CBC Insights | NYCHA Physical Needs Assessment (PNA)

Testimony | September 22, 2023

Testimony on the New York City Housing Authority’s 2023 Physical Needs Assessment

NYCHA's five-year capital needs have surged to $60 billion, or $373,000 per unit, driven by high inflation and a more accurate understanding of necessary repairs. To address these immense costs, the city and state must identify additional funding sources and streamline renovation processes to ensure projects remain financially feasible.

Recommendations related to NYCHA Physical Needs Assessment (PNA)

The State and City should streamline the renovation process as much as possible and not introduce additional steps that could delay it.
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.
The State and City should make hard choices about how to allocate finite housing resources, such as Low Income Housing Tax Credits or tax-exempt bond volume caps, between NYCHA projects and other needs.

Key Data

$60 billion — Total five-year investment needs for NYCHA, or $373,000 per unit.
$78 billion — Total twenty-year investment needs for NYCHA, or $483,000 per unit.
$1.5 billion — City capital subsidies allocated for future PACT projects through fiscal year 2026.
50 percent — Increase in interest rates on loans that fund PACT projects since 2020.
25 to 30 percent — Increase in construction costs since 2021.
$10 billion — Capital needs addressed by NYCHA over the past five years.

Report | May 19, 2023

Uncertain Future, Urgent Priority:

NYCHA faces a widening structural budget gap driven by rising operating costs and declining rent collections, necessitating structural reforms to ensure long-term viability. Without these changes, the authority will remain reliant on unsustainable one-time subsidies and reserve drawdowns, threatening the quality of life for its 400,000 residents.

Recommendations related to NYCHA Physical Needs Assessment (PNA)

Fix or replace deteriorating buildings with Permanent Affordability Commitment Together (PACT) and the Preservation Trust.
Improve management effectiveness and efficiency, and publicly track progress and impacts.
Negotiate savings and increase productivity through collective bargaining.
Overhaul the rent collection process to ensure residents pay rent on time.

Key Data

$40 billion — Estimated capital investment needed to bring NYCHA's public housing units to a state of good repair.
$789 million — Structural budget gap in 2022 between NYCHA's public housing operating expenses and operating revenue.
$1,481 — Monthly per-unit operating cost for NYCHA in 2022.
63 percent — Rent collection rate hit in February 2023, down from 90 percent pre-pandemic.
$152 million — Total overtime spending by NYCHA in 2022.
$466 million — Total unpaid rent accrued by NYCHA households as of December 2022.

Video | May 3, 2023

Conversation with NYS Director of Operations and Infrastructure Kathryn Garcia

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…

Testimony | November 15, 2018

Testimony on the NYCHA Physical Needs Assessment

NYCHA faces $32 billion in capital needs, with nearly all properties requiring substantial rehabilitation at an average cost of $181,000 per unit. Without significant intervention, 90 percent of the authority's 176,000 units risk becoming too deteriorated to repair by 2027, necessitating a shift toward public-private partnerships, land asset leveraging, and improved operational management.

Recommendations related to NYCHA Physical Needs Assessment (PNA)

The City should fully integrate NYCHA into its affordable housing strategy to shift unit distribution and funding toward extremely and very low-income households.
NYCHA should transition from being a landlord to an affordable housing steward that manages fewer buildings by utilizing public-private partnerships and transferring properties to nonprofit developers.
NYCHA should leverage underutilized land assets, such as air rights and infill development, to fund necessary repairs and facilitate new housing construction.
NYCHA should improve operations and construction management by modernizing work schedules, increasing private maintenance contracts, and utilizing design-build methods to expedite projects.

Key Data

$32 Billion — The total estimated capital needs for NYCHA, representing a nearly fivefold increase over the last decade.
$181,000 — The average cost per unit for the substantial rehabilitation required across nearly all NYCHA properties.
90% — The portion of NYCHA's 176,000 public housing units that could deteriorate to the point of being no longer cost-effective to repair by 2027 without dramatic action.
58 Million — The total square footage of development rights controlled by NYCHA across the city that could be leveraged to fund repairs.
$1.5 Billion — The potential funding that could be raised by selling 10 percent of NYCHA’s air rights.

Blog | August 29, 2018

NYCHA’s Physical Conditions Remain the Worst in the City

New York City Housing Authority apartments continue to suffer from significantly worse physical conditions than private rental units, with residents frequently reporting heating breakdowns, water leaks, and peeling paint. The latest Physical Needs Assessment indicates that bringing these public housing units to a state of good repair requires nearly $32 billion in capital improvements 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.
28 percent — The share of NYCHA households reporting heating breakdowns in 2017.
41 percent — The share of NYCHA households reporting broken plaster or peeling paint.
30 percent — The share of NYCHA households reporting water leaks.
29 percent — The share of NYCHA households reporting cracks in ceilings and walls.
9 percent — The share of NYCHA residents reporting holes in floors.

Podcast Episode | July 19, 2018

$31.8 billion, with Sean Campion

$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…

Report | July 3, 2018

Stabilizing the Foundation

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 crisis, the authority must integrate into the city's broader affordable housing strategy, reduce its portfolio size, leverage underutilized land, and modernize its management and construction practices.

Recommendations related to NYCHA Physical Needs Assessment (PNA)

NYCHA should fully integrate into the City’s affordable housing strategy to ensure that preservation efforts are aligned with the needs of extremely and very low-income households.
NYCHA should transition to an affordable housing steward that manages fewer buildings by increasing public-private partnerships and transferring or selling inefficient properties.
NYCHA should tap underutilized land assets by selling air rights and accelerating infill development to generate revenue for repairs.
NYCHA should improve operations and construction management by decentralizing property management, modernizing collective bargaining agreements, and utilizing more flexible procurement arrangements.

Key Data

$32 billion — Estimated capital needs for NYCHA over the next five years.
90 percent — Portion of NYCHA housing units at risk of deteriorating past the point of cost-effective repair by 2027.
39 percent — Amount by which NYCHA's operating costs are higher than those of other landlords operating rent-stabilized buildings.
58 million square feet — Amount of additional development that could be accommodated on NYCHA campuses as-of-right.
$1.5 billion — Potential revenue from selling 10 percent of NYCHA's air rights.
$7 billion — Total amount of NYCHA's capital needs that could be addressed over five years through the proposed recommendations.

Statement | July 2, 2018

Statement on NYCHA Physical Needs Assessment

NYCHA faces $32 billion in capital needs over the next five years, with 90 percent of its housing units at risk of becoming too costly 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 operational reforms to secure $7 billion in savings and new revenue.

Recommendations related to NYCHA Physical Needs Assessment (PNA)

NYCHA should transition to an affordable housing steward employing a full range of strategies.
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 must utilize public-private partnerships to improve and manage developments.
NYCHA must implement significant management reforms to improve and manage developments.

Key Data

$32 billion — Estimated capital needs for NYCHA over the next five years.
90 percent — Portion of NYCHA’s housing units projected to be at risk of no longer being cost-effective to repair by 2027.
$8 billion — Capital investment planned for NYCHA over the next five years.
$7 billion — Additional combined savings and new revenue identified to help slow deterioration and improve sustainability.

Report | December 20, 2017

NYCHA Capital

The New York City Housing Authority faces a massive capital funding gap, with its 2011 Physical Needs Assessment identifying $16.5 billion in required repairs for its aging housing stock, a figure expected to exceed $25 billion in the 2017 assessment. Despite spending $1.7 billion on capital improvements between 2012 and 2016, the authority continues to struggle with deteriorating conditions and limited federal funding, forcing reliance on alternative strategies like public-private partnerships and rental assistance conversions.

Key Data

$16.5 billion — The total cost of capital improvements identified in the 2011 Physical Needs Assessment needed between 2012 and 2016.
$25 billion — The estimated capital needs in the forthcoming 2017 Physical Needs Assessment.
$1.7 billion — The amount spent on capital improvements between 2012 and 2016.
$3 billion — The estimated damage caused to the system by Superstorm Sandy.
58 years — The average age of a NYCHA housing unit.
50 percent — The increase in reports of cracked walls, severe plaster issues, and water leaks over the past decade.

NYCHA Physical Needs Assessment (PNA)

Latest Recommendations

Key Data

Publications that Discuss NYCHA Physical Needs Assessment (PNA)

Testimony on the New York City Housing Authority’s 2023 Physical Needs Assessment

Recommendations related to NYCHA Physical Needs Assessment (PNA)

Key Data

Uncertain Future, Urgent Priority:

Recommendations related to NYCHA Physical Needs Assessment (PNA)

Key Data

Conversation with NYS Director of Operations and Infrastructure Kathryn Garcia

Testimony on the NYCHA Physical Needs Assessment

Recommendations related to NYCHA Physical Needs Assessment (PNA)

Key Data

NYCHA’s Physical Conditions Remain the Worst in the City

Key Data

$31.8 billion, with Sean Campion

Stabilizing the Foundation

Recommendations related to NYCHA Physical Needs Assessment (PNA)

Key Data

Statement on NYCHA Physical Needs Assessment

Recommendations related to NYCHA Physical Needs Assessment (PNA)

Key Data

NYCHA Capital

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