The New York City Housing Authority provides deeply affordable housing to hundreds of thousands of residents while managing a massive portfolio of aging buildings that require extensive capital investment. This page covers CBC's work on the authority's operating budget gaps, capital repair needs, the Permanent Affordability Commitment Together (PACT) program, the Public Housing Preservation Trust, rent collection challenges, and labor productivity reforms.
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..
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.
Key Data
In March 2024, the CBC highlighted that NYCHA's five-year capital needs grew to $60 billion, or $373,000 per unit, which is more than double the $180,000 per unit needed in 2017.
In March 2024, the CBC reported that the gap between NYCHA's public housing expenses and core operating income reached $791 million in 2023, which was roughly unchanged from the $789 million shortfall in 2022.
In March 2024, the CBC noted 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 a massive funding gap.
In March 2024, the CBC reported that NYCHA diverted $511 million of federal capital funds in 2022 and 2023 to fill its operating budget gap rather than using them for capital repairs.
In March 2024, the CBC reported that more than 20,000 units have converted to Section 8 under PACT, with another 20,000 units in the planning pipeline.
The New York City Housing Authority faces a persistent operating budget gap of $791 million and massive capital needs totaling $60 billion over five years, driven by rising expenses and deteriorating infrastructure. To address these challenges, the agency must prioritize structural reforms, including expanding the use of the Permanent Affordability Commitment Together (PACT) program and modernizing management practices through collective bargaining.
Recommendations related to NYCHA Funding
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 to address revenue shortfalls.
Key Data
$791 million
— The gap between public housing expenses and core operating income in 2023.
$1.5 billion
— Total personnel costs in 2023, representing half of the public housing operating budget.
$60 billion
— Total five-year capital needs for NYCHA developments.
$78 billion
— Total twenty-year capital needs for NYCHA developments.
$511 million
— Federal capital funds diverted in 2022 and 2023 to fill the operating budget gap.
$8.2 billion
— The five-year capital plan for 2024 to 2028.
The New York City Housing Authority faces massive capital needs, with five-year requirements totaling $60 billion and twenty-year needs reaching $78 billion due to inflation and expanded repair scopes. To address these challenges, the city and state must streamline renovation processes and identify additional funding sources, including infill development and phased redevelopment.
Recommendations related to NYCHA Funding
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.
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
— Total five-year investment needs for NYCHA's 161,000 public housing units.
$78 billion
— Total twenty-year investment needs for NYCHA's housing stock.
$1.5 billion
— City capital subsidies included in the Fiscal Year 2024 Executive Budget for future PACT projects through fiscal year 2026.
$10 billion
— Capital needs addressed by NYCHA since 2017.
$27.8 billion
— Increase in twenty-year needs attributed to higher than expected inflation.
$15.5 billion
— Increase in twenty-year needs attributed to a more accurate and appropriate scope of work.
The New York City Housing Authority faces a widening operating budget gap due to rising costs and declining rent collections, forcing an increasing reliance on city subsidies and non-operating revenue. To achieve long-term solvency, the authority must implement structural reforms, including comprehensive building renovations, improved management efficiency, collective bargaining savings, and an overhaul of its rent collection process.
Recommendations related to NYCHA Funding
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.
Key Data
$789 million
— The 2022 operating revenue shortfall for public housing.
$40 billion
— Estimated capital investment needed to bring public housing units to a state of good repair.
$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.
$211 million
— Remaining reserves at the end of 2022, equal to less than one month of expenses.
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's rent collection rate has plummeted from 90 percent to below 65 percent, resulting in over $450 million in arrears that threaten the agency's financial stability. While one-time state aid may be necessary to address these arrears, it must be conditioned on a plan to restore rent collection to pre-pandemic levels and be offset by other state savings to avoid worsening the state's $15 billion to $20 billion structural deficit.
Recommendations related to NYCHA Funding
Any such one-time aid should be conditioned on NYCHA devising and implementing a plan—with policymaker support for necessary steps—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 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.
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
— NYCHA's previous norm for rent collection rate before the pandemic.
65 percent
— The level below which NYCHA's rent collection rate fell during the pandemic.
$450 million
— The amount of 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 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, deferred maintenance, and a record-low rent collection rate. To achieve long-term solvency, the authority must implement structural reforms rather than relying on unsustainable non-recurring revenue and city subsidies.
Recommendations related to NYCHA Funding
NYCHA should fix deteriorating buildings through the RAD program and the Preservation Trust.
The authority must improve property management to address operational inefficiencies.
NYCHA needs to boost rent collections to ensure adequate revenue.
The authority 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 rent collection rate in December 2022, which was an all-time low.
$454 million
— The amount of unpaid rent accrued by 46 percent of NYCHA households in arrears 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 in 2022, which increased 3 percent despite efforts to reduce it.
80%
— The percentage by which the cost to operate NYCHA units is higher than the cost to operate privately owned rent-regulated buildings.
The New York City Housing Authority's federal monitorship has led to some operational improvements, but the high costs of implementation and lack of federal regulatory relief threaten the long-term fiscal sustainability of the agency. Without additional funding or structural reforms to labor practices and procurement, the authority continues to struggle with poor living conditions and a massive backlog of maintenance work.
Recommendations related to NYCHA Funding
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.
The monitor should appeal to HUD for federal regulatory relief that improves operations or frees up funding for implementation.
The monitor should focus on, identify and advocate for long-overdue work rule reforms, broader job descriptions, fringe benefit savings, operational changes, and other actions that would boost productivity.
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
— NYCHA spending through calendar year 2021 on agreement implementation.
$933 million
— City operating support provided to NYCHA from fiscal years 2018 through 2021.
$32 million
— Fees paid to the monitor and its sub-contractors to date.
42 percent
— NYCHA households that report three or more serious maintenance deficiencies.
610,000
— Outstanding work orders at NYCHA as of April 2022.
310 days
— Average response time to complete repairs at NYCHA.
NYCHA faces significant financial instability as operating costs outpace revenues, driven by a plummeting rent collection rate and a heavy reliance on city subsidies and capital budget transfers. To achieve long-term stability, the housing authority must secure approval for the Preservation Trust and implement labor productivity reforms to align operating costs with industry standards.
Recommendations related to NYCHA Funding
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 productivity and bring operating costs closer to peer housing authorities and private property managers.
NYCHA must implement labor productivity increases, which would bring operating costs in line with industry benchmarks and maximize the potential benefits of the Preservation Trust.
Key Data
$2.7 billion
— Public housing operating expenses in NYCHA’s calendar year 2022 adopted budget.
$1.2 billion
— Amount spent in operating funds since 2018 on various action plans mandated under the HUD settlement agreement.
$359 million
— Amount spent in 2021 alone on action plans mandated under the HUD settlement agreement.
$132 million
— Potential increase in the budget gap if the rent collection rate continues at 70 percent in 2022.
$286 million
— Amount of City subsidies received by NYCHA in 2021.
$1,300
— Projected monthly operating cost per unit in 2022.
Stabilizing the future of the New York City Housing Authority requires the state to approve the proposed Preservation Trust bill, enact procurement reforms, and increase financial support for Rental Assistance Demonstration (RAD) partnerships. These measures aim to bring in new capital and management to oversee the renovation of 110,000 public housing units and improve building quality for tenants.
Recommendations related to NYCHA Funding
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.
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 would be renovated through the proposed Preservation Trust partnership with construction management and design firms.
New York City's public housing authority requires significant structural and financial reforms, including the approval of a preservation trust and procurement changes, to effectively manage and renovate its aging housing stock. Increasing financial support for public-private partnerships is essential to bring in necessary capital and improve the quality of 110,000 public housing units for tenants.
Recommendations related to NYCHA Funding
The State should help improve the New York City Housing Authority 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 that the Preservation Trust would allow NYCHA to renovate by partnering with construction management and design firms.
NYCHA faces capital needs exceeding $40 billion, prompting the City to increase capital commitments to $4.6 billion through 2031. To ensure long-term viability, the City and State should implement procurement reforms, improve operational efficiency, and establish a Preservation Trust to facilitate necessary repairs and financing.
Recommendations related to NYCHA Funding
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.
City and State lawmakers should create the Preservation Trust, since it will provide NYCHA with additional options to finance needed capital investment.
NYCHA must implement real changes, such as those outlined in its Blueprint for Change, to operate like a modern and effective property management organization and reduce per-unit operating costs.
Key Data
$40 billion
— NYCHA's total capital needs due to years of underinvestment, mismanagement, and cost inflation.
$4.6 billion
— Planned City capital commitments for NYCHA through fiscal year 2031.
39 percent
— The amount by which NYCHA's per-unit operating costs were higher than private sector costs in 2015.
$2.8 billion
— Funding included in the Capital Commitment Plan for building improvements.
62,000 units
— The number of units NYCHA remains on track to renovate under the PACT program by 2028.
$300 million
— HPD capital funding for PACT projects to help close capital financing gaps.
The New York City Housing Authority faces a precarious financial future as it struggles with declining rent collection, pandemic-related revenue losses, and delayed city subsidies. These fiscal pressures, combined with massive repair needs exceeding $40 billion, threaten the agency's ability to implement necessary organizational improvements and maintain its housing stock.
The proposed New York City Public Housing Preservation Trust aims to address the immense capital needs of the New York City Housing Authority by transitioning a portion of its portfolio to more lucrative funding streams to preserve 110,000 units of deeply affordable housing. To ensure success, the legislation must prioritize operational flexibility, financial transparency, and the removal of costly regulatory mandates that hinder efficient project delivery.
Recommendations related to NYCHA Funding
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 help the public and lawmakers evaluate its performance.
Policymakers should remove provisions like the Wicks Law and the Scaffold Law from the Trust legislation, as they increase the cost and complexity of public projects.
The Trust legislation should remove mandates that require NYCHA to retain staff in their current roles and prohibit the transfer of maintenance and operations to contractors.
Key Data
110,000
— Number of units of deeply affordable housing that the Trust would allow NYCHA to preserve.
NYCHA's 2020 operating budget shows a heavy reliance on city subsidies and capital transfers to cover rising labor costs and operational expenses, while rent collection rates continue to decline. To ensure long-term fiscal stability, the housing authority must implement sustainable labor agreements and develop effective strategies to improve rent collection and operational accountability.
Recommendations related to NYCHA Funding
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.
Personnel shifts must be accompanied by a combination of additional funding, reallocation of resources, spending cuts, or productivity enhancements to avoid structural imbalances.
Key Data
$3.7 billion
— Projected operating revenues for 2020.
$100 million
— Annual revenue lost due to the falling rent collection rate.
89.6 percent
— Rent collection rate in 2019, down from 94.9 percent in 2016.
$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 2020.
$1.2 billion
— Amount of the 2020 budget allocated for the Section 8 rental housing voucher program.
The New York City Housing Authority faces a significant financial gap, with $31.8 billion in 5-year capital needs compared to only $15.8 billion provided by the 10-year NYCHA 2.0 Plan, leaving an $8.4 billion unmet need. This shortfall persists despite a $3.2 billion capital budget and $2.6 billion in operating revenue for 2020, highlighting the immense scale of infrastructure investment required to maintain public housing units.
Key Data
$31.8 billion
— The total estimated 5-year capital needs for NYCHA.
$15.8 billion
— The funding amount allocated in the 10-year NYCHA 2.0 Plan.
$8.4 billion
— The projected unmet capital need for NYCHA.
$3.2 billion
— The total capital budget for NYCHA in CY 2020.
$2.6 billion
— The total operating revenue for NYCHA in CY 2020.
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 aims to address a $32 billion capital need through public-private partnerships and operational reforms, but faces significant hurdles including funding gaps and political resistance. Success depends on securing additional federal, state, and city support, as well as implementing necessary labor and management changes to ensure the long-term viability of public housing.
Recommendations related to NYCHA Funding
NYCHA’s federal monitor should work with the new Chair to identify changes to federal laws and regulations that would support NYCHA’s turnaround efforts, such as increasing funding for federal operating and capital subsidies.
Congress will need to increase or remove the cap on RAD conversions if NYCHA is to convert additional units in the future.
NYCHA’s ability to convert additional properties beyond its current pipeline will require additional financial support from the City and State.
Achieving efficient and effective property management requires collective bargaining reforms to address high labor costs and outdated work rules.
The ultimate success of NYCHA 2.0 will require political and community support to move forward with necessary revenue-raising projects like infill development.
Key Data
$32 billion
— five-year capital need identified in the NYCHA 2.0 plan
$23.8 billion
— funding over 10 years to address NYCHA’s five-year capital needs
62,000 units
— long-term goal for PACT conversions
$101 million
— included in the City’s Adopted Budget for Fiscal Year 2020 for collective bargaining-related costs
$450 million
— appropriated but not yet released State funding for NYCHA
$288 million
— City funds relied upon in the 2019 operating budget
The New York City Housing Authority requires $32 billion for critical repairs to address deteriorating living conditions, a goal that can be supported by leveraging underutilized land for mixed-income development. By prioritizing projects with higher market-rate unit ratios, the city can generate the necessary capital to preserve public housing without displacing residents or sacrificing long-term affordability.
Recommendations related to NYCHA Funding
Elected officials and community members should support ambitious developments on NYCHA property that generate new housing and funding for the authority.
The city should include sufficient market-rate units in any new development to maximize the revenue raised for necessary repairs.
NYCHA and city officials should pursue infill development strategies to raise private capital for repairs while maintaining public ownership and permanent affordability.
Key Data
$32 billion
— Total funding required to repair NYCHA 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, and LaGuardia.
The New York City Housing Authority requires significant operational and financial reforms, including increased federal and state funding, to address its severe physical deterioration and capital crisis. Implementing strategic plans like NYCHA 2.0 and modernizing labor contracts are essential steps to improve productivity and ensure the long-term viability of public housing.
Recommendations related to NYCHA Funding
The federal monitor should advocate for increasing funding for public housing operating and capital subsidies to address the root causes of physical deterioration.
The monitor should press the State to release the $450 million in appropriated capital repair funding and pass procurement reforms.
The City should allocate funding it currently reserves for its housing plan to NYCHA to ensure the financial feasibility of Rental Assistance Demonstration (RAD) conversions.
The monitor should help NYCHA implement labor reforms to boost productivity without increasing operating costs.
The monitor should push NYCHA to devolve responsibilities to the development level, including requiring property managers to develop project-level budgets.
Key Data
$2.2 Billion
— City commitment in capital funding through 2027.
$972 Million
— City commitment in expense funding through 2027.
66%
— Reduction in federal capital funding received by NYCHA in 2017 compared to 2002, adjusted for construction cost inflation.
$450 Million
— Appropriated New York State funding for capital repairs that has not yet been released.
The New York City Housing Authority faces significant capital needs totaling $32 billion, yet previous state funding of $450 million was restricted by conditions that were never met. Addressing these requirements necessitates either removing existing funding and design-build restrictions or increasing state appropriations and financing for the authority.
Recommendations related to NYCHA Funding
The State should eliminate restrictions for the funding and design-build for the New York City Housing Authority (NYCHA).
The State should increase the allocation of State appropriations or financing for the New York City Housing Authority (NYCHA) to help address its capital needs.
Key Data
$450 million
— Amount included in last year's budget for the New York City Housing Authority, which was made contingent on the appointment of an emergency manager.
$32 billion
— Estimated capital needs of the New York City Housing Authority.
The NYCHA 2.0 plan offers a blueprint to stabilize the housing authority by leveraging private funding through the expansion of the Permanent Affordability Commitment Together initiative by 62,000 units. Success requires additional government funding, regulatory relief, and labor union cooperation to improve the efficiency of repairs and maintenance.
Recommendations related to NYCHA Funding
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.
NYCHA should add 62,000 units to the Permanent Affordability Commitment Together (PACT) initiative to leverage private funding and speed up the pace of renovations.
NYCHA should shift to mixed-income 'infill' development and sell air rights to maximize the value of its land assets and raise billions of dollars for capital repairs.
Key Data
62,000
— Number of units added to the Permanent Affordability Commitment Together (PACT) initiative to leverage private funding.
The New York City Housing Authority's proposal to expand its Permanent Affordability Commitment Together 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 can help accelerate renovations and improve management practices while maintaining long-term affordability.
Recommendations related to NYCHA Funding
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
$32 billion
— The estimated capital need for the New York City Housing Authority.
62,000
— The number of units the New York City Housing Authority proposes to add to its Permanent Affordability Commitment Together (PACT) initiative.
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 90 percent of its housing stock by 2027, the city must integrate the authority into its broader affordable housing strategy, leverage underutilized land assets, and modernize operational management.
Recommendations related to NYCHA Funding
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 by utilizing public-private partnerships like the Rental Assistance Demonstration program and transferring properties to nonprofit developers.
NYCHA should leverage its underutilized land assets, such as air rights and infill development, to generate funding for repairs.
NYCHA should improve operations and construction management by modernizing work schedules and increasing the use of private maintenance contracts to ensure long-term viability.
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 capital needs of the New York City Housing Authority, representing a nearly fivefold increase over the last decade.
$181,000
— The average cost per unit for the substantial rehabilitation required for nearly all properties managed by the New York City Housing Authority.
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.
$300 million to $600 million
— The funding goal set by NextGen NYCHA for raising capital from mixed-income infill development.
$1.5 billion
— The 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…
NYCHA can generate significant revenue for building repairs by utilizing underused land for infill development, though the financial return depends heavily on the ratio of market-rate to affordable housing units. Prioritizing higher percentages of market-rate units in these developments maximizes the upfront payments available to fund necessary capital improvements.
Recommendations related to NYCHA Funding
NYCHA should utilize underutilized land, such as 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 land less valuable to developers and generate less revenue for NYCHA.
To maximize upfront payments for repairs, NYCHA should prioritize 80/20 infill developments over 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.
$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 a $32 billion capital funding gap, with 90 percent of its housing units at risk of becoming too deteriorated to repair by 2027. To address this, the authority must integrate into the city's broader affordable housing strategy, reduce its portfolio size, leverage underutilized land, and modernize its operational and construction management practices.
Recommendations related to NYCHA Funding
Fully integrate NYCHA into the City’s affordable housing strategy by providing it with one-third of the City’s planned capital commitments for affordable housing over the next five years.
Transition to an affordable housing steward that manages fewer buildings by converting public housing units to the more stable Section 8 funding stream and transferring senior housing to qualified nonprofit organizations.
Tap underutilized land assets to fund repairs and facilitate redevelopment by selling air rights and allowing infill development on NYCHA campuses.
Improve operations and construction management to lower costs by decentralizing property management, modernizing collective bargaining agreements, and using more flexible procurement arrangements like design-build.
Reduce the size of the portfolio by selling small, inefficient buildings with fewer than 200 units to address capital needs.
Key Data
$32 billion
— Capital needs quantified 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.
39 percent
— Amount by which NYCHA’s costs of operations are higher than those of other landlords operating rent-stabilized buildings.
$8 billion
— Total funds mandated by the recent federal consent decree.
$1.5 billion
— Potential revenue from selling 10 percent of NYCHA’s air rights.
$1.4 billion
— Potential revenue from accelerating the pace of infill development to build an additional 10,000 units.
NYCHA faces $32 billion in capital needs over 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 implement management reforms to secure necessary funding and operational improvements.
Recommendations related to NYCHA Funding
NYCHA should transition from the nation’s largest landlord to an affordable housing steward employing a full range of strategies.
NYCHA must tap its underutilized assets, including air rights and potential infill development, to address capital needs.
NYCHA should adopt best operational practices in procurement and building maintenance to improve efficiency.
NYCHA must implement significant management reforms to improve and manage developments.
NYCHA should increase the use of public-private partnerships to improve and manage developments.
NYCHA must partner with federal, state, local, tenant, and labor stakeholders to address capital needs.
Key Data
$32 billion
— Estimated capital needs for NYCHA over the next five years.
90 percent
— Portion of NYCHA’s housing units at risk of no longer being cost-effective to repair by 2027 without dramatic change.
$8 billion
— Capital investment included in the current plan for the next five years.
$7 billion
— Additional combined savings and new revenue identified to slow deterioration and improve sustainability over five years.
$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 New York City Housing Authority faces a massive capital funding gap, with projected needs exceeding $25 billion while its aging housing stock, where the average unit is 58 years old, continues to deteriorate. To address this shortfall, the authority has increasingly relied on alternative strategies like private-public partnerships, Rental Assistance Demonstration conversions, and federal energy performance contracts to supplement limited federal capital subsidies.
Key Data
$16.5 billion
— Total cost of bringing the system to a state of good repair identified in the 2011 Physical Needs Assessment.
$25 billion
— Likely capital needs identified in the forthcoming Physical Needs Assessment, dwarfing available resources.
$3 billion
— Estimated damage to the system caused by Superstorm Sandy.
$1.7 billion
— Total amount spent on capital improvements between 2012 and 2016.
$253 million
— Amount raised in tax-exempt bonds and LIHTC equity through the Rental Assistance Demonstration program for the Ocean Bay development.
$509
— Average monthly rent for public housing units.
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 New York City Housing Authority has improved its financial position through increased City and federal support, allowing it to achieve a small surplus in 2016, though its long-term budget remains precarious due to potential federal funding cuts. To ensure future stability, the agency must accelerate the implementation of its NextGen reforms, including labor negotiations, rent collection improvements, and strategic asset management.
Recommendations related to NYCHA Funding
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.
Key Data
$171.8 million
— The surplus generated by NYCHA's public housing operations in 2015.
$19.6 million
— The operating deficit projected for NYCHA by 2019 in its 2017 financial plan.
$325 million
— The amount of private funding leveraged for capital improvements through the first PACT transaction.
$122 million
— The growth in rent paid by NYCHA tenants between 2013 and 2016.
45 percent
— The amount by which NYCHA's monthly per-unit operating costs exceed those of comparable rent-stabilized properties.
69 percent
— The annual average rent collection rate between July 2016 and June 2017.
The New York City Housing Authority, which manages 328 developments for approximately 400,000 residents, has received increased financial support to improve maintenance and operations. Despite recent improvements in repair response times, the agency continues to face significant challenges, with over 143,000 open work orders as of May 2016, far exceeding the manageable volume of 90,000.
Key Data
328
— Number of developments operated by the New York City Housing Authority.
13.9 days
— Average wait time for non-emergency work requests in the first four months of fiscal year 2016.
13.8 hours
— Average response time to emergency work requests in the first four months of fiscal year 2016.
143,000
— Number of open work orders remaining in May 2016.
90,000
— Volume of work orders deemed to be a manageable volume.
The New York City Housing Authority manages public housing and Section 8 units, with basic financial and operational aspects of the agency serving as the primary focus. This information provides a foundational look at the housing authority's scope and fiscal management.
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 challenges, the authority's "NextGeneration NYCHA" roadmap aims to improve financial stability through strategies like increasing rent collection, streamlining management, and generating new income from residential infill development.
Recommendations related to NYCHA Funding
NYCHA should increase rent collection rates to HUD's 95 percent target to generate additional revenue.
The authority should generate more than $26 million annually in non-rental income by increasing parking fees, appliance fees, and commercial activities.
Management should be streamlined to curtail the scope of responsibility for borough offices to non-redundant functions.
NYCHA should eliminate responsibility for community and senior centers to rely on service provision by better-equipped agencies.
The authority should increase the use of Job Order Contracting to streamline and shorten the process for routine maintenance.
NYCHA should negotiate work rule changes in collective bargaining to limit overtime compensation for evening and weekend work.
The organization should pursue cost savings through private property management companies in the long term.
Key Data
$194 million
— Projected operating deficit 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.
$68 million
— Annual savings yielded by reducing the operating cost gap between the New York City Housing Authority and rent-stabilized units by 10 percent.
$400 million to $800 million
— Revenue generated over 10 years from two types of residential infill development.
The federal Department of Housing and Urban Development uses a regression model to calculate annual operating subsidies for housing authorities based on factors like property age, unit count, and neighborhood poverty rates. Within this framework, 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.
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