Press Release CBC News

CBC Submits "Testimony on the New York City Housing Authority’s 2023 Physical Needs Assessment"

September 22, 2023

This morning, CBC's Director of Housing and Economic Development, Sean Campion, will testify before the New York City Council's Commitee on Public Housing on the New York City Housing Authority's 2023 Physical Needs Assessment (PNA).

NYCHA’s PNA provides the information needed to identify what has happened to NYCHA’s housing stock over the past five years and to help plan for its future. CBC’s analysis of the 2023 PNA finds that: 

  • Since 2017, NYCHA’s actions addressed $10 billion of its capital needs, up from less than $2 billion over the 2012-2016 period. 
    • Most of this was through the Permanent Affordability Commitment Together (PACT) program; over 30,000 residents will enjoy renovated units and improved quality of life thanks to PACT. 
  • Conditions at the 161,000 Section 9 public housing units NYCHA manages have deteriorated so precipitously while inflation increased so significantly that the required investment needed to rehabilitate units has doubled:  
    • NYCHA's investment needs over the next five years now total $60 billion, or $373,000 per unit, more than double the $29 billion, or $180,000 per unit, as estimated in 2017.  
    • Twenty-year investment needs have reached $78 billion, or $483,000 per unit, up from $45 billion, or $255,000 per unit, estimated in 2017. 
  • Almost one-third of NYCHA’s apartments are at or very close to the point at which they cost more to repair than to build new (replacement cost):  
    • 29 percent are nearing CBC’s estimate of replacement cost (five-year needs of $400,000 to $500,000 per unit); and  
    • 2 percent are above replacement cost (over $500,000 per unit). 
  • Another 57 percent of apartments are at risk of being above replacement cost very soon, with five-year needs of $300,000 to $400,000 per unit. 

To address its immense capital needs, NYCHA needs both funding and the flexibility to execute its plan. To do this, it should balance engagement with expediency and work with the City and State to streamline the PACT process as much as possible. Also, given increases in interest rates and construction costs, NYCHA will need additional sources of capital, possibly through reallocated Low Income Housing Tax Credits or New York’s tax-exempt bond volume cap, or infill development and phased redevelopment.