCHA's current operating practices and policies wholesale without changes, as this would severely limit its effectiveness.
The Trust legislation should remove mandates that current NYCHA staff continue to operate the properties, which could hinder the ability to retrain staff or modify work rules.
The Trust should remove restrictions against engaging private management to allow for more efficient and effective property management.
Key Data
110,000
— Number of units of deeply affordable housing that the New York City Housing Authority aims to preserve through the Public Housing Preservation Trust.
The New York City Housing Authority's 2020 operating budget reveals a growing reliance on city subsidies and rising labor costs, even as the agency attempts to address long-standing operational challenges. To ensure long-term fiscal stability, the agency must implement sustainable labor agreements, improve rent collection rates, and successfully execute its forthcoming organizational turnaround plan.
Recommendations related to New York City Housing Authority (NYCHA)
NYCHA’s forthcoming organizational plan must include a program to boost the rent collection rate and maintain it going forward.
NYCHA’s fiscal stability depends on future labor settlements being financially sustainable and providing enough flexibility for the agency to implement its turnaround plan.
Devolving budgeting and accountability to the property level could improve collections, but it will depend on property managers’ ability to implement changes and meaningfully improve tenants’ quality of life.
Stabilizing the agency's fiscal outlook must be front and center in all discussions regarding the housing authority's future.
Key Data
$3.7 billion
— Projected operating revenues for NYCHA in 2020.
$100 million
— Annual revenue lost due to the falling rent collection rate.
19 percent
— Increase in NYCHA’s operating budget since 2015.
$1.4 billion
— Assumed payroll costs in the 2020 budget.
$236 million
— Amount transferred from the capital budget to the operating budget in 2020.
89.6 percent
— NYCHA's rent collection rate in 2019, down from 94.9 percent in 2016.
6 months is the time the New York City Housing Authority has to develop a reorganization plan. In this episode NYCHA Chair & CEO Greg Russ discusses working with the federal monitor to facilitate change, working with residents to instill confidence, and what needs to happen at NYCHA to make…
The New York City Housing Authority manages 173,762 public housing units for 381,159 authorized residents across 2,351 buildings. Despite a $3.2 billion capital budget, the agency faces $31.8 billion in five-year capital needs, with the current NYCHA 2.0 plan covering only $15.8 billion of that requirement.
Key Data
$31.8 billion
— Five-year capital needs for the New York City Housing Authority.
$15.8 billion
— Funding allocated under the NYCHA 2.0 plan.
173,762
— Public housing units under management by the New York City Housing Authority.
381,159
— Authorized residents living in public housing.
2,351
— Buildings in the New York City Housing Authority portfolio.
11,339
— Number of employees working for the New York City Housing Authority.
The New York City Housing Authority faces a massive $31.8 billion capital need over five years, while the current 2.0 plan only addresses a portion of this, leaving an $8.4 billion funding gap. Without significant intervention, projections indicate that 90% of public housing units will be at risk of requiring costly repairs or replacement by 2027.
Key Data
$31.8 billion
— The total five-year capital needs for the New York City Housing Authority.
$15.8 billion
— The funding allocated in the NYCHA 2.0 plan to address capital needs.
$8.4 billion
— The remaining unmet capital need for the New York City Housing Authority under the 2.0 plan.
90%
— The projected percentage of New York City Housing Authority units at risk of requiring significant repair or replacement by 2027 if capital needs continue to grow at the current rate.
50%
— The projected percentage of New York City Housing Authority units at risk of requiring significant repair or replacement by 2023.
$3,830 million
— The total New York City tax expenditures dedicated to housing programs in fiscal year 2019.
90% is the share of NYCHA units that are at risk of no longer being cost effective to repair by 2027 at the current rate of deterioration. NYCHA released a plan to address this in December 2018. CBC Senior Research Associate Sean Campion joins the pod to discuss progress, the…
The New York City Housing Authority's "NYCHA 2.0" plan faces significant implementation risks due to funding gaps, federal regulatory hurdles, and stalled development projects. Without increased cooperation from all levels of government and labor unions, the authority struggles to address its massive capital repair needs and growing work order backlog.
Recommendations related to New York City Housing Authority (NYCHA)
The federal monitor should work with the new Chair to increase funding for federal operating and capital subsidies to support the housing authority's turnaround efforts.
Federal authorities should lift the cap on RAD conversions to allow the housing authority to convert additional units in the future.
The City should allocate more of its robust capital budget for affordable housing to the housing authority to accelerate repairs and the ability to complete PACT deals.
Federal authorities should lift the federal prohibition on design-build and best value procurement for federally-funded capital projects to allow for faster and cheaper construction.
The housing authority must pursue collective bargaining reforms to achieve efficient and effective property management and address high labor costs.
Federal authorities should create dedicated tax credits for the RAD program to improve the financial feasibility of conversions.
Federal authorities should allow for more flexible use of federal capital and operating dollars to enable the reinvestment of operating savings into capital upgrades.
Key Data
$32 billion
— The estimated five-year capital need for the New York City Housing Authority.
$23.8 billion
— The total funding over 10 years that the NYCHA 2.0 plan relies on to address capital needs.
75,000
— The number of backlogged work orders the housing authority aims to close by 2021 through rapid response teams.
24 percent
— The increase in open work orders between the release of NYCHA 2.0 in December 2018 and July 31, 2019.
$450 million
— The amount of state capital funding that was appropriated in 2016 and 2017 but has not yet been released to the housing authority.
$101 million
— The amount included in the City’s Adopted Budget for Fiscal Year 2020 for collective bargaining-related costs.
The New York City Housing Authority requires $32 billion in repairs to address severe living conditions like lead exposure and heating outages, which threaten the long-term viability of its housing stock. To generate necessary funding, the city should pursue mixed-income infill development on underutilized land, prioritizing projects that maximize revenue to preserve public housing without displacing residents.
Recommendations related to New York City Housing Authority (NYCHA)
The city should prioritize including sufficient market-rate units in any new development to reach the $3 billion revenue potential for repairs.
Elected officials and community members should support ambitious developments on NYCHA property that generate new housing and funding for the authority.
NYCHA and city officials should raise billions in private capital for repairs while maintaining public ownership and permanent affordability.
Key Data
$32 billion
— Estimated cost to repair NYCHA’s buildings and apartments over the next five years.
$180,000
— Estimated repair cost per apartment.
$3 billion
— Potential revenue NYCHA can raise to repair apartments by facilitating mixed-income development on underutilized land.
$25 million
— Revenue expected from the planned 50/50 project at Holmes Towers.
$469 million
— Funding needed over the next five years for the developments at Holmes Towers, Cooper Park, Wyckoff Gardens, LaGuardia, and Harborview Towers.
5 is the number of years Alicia Glen was the Deputy Mayor for Housing and Economic Development under Mayor Bill de Blasio. She joins the podcast to reflect on her tenure as Deputy Mayor, the state of the city in 2014, where it stands now, and where it should be…
The appointment of a federal monitor for the New York City Housing Authority offers a critical opportunity to address severe physical deterioration through improved management, increased federal and state funding, and necessary labor reforms. Success depends on leveraging existing strategic plans like NYCHA 2.0 while securing regulatory relief and procurement reforms to expedite essential repairs.
Recommendations related to New York City Housing Authority (NYCHA)
The monitor should establish ambitious yet achievable goals and implement a robust performance management system to assess progress while providing management the flexibility to drive change.
The federal monitor should be a strong advocate for changing federal policies to benefit the New York City Housing Authority.
The monitor should urge the State to extend permanent design-build authority to all of the New York City Housing Authority’s State- and City-funded projects and exempt the agency from Wicks Law.
The monitor should use the NYCHA 2.0 strategic plan as the starting point for their work to avoid redundant studies that sap resources.
The City should allocate funding it currently reserves for its housing plan to the New York City Housing Authority to ensure the financial feasibility of Rental Assistance Demonstration conversions.
The monitor should push the New York City Housing Authority to review labor contracts to improve workforce productivity, including scheduling shifts on evenings and weekends.
Key Data
$2.2 Billion
— Capital funding committed by the City through 2027 to address physical deficiencies at the New York City Housing Authority.
$972 Million
— Expense funding committed by the City through 2027 to support the New York City Housing Authority.
66 percent
— The amount less in federal capital funding the New York City Housing Authority received in 2017 compared to 2002, adjusted for construction cost inflation.
$450 Million
— Funding appropriated by the New York State budget for capital repairs that has not yet been released to the New York City Housing Authority.
The New York City Housing Authority faces significant financial challenges, with $32 billion in capital needs over the next five years despite increased city operating support. To address these issues, the city should fully integrate the authority into its affordable housing plan and support the implementation of the NYCHA 2.0 turnaround blueprint.
Recommendations related to New York City Housing Authority (NYCHA)
The City should support the implementation of NYCHA 2.0, which provides a solid blueprint for the authority's turnaround.
NYCHA should be incorporated fully into the City’s affordable housing plan, which would direct additional capital funds to the authority.
Key Data
$62.4 million
— City operating support for NYCHA in fiscal year 2014.
$178.9 million
— City operating support for NYCHA in fiscal year 2018.
$32 billion
— NYCHA's capital needs over the next five years.
$24 billion
— Possible sources for capital funding over 10 years identified in the NYCHA 2.0 plan.
The NYCHA 2.0 plan offers a strategy to stabilize public housing by leveraging private funding through the Permanent Affordability Commitment Together (PACT) initiative and maximizing land assets. Success requires government entities to provide necessary funding and regulatory relief, alongside labor unions easing work rules to improve repair efficiency.
Recommendations related to New York City Housing Authority (NYCHA)
City, State, and Federal governments need to provide additional funding, statutory authority, and regulatory relief to ensure the feasibility of the PACT conversion plan.
Labor leaders must work with NYCHA to ease work rules and salary structures to ensure basic repairs and maintenance are performed in a more timely and cost-effective manner.
Key Data
62,000
— Number of units added to the Permanent Affordability Commitment Together (PACT) initiative to leverage private funding and speed up renovations.
The New York City Housing Authority's proposal to expand its Permanent Affordability Commitment Together (PACT) initiative by 62,000 units represents a significant step toward addressing the agency's $32 billion capital need. Leveraging public-private partnerships through programs like the Rental Assistance Demonstration (RAD) can help accelerate renovations and improve management practices while maintaining affordability and long-term ownership.
Recommendations related to New York City Housing Authority (NYCHA)
The New York City Housing Authority should take full advantage of public-private partnerships through the Permanent Affordability Commitment Together (PACT) initiative, including the Rental Assistance Demonstration (RAD) program, to address its capital needs.
Elected officials and labor leaders should take additional action to give the New York City Housing Authority the resources and flexibility it needs to stabilize the system.
The New York City Housing Authority's management must continue to pursue every opportunity to raise revenue and improve operations.
Key Data
62,000 units
— The number of units the New York City Housing Authority proposes to add to its Permanent Affordability Commitment Together (PACT) initiative.
$32 billion
— The total capital need of the New York City Housing Authority that public-private partnerships through the Rental Assistance Demonstration (RAD) program aim to help address.
The New York City Housing Authority faces $32 billion in capital needs, with nearly all properties requiring substantial rehabilitation at an average cost of $181,000 per unit. To prevent the deterioration of up to 90 percent of its 176,000 units by 2027, the agency must integrate into the city's broader affordable housing strategy, leverage underutilized land assets, and modernize its operational and construction management practices.
Recommendations related to New York City Housing Authority (NYCHA)
The City should fully integrate NYCHA into its affordable housing strategy to ensure the agency receives a larger share of capital investment.
NYCHA should transition from being a landlord to an affordable housing steward by utilizing public-private partnerships and transferring management of senior housing and small properties to qualified nonprofit developers.
NYCHA should leverage underutilized land assets, such as air rights and infill development, to fund necessary repairs.
NYCHA should improve operations and construction management by adopting modern property management standards, allowing evening and weekend work, and increasing the use of private maintenance contracts.
NYCHA should utilize design-build and other construction management methods to expedite permitting and land use reviews, saving hundreds of millions of dollars.
Key Data
$32 billion
— The total estimated capital needs for the New York City Housing Authority.
$181,000
— The average cost per unit for the substantial rehabilitation required by nearly all of the agency's properties.
90 percent
— The portion of NYCHA’s 176,000 units that could deteriorate to the point of being no longer cost-effective to repair by 2027 without dramatic action.
$1.5 billion
— The potential funding that could be raised by selling 10 percent of NYCHA’s air rights.
$300 million to $600 million
— The goal set by NextGen NYCHA for raising funds from mixed-income infill development.
$1 billion
— The potential funding shift to NYCHA if it were incorporated into the City's housing plan.
90% is the share of NYCHA units CBC estimates may not be cost effective to repair by 2027 under the current trajectory of deterioration. NYCHA Interim Chair and CEO Stan Brezenoff joined CBC to discuss the policy and funding challenges facing NYCHA, and how he plans to tackle key areas…
The New York City Housing Authority faces a $32 billion capital need, with its public housing units currently in the worst condition of all rental housing in the city. Addressing these significant financial challenges and the broader housing affordability crisis requires collaborative support from both state and federal partners.
Recommendations related to New York City Housing Authority (NYCHA)
Any meaningful response to preserve public housing and address the housing needs of severely rent burdened New Yorkers will require willing partners in Albany and Washington.
Key Data
$32 billion
— The estimated capital need for the New York City Housing Authority.
New York City faces a significant housing affordability crisis, with 44 percent of renter households paying at least 30 percent of their income in rent, disproportionately affecting low-income families, seniors, and single parents. Addressing this challenge requires federal and state assistance to preserve public housing, as the New York City Housing Authority's units require nearly $32 billion in repairs that exceed local financial capacity.
Recommendations related to New York City Housing Authority (NYCHA)
Any strategy to protect or preserve affordable housing must include New York City’s public housing and requires State and federal assistance.
The City should not be expected to close the affordability gap on its own.
Any strategy to protect or preserve affordable housing must include public housing and requires federal assistance.
Key Data
$32 billion
— The estimated cost of bringing NYCHA public housing units back to a state of good repair.
175,000
— Number of public housing units owned by the New York City Housing Authority.
$24,423
— Average annual earnings of a family living in NYCHA housing.
$522
— Average monthly rent paid by a family living in NYCHA housing.
462,000
— Number of households considered severely rent burdened, paying at least half of their income in rent.
921,000
— Number of renter households in New York City that pay at least 30 percent of their income in rent.
In Mr. Brezenoff's role at the New York City Housing Authority (NYCHA), he oversees 326 public housing developments that are home to more than 400,000 New Yorkers. With NYCHA's capital needs recently identified as approaching $32 billion, the Citizens Budget Commission released Stabilizing the Foundation , a report recommending bold…
Utilizing underutilized open spaces and parking lots for infill development offers a strategy to generate necessary revenue for building repairs. However, increasing the proportion of affordable housing units in these developments significantly reduces the upfront payments developers are willing to provide, creating a trade-off between housing affordability and funding for capital improvements.
Recommendations related to New York City Housing Authority (NYCHA)
NYCHA should utilize its underutilized open spaces and parking lots for infill development to generate revenue for building repairs.
Policymakers should recognize that stricter requirements to produce greater amounts of affordable housing make the land less valuable to developers, thereby reducing the revenue available for NYCHA repairs.
To maximize revenue, NYCHA should prioritize 80/20 infill development models, which yield significantly higher upfront payments than 50/50 or 100% affordable models.
Key Data
$33 Million
— Revenue yielded for NYCHA from 80/20 infill developments in a strong market.
$16 Million
— Revenue yielded for NYCHA from 80/20 infill developments in a moderate market.
$9 Million
— Revenue yielded for NYCHA from 50/50 infill developments in a strong market.
$4.5 Million
— Revenue yielded for NYCHA from 50/50 infill developments in a moderate market.
$0
— Revenue yielded for NYCHA from 100% affordable infill developments.
NYCHA apartments continue to suffer from significantly worse physical conditions than private rental housing, with 41 percent of residents reporting broken plaster or peeling paint and 28 percent reporting heating breakdowns. Bringing these public housing units to a state of good repair requires an estimated $32 billion in capital improvements over the next five years.
Key Data
$32 billion
— The estimated cost of bringing New York City's public housing units to a state of good repair over the next five years.
41 percent
— The share of NYCHA residents who reported broken plaster or peeling paint in their apartments.
28 percent
— The share of NYCHA residents who reported heating breakdowns in their apartments in 2017.
30 percent
— The share of NYCHA residents who reported water leaks in their apartments in 2017.
29 percent
— The share of NYCHA residents who reported cracks in ceilings and walls in 2017.
9 percent
— The share of NYCHA residents who reported holes in floors.
$31.8 billion is the amount required to repair NYCHA's public housing units over the next five years. CBC Senior Research Associate Sean Campion discuss the findings and recommendations of CBC's recent report on NYCHA's capital needs and explains how NYCHA got into such a deep hole and and how it…
1,441 is the number of overdose fatalities in New York City in 2017. NYC Commissioner of Health Dr. Mary Bassett discusses Healing NYC, a new program designed to combat the opioid health crisis, as well as neighborhood health clinics, lead testing at NYCHA and more.
The New York City Housing Authority faces a $32 billion capital funding gap, with 90 percent of its housing units at risk of severe deterioration by 2027 without significant intervention. To address this crisis, the authority must integrate into the city's broader affordable housing strategy, reduce its portfolio size through partnerships and asset transfers, and leverage underutilized land to generate necessary repair funds.
Recommendations related to New York City Housing Authority (NYCHA)
NYCHA should fully integrate into the City’s affordable housing strategy by receiving one-third of the City’s planned capital commitments for affordable housing over the next five years.
NYCHA should transition to an affordable housing steward that manages fewer buildings by increasing public-private partnerships and transferring or selling inefficient properties.
NYCHA should tap underutilized land assets to fund repairs by selling air rights and allowing infill development on its campuses.
NYCHA should improve operations and construction management by decentralizing property management, modernizing collective bargaining agreements, and utilizing more flexible procurement arrangements.
Key Data
$32 billion
— The amount of capital needs quantified for NYCHA over the next five years.
90%
— The portion of NYCHA’s housing units at risk of deteriorating past the point of cost-effective repair by 2027.
39%
— The amount by which NYCHA’s costs of operations are higher than those of other landlords operating rent-stabilized buildings.
58 million
— The number of square feet of additional development that could be accommodated on NYCHA’s campuses as-of-right.
$1.5 billion
— The amount that could be raised by selling 10 percent of NYCHA’s air rights.
$7 billion
— The total amount of capital needs that could be addressed over the next five years through the implementation of the report's recommendations.
The New York City Housing Authority faces deteriorating infrastructure with capital needs estimated to be at least $25 billion, far exceeding the city's allocated funding under the federal consent decree. Despite the city committing nearly $1 billion in capital spending through 2022, the agency's financial instability necessitates a fundamental rethinking of the city's approach and relationship to the authority.
Recommendations related to New York City Housing Authority (NYCHA)
To be effective, the City may need to rethink its approach and relationship to NYCHA and H+H.
Key Data
$1 billion
— Capital spending for fiscal years 2019 to 2022 added under the terms of the federal consent decree for the New York City Housing Authority.
$250 million
— Capital funding provided by the City in fiscal year 2019 under the consent decree.
$650 million
— Operating and capital support already scheduled for the New York City Housing Authority.
$25 billion
— Estimated capital needs of the New York City Housing Authority.
$168.3 billion is the size of New York State's Fiscal Year 2019 Budget. CBC's David Friedfel joined WT[D]P to discuss spending in this year's budget, as well as how the MTA, NYCHA, and New York City fared in the process.
The current Project Labor Agreement for the New York City Housing Authority, which expires in 2018, requires an independent evaluation to determine if its promised benefits regarding cost savings and resident job training have been realized. This assessment should be completed before any decision is made to renew or modify the agreement to ensure it effectively serves the agency's financial and operational needs.
Recommendations related to New York City Housing Authority (NYCHA)
Before any such decision is made, an independent evaluation of the PLA’s impact on NYCHA’s budget and operations, including speed and quality of work and cost of renovation and rehabilitation projects, should be conducted and made public.
The evaluation should also examine the extent to which NYCHA residents have participated in BCTC pre-apprenticeship and apprenticeship programs annually since the PLA went into effect in 2015.
A review should commence immediately in order to have the results prior to making a decision on renewal.
Key Data
3%
— Projected savings in labor costs from the Project Labor Agreement.
100 to 120
— Number of union apprenticeship positions the BCTC would provide annually for NYCHA residents.
The New York City Preliminary Budget for Fiscal Year 2019 fails to address potential fiscal challenges, including the precarious financial state of the New York City Housing Authority and NYC Health+Hospitals. The budget lacks necessary additions to reserves and relies on temporary savings rather than structural efficiency improvements.
Recommendations related to New York City Housing Authority (NYCHA)
Strengthen finances at the New York City Housing Authority (NYCHA) and NYC Health+Hospitals (H+H).
The New York City Housing Authority faces a massive capital shortfall, with its 2011 Physical Needs Assessment identifying $16.5 billion in required repairs, a figure likely to exceed $25 billion in the next assessment. Despite spending $1.7 billion on capital improvements between 2012 and 2016, the agency struggles with aging infrastructure, as 84 percent of its housing was built before 1970 and Superstorm Sandy caused an additional $3 billion in damage.
Key Data
$16.5 billion
— The total cost of bringing the system to a state of good repair identified in the 2011 Physical Needs Assessment.
$25 billion
— The likely amount of capital needs in the forthcoming Physical Needs Assessment, which dwarfs available resources.
$3 billion
— The estimated damage caused to the system by Superstorm Sandy in 2012.
$1.7 billion
— The amount spent on capital improvements between 2012 and 2016, which met just 10 percent of the identified need.
$2.4 billion
— The total size of the 2012-2016 five-year capital plan.
$1.6 billion
— The total federal capital subsidies received by the Authority from 2006-2010.
This week's data point is $17 billion - the capital needs for rehabilitating the nation's largest housing authority. NYCHA Chair and CEO Shola Olatoye joins the podcast to discuss strategies for addressing these capital needs and to review progress implementing NextGenNYCHA, its strategic plan.
The Ten-Year Capital Strategy increases commitments for the New York City Housing Authority to $1.4 billion, yet it lacks necessary programmatic indicators to measure the impact of these investments. The strategy should integrate specific metrics, such as the number of units rehabilitated or components fixed, to better inform the public about the effectiveness of public housing upgrades.
Recommendations related to New York City Housing Authority (NYCHA)
The Ten-Year Capital Strategy should include indicators such as the number of units expected to be rehabilitated or components fixed to better inform the public about the effectiveness of public housing upgrades.
The City should clearly relate the Ten-Year Capital Strategy back to statements of needs, such as the New York City Housing Authority's physical needs assessment, so that the public can determine whether planned capital investment is adequate.
Key Data
$64 million
— The amount committed to the New York City Housing Authority in the 2014 Ten-Year Capital Strategy.
$1.4 billion
— The amount committed to the New York City Housing Authority in the 2018 Ten-Year Capital Strategy.
0.12 percent
— The share of the 2014 Ten-Year Capital Strategy dedicated to the New York City Housing Authority.
1.5 percent
— The share of the 2018 Ten-Year Capital Strategy dedicated to the New York City Housing Authority.
The New York City Housing Authority faces $17 billion in unmet capital needs, raising questions about whether the city will increase its financial support in the upcoming fiscal year. This budgetary review highlights the critical funding gaps and fiscal challenges facing major city agencies and programs.
Key Data
$17 billion
— Unmet capital needs of the New York City Housing Authority.
In fiscal year 2016, the New York City Housing Authority reduced the time required to resolve emergency work requests by 1.6 hours compared to the previous year. However, the agency's response time for non-emergency requests increased by 5%, reaching an average of 14.7 days.
Key Data
1.6 fewer hours
— Reduction in time taken by NYCHA to resolve emergency work requests in fiscal year 2016 compared to 2015.
5%
— Increase in NYCHA's response time to non-emergency requests in fiscal year 2016.
14.7 days
— NYCHA's response time to non-emergency requests in fiscal year 2016.
The New York City Housing Authority manages 328 developments housing approximately 400,000 residents, with performance metrics focusing on repair response times and work order backlogs. While emergency repair response times have improved to 13.8 hours, the agency continues to struggle with a significant backlog of over 143,000 open work orders as of May 2016.
Key Data
400,000
— New Yorkers housed in 328 developments operated by the New York City Housing Authority.
42.5 days
— Peak average wait time for non-emergency repairs in fiscal year 2013.
420,000
— Backlog of work orders in January 2013.
13.9 days
— Average response time to non-emergency work requests in the first four months of fiscal year 2016.
13.8 hours
— Response time to emergency work requests in the first four months of fiscal year 2016.
The New York City Housing Authority's operating budget relies primarily on tenant rents and federal support, with the City providing $59 million in annual operating support through fiscal year 2020. To assist with budget balancing, the City has implemented measures including the elimination of $72.5 million in annual payments for police services and a $33 million annual Payment in Lieu of Taxes.
Key Data
$3.2 billion
— NYCHA's operating budget in 2014, which was funded predominantly from tenant rents and federal support.
$59 million
— The amount of annual City operating support for NYCHA planned for fiscal year 2020.
$72.5 million
— The amount of annual payments previously made by NYCHA for police services that the City eliminated to help balance the budget.
$33 million
— The amount of NYCHA's annual Payment in Lieu of Taxes that the City eliminated to help balance the budget.
The New York City Housing Authority's Chair and CEO Shola Olatoye discussed CBC's recent report, Cleaning House: How to Close the New York City Housing Authority's Operating Gaps , and NextGenNYCHA, her strategy for reform.
The New York City Housing Authority manages public housing units and Section 8 programs, though specific financial and operational details are absent. The authority's scope lacks the necessary data or policy recommendations to evaluate its current status.
The New York City Housing Authority faces a severe financial crisis with projected deficits reaching $194 million by 2019, driven by high operating costs and insufficient revenue. To address these gaps, the authority must implement strategies such as increasing rent collection rates, streamlining management, and expanding non-rental income sources like commercial activity and parking fees.
Recommendations related to New York City Housing Authority (NYCHA)
Increasing rent collection rates to HUD's 95 percent target will generate an estimated $39 million in 2015.
NYCHA can generate more than $26 million annually in non-rental income by increasing parking fees closer to market rate, increasing monthly fees for appliances, expanding commercial activities, and raising rent collections from nonprofit tenants.
Streamlining management to curtail the scope of responsibility for borough offices to non-redundant functions would save $33 million annually by 2019.
Eliminating responsibility for community and senior centers would save $19 million annually and rely on service provision by better-equipped City agencies and nonprofits.
NYCHA can improve productivity by increasing use of Job Order Contracting, which streamlines and shortens the process to perform more routine maintenance.
Negotiating work rule changes in collective bargaining to limit overtime compensation for work performed in the evenings and on weekends.
Pursuing cost savings through private property management companies.
Key Data
$194 million
— Projected operating deficits for the New York City Housing Authority in 2019.
77 percent
— The average rent collection rate for the New York City Housing Authority.
$320
— The amount by which the New York City Housing Authority's monthly operating costs per unit exceed those of a private rent-stabilized unit.
$39 million
— Estimated revenue generated in 2015 by increasing rent collection rates to HUD's 95 percent target.
$26 million
— Annual non-rental income that can be generated by increasing parking fees, appliance fees, and commercial activities.
$33 million
— Annual savings by 2019 from streamlining management to curtail the scope of responsibility for borough offices.
The FY 2016 Executive Budget includes increased recurring spending and foregone payments from the New York City Housing Authority and the Municipal Water Finance Authority. While these commitments align with the Mayor's priorities, they may lack long-term sustainability given potential budget gaps and economic risks.
The federal Department of Housing and Urban Development calculates annual operating subsidies for housing authorities using a regression model that incorporates ten variables, including property age and location. Specifically, the New York City Housing Authority is subject to a monthly per-unit subsidy ceiling of $480, which is higher than the $420 limit applied to other housing authorities.
Key Data
$480
— The monthly per-unit subsidy ceiling for the New York City Housing Authority before utilities.
$420
— The monthly per-unit subsidy ceiling for all other housing authorities before utilities.
10
— The number of independent variables used in the regression model to calculate expense costs for housing authorities.
75 percent
— The portion of utility cost increases that a public housing authority must absorb if consumption levels rise.
The fiscal year 2015 budget increases city support for the New York City Housing Authority by providing funding for capital repairs, security measures, and relief from police service payments. Because the agency faces ongoing deficits and significant capital needs, city leaders must analyze its finances and collaborate with its leadership to develop plans for long-term financial viability.
Recommendations related to New York City Housing Authority (NYCHA)
City leaders should analyze the finances of the New York City Housing Authority and work with its leaders to develop plans to improve its financial viability.
Key Data
$71 million
— Amount added to the fiscal year 2014 budget to prevent layoffs and closures of NYCHA-based community and senior centers.
$53 million
— Amount of relief provided to NYCHA for police services payments in fiscal year 2014.
$70 million
— Amount of relief provided to NYCHA for police services payments in fiscal year 2015.
$70 million
— Funding provided for NYCHA capital repairs and security cameras.
$36 million
— Amount added to the fiscal year 2015 budget for NYCHA community and senior centers and enhanced security measures.
The Fiscal Year 2015 Preliminary Budget identifies the New York City Housing Authority as a source of budgetary risk, prompting an increase in annual reserves from $300 million to $600 million to help mitigate such financial pressures. No specific policy recommendations or financial data regarding the Housing Authority are provided in this statement.
The New York City Housing Authority manages assets valued at $5.1 billion, comprising 178,466 units across 2,644 buildings, which represents a significant portion of the city's capital infrastructure. Improving the long-term capital planning and budgeting processes is essential to ensure these assets are maintained in a state of good repair and meet the city's future needs.
Recommendations related to New York City Housing Authority (NYCHA)
The City should improve its needs assessments, and develop a systematic plan or timetable for bringing all capital assets to a state of good repair.
The City should place all its capital assets on regular replacement cycles and fund their replacement with operating revenues, not from the capital budget.
Expansion projects should be clearly explained and justified with data that demonstrates economic and other benefits, or a high rate of return on the investment of public funds.
The City should expand the AIMS report to cover all capital assets and integrate the condition assessments of major capital asset systems into a comprehensive reporting structure.
Key Data
$5.1 billion
— Value of the New York City Housing Authority's capital assets.
178,466
— Number of housing units managed by the New York City Housing Authority.
2,644
— Number of buildings managed by the New York City Housing Authority.
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