Unfortunately, the news out of Washington remains grim. For the coming year, NYCHA stands to lose $210 million in funding for major repairs, up to $130 million to maintain our developments, and 13,000 Section 8 vouchers. There is also a proposal to increase residents’ rent. We will continue to fight these cuts in partnership with our allies who understand the importance of an affordable home.
These cuts come on top of years of severe underfunding: Since 2001, NYCHA has lost nearly $3 billion in federal funding, and our buildings need $17 billion worth of major repair work. To provide the quality of life that residents deserve, we must come up with new and creative sources of revenue.
We’ve made strides in recent months to do just that. As part of the NextGen Neighborhoods program, we announced the developer who will build a 50/50 mix of affordable and market-rate housing at Holmes Towers on the Upper East Side of Manhattan. We are excited that the developer’s plan will connect and benefit NYCHA residents, with more than 14,000 square feet of new playground and open space and a new, 18,000-square-foot recreational and community center operated by a non-profit partner. This will also generate an expected $25 million in new revenue for NYCHA, half of which will be invested in the repair needs at Holmes Towers.
Through the federal Rental Assistance Demonstration program, known as RAD, we’re investing more than $325 million at Ocean Bay (Bayside) Apartments by converting the property to Section 8 funding. In May, we released a request for proposals to do the same for another 1,700 apartments across the city, benefiting more than 4,000 residents with elevator replacements, new boilers and heating systems, and roof replacements.
Mayor de Blasio continues to lead the way in ensuring that NYCHA is here for the next generation. He announced a $355 million investment in façade improvements, on top of the $1.3 billion he committed for more than 950 roof replacements.
We’ve made a lot of progress over the past few years with our NextGeneration NYCHA plan, but there is still so much to be done. We will keep working tirelessly to deliver on our promise of safe, clean, and connected communities, and we will not let Washington turn its back on public housing.
Chair and CEO