CBC's new policy brief, Uncertain Future, Urgent Priority: Fix NYCHA's Operating Budget Now, reveals that New York City Housing Authority's (NYCHA’s) long-standing fiscal challenges have worsened, and that the consequences of delaying long overdue fixes could be dire.

Combating the continued deterioration of NYCHA's buildings has driven spending on maintenance and repairs higher, while NYCHA's operations have yet to become more efficient or effective. Coupled with dwindling rent collections, this has widened NYCHA's budget gaps, increasing its reliance on City subsidies and other non-operating resources to fund its basic operations. 

CBC's deep dive into NYCHA's public housing operating budget found that:

• In 2022, NYCHA’s operating revenue fell $789 million short of its $2.9 billion public housing operating expenses;
• This shortfall has grown five-fold since 2014; 
• To cover the 28 percent revenue shortfall and balance its 2022 budget, NYCHA tapped $247 million in City subsidies, $100 million from NYCHA’s dwindling reserves, $194 million in one-time sources, and $248 million diverted from federal subsidy intended for capital investment; 
• Operating revenues stagnated as the rent collection rate plummeted from roughly 90 percent pre-pandemic to 63 percent now, costing NYCHA $350 million to $400 million annually;  
• NYCHA’s already high per-unit operating costs rose 10 percent in 2022, driven primarily by efforts needed to combat deferred maintenance; and 
• NYCHA's operating costs per unit are double the average cost to operate rent stabilized apartments; NYCHA's monthly per-unit operating cost is now $1,481. 

Absent major changes to close its widening operating budget gap, NYCHA’s outlook is grim. It would have to either substantially reduce spending on maintenance and other services—negatively affecting residents’ quality of life—or become even more reliant on City subsidies. Since the City faces budget gaps approaching $11 billion in just a few years, to increase subsidies to NYCHA, the City would have to divert funds currently slated for other services. 

Structural reforms—not just one-time bailouts—are needed to put NYCHA’s operations on the path to solvency. To improve the lives of residents and preserve the viability of NYCHA, the City’s largest source of deeply affordable housing, CBC recommends NYCHA:

• Fix or replace deteriorating buildings with Permanent Affordability Commitment Together (PACT) and the Preservation Trust; 
• Improve management effectiveness and efficiency, and publicly track progress and impacts; 
• Negotiate savings and increase productivity through collective bargaining; and 
• Overhaul the rent collection process.