Public housing in New York City provides deeply affordable homes to hundreds of thousands of residents through the New York City Housing Authority, which manages a vast portfolio of aging buildings. This page covers CBC's work on the authority's multi-billion dollar capital needs, operating budget deficits, the Preservation Trust, the Permanent Affordability Commitment Together (PACT) program, and procurement and labor 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..
The New York City Housing Authority faces significant vulnerability from potential federal budget cuts, as it relies on $1.4 billion in annual federal operating support. Additionally, $2 billion in federal funding supports over 96,000 housing vouchers administered by the authority, highlighting the potential impact on essential housing services.
Key Data
$1.4 billion
— Annual federal operating support for the New York City Housing Authority.
$2 billion
— Federal funding for housing vouchers administered by the New York City Housing Authority.
96,000
— Number of housing vouchers administered by the New York City Housing Authority.
New York City's persistent housing shortage, driven by decades of underproduction and restrictive land-use policies, has led to increased costs, limited mobility, and significant outmigration that drains the city's tax base. To address this crisis, the city must implement broad-based zoning reforms and state-level legislative changes to significantly increase housing supply for all income levels.
Recommendations related to Public Housing
The City must modernize its zoning ordinance to allow more housing everywhere to address the long-standing housing shortage.
The State should reform environmental review laws to facilitate the necessary increase in housing production.
Policymakers must pass laws to encourage development in the downstate suburbs to help close the regional housing gap.
The State should repeal the Scaffold law to reduce insurance costs that currently hinder new housing construction.
The City must reform its property tax policy to better support the development of new housing units.
Key Data
$309 million
— Estimated reduction in City tax revenue in 2022 due to domestic outmigration.
1.4 percent
— Rental vacancy rate in New York City, the lowest level since the City started tracking in the 1960s.
560,000
— Additional housing units New York City needs by 2030 according to a 2021 report by AKRF.
160,000
— Net loss of residents from New York City due to domestic outmigration in 2022.
22 percent
— Increase in rents as of April 2024 compared to pre-pandemic levels.
170,000
— Number of households in New York City considered severely overcrowded.
$60 billion is how much NYCHA plans to invest in its infrastructure over 5 years. Facing ongoing challenges such as budget gaps, weakening rent collection, and deteriorating physical conditions, NYCHA CEO Lisa Bova-Hiatt and Chair Jamie Rubin shared their strategies for managing the nation's largest public housing system.
Lisa Bova-Hiatt was appointed Chief Executive Officer (CEO) of the New York City Housing Authority by Mayor Eric Adams on July 6, 2023. Lisa has more than 25 years of experience in the public sector. She joined NYCHA in February 2020 as General Counsel, where she led the Authority's Law…
New Yorkers are increasingly dissatisfied with city services, with only 15 percent rating public housing as excellent or good. The administration should prioritize high-impact programs and address the widespread unhappiness with public housing and homeless services to improve quality of life.
Recommendations related to Public Housing
The Administration should incorporate this type of standardized, statistically valid feedback into its management systems and policy development to better address public housing and other service shortcomings.
The City should prioritize spending on high-impact programs that deliver positive results to address public housing and other related policy challenges.
The Administration should continue and possibly intensify efforts to fix service shortcomings, particularly regarding public housing and homelessness.
The City should seek partnership from the State and federal governments, which is critical for improving public housing and services for the homeless.
Key Data
15%
— Citywide rating of public housing as excellent or good.
13%
— Rating of public housing as excellent or good by Black, non-Hispanic New Yorkers.
14%
— Rating of public housing as excellent or good by Hispanic New Yorkers.
20%
— Rating of public housing as excellent or good by Asian, non-Hispanic New Yorkers.
10%
— Share of New Yorkers who are positive about how the City is addressing all New Yorkers' housing needs.
The New York City Housing Authority faces a persistent operating budget gap of $791 million and significant capital needs totaling $60 billion, while nearly half of residents report multiple housing condition issues. To address these challenges, the agency must prioritize the conversion of units through PACT and the Preservation Trust, improve management efficiency, and modernize labor agreements.
Recommendations related to Public Housing
Fix or replace deteriorating buildings by utilizing PACT and the Preservation Trust.
Improve management effectiveness and efficiency by publicly tracking progress and impact.
Negotiate savings, boost productivity, and modernize property management through collective bargaining.
Overhaul the rent collection process to address increasing delinquency rates.
Key Data
$791 million
— The gap between public housing expenses and core operating income in 2023.
$60 billion
— The total five-year capital needs for NYCHA developments.
43 percent
— The share of public housing residents who reported three or more housing condition issues in the 2023 survey.
$1.5 billion
— Total personnel costs for NYCHA in 2023.
$511 million
— The amount of federal capital funds diverted in 2022 and 2023 to fill the operating budget gap.
NYCHA's five-year capital needs have doubled since 2017 to $60 billion, or $373,000 per unit, driven by high inflation and a more accurate assessment of necessary repairs. While the PACT program has successfully addressed $10 billion in capital needs, the authority requires additional funding sources and streamlined processes to meet the remaining, immense financial requirements for its housing stock.
Recommendations related to Public Housing
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.
NYCHA and the City need to identify additional subsidy sources to make projects financially feasible given that loans now fund a smaller share of renovation costs.
Key Data
$60 billion
— NYCHA's investment needs over the next five years, or $373,000 per unit.
$78 billion
— Twenty-year investment needs for NYCHA, or $483,000 per unit.
$10 billion
— Capital needs addressed by NYCHA since 2017.
10 percent
— Average annual rate of inflation for unaddressed needs since 2017.
50 percent
— Increase in interest rates on loans that fund PACT projects since 2020.
25 to 30 percent
— Increase in construction costs since 2021.
The New York City Housing Authority faces a severe fiscal crisis, with a $789 million operating shortfall in 2022 driven by rising costs and a plummeting rent collection rate. To achieve solvency, the authority must implement structural reforms, including comprehensive building renovations through the PACT program, improved management efficiency, and a complete overhaul of its rent collection processes.
Recommendations related to Public Housing
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 the New York City Housing Authority.
$40 billion
— The estimated capital investment needed to bring public housing units to a state of good repair.
$1,481
— The monthly per-unit operating cost for public housing in 2022.
63 percent
— The rent collection rate hit a new low in February 2023.
$152 million
— The total overtime spending in 2022.
$211 million
— The amount remaining in operating reserves at the end of 2022.
Kathryn Garcia serves as Director of State Operations and Infrastructure, where she oversees over 70 state agencies and authorities, including the MTA and Port Authority. Kathryn has over 14 years of government experience delivering services that New Yorkers rely on every day. Previously, she served as the Commissioner of the…
The New York City Housing Authority faces a structural budget gap driven by rising operating costs, which reached $1,500 per unit per month, and a record-low rent collection rate of 64 percent. To achieve solvency, the authority must implement structural reforms, including improved property management and rent enforcement, rather than relying on unsustainable non-recurring revenue and city subsidies.
Recommendations related to Public Housing
NYCHA should fix deteriorating buildings through the RAD program and the Preservation Trust.
NYCHA should improve property management.
NYCHA should boost rent collections.
NYCHA should negotiate savings and increased productivity through collective bargaining.
NYCHA should appropriately enforce tenant obligations to pay rent.
Key Data
$1,500
— Average cost to operate NYCHA's public housing per unit per month.
80%
— Amount by which NYCHA's operating costs are higher than privately owned rent-regulated buildings.
64%
— All-time low rent collection rate recorded in December 2022.
$454 million
— Amount of unpaid rent accrued by NYCHA households as of December 2022.
$152 million
— Total overtime spending by NYCHA in 2022.
$789 million
— Non-operating sources used to balance the 2022 budget.
As Chief Housing Officer, Katz oversees the Department of Housing Preservation and Development, the New York City Housing Authority, the Housing Development Corporation, the Mayor’s Office of Housing Recovery Operations and the Mayor’s Office to Protect Tenants. Katz most recently served as executive director of the research nonprofit Citizens Housing…
New York City needs to implement strong management and accountability systems to improve housing-related service delivery and address the city's affordability crisis. To meet current and future housing needs, the city must double annual housing production by changing zoning laws and streamlining development approvals.
Recommendations related to Public Housing
The City should identify the specific operational and policy actions needed to achieve housing-related service delivery goals.
The City should set goals for total housing production (inclusive of both income-restricted and market-rate units), the net growth in housing units citywide, and the net change by community district.
Doubling production will require broad-based rezonings to increase as-of-right development capacity in every neighborhood.
The City should track and publish outcome metrics, such as the share of rent burdened households or the homeownership rate, to monitor the effectiveness of both demand- and supply-side housing policies.
The City should identify responsible parties, set implementation milestones and performance metrics, and create and implement a management accountability process to track and manage progress on housing goals.
Key Data
560,000
— Number of housing units New York City needs by 2030 to meet existing needs and future population growth.
50,000
— Number of housing units that need to be permitted annually to meet housing needs, which is twice as many as issued in recent years.
20%
— Share of the city’s residential lots that have enough capacity under current zoning to make it worthwhile to develop.
22,000
— Number of vacant positions in the city that could be utilized to help improve basic operations and housing services.
40%
— Percentage fewer permits for housing units issued per resident in New York City compared to San Francisco.
The New York City Housing Authority's federal monitorship has led to some operational improvements, but the process remains costly and lacks sufficient federal regulatory relief or funding to ensure long-term fiscal sustainability. Despite significant spending on mandated action plans, residents continue to face poor living conditions, including high rates of maintenance deficiencies and long repair wait times.
Recommendations related to Public Housing
HUD should grant regulatory waivers that free up funding for NYCHA, such as permission to reinvest savings from reducing energy consumption, and that improve operations, such as waivers from onerous and outdated rules that prohibit the use of design-build, construction manager-build, or best value capital procurement for federally funded capital projects.
The monitor should appeal to HUD for federal regulatory relief that improves operations or frees up funding for implementation.
The monitor should increase focus on identifying and advocating for long-overdue work rule reforms, broader job descriptions, fringe benefit savings, operational changes, and other actions that would boost productivity and bring NYCHA’s operations in line with other property managers.
The monitor should publish data on NYCHA’s progress towards meeting specific benchmarks laid out in the agreement.
The monitor should publicly report its approved budget.
Key Data
$1.2 billion
— Spent by NYCHA through calendar year 2021 on agreement implementation.
$32 million
— Total 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 as of April 2022.
310 days
— Average response time to complete repairs.
$53 million
— Amount of an energy cost savings waiver that HUD recently rejected.
New York City requires the passage of the NYCHA Preservation Trust legislation to secure federal funding for critical repairs and renovations for 400,000 public housing residents. Additionally, establishing a successor to the 421-a tax incentive is essential to boost the production of rental housing and prevent further affordability declines.
Recommendations related to Public Housing
State lawmakers should support the New York City Housing Authority (NYCHA) Preservation Trust to improve the quality of life and preserve public housing.
State lawmakers should pass the Preservation Trust legislation (A.7805B) to allow NYCHA to secure federal Tenant Protection Vouchers and fund repairs.
State and City officials should take action to reduce construction and operating costs, increase zoning capacity, and reform the property tax.
State lawmakers should approve a successor to the 421-a program to ensure the city's rental housing does not grow scarcer and more expensive.
The proposed 485-w replacement program should be modified to incentivize more production in moderate-to-middle-income neighborhoods, require greater transparency and public reporting, and harmonize with existing State and City affordable housing programs.
Key Data
400,000
— Number of residents living in New York City Housing Authority (NYCHA) public housing.
$100 million
— Annual revenue provided by the 421-a program over the next seven years if it were ended now.
$1.8 billion
— Amount of funding that will not be freed up for decades to come if the 421-a program is ended now.
New York City's public housing authority faces a massive capital crisis, with 90 percent of its portfolio at risk of severe deterioration by 2027 without intervention. To address this, the city must leverage the RAD/PACT program and pass the proposed Preservation Trust legislation to secure funding for the comprehensive renovation of over 100,000 units.
Recommendations related to Public Housing
The best hope for preserving the remaining 110,000 public housing units is the passage of the proposed Preservation Trust legislation (S6999A/A7805).
The City Council should join NYCHA and City Hall in lobbying for State and federal actions needed to pass the Preservation Trust.
The only path to stable operations, improved physical conditions, and preserving public housing requires comprehensive renovations funded through a combination of RAD/PACT and the Preservation Trust.
Key Data
$32 billion
— The estimated capital needs of the New York City Housing Authority.
90 percent
— The portion of the New York City Housing Authority's portfolio at risk of deteriorating to poor conditions by 2027 without action.
$3.2 billion
— The amount in capital improvements financed through RAD conversions as of early 2022.
62,000 units
— The maximum number of units the New York City Housing Authority can convert under its federal cap.
110,000 units
— The number of public housing units that would remain in the Section 9 program without additional funding.
400,000 residents
— The number of people living in New York City Housing Authority public housing.
The New York City Housing Authority faces significant financial instability due to rising operating costs, declining rent collection rates, and an over-reliance on city subsidies and capital transfers. To stabilize operations and improve living conditions, the city and state must approve the Preservation Trust and implement labor productivity reforms to align costs with industry standards.
Recommendations related to Public Housing
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 bring operating costs in line with industry benchmarks to maximize the potential benefits of the Preservation Trust.
NYCHA should convert from Section 9 funding to alternative federal funding programs like Section 8 or Tenant Protection Vouchers to raise capital to renovate buildings and restore habitability.
NYCHA must implement procurement reforms proposed as part of the Preservation Trust legislation to ensure that it can get more and better value for its capital dollar.
Key Data
$2.7 billion
— Public housing operating expenses in the 2022 adopted budget.
70%
— The rent collection rate as of January 2022, down from 88 percent in February 2020.
$1.2 billion
— The amount spent in operating funds since 2018 on various action plans mandated under the HUD settlement agreement.
35%
— The reduction in NYCHA’s operating reserves in 2021 and 2022, leaving just $330 million.
$132 million
— The potential increase in the budget gap if the rent collection rate continues at 70 percent in 2022.
50%
— The increase in operating costs per unit since 2013.
New York City's public housing authority requires significant operational and financial reforms, including the approval of a Preservation Trust and the implementation of procurement changes, to effectively manage its capital stock. These measures, alongside increased financial support for public-private partnerships, are essential to facilitate the renovation of 110,000 public housing units and improve living conditions for tenants.
Recommendations related to Public Housing
The State should help improve the New York City Housing Authority (NYCHA) by approving the proposed Preservation Trust, enacting procurement reform, and increasing financial support for Rental Assistance Demonstration (RAD) public-private partnerships.
The Preservation Trust would allow NYCHA to partner with construction management and design firms to bring in new capital resources and oversee renovation of 110,000 public housing units.
Procurement reforms would reduce NYCHA’s costs by allowing it to use construction manager-build and construction manager-at risk procurement rules.
The State should increase financial support for RAD conversions at NYCHA by providing 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 Preservation Trust.
The New York City Housing Authority faces over $40 billion in capital needs, prompting a significant increase in city funding to $4.6 billion through 2031 to support comprehensive modernization and the Permanent Affordability Commitment Together program. To ensure these funds are used effectively, the city must implement procurement reforms, improve operational efficiency, and pursue conversions to alternative voucher models like Section 8.
Recommendations related to Public Housing
State lawmakers should act swiftly to grant NYCHA authorization to use construction manager-build or construction manager-at risk procurement methods, even if the Trust is not speedily authorized.
NYCHA’s federal monitor, along with NYCHA and the City, should strongly advocate for HUD to grant waivers from restrictive federal public housing procurement rules for both its annual Section 9 subsidies and any additional federal funding NYCHA receives under the Build Back Better bill.
City and State lawmakers should create the Preservation Trust, since it will provide NYCHA with additional options to finance needed capital investment.
Key Data
$40 billion
— The total capital needs of the New York City Housing Authority due to years of underinvestment, mismanagement, and cost inflation.
$4.6 billion
— The amount of planned capital commitments for the New York City Housing Authority through fiscal year 2031.
62,000 units
— The goal for the number of units to be renovated under the Permanent Affordability Commitment Together program by 2028.
$300 million
— The amount of City capital funding included in the Department of Housing Preservation and Development’s capital plan for PACT projects.
33 percent
— The portion of all planned commitments for housing through 2025 that is now represented by the New York City Housing Authority.
39 percent
— The amount by which the New York City Housing Authority's per-unit operating costs exceeded private sector costs in 2015.
The New York City Housing Authority faces capital needs exceeding $40 billion due to years of underinvestment and rising costs. To address these challenges, the city should support the transition of public housing properties to more flexible federal programs and advocate for legislative and funding support to modernize operations.
Recommendations related to Public Housing
The Administration should support NYCHA's efforts to convert properties to the Rental Assistance Demonstration (RAD) program (known locally as Permanent Affordability Commitment Together, or PACT).
The Administration should advocate for State legislation to improve operations and reform procurement rules for the New York City Housing Authority.
The Administration should lobby for federal funding and authorization to implement NYCHA's operational transformation plan.
Key Data
$40 billion
— Capital needs at the New York City Housing Authority due to years of underinvestment, cost inflation, and costs for lead abatement.
The New York City Housing Authority faces a precarious financial future, with total repair needs exceeding $40 billion and a growing backlog of over 483,000 outstanding work orders. Compounding these challenges are declining rent collection rates, which fell to 82 percent in November 2020, and significant delays in receiving committed City funding.
Key Data
$40 billion
— The total repair needs for the housing authority, a figure that the city cannot fund on its own.
$2.8 billion
— The estimated cost over 20 years to remediate and abate properties with lead paint.
483,000
— The number of outstanding work orders in December 2020, representing a 40 percent increase from the previous year.
82 percent
— The rent collection rate as of November 2020, which has been declining steadily since 2016.
$152 million
— The estimated cost of pandemic response efforts, including additional expenses and lost revenue.
$203 million
— The amount of City funding that remained unreimbursed four months after the close of the City’s fiscal year.
The proposed New York City Public Housing Preservation Trust offers a potential mechanism to fund the renovation of 110,000 units of deeply affordable housing, provided it is structured with sufficient flexibility to ensure cost-effective management and capital project delivery. Success depends on avoiding restrictive labor mandates and procurement requirements while ensuring robust financial transparency and accountability for the debt taken on by the Trust.
Recommendations related to Public Housing
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 whether it can live up to expectations.
The Trust should avoid importing NYCHA’s current operating practices and policies wholesale without changes, as its effectiveness will be severely limited.
The Trust should be exempt from provisions like Wicks Law and the Scaffold Law, which have been demonstrated to increase the cost and complexity of public projects.
The Trust should be permitted to engage private management and modify work rules or job descriptions to ensure efficient and effective management of properties.
Key Data
110,000
— Number of units of deeply affordable housing that the Public Housing Preservation Trust aims to preserve.
The COVID-19 pandemic caused significant delays in New York City Housing Authority (NYCHA) operations, with emergency service request resolution times increasing by 4 hours and non-emergency request resolution times rising by over 8 days. Additionally, capital commitments for Housing New York projects experienced a 50 percent decline, falling from $1.5 billion in fiscal year 2019 to $761 million in fiscal year 2020.
Key Data
50 percent
— drop in capital commitments for Housing New York projects, falling from $1.5 billion in fiscal year 2019 to $761 million in fiscal year 2020.
4 hours
— increase in the average time to resolve emergency service requests at the New York City Housing Authority (NYCHA), rising from 12.7 to 16.7 hours.
8 days
— increase in the average time to resolve non-emergency service requests at the New York City Housing Authority (NYCHA), rising from 19.4 to 27.6 days.
115 days
— average time to prepare a vacant apartment at the New York City Housing Authority (NYCHA) in fiscal year 2020, up from 84 days in fiscal year 2019.
NYCHA's 2020 operating budget, which has grown 19 percent since 2015, relies heavily on increasing City subsidies to cover rising labor costs and operational expenses. Despite this funding, the agency faces significant fiscal risks due to a declining rent collection rate that costs over $100 million annually and high per-unit management costs of $1,052 per month.
Recommendations related to Public Housing
NYCHA’s forthcoming organizational plan must include a program to boost the rent collection rate and maintain it going forward.
NYCHA’s fiscal stability depends on future labor settlements being financially sustainable and providing enough flexibility for NYCHA to implement its turnaround plan.
Devolving budgeting and accountability to the property level could improve collections, though it will depend on property managers’ ability to implement changes and improve tenants’ quality of life.
Stabilizing the agency's fiscal outlook must be front and center in all discussions regarding the housing authority's future.
Key Data
$3.7 billion
— Projected operating revenues for NYCHA in 2020.
$100 million
— Annual revenue lost due to the agency's falling rent collection rate.
$1,052
— Self-reported management cost per unit per month in city fiscal year 2019.
19 percent
— Increase in NYCHA’s operating budget since 2015.
$262 million
— Amount of 2020 public housing expenses anticipated to come from City subsidies.
$1.4 billion
— Projected payroll costs for the 2020 budget, covering staff for both public housing and Section 8.
6 months is the time the New York City Housing Authority has to develop a reorganization plan. In this episode NYCHA Chair & CEO Greg Russ discusses working with the federal monitor to facilitate change, working with residents to instill confidence, and what needs to happen at NYCHA to make…
New York City's public housing system manages 173,762 units for 381,159 residents, operating on a $2.6 billion annual budget. However, the system faces a massive $31.8 billion in five-year capital needs, with the current NYCHA 2.0 plan leaving an $8.4 billion funding gap.
Key Data
173,762
— Public housing units under management by the New York City Housing Authority.
381,159
— Authorized residents living in New York City public housing.
$31.8 billion
— Total five-year capital needs for New York City public housing.
$8.4 billion
— Unmet capital funding need remaining in the NYCHA 2.0 plan.
$2.6b
— Total annual operating revenue and expenses for the New York City Housing Authority.
11,339
— Total number of employees working for the New York City Housing Authority.
New York City faces a significant funding gap for public housing, with NYCHA's five-year capital needs estimated at $31.8 billion against a 10-year plan that leaves $8.4 billion in unmet requirements. Meanwhile, the city allocates $3,830 million in tax expenditures toward housing programs, while relying on $29.6 billion in property tax revenue to support broader fiscal operations.
Key Data
$31.8 billion
— Estimated five-year capital needs for the New York City Housing Authority.
$8.4 billion
— Unmet funding need identified in the 10-year NYCHA 2.0 plan.
$3,830 million
— Total New York City tax expenditures allocated to housing programs in fiscal year 2019.
$29.6 billion
— New York City property tax revenue for fiscal year 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 faces significant implementation hurdles, including funding gaps and federal regulatory constraints, which threaten the repair of thousands of units annually. Without increased cooperation from all levels of government and labor unions, the authority struggles to meet its capital needs and modernize its operations to improve living conditions for residents.
Recommendations related to Public Housing
The federal monitor should work with the new Chair to increase funding for federal operating and capital subsidies to support turnaround efforts.
The federal monitor should work with the new Chair to improve the Rental Assistance Demonstration (RAD) program by lifting the cap on conversions, exempting RAD conversions from the tax-exempt private activity bond cap, or creating dedicated tax credits.
The federal monitor should work with the new Chair to lift the federal prohibition on design-build and best value procurement for federally-funded capital projects.
The federal monitor should work with the new Chair to secure additional appropriations for tenant protection vouchers to assist in housing preservation.
The federal monitor should work with the new Chair to allow for more flexible use of federal capital and operating dollars, enabling the reinvestment of operating savings into capital upgrades.
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.
Key Data
$32 billion
— The estimated five-year capital need for the New York City Housing Authority.
$24 billion
— The amount of capital repairs the NYCHA 2.0 plan aims to fund over 10 years.
62,000
— The number of units NYCHA aims to convert through the Permanent Affordability Commitment Together (PACT) program by 2028.
4,000
— The number of units that could go without repairs each year if anticipated funding from NYCHA 2.0 initiatives is not secured.
$101 million
— The amount included in the City’s Adopted Budget for Fiscal Year 2020 for collective bargaining-related costs for NYCHA.
$450 million
— The amount of capital funding appropriated by the State in 2016 and 2017 that had not yet been released to NYCHA as of September 2019.
Repairing New York City Housing Authority buildings requires $32 billion over the next five years, as current conditions leave 90% of apartments at risk of becoming irreparable within a decade. Leveraging underutilized land for mixed-income development could generate $3 billion in revenue to fund essential repairs without displacing residents.
Recommendations related to Public Housing
Elected officials and community members should support ambitious developments on NYCHA property that generates new housing and funding for NYCHA.
NYCHA and city officials should raise billions in private capital for repairs while maintaining public ownership and permanent affordability.
The city should include sufficient market-rate units in any new development to reach the $3 billion potential for repairs.
Key Data
$32 billion
— Amount required to repair NYCHA’s buildings and apartments over the next five years.
$180,000
— Cost per apartment for necessary repairs.
90%
— Percentage of NYCHA apartments that may not be worth repairing in a decade if the status quo continues.
$3 billion
— Potential revenue NYCHA can raise to repair apartments by facilitating mixed-income development.
30,000
— Number of residents whose repairs could be supported by the infill development strategy.
$469 million
— Funding needed over the next five years for developments at Holmes, Cooper Park, Wyckoff Gardens, LaGuardia, and Harborview Towers.
The appointment of a federal monitor for the New York City Housing Authority offers a critical opportunity to address systemic operational failures and deteriorating physical conditions through improved accountability and strategic reform. Success depends on securing necessary federal and state funding, implementing existing improvement plans like NYCHA 2.0, and modernizing labor contracts to enhance workforce productivity.
Recommendations related to Public Housing
The monitor should establish ambitious yet achievable goals and implement a robust performance management system to assess progress while providing management the flexibility to drive change.
The monitor should be a strong advocate for changing federal policies, such as increasing funding for public housing subsidies and improving the ability to use the Rental Assistance Demonstration program, to benefit NYCHA.
The monitor should urge the State to release funding and pass procurement reforms, specifically extending permanent design-build authority and exempting the housing authority from Wicks Law.
The monitor should use the NYCHA 2.0 strategic plan as the starting point for their work, focusing on gaps or ideas not previously studied rather than commissioning redundant consulting studies.
The City should allocate funding currently reserved for its housing plan to NYCHA to ensure the financial feasibility of NYCHA 2.0 implementation and RAD conversions.
The monitor should review labor contracts to improve workforce productivity, including scheduling shifts on evenings and weekends and modifying agreements with skilled trades to reduce overtime costs.
Key Data
$2.2 Billion
— Capital funding committed by the City through 2027 for NYCHA.
$972 Million
— Expense funding committed by the City through 2027 for NYCHA.
66 percent
— Reduction in federal capital funding received by NYCHA in 2017 compared to 2002, adjusted for construction cost inflation.
$450 Million
— Amount appropriated by the New York State budget for NYCHA capital repairs that has not yet been released.
The NYCHA 2.0 plan offers a strategy to stabilize public housing by leveraging private funding through the Permanent Affordability Commitment Together (PACT) initiative and maximizing land assets. Success requires government support for regulatory relief and funding, alongside labor union cooperation to improve the efficiency of repairs and maintenance.
Recommendations related to Public Housing
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 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.
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.
Key Data
62,000
— Number of units added to the Permanent Affordability Commitment Together (PACT) initiative to leverage private funding and speed up renovations.
The New York City Housing Authority's proposal to expand its Permanent Affordability Commitment Together initiative by 62,000 units represents a significant step toward addressing the agency's $32 billion capital need. To further stabilize the system, the authority must leverage public-private partnerships, while officials and labor leaders should provide the necessary resources and operational flexibility.
Recommendations related to Public Housing
The New York City Housing Authority 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 capital needs.
Elected officials and labor leaders should take additional action to give the New York City Housing Authority the resources and flexibility it needs to stabilize the system.
The New York City Housing Authority's management must continue to pursue every opportunity to raise revenue and improve operations.
Key Data
62,000
— Number of units the New York City Housing Authority proposes to add to its Permanent Affordability Commitment Together (PACT) initiative.
$32 billion
— Estimated capital need of the New York City Housing Authority.
NYCHA faces $32 billion in capital needs, with nearly all properties requiring substantial rehabilitation at an average cost of $181,000 per unit. To address this crisis, the city must integrate NYCHA into its affordable housing strategy, transition to an affordable housing steward model, leverage underutilized land assets, and improve operations and construction management.
Recommendations related to Public Housing
The City should fully integrate NYCHA into its affordable housing strategy.
NYCHA should transition from being a landlord to an affordable housing steward that manages fewer buildings.
NYCHA should leverage underutilized land assets to fund repairs and facilitate development.
NYCHA should improve operations and construction management to ensure the long-term viability of its units.
Key Data
$32 billion
— Total capital needs for NYCHA, representing a nearly fivefold increase over the last decade.
$181,000
— Average cost per unit for the substantial rehabilitation required by nearly all of NYCHA's properties.
90 percent
— 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.
58 million
— Square feet of development rights NYCHA controls across the city that could be leveraged to fund repairs.
$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 persistent affordability crisis where 44 percent of renter households pay at least 30 percent of their income in rent, while the New York City Housing Authority requires $32 billion in capital funding to address its deteriorating physical conditions. Because the city's financial resources are insufficient to close this gap alone, meaningful solutions to preserve public housing and support rent-burdened residents require collaboration with state and federal partners.
Recommendations related to Public Housing
Any meaningful response to preserve public housing and address the housing needs of severely rent burdened New Yorkers will require willing partners in Albany and Washington.
The city must acknowledge that it cannot handle the affordability problem on its own, as the cost of addressing these challenges vastly exceeds the city’s financial resources.
Key Data
921,000
— Number of renter households in New York City, or 44 percent of all renters, that pay at least 30 percent of their income in rent.
462,000
— Number of families and single adults, or 22 percent of households, that are severely rent burdened by paying 50 percent or more of their income in rent.
$32 billion
— Capital need facing the New York City Housing Authority (NYCHA).
35 percent
— Share of single seniors that were low-income and severely rent burdened.
New York City faces a significant housing affordability crisis, with 44 percent of renter households paying at least 30 percent of their income on rent, and nearly 80 percent of severely burdened households falling into the lowest income brackets. Addressing this challenge requires substantial state and federal support to preserve public housing, as the city cannot manage the $32 billion repair backlog for the New York City Housing Authority on its own.
Recommendations related to Public Housing
Any strategy to protect or preserve affordable housing must include public housing and requires federal assistance.
Any strategy to protect or preserve affordable housing must include New York City’s public housing and requires State and federal assistance.
The City cannot and should not be expected to close the affordability gap on its own.
Key Data
921,000
— renter households in New York City pay at least 30 percent of their income in rent.
462,000
— families and single adults are considered severely rent burdened, paying at least half of their income in rent.
175,000
— units of public housing owned by the New York City Housing Authority.
$24,423
— average annual income of a family living in New York City Housing Authority housing.
$522
— average monthly rent paid by a family living in New York City Housing Authority housing.
$32 Billion
— estimated cost of bringing New York City Housing Authority public housing units back to a state of good repair.
In Mr. Brezenoff's role at the New York City Housing Authority (NYCHA), he oversees 326 public housing developments that are home to more than 400,000 New Yorkers. With NYCHA's capital needs recently identified as approaching $32 billion, the Citizens Budget Commission released Stabilizing the Foundation , a report recommending bold…
Utilizing underutilized open spaces and parking lots for infill development offers a significant revenue stream for NYCHA repairs, though the financial return depends heavily on the ratio of market-rate to affordable units. While 80/20 developments can generate up to $33 million in strong markets, requiring 100% affordable housing on these sites eliminates the revenue needed for building improvements.
Recommendations related to Public Housing
NYCHA should utilize underutilized open spaces and parking lots for infill development to generate necessary revenue.
To maximize revenue for repairs, NYCHA should prioritize infill development projects with higher market-rate unit ratios over 100% affordable developments.
NYCHA should recognize that stricter affordable housing requirements on infill sites reduce the land's value and the resulting revenue available for repairs.
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.
New York City Housing Authority apartments continue to suffer from significantly worse physical conditions than comparable private rental units, with 41% of residents reporting broken plaster or peeling paint. Bringing these public housing units to a state of good repair is estimated to cost nearly $32 Billion over the next five years.
Key Data
$32 Billion
— The estimated cost of bringing New York City's public housing units to a state of good repair over the next five years.
41%
— The share of NYCHA respondents who reported broken plaster or peeling paint.
28%
— The share of NYCHA respondents who reported heating breakdowns in 2017.
30%
— The share of NYCHA households that reported water leaks in 2017.
9%
— The share of NYCHA residents who reported holes in floors.
14%
— The share of other rental housing stock that reported water leaks in 2017.
$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 deteriorating beyond cost-effective repair by 2027. To address this crisis, the agency must transition to an affordable housing steward model that leverages underutilized land, integrates into the city's broader housing strategy, and improves operational efficiency.
Recommendations related to Public Housing
The City should 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.
NYCHA should transition to an affordable housing steward that manages fewer buildings by increasing the pace of public-private partnerships and transferring senior housing to qualified nonprofit organizations.
NYCHA should tap underutilized land assets to fund repairs and facilitate redevelopment by selling air rights and allowing infill development on its campuses.
NYCHA should improve operations and construction management to lower costs by decentralizing property management, modernizing collective bargaining agreements, and utilizing more flexible procurement arrangements.
Key Data
$32 billion
— The amount of capital needs quantified for NYCHA over the next five years.
90 percent
— The portion of NYCHA housing units at risk of deteriorating past the point at which they are cost-effective to repair by 2027.
39 percent
— The amount by which NYCHA's costs of operations are higher than those of other landlords operating rent-stabilized buildings.
58 million square feet
— The amount of additional development capacity available on NYCHA campuses as-of-right.
$1.5 billion
— The potential revenue that could be raised by selling 10 percent of NYCHA's air rights.
$7 billion
— The total amount of NYCHA's capital needs that could be addressed over the next five years through the implementation of the proposed recommendations.
New York City's public housing authority faces $32 billion in capital needs over the next five years, with 90% of units at risk of becoming too expensive to repair by 2027. To address this, the authority must transition to an affordable housing steward, leverage underutilized assets, and implement significant management reforms and public-private partnerships.
Recommendations related to Public Housing
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, and adopt best operational practices in procurement and building maintenance.
NYCHA must adopt best operational practices in procurement and building maintenance.
Preserving this crucial stock of deeply affordable housing will require significant organizational changes, innovative strategies, and even more capital funds.
These changes will require partnership with federal, state, local, tenant, and labor stakeholders, significant management reforms, and greater use of public-private partnerships to improve and manage developments.
Key Data
$32 billion
— Capital needs for NYCHA over the next five years.
90%
— NYCHA housing units 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
— Combined savings and new revenue identified to slow deterioration and put NYCHA on a path toward sustainability over the next five years.
NYCHA's aging housing stock, with 84 percent of units built before 1970, faces a massive capital funding gap that has resulted in worsening physical conditions and billions of dollars in unmet repair needs. While the authority has utilized alternative strategies like private-public partnerships and energy performance contracts to supplement limited federal subsidies, its capital needs continue to grow at an unsustainable rate.
Key Data
$16.5 billion
— The 2011 Physical Needs Assessment identified this amount in needed capital improvements for NYCHA between 2012 and 2016.
$25 billion
— It is likely that NYCHA's forthcoming Physical Needs Assessment will include capital needs exceeding this amount.
$3 billion
— NYCHA calculated that Superstorm Sandy caused this amount in damage to the system.
$1.7 billion
— NYCHA spent approximately this amount on capital improvements between 2012 and 2016.
176,000
— NYCHA manages more than this number of apartments, making it the nation's largest public housing authority.
84 percent
— This portion of NYCHA's housing stock was built before 1970, contributing to the system's aging infrastructure.
While Queens residents are satisfied on 27 of 45 indicators, they expressed dissatisfaction with public housing, services for at-risk children, and services for homeless people. These findings are intended to serve as a management tool for city officials to identify and address areas in need of improvement.
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 achieved a temporary financial surplus due to increased federal and city support, but its long-term fiscal health remains precarious as it faces potential federal funding cuts. To ensure stability, the housing authority must aggressively implement its NextGen reforms, including operational efficiencies and revenue-generating strategies.
Recommendations related to Public Housing
NYCHA should ease work rule restrictions in the upcoming collective bargaining negotiations.
The authority must come to an agreement for rent payment by non-profit tenants in NYCHA buildings.
NYCHA should support the proposal to raise parking fees to market rates.
The authority must lobby the federal government against onerous changes to public housing operating and capital subsidies.
NYCHA should raise operating revenues by increasing the collection rate from 77 percent to the Authority’s 95 percent target.
The authority should curb expenses by reducing headcount and eliminating responsibility for community centers.
NYCHA should improve services and productivity through new procurement arrangements, such as job order contracts.
Key Data
$171.8 million
— The surplus generated by NYCHA's public housing operations in 2015.
$36 million
— The surplus generated by NYCHA's public housing operations in 2016.
$19.6 million
— The projected operating deficit for NYCHA by 2019.
$56.8 million
— The projected operating deficit for NYCHA by 2021.
$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.
Only 20.2% of residents citywide rate public housing services as excellent or good, with Bronx residents reporting a slightly lower satisfaction rate of 18.9%. Satisfaction levels across Bronx community districts vary, ranging from a low of 15.9% to a high of 26.6%.
Key Data
20.2%
— of residents citywide rate public housing services as excellent or good.
18.9%
— of Bronx residents rate public housing services as excellent or good.
26.6%
— is the highest satisfaction rating for public housing among Bronx community districts.
15.9%
— is the lowest satisfaction rating for public housing among Bronx community districts.
Only 20% of New Yorkers express satisfaction with public housing, highlighting it as one of the city services with the lowest approval ratings. City leaders are urged to develop and publish improvement plans for these areas identified as lacking by residents, utilizing regular satisfaction surveys to better align government performance with public needs.
Recommendations related to Public Housing
The Mayor and City Council should now create and make public a plan for improvement in the areas that city residents found wanting, specifically regarding public housing.
Key Data
20%
— New Yorkers who are satisfied with public housing.
The 2017 NYC Resident Feedback Survey reveals that only 20.2% of residents rate public housing services as excellent or good, with 48.0% rating them as poor. Additionally, housing issues, development, and gentrification were identified as one of the most pressing concerns by 29.3% of survey respondents.
Key Data
20.2%
— Overall proportion of residents who rated <b>public housing</b> services as excellent or good.
48.0%
— Proportion of residents who rated <b>public housing</b> services as poor.
29.3%
— Percentage of survey respondents who identified <b>housing issues, development, and gentrification</b> as one of the most important issues requiring more attention from city government.
23.1%
— Highest borough-level positive rating (excellent or good) for <b>public housing</b> services, which was reported in Queens.
The New York City Housing Authority operates 328 developments housing approximately 400,000 residents, with performance metrics focusing on repair response times and work order backlogs. While emergency repair response times have improved to 13.8 hours, the agency continues to struggle with a significant backlog of over 143,000 open work orders as of May 2016.
Key Data
328
— developments operated by the New York City Housing Authority that house approximately 400,000 New Yorkers.
42.5 days
— peak average wait time for non-emergency repairs in fiscal year 2013.
420,000
— backlog of work orders in January 2013.
13.9 days
— average response time to non-emergency work requests in the first four months of fiscal year 2016.
13.8 hours
— response time to emergency work requests in the first four months of fiscal year 2016.
143,000
— work orders that remained open in May 2016, far exceeding the manageable volume of 90,000.
The New York City Housing Authority operates with an annual budget of approximately $3.2 billion, which is funded primarily through federal support and tenant rents. To help the agency maintain a balanced budget, the City is providing financial relief by eliminating $72.5 million in annual police service payments and $33 million in annual payments in lieu of taxes.
Key Data
$3.2 billion
— NYCHA's operating budget in 2014, which was funded predominantly from tenant rents and federal support.
$59 million
— City operating support for NYCHA in 2014, a figure planned to return to this same level in fiscal year 2020.
$72.5 million
— Annual payments previously made by NYCHA for police services that the City is eliminating to help the agency keep its budget balanced.
$33 million
— NYCHA's annual Payment in Lieu of Taxes that the City is eliminating to assist with budget balancing.
The New York City Housing Authority manages a significant portfolio of public housing and Section 8 units, with this overview detailing the agency's fundamental financial and operational structure. It serves as a foundational resource for understanding the scale and scope of the city's public housing system.
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 low 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 revenue via residential infill development.
Recommendations related to Public Housing
NYCHA should increase rent collection rates to HUD's 95 percent target to generate an estimated $39 million in 2015.
The authority should generate more than $26 million annually in non-rental income by increasing parking fees, increasing monthly fees for appliances, expanding commercial activities, and raising rent collections from nonprofit tenants.
NYCHA should streamline management to curtail the scope of responsibility for borough offices to non-redundant functions to save $33 million annually by 2019.
The authority should eliminate responsibility for community and senior centers and rely on service provision by better-equipped City agencies and nonprofits to save $19 million annually.
NYCHA should increase use of Job Order Contracting to streamline and shorten 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 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
— The amount of revenue expected to be generated over 10 years through two types of residential infill development.
The federal Department of Housing and Urban Development utilizes a regression model with 10 variables to determine annual operating subsidies for housing authorities. Within this framework, the New York City Housing Authority is subject to a monthly per-unit subsidy ceiling of $480 before utilities, which exceeds 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.
75%
— The portion of utility cost increases that a public housing authority must absorb.
75%
— The portion of utility cost savings that a public housing authority retains.
10
— The number of independent variables used in the regression model to calculate expense costs.
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