Press Release
Statement: The Preservation Trust is Our Best Chance to Preserve Public Housing
The New York City Housing Authority is the largest public housing program in the nation, with over 170,000 units and a population of more than 500,000. That’s larger than the cities of Buffalo and Yonkers combined. Yet for decades, the city’s public housing system has been starved of resources at the federal and state level, creating for its residents the kind of subpar living conditions typically found in Third World countries. The authority’s daunting $40 billion capital backlog is shorthand for daily resident struggles with leaking roofs, bursting pipes, failing elevators, heating outages, toxic mold, and other outrages
For the NYCHA resident, present options for improving housing conditions are limited to just two: either wait for a government rescue or become a candidate for the HUD Rental Assistance Demonstration Program (RAD). Under NYCHA’s version of RAD, a housing development is placed in private hands under a long-term ground lease. The RAD program is not popular with residents who fear it will lead to privatization and the potential loss of rights and protections. And if the failed Build Back Better proposal is any indication, the prospects of a federal government solution to NYCHA’s $40 billion capital backlog are bleak at best.
To the extent that NYCHA residents have a say, it is a Hobson’s choice: Either RAD or the dreadful status quo of continuing deterioration. But a third alternative is now on the table: state legislation to create a public corporation charged with taking over distressed city public housing developments and seeing to their restoration.
This week, state lawmakers will act on A7805B/S.9409A, legislation authorizing the state-created Preservation Trust. Under this model, New York has the potential to restore all public housing developments and address the full capital backlog. It requires no new federal legislation. It also provides a richer rent stream of federal funding compared to RAD—NYCHA estimates $1,900 monthly against $1,250 for a typical unit. Notably, the Preservation Trust will be able to reach troubled developments where RAD is unworkable.
Most importantly, the legislation includes an unprecedented “resident opt-in” provision, requiring resident approval before any conversion can move forward. Trust converted developments remain within the public domain, avoiding RAD privatization, with public financing backed by HUD vouchers. In New York, the Trust would also retain the public NYCHA workforce as property managers. Another major advantage for housing authorities is that the state-created Trust will allow them to bypass outdated federal procurement regulations and modernize their contracting procedures, including the use of the “design-build” model.
“Residents can’t wait.” Those were the words of Brooklyn Assemblymember Latrice Walker during a May 11 housing committee hearing. She is absolutely right. This is a critical time for NYCHA and its residents. We cannot wait any longer for Washington to come to the rescue. The NYCHA Preservation Trust represents a comprehensive strategy for the preservation of our public housing. It has the support of both Governor Hochul and Mayor Adams. We urge our state lawmakers to take this opportunity to preserve New York’s most important source of affordable housing and pass A.7805A/S.9409A.