NYCHA Community Calls on the State to Fund Emergency Rental Assistance for Public Housing Tenants

New York was the only state in the nation to de-prioritize residents living in subsidized housing for COVID-related rental assistance

NYCHA has submitted more than $128 million in applications for 33,000 NYCHA households with COVID-related arrears

With rent constituting one-third of NYCHA’s operating budget, this funding is essential for continued progress on the pillars of the HUD Agreement, while also ensuring that public housing residents have access to the same benefits as other New Yorkers

On March 28, New York State Assemblymember Linda Rosenthal, Chair of the New York State Assembly Committee on Housing; New York State Senator Brian Kavanagh, Chair of the Senate Committee on Housing, Construction, and Community Development; NYCHA Interim CEO Lisa Bova-Hiatt; Daniel Barber and the Citywide Council of Presidents (CCOP); and NYCHA residents were joined by other legislators, housing advocates, and public housing authorities from across the State for a rally in Albany to advocate for Emergency Rental Assistance Program (ERAP) funding for public housing residents in the State budget. While tenants of privately owned buildings were able to access ERAP funds to help cover rent during the COVID-19 pandemic, NYCHA tenants and subsidized housing residents in New York were initially excluded from receiving that funding. Both the Senate and Assembly have now proposed adding funding to the Fiscal Year 2024 budget to provide significant economic relief to these households, who accumulated rent arrears during the COVID-19 crisis. NYCHA submitted more than $128 million worth of ERAP applications on behalf of over 33,000 households, and NYCHA households with pending ERAP applications have amassed more than $240 million in rent arrears without additional assistance.

“NYCHA residents work every day to build a better future for themselves, their kids, and their families, and they deserve safe, high-quality, affordable homes while doing so,” said New York City Mayor Eric Adams. “NYCHA residents have a champion in me, and I will work hand-in-hand with our partners in Albany to get this done.”

“When tenants across the nation were provided critically needed relief from rent arrears during the pandemic, NYCHA tenants were left behind. We believe our partners in Albany share the goal of supporting NYCHA tenants, and were pleased to see both the Senate and Assembly include ERAP funding for public housing in their proposed budgets,” said Chief Housing Officer Jessica Katz. “We’re heartened to see a coalition of tenants, public officials, and housing authorities statewide join forces for this cause.”

“As we continue to engage our State partners and advocate for this much-needed funding, we remain hopeful that our tenants will be treated like their friends and neighbors who were afforded this COVID-related relief,” said NYCHA Interim CEO Lisa Bova-Hiatt. “Providing emergency rental assistance to NYCHA residents is not only a matter of equity but is also imperative to the Authority’s ability to keep prioritizing the pillars of the HUD Agreement amid a tremendous rise in tenant arrears and a growing $40 billion capital need. Assembly Speaker Heastie and Majority Leader Stewart-Cousins stood up for public housing tenants and included funding in their budgets; now we must all work together to make sure that the funding is in the final budget due in April. We are grateful for all of the advocacy related to this matter, from those who understand the critical role of public housing in New York City.”

“The residents of public housing are hoping that the Governor comes around and gives the money needed for ERAP to avoid the process of having to put the residents into the street,” said Chair of the Citywide Council of Presidents (CCOP) Daniel Barber. “The Governor understands the importance; she knows the residents, and we’ll see what happens when the budget comes out.”

Rent payments are critical to NYCHA’s operations because they fund one-third of the Authority’s operating budget. While the U.S. Department of Housing and Urban Development (HUD) expects public housing authorities to collect 100 percent of the rent, NYCHA is only collecting 65 percent of rent over a 12-month period and HUD does not provide an increase in operating subsidy to bridge the funding gap. Rent can also not be forgiven by public housing authorities, per HUD regulations. As of the end of the 2022 calendar year, NYCHA’s tenant arrears totaled $466 million across more than 73,000 households, having nearly quadrupled since 2019. In 2023, NYCHA expects to collect approximately $850 million in rent, about $150 million less than it should be collecting.

NYCHA has taken several proactive financial measures in its 2023 budget, including prioritizing stable funding for property management contracts and staffing and, where possible, allocating increases for the pillar areas of its 2019 agreement with HUD; cutting central office contracts and reducing vacant central office positions; and submitting an operating subsidy appeal to HUD to fund mandated HUD Agreement environmental expenses. NYCHA anticipates a $35 million deficit in the 2023 budget.

NYCHA has relied heavily on operating reserves to improve services and meet the demands of the HUD Agreement. The 2022 budget included a $100 million draw from reserves, and the 2023 budget includes a $65 million withdrawal. At the end of 2022, NYCHA had less than one month of operating reserves remaining (HUD recommends three to four months of reserves for a public housing authority NYCHA’s size).

The mounting losses in rent revenue, along with a growing $40 billion capital need, increasing costs due to higher consumption and global market volatility, high overtime, and rising 2019 HUD Agreement expenses, puts NYCHA in a precarious financial position. Without additional funding or an increase in tenant rent payments, NYCHA will be forced to significantly cut expenses and decrease property repairs beginning in 2024, which could impact repairs required for HUD Agreement compliance.