The New York City Housing Authority manages the nation's largest public housing system, which faces a massive and growing backlog of physical infrastructure needs. This page covers CBC's work on NYCHA's capital investment requirements, the Permanent Affordability Commitment Together (PACT) program, the Public Housing Preservation Trust, operating budget deficits, rent collection, and labor productivity reforms.
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The State and City should streamline the process as much as possible and not introduce additional steps that could delay the renovation process.
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
In March 2024, the CBC reported that NYCHA’s five-year capital needs reached $60 billion, or $373,000 per unit, which is more than double the $180,000 per unit estimated in 2017.
A March 2024 analysis showed that NYCHA’s $8.2 billion five-year capital plan for 2024 to 2028 will fund only 14% of its $60 billion five-year capital need, leaving up to 135,000 units in Section 9 without sufficient funding.
Highlighting the trade-offs NYCHA faces, the authority diverted $511 million of federal capital funds in 2022 and 2023 to fill its operating budget gap.
In September 2023, the CBC reported that inflation accounted for two-thirds of the increase in NYCHA's 20-year capital needs, adding $27.8 billion, while scope additions and modifications accounted for one-third, adding $15.5 billion.
As of February 2022, NYCHA's primary capital financing effort under RAD/PACT had completed or was renovating 14,742 units, which financed $3.2 billion in capital improvements.
$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.
NYCHA faces a massive $60 billion five-year capital need, with only 14 percent covered by the current capital plan, while simultaneously struggling with a persistent operating budget gap and deteriorating housing conditions. To address these challenges, the authority must prioritize the conversion of units to Section 8 through PACT and the Preservation Trust, while also reforming management and labor practices to improve efficiency.
Recommendations related to NYCHA Capital Needs
Fix or replace deteriorating buildings by utilizing the Permanent Affordability Commitment Together (PACT) program and the Preservation Trust.
Improve management effectiveness and efficiency by establishing systems to publicly track progress and impact.
Negotiate savings, boost productivity, and modernize property management through collective bargaining agreements.
Overhaul the rent collection process to address the issue of rising rent delinquency.
Key Data
$60 billion
— Total five-year capital needs for NYCHA.
$78 billion
— Total twenty-year capital needs for NYCHA.
14 percent
— Portion of the five-year capital need covered by the $8.2 billion capital plan.
$511 million
— Amount of federal capital funds diverted in 2022 and 2023 to fill the operating budget gap.
43 percent
— Share of public housing residents who reported three or more housing condition issues in the 2023 survey.
$791 million
— The gap between public housing expenses and core operating income in 2023.
NYCHA's five-year capital investment needs have reached $60 billion, or $373,000 per unit, more than double the 2017 estimate, while twenty-year needs have climbed to $78 billion. To address these immense costs, the city and state must identify additional funding sources and streamline the renovation process to avoid further delays and cost increases.
Recommendations related to NYCHA Capital Needs
The State and City should streamline the process as much as possible and not introduce additional steps that could delay the renovation process.
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 five-year investment needs for its public housing units.
$78 billion
— NYCHA's twenty-year investment needs for its public housing units.
$1.5 billion
— City capital subsidies included in the Fiscal Year 2024 Executive Budget for future PACT projects through fiscal year 2026.
$27.8 billion
— The portion of the increase in twenty-year investment needs attributed to higher than expected inflation.
$15.5 billion
— The portion of the increase in twenty-year investment needs attributed to a more accurate and appropriate scope of work.
New York City's public housing authority faces a severe financial crisis, with operating expenses far outpacing revenue due to rising costs and declining rent collections. To ensure long-term viability and address the $40 billion in capital needs, the authority must implement structural reforms, including comprehensive building renovations through the PACT program and improved management efficiency.
Recommendations related to NYCHA Capital Needs
Fix or replace deteriorating buildings with PACT and the Preservation Trust to address the $40 billion in capital needs.
Improve management effectiveness and efficiency, and publicly track progress and impacts.
Negotiate savings and increase productivity through collective bargaining to reduce labor costs.
Overhaul the rent collection process to ensure residents pay rent on time and improve financial performance.
Key Data
$40 billion
— Estimated capital investment needed to bring public housing units to a state of good repair.
$789 million
— The 2022 structural budget gap between operating revenue and expenses.
$1,481
— Monthly per-unit operating cost in 2022.
63 percent
— Rent collection rate as of February 2023.
$152 million
— Total overtime spending in 2022.
$466 million
— Total unpaid rent accrued by households as of December 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…
NYCHA faces a severe financial crisis with rent arrears exceeding $450 million and a declining rent collection rate, necessitating a plan to restore pre-pandemic collection levels. To ensure long-term viability and address deteriorating infrastructure, the authority must improve operations, utilize the Rental Assistance Demonstration and Preservation Trust, and pursue labor agreement reforms.
Recommendations related to NYCHA Capital Needs
Any such one-time aid should be conditioned on NYCHA devising and implementing a plan to return its rent collection rate to pre-pandemic levels.
NYCHA should fix its deteriorating buildings through the Rental Assistance Demonstration (RAD) and the Preservation Trust.
NYCHA should increase productivity through collective bargaining changes in its labor agreements.
The State could help NYCHA reduce costs by reforming the Scaffold Law.
The State 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
— Previous norm for NYCHA's rent collection rate before the pandemic.
65 percent
— Current rent collection rate for NYCHA, which has fallen below this level.
$450 million
— Total amount of accumulated rent arrears owed to NYCHA.
$15 billion to $20 billion
— The State's current structural deficit.
59,811
— Number of households that requested rent decreases between March 2020 and February 2022.
35 percent
— Percentage 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, which are 80 percent higher than comparable rental properties, and a record-low rent collection rate of 64 percent. To achieve solvency, the authority must implement structural reforms rather than relying on non-recurring revenue and subsidies, which left it with less than one month of cash reserves at the end of 2022.
Recommendations related to NYCHA Capital Needs
NYCHA should fix deteriorating buildings through the RAD program and the Preservation Trust to address long-term capital needs.
The authority must improve property management to reduce operating costs and inefficiencies.
NYCHA needs to boost rent collections to address the substantial revenue shortfall.
The authority should negotiate savings and increased productivity through collective bargaining to manage high labor costs.
Key Data
64 percent
— The rent collection rate fell to an all-time low in December 2022, costing the authority hundreds of millions of dollars in lost revenue.
$1,500
— The average cost to operate public housing per unit per month, which is 80 percent higher than the cost to operate privately owned rent-regulated buildings.
$454 million
— The total amount of unpaid rent accrued by 46 percent of 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.
$211 million
— The amount remaining in reserves at the end of 2022, which represents less than one month of expenses in cash on hand.
$152 million
— The total spent on overtime in 2022, which increased by 3 percent despite efforts to reduce costs.
Comprehensive renovations are critical to preserving public housing for the 400,000 residents of the New York City Housing Authority. Passing the Preservation Trust legislation (A.7805B) would allow the authority to secure federal Tenant Protection Vouchers to fund these necessary repairs and partner with construction management firms.
Recommendations related to NYCHA Capital Needs
State lawmakers should pass the New York City Housing Authority (NYCHA) Preservation Trust legislation to improve the quality of life and preserve public housing.
The State should pass the Trust legislation (A.7805B) to allow NYCHA to secure federal Tenant Protection Vouchers to fund necessary repairs.
Key Data
400,000
— Number of residents living in New York City Housing Authority (NYCHA) public housing that requires comprehensive renovations.
New York City's public housing faces a massive capital crisis, with $32 billion in needs and a significant portion of the portfolio at risk of rapid deterioration. To address this, the city must accelerate RAD/PACT conversions and pass the proposed Preservation Trust legislation to secure funding for the 110,000 units that would otherwise remain without a renovation plan.
Recommendations related to NYCHA Capital Needs
The City must fully integrate NYCHA into the City’s affordable housing strategy to address the capital crisis.
The City should accelerate and maximize the pace of Section 8 conversions through RAD/PACT to renovate and preserve public housing.
NYCHA should take advantage of underutilized land to raise revenue through infill development or air rights sales.
The City must improve operations and construction management to ensure cost-effective maintenance.
The State must ensure the passage of the proposed Preservation Trust legislation (S6999A/A7805) to provide a path for renovating the remaining public housing units.
The Council should join NYCHA and City Hall in lobbying for State and federal actions needed to pass the Trust.
Key Data
$32 billion
— The estimated amount of NYCHA's capital needs.
14,742
— The number of units NYCHA had completed or was in the process of renovating as of February 2022.
20,426
— The number of units currently in the pipeline for renovation.
62,000
— The maximum number of units NYCHA can convert under its federal cap.
$3.2 billion
— The amount of capital improvements financed through RAD conversions.
110,000
— The number of public housing units that would remain in the Section 9 program without the Preservation Trust.
The New York City Housing Authority faces significant financial instability, with operating costs outpacing revenues and a declining rent collection rate, necessitating urgent structural reforms. To address these challenges and secure necessary capital investment for building improvements, the city and state must approve the Preservation Trust and implement labor productivity increases.
Recommendations related to NYCHA Capital Needs
The City and State should approve the Preservation Trust, which has the potential to generate much-needed capital investment and deliver significant operating savings.
NYCHA needs to redouble efforts to boost productivity and bring operating costs closer to peer housing authorities and private property managers.
NYCHA must 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 should implement labor productivity increases to bring operating costs in line with industry benchmarks and maximize the potential benefits of the Preservation Trust.
NYCHA should pursue procurement reforms proposed as part of the Preservation Trust legislation to ensure the authority 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.
$1,300
— Monthly operating costs per unit projected for 2022.
70%
— NYCHA’s rent collection rate as of January 2022.
$1.2 billion
— Total operating funds spent by NYCHA since 2018 on various action plans mandated under the HUD settlement agreement.
$359 million
— Amount spent by NYCHA in 2021 alone on action plans mandated under the HUD settlement agreement.
$330 million
— The amount to which NYCHA’s operating reserves would be reduced, representing 1.3 months of operating costs.
New York City's public housing authority requires urgent state action to stabilize its future, specifically through the approval of a preservation trust, procurement reforms, and increased financial support for public-private partnerships. These measures are essential to facilitate the renovation of 110,000 public housing units and improve building quality for tenants.
Recommendations related to NYCHA Capital Needs
The State should approve the proposed Preservation Trust bill to help stabilize the future of NYCHA.
The State should enact procurement reform to reduce NYCHA’s costs by allowing it to use 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.
Key Data
110,000
— Number of public housing units that would be renovated through the Preservation Trust's partnership with construction management and design firms.
NYCHA faces over $40 billion in capital needs due to years of underinvestment, requiring significant increases in city funding and structural reforms to procurement and operations. To ensure long-term viability, the city must implement strategies like the Preservation Trust and convert units to more stable voucher programs while securing federal procurement waivers.
Recommendations related to NYCHA Capital Needs
State lawmakers should act swiftly to grant NYCHA authorization to use construction manager-build or construction manager-at risk procurement methods, even if the Preservation 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.
Key Data
$40 billion
— The amount NYCHA's capital needs exceed due to years of underinvestment, mismanagement, and cost inflation.
$4.6 billion
— Planned commitments for NYCHA in the Fiscal Year 2022 Adopted Capital Commitment Plan through fiscal year 2031.
33 percent
— The share of all planned commitments for housing through 2025 that NYCHA now represents.
62,000 units
— The goal for the number of units NYCHA aims to renovate under the Permanent Affordability Commitment Together (PACT) program by 2028.
39 percent
— The amount by which NYCHA's per-unit operating costs were higher than private sector costs in 2015.
NYCHA's capital needs exceed $40 billion 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 operational transformation plan, advocate for state legislative reforms, and secure federal funding and authorization.
Recommendations related to NYCHA Capital Needs
The administration should support NYCHA's operational transformation plan to modernize property management and adopt best practices.
The administration should advocate for State legislation to improve operations and reform procurement rules.
The administration should lobby for federal funding and authorization to implement the authority's transformation plan.
Key Data
$40 billion
— Capital needs at NYCHA 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 a $25 million deficit in its 2021 budget and a massive $40 billion in total repair needs that it cannot fund alone. The agency's fiscal stability is further threatened by declining rent collection rates, reliance on one-time funding sources, and significant delays in receiving city and federal subsidies.
Key Data
$40 billion
— The total repair needs for NYCHA, which 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.
$25 million
— The projected deficit in NYCHA's 2021 budget as it manages pandemic effects and federal monitorship requirements.
The proposed New York City Public Housing Preservation Trust aims to address the massive capital needs of public housing by accessing new funding streams, but its success depends on operational flexibility and financial transparency. To effectively preserve 110,000 units of affordable housing, the Trust must avoid restrictive labor and management mandates while ensuring rigorous accountability for its financial performance.
Recommendations related to NYCHA Capital Needs
The New York City Public Housing Preservation Trust legislation should be structured with enough flexibility so that the most cost-effective approaches and tools are available for the management of properties.
The Trust should publish detailed, timely data on both its past financial performance and its budget outlook to ensure adequate financial transparency and accountability.
The Trust should avoid importing NYCHA’s current operating practices and policies wholesale without changes, as its effectiveness will be severely limited if current practices are maintained.
The Trust should utilize design-build and other alternative procurement methods to help deliver projects in a timely and cost-effective manner.
Key Data
110,000
— Number of units of deeply affordable housing that the Public Housing Preservation Trust aims to preserve.
NYCHA's 2020 operating budget reveals a growing reliance on City subsidies and rising labor costs, even as the number of units under its management decreases. To ensure long-term fiscal stability, the agency must address its declining rent collection rates and ensure that future labor agreements provide the flexibility needed for operational improvements.
Recommendations related to NYCHA Capital Needs
NYCHA’s fiscal stability depends on future settlements being financially sustainable and providing enough flexibility for NYCHA to implement its turnaround plan.
NYCHA’s forthcoming organizational plan must include a program to boost the rent collection rate and maintain it going forward.
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 its fiscal outlook must be front and center in these discussions.
Key Data
$100 million
— Annual cost to NYCHA due to the falling rent collection rate.
$3.7 billion
— Projected operating revenues for NYCHA in 2020.
$110 million
— Amount of tenant rent and arrears NYCHA failed to collect in city fiscal year 2019.
$1,052
— Self-reported management cost per unit per month in city fiscal year 2019.
$236 million
— Amount transferred from the capital budget to the operating budget in the 2020 operating budget.
$262 million
— Amount of 2020 public housing expenses anticipated to come from City subsidies.
The New York City Housing Authority faces five-year capital needs totaling $31.8 billion, while the NYCHA 2.0 plan provides only $15.8 billion in funding. This leaves an $8.4 billion gap in unmet capital needs for the 173,762 public housing units under management.
Key Data
$31.8 billion
— Five-year capital needs for NYCHA.
$15.8 billion
— Total funding in the NYCHA 2.0 Plan.
$8.4 billion
— Unmet capital need remaining after the NYCHA 2.0 Plan.
The New York City Housing Authority faces a $31.8 billion five-year capital need, with the current NYCHA 2.0 plan leaving an $8.4 billion funding gap. Projections indicate that without additional intervention, 50% of housing units will be at risk by 2023, rising to 90% 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 under the NYCHA 2.0 plan.
$8.4 billion
— The remaining unmet capital need for the New York City Housing Authority.
50%
— The percentage of housing units projected to be at risk by 2023.
90%
— The percentage of housing units projected to be at risk by 2027.
$4.1 billion
— The amount of funding provided by the City and State for the NYCHA 2.0 plan.
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…
NYCHA's $31.8 billion capital needs plan, known as NYCHA 2.0, faces significant risks due to stalled infill development, funding uncertainties, and the need for federal regulatory relief. Without successful implementation of these strategies and additional support from all levels of government, thousands of units will remain unrepaired and continue to deteriorate.
Recommendations related to NYCHA Capital Needs
NYCHA's 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.
Congress should lift the cap on RAD conversions to allow NYCHA to convert additional units in the future.
NYCHA must implement collective bargaining reforms to achieve efficient and effective property management and reduce high labor costs.
The City should allocate more of its robust capital budget for affordable housing to NYCHA to accelerate repairs and the ability to complete RAD deals.
Federal authorities should lift the prohibition on design-build and best value procurement for federally-funded capital projects to allow NYCHA to complete work faster and for less money.
Key Data
$31.8 billion
— Total five-year capital needs for NYCHA.
$23.8 billion
— Total funding NYCHA 2.0 relies on over 10 years to address capital needs.
$12.8 billion
— Funding generated from accelerating the pace of public-private partnerships under the PACT program.
24 percent
— Increase in open work orders between the release of NYCHA 2.0 in December 2018 and July 31, 2019.
112 days
— Average time to complete repairs as of July 2019, an increase from 71 days.
17,994
— Total number of units in NYCHA's PACT pipeline as of September 2019.
NYCHA requires $32 billion over the next five years to address critical maintenance needs, as current conditions leave 90% of apartments at risk of becoming irreparable within a decade. To fund these repairs, the city should leverage underutilized land for mixed-income development, a strategy that could generate $3 billion while preserving public housing and affordability.
Recommendations related to NYCHA Capital Needs
NYCHA should facilitate mixed-income development on underutilized land and sell development rights to raise $3 billion for apartment repairs.
The city should include sufficient market-rate units in any new development to maximize the revenue potential for NYCHA repairs.
Elected officials and community members should support ambitious developments on NYCHA property that generate new housing and funding for the authority.
NYCHA should pursue proposals like the Fulton Houses project to replace aging buildings, build new affordable units, and raise revenue for repairs without displacing residents.
Key Data
$32 billion
— The amount required to repair NYCHA’s buildings and apartments over the next five years.
$180,000
— The estimated cost per apartment for necessary repairs.
90%
— The percentage of NYCHA apartments that may not be worth repairing in a decade if the status quo continues.
$3 billion
— The amount NYCHA can raise to repair apartments by facilitating mixed-income development and selling development rights.
$25 million
— The revenue a planned 50/50 project at Holmes Towers will raise.
$469 million
— The funding needed over the next five years for the developments at Holmes Towers, Cooper Park, Wyckoff Gardens, and LaGuardia.
The appointment of a federal monitor for the New York City Housing Authority offers a chance to address severe physical deterioration and operational inefficiencies through improved performance management and strategic policy changes. Success depends on securing increased federal and state funding, implementing procurement reforms, and modernizing labor contracts to boost workforce productivity.
Recommendations related to NYCHA Capital Needs
The monitor should establish an accompanying performance management system that includes a portfolio of process, output, and outcome metrics, a tracker with data showing progress against project milestones, and a process to review the metrics with management.
The federal monitor should be a strong advocate for changing federal policies to benefit NYCHA, such as increasing funding for public housing operating and capital subsidies.
The monitor should urge the State to extend permanent design-build authority to all of NYCHA’s State- and City-funded projects and exempt NYCHA from Wicks Law.
The City will need to allocate funding it currently reserves for its housing plan to NYCHA to ensure the financial feasibility of Rental Assistance Demonstration (RAD) conversions.
The monitor can help NYCHA implement additional reforms to boost productivity without increasing NYCHA’s operating costs by reviewing labor contracts.
Key Data
$2.2 billion
— Amount of capital funding the City committed to NYCHA through 2027.
$972 million
— Amount of expense funding the City committed to NYCHA through 2027.
66 percent
— Reduction in federal capital funding received by NYCHA in 2017 compared to 2002, adjusted for construction cost inflation.
$450 million
— Funding appropriated by the previous two New York State budgets for NYCHA capital repairs that has not yet been released.
The New York City Housing Authority faces $32 billion in capital needs over the next five years, requiring a comprehensive strategy to secure necessary funding. While the NYCHA 2.0 plan outlines potential capital sources, the City should fully integrate the authority into its affordable housing plan to ensure long-term financial stability.
Recommendations related to NYCHA Capital Needs
The City should incorporate NYCHA fully into the City’s affordable housing plan to direct additional capital funds to the authority.
The City must secure resources and actions from federal, State, and City government, alongside labor union involvement, to ensure the success of the NYCHA 2.0 plan.
Key Data
$32 billion
— NYCHA capital needs over the next five years.
$24 billion
— Possible sources for capital funding identified in NYCHA 2.0 over 10 years.
$62.4 million
— City operating support for NYCHA in fiscal year 2014.
$178.9 million
— City operating support for NYCHA in fiscal year 2018.
$100 million
— Annual payments from NYCHA to the City that have been forgiven.
The NYCHA 2.0 plan aims to stabilize the housing authority by leveraging private funding through the Permanent Affordability Commitment Together (PACT) initiative and maximizing land assets to address critical capital repairs. Success requires additional government funding, regulatory relief, and labor union cooperation to improve repair efficiency and management flexibility.
Recommendations related to NYCHA Capital Needs
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
— Units added to NYCHA's Permanent Affordability Commitment Together (PACT) initiative to leverage private funding and speed up renovations.
The New York City Housing Authority faces a $32 billion capital need, which it aims to address in part by adding 62,000 units to its Permanent Affordability Commitment Together (PACT) initiative. To further stabilize the system, the authority must leverage public-private partnerships, while elected officials and labor leaders are urged to provide necessary resources and operational flexibility.
Recommendations related to NYCHA Capital Needs
NYCHA should take full advantage of public-private partnerships through PACT, including the Rental Assistance Demonstration (RAD) program, as part of a comprehensive strategy for addressing its $32 billion capital need.
Elected officials and labor leaders should take additional action to give NYCHA the resources and flexibility it needs to stabilize the system.
NYCHA's management must continue to pursue every opportunity to raise revenue and improve operations.
Key Data
62,000
— Number of units NYCHA proposed to add to its Permanent Affordability Commitment Together (PACT) initiative.
$32 billion
— Total capital need identified for the New York City Housing Authority.
The New York City Housing Authority faces $32 billion in capital needs, with nearly all properties requiring substantial rehabilitation to prevent further deterioration of the city's public housing stock. To address this crisis, the city must integrate the authority into its broader affordable housing strategy, leverage underutilized land assets, and modernize operations and construction management.
Recommendations related to NYCHA Capital Needs
The City should fully integrate NYCHA into its affordable housing strategy to shift more than $1 billion to preserve units for extremely and very low-income households.
NYCHA should transition from being a landlord to an affordable housing steward that manages fewer buildings by taking full advantage of public-private partnerships and converting more units to Section 8 funding.
NYCHA should leverage underutilized land assets to fund repairs and facilitate development by selling air rights or allowing infill development.
NYCHA should improve operations and construction management by bringing operations in line with modern property management standards and increasing the use of private maintenance contracts.
Key Data
$32 billion
— Total capital needs for the New York City Housing Authority.
$181,000
— Average cost per unit for substantial rehabilitation of properties.
90 percent
— Portion of NYCHA’s 176,000 units of public housing that could deteriorate to the point of being no longer cost effective to repair by 2027.
58 million square feet
— Amount of development rights controlled by NYCHA across the city.
$1.5 billion
— Potential funding that could be raised by selling 10 percent of NYCHA’s air rights.
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…
New York City faces a $32 billion capital need for public housing, with the cost of addressing these challenges and the broader affordability gap far exceeding the city's financial resources. Meaningful progress in preserving public housing and supporting severely rent-burdened households requires significant financial partnership from state and federal governments.
Recommendations related to NYCHA Capital Needs
The city must seek willing partners in Albany and Washington to preserve public housing and address the housing needs of severely rent-burdened New Yorkers.
Policymakers must recognize that it is unrealistic to expect the city to close the affordability gap on its own, as the cost of addressing these challenges vastly exceeds the city’s financial resources.
Key Data
$32 billion
— The estimated capital need for the New York City Housing Authority (NYCHA).
921,000
— Number of renter households in New York City that pay at least 30 percent of their income in rent.
462,000
— Number of families and single adults that are severely rent burdened, paying 50 percent or more of their income in rent.
300,000
— Total number of units in the mayor's housing plan, which is exceeded by the number of extremely and very low income households paying half 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…
NYCHA can generate significant revenue for necessary building repairs by leveraging underutilized open spaces like parking lots for infill development. However, the financial return depends heavily on the unit mix, as projects with higher percentages of affordable housing generate less upfront payment from developers compared to those with more market-rate units.
Recommendations related to NYCHA Capital Needs
NYCHA should utilize underutilized open spaces, such as parking lots, for infill development to generate revenue for repairs.
To maximize revenue for capital repairs, NYCHA should prioritize infill development projects with a higher proportion of market-rate units, as stricter affordable housing requirements reduce the land's value to developers.
Key Data
$33 Million
— Revenue yielded from 80/20 infill developments in a strong market.
$16 Million
— Revenue yielded from 80/20 infill developments in a moderate market.
$9 Million
— Revenue yielded from 50/50 infill developments in a strong market.
$4.5 Million
— Revenue yielded from 50/50 infill developments in a moderate market.
$0
— Revenue yielded from 100% affordable infill developments.
New York City Housing Authority (NYCHA) apartments continue to suffer from significantly worse physical conditions than other rental housing, with 41 percent of residents reporting broken plaster or peeling paint. Bringing these public housing units to a state of good repair requires an estimated $32 billion over the next five years.
Key Data
$32 billion
— The cost of bringing the 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.
28 percent
— The share of NYCHA residents who reported heating breakdowns, an increase from 24 percent in 2014.
30 percent
— The share of NYCHA residents who reported water leaks, an increase from 28 percent in 2014.
40 percent
— The share of NYCHA households that reported broken plaster or peeling paint, compared to 15 and 20 percent of rent-stabilized tenants.
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…
The New York City Housing Authority faces $32 billion in capital needs over the next five years, with 90 percent of its housing units at risk of deteriorating beyond cost-effective repair by 2027. To address this crisis, the authority must integrate into the city's broader affordable housing strategy, reduce its portfolio size, leverage underutilized land assets, and improve operational efficiency to lower costs.
Recommendations related to NYCHA Capital Needs
Fully integrate NYCHA into the City’s affordable housing strategy by providing NYCHA with one-third of the City’s planned capital commitments for affordable housing over the next five years, which would give NYCHA an additional $1 billion through fiscal year 2022.
Transition to an affordable housing steward that manages fewer buildings by increasing the pace of public-private partnerships to convert public housing units to the more stable Section 8 funding stream.
Reduce the number of units operated by transferring senior housing to qualified nonprofit organizations and selling small, inefficient buildings with fewer than 200 units.
Tap underutilized land assets to fund repairs by selling air rights and allowing infill development on NYCHA campuses.
Improve operations and construction management by decentralizing property management, modernizing collective bargaining agreements, and increasing the use of private maintenance contracts.
Key Data
$32 billion
— Quantified capital needs for NYCHA over the next five years.
90 percent
— Portion of NYCHA’s housing units at risk of deteriorating past the point at which they are cost-effective to repair by 2027.
31 percent
— Funding coverage of capital needs for the 2007-2011 period.
11 percent
— Funding coverage of capital needs for the 2012-2017 period.
39 percent
— Amount by which NYCHA’s costs of operations are higher than those of other landlords operating rent-stabilized buildings.
58 million
— Square feet of additional development that NYCHA’s campuses could accommodate as-of-right.
NYCHA faces $32 billion in capital needs over the next five years, with 90 percent of its housing units at risk of becoming too expensive to repair by 2027. To address this, the agency must transition to an affordable housing steward model, leverage underutilized assets like air rights, and secure $7 billion in new revenue and savings.
Recommendations related to NYCHA Capital Needs
NYCHA should transition to an affordable housing steward employing a full range of strategies rather than continue as the nation’s largest landlord.
NYCHA must tap its underutilized assets, including air rights and potential infill development.
NYCHA must adopt best operational practices in procurement and building maintenance.
NYCHA should utilize public-private partnerships to improve and manage developments.
NYCHA must identify $7 billion in combined savings and new revenue to slow deterioration and improve sustainability.
Key Data
$32 billion
— Estimated capital needs for NYCHA over the next five years.
90 percent
— Portion of NYCHA housing units at risk of no longer being cost-effective to repair by 2027.
$8 billion
— Capital investment included in the current plan over the next five years.
$7 billion
— Additional combined savings and new revenue identified to slow deterioration and improve sustainability.
The New York City Housing Authority faces a massive funding gap, with capital needs estimated at at least $25 billion while the city's recent budget commitments under a federal consent decree fall significantly short. Despite the city providing hundreds of millions in additional support, the agency's infrastructure continues to deteriorate rapidly, necessitating a fundamental shift in the city's approach to managing these public assets.
Recommendations related to NYCHA Capital Needs
To be effective, the City may need to rethink its approach and relationship to NYCHA and H+H.
The Capital Plan should be reduced and refocused on strategic priorities that emphasize state of good repair and maximize the return on investment for new projects.
Key Data
$250 million
— City capital funding provided to NYCHA in fiscal year 2019 under the federal consent decree.
$650 million
— Operating and capital support already scheduled for NYCHA in addition to the consent decree funding.
$25 billion
— Estimated capital needs for NYCHA developments.
$1 billion
— Capital spending for fiscal years 2019 to 2022 added under the terms of the federal consent decree for NYCHA.
The current Project Labor Agreement for New York City Housing Authority building repairs, which promised faster work and cost savings, requires an independent evaluation of its actual performance before any renewal is considered. This assessment should determine whether the agreement has successfully improved repair speed and quality, reduced costs, or provided promised job training opportunities for residents.
Recommendations related to NYCHA Capital Needs
Before any renewal or modification of the Project Labor Agreement is considered, an independent evaluation of the agreement's impact on NYCHA's budget and operations should be conducted.
The evaluation should assess the speed and quality of work on renovation and rehabilitation projects.
The evaluation should assess the cost of renovation and rehabilitation projects.
The evaluation should examine the extent to which NYCHA residents have participated in BCTC pre-apprenticeship and apprenticeship programs annually.
The results of the independent evaluation should be made public.
Key Data
3 percent
— Projected savings in labor costs expected from the Project Labor Agreement.
100 to 120
— Number of union apprenticeship positions the Building and Construction Trades Council was projected to provide annually for NYCHA residents.
The New York City Housing Authority faces a significant maintenance backlog, with over 423,000 open work orders across 179,000 units. To address these and other infrastructure challenges, the city must implement comprehensive needs assessments and prioritize 'fix it first' capital strategies to reduce the maintenance backlog.
Recommendations related to NYCHA Capital Needs
The next administration should enact clear guidelines or directives for performing routine maintenance and regular replacement of assets to prevent the state of good repair backlog from growing.
All city agencies and component units should undertake a comprehensive needs assessment that details the condition of major asset classes and the cost to fix those in disrepair.
The City should adopt a 'fix it first' strategy, in which state of good repair projects receive priority at each agency to address the maintenance backlog.
Key Data
423,000
— Number of open work orders at the New York City Housing Authority at its peak.
179,000
— Number of housing units at the New York City Housing Authority with open work orders at its peak.
$13 billion
— Amount of unmet capital needs identified by the New York City Housing Authority's most recent Physical Needs Assessments through 2015.
$7.5 billion
— Amount of unmet capital needs anticipated by the New York City Housing Authority in the 2011-2015 period.
The New York City Housing Authority faces a massive capital funding gap, with needs likely exceeding $25 billion, as its aging housing stock requires substantial investment to reach a state of good repair. To address this shortfall, the Authority is increasingly relying on alternative strategies like public-private partnerships and rental assistance voucher conversions to secure necessary funding.
Key Data
$25 billion
— Likely capital needs identified in the forthcoming Physical Needs Assessment.
$16.5 billion
— Total capital improvements identified in the 2011 Physical Needs Assessment.
$3 billion
— Estimated damage to the housing system caused by Superstorm Sandy.
$1.7 billion
— Total capital improvements spent by the Authority between 2012 and 2016.
$2.4 billion
— Total value of the 2012-2016 five-year capital plan.
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.
NYCHA has improved its financial position through increased City and federal support, allowing it to reduce the use of capital funds for operating expenses and invest in maintenance. However, the agency faces a precarious future due to potential federal funding cuts and must continue implementing reforms to stabilize its long-term finances.
Recommendations related to NYCHA Capital Needs
Ease work rule restrictions in the upcoming collective bargaining negotiations.
Come to an agreement for rent payment by non-profit tenants in NYCHA buildings.
Support NYCHA’s proposal to raise parking fees to market rates.
Lobby the federal government against onerous changes to public housing operating and capital subsidies.
Raise operating revenues by increasing the collection rate from 77 percent to the Authority’s 95 percent target.
Curb expenses by reducing headcount and eliminating responsibility for community centers.
Improve services and productivity through new procurement arrangements.
Key Data
$210 million
— Proposed reduction in the federal capital subsidy for NYCHA.
$325 million
— Private funding leveraged for capital improvements through the first PACT transaction.
$80 million to $130 million
— Proposed cut in annual operating subsidies for public housing.
13,000
— Number of Section 8 housing vouchers proposed to be lost in the federal budget.
$171.8 million
— NYCHA's public housing operating surplus in 2015.
$36 million
— NYCHA's public housing operating surplus in 2016.
The NYC Preliminary Budget for FY2018 must address the $17 billion in unmet capital needs facing the New York City Housing Authority. This budget review also examines critical fiscal issues including tax revenue projections, city headcount growth, and funding for homeless shelters and public hospitals.
Recommendations related to NYCHA Capital Needs
The City should increase support for the New York City Housing Authority to address its $17 billion in unmet capital needs.
Key Data
$17 billion
— Unmet capital needs of the New York City Housing Authority.
The New York City Housing Authority faces a severe financial crisis with growing operating deficits, necessitating a comprehensive roadmap to improve financial stability through increased revenue and operational efficiencies. This plan includes strategies such as residential infill development, improved rent collection, and the transfer of community and senior center responsibilities to other city agencies.
Recommendations related to NYCHA Capital Needs
NYCHA should increase rent collection rates to HUD's 95 percent target to generate an estimated $39 million in 2015.
The authority can generate more than $26 million annually in non-rental income by increasing parking fees, 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.
The authority should negotiate work rule changes in collective bargaining to limit overtime compensation for work performed in the evenings and on weekends.
NYCHA should pursue cost savings through private property management companies in the long term.
Key Data
$194 million
— Projected operating deficits for NYCHA in 2019.
77 percent
— NYCHA's average rent collection rate.
$320
— Monthly operating cost per unit greater than that of a private rent-stabilized unit.
$39 million
— Estimated revenue generated by increasing rent collection rates to HUD's 95 percent target.
$33 million
— Annual savings by 2019 from streamlining management to curtail the scope of responsibility for borough offices.
$400 million to $800 million
— Total revenue generated over 10 years from two types of residential infill development.
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