Largest Public-Housing System in the U.S. Is Crumbling

Source: Mara Gay and Laura Kusisto, Wall Street Journal, March 18, 2018
 
New York City’s public housing is literally falling apart. The sprawling network of 176,000 apartment units across the five boroughs needs an estimated $25 billion of repairs, up from $6 billion in 2005. Yet annual federal funding for the nation’s largest public-housing program hasn’t kept pace. Residents of decaying brick towers battle leaking roofs and moldy walls, broken elevators and aging infrastructure. This winter, the housing authority’s ancient boilers gave out, leaving more than 320,000 people without heat or hot water. … Mayor Bill de Blasio has blamed public-housing problems on decadeslong funding declines from Washington. The New York City Housing Authority is overseen by HUD. Housing authorities in other major cities, such as San Francisco, Chicago and Atlanta, now manage a vanishingly small share of their units. In some cases, cities have continued to own the land or buildings and they are run largely by private real-estate companies, while in other cases the original buildings are demolished completely. Tenants typically are given Section 8 rental-subsidy vouchers. Critics say New York was too slow to adopt this model. … Bringing in private partners to rehabilitate and manage public housing could generate millions of dollars of new investment but raises fears of privatization in the eyes of many tenants and advocates. Mayor de Blasio was initially resistant to that approach, embracing it only after appeals from Obama administration housing officials and NYCHA Chairwoman Shola Olatoye, according to people familiar with the matter. … So far, the city has transferred one traditional public-housing complex with some 1,400 units over to private management and has plans to complete the same process for 15,000 units over the next decade. …

Related:

Federal Cuts Could Force N.Y.’s Creative Hand
Source: Paul Burton, Bond Buyer, March 24, 2017

The specter of massive cuts in federal domestic aid could force New York City officials to think outside the box about how to salvage programs now financed by the feds. … The New York City Housing Authority alone could lose up to $150 million in operating funds and up to $220 million in capital funding. … “The biggest issue for New York City is the housing program,” said Howard Cure, director of municipal bond research for Evercore Wealth Management. One creative option, according to Cure, is to convert some properties to the federal Rental Assistance Demonstration, or RAD, program, which the Department of Housing and Urban Development operates. It allows public housing agencies to fully own their public housing units and to renovate or redevelop the housing using private financing sources. The renovated or new housing receives rental support for the residents through a project-based Section 8 subsidy. … While Trump has called for more public-private partnerships, New York and other Empire State cities still need approval from state lawmakers to execute P3s. …