NYCHA Chair Russ Discusses “Blueprint for Change” with the State Assembly

On December 8, NYCHA Chair & CEO Greg Russ testified before the New York State Assembly about legislation that would establish a Public Trust as part of NYCHA’s recapitalization strategy for upgrading 110,000 apartments. The Public Trust, an innovative solution to raise much-needed capital funding, would enable NYCHA to access valuable federal vouchers, have flexible procurement capabilities, and consolidate residents’ rights into state law.

The Public Trust is part of NYCHA’s Blueprint for Change, a series of innovative ideas and proposals that outline the Authority’s organizational, stabilizing, jobs creation, and recovery strategies to preserve and improve more than 300 NYCHA developments and 175,000 apartments for generations to come and ensure that the Authority remains a reliable, sustainable resource of affordable housing.

“This Public Trust is a groundbreaking public housing solution and an important component of NYCHA’s stabilization strategy as part of our innovative Blueprint for Change,” said NYCHA Chair & CEO Greg Russ. “It will give NYCHA the opportunity to pursue recapitalization of the entire portfolio and ensure safe, reliable housing for generations to come. Additionally, the Trust will establish flexible procurement methods and codify tenant rights and protections into state law. We are grateful to our partners in the legislature for introducing the bill that would establish this Trust.”

Currently, NYCHA has an approximately $40 billion capital need to address the full Physical Needs Assessment plus lead, asbestos, and ADA requirements across the entire real estate portfolio, and that need grows by at least $1 billion annually.

“Improving the living conditions of our public housing residents is a top priority of this administration. NYCHA’s financial and operational challenges demand new, creative strategies to safeguard New York City’s largest affordable housing stock for generations to come,” said Deputy Mayor for Housing and Economic Development Vicki Been. “The Public Trust is an opportunity to transform how NYCHA operates while further securing residents’ rights, resulting in fundamental improvements to the quality of life for each NYCHA resident and the preservation of our public housing.”

The establishment of a Public Trust is a stabilization strategy that would enable the Authority to address $18 billion to $25 billion in capital need across roughly 110,000 apartments with end-to-end public control, operation, and day-to-day management. When combined with NYCHA 2.0 strategies across the other 62,000 NYCHA apartments, the stabilization strategy and Public Trust will cover all the physical needs across the entire portfolio.

Once established, the Public Housing Preservation Trust will be a public entity entirely, drawing from the operating model already in use by the Department of Education/School Construction Authority. It will allow NYCHA to access Tenant Protection Vouchers (TPV), an extremely valuable federal resource, and give NYCHA additional procurement flexibility to complete massive levels of construction.

NYCHA would remain the permanent owner of the properties and enter into a long-term ground lease with the Trust. The Trust would then contract back to NYCHA for property management and maintenance services, retaining the public, union workforce. The Trust also codifies resident rights and affordability in perpetuity with the same rent calculation into state law.

Investing in public housing is also an investment in the health of NYCHA residents and communities, paving the pathways for opportunity and success.