As you may know, NYCHA is experiencing a structural budget deficit because of the ongoing disinvestment in public housing by the Federal government. A number of cost saving measures have been implemented to address the serious budget shortfalls. Spending has been reduced by over half-a-billion dollars, 2,500 positions have been cut and administrative functions consolidated with an aim to protect core services provided to residents at the development level. Nonetheless, NYCHA is still facing a $170 million gap in 2009 and has no choice but to continue to generate revenue and reduce expenses going forward.
In our efforts to preserve public housing, the New York City Housing Authority (NYCHA) is proposing a Targeted Rent Initiative to increase rent for a small segment of NYCHA's households who have the highest household income. This initiative will generate much needed revenue for the agency.
As a part of NYCHA's Annual Plan process, the Draft Annual Plan for FY 2009 has been revised to include the Targeted Rent Initiative. You can view the plan on NYCHA's website, or at NYCHA management offices during regular business hours. Through NYCHA's website, you can also obtain information on submitting comments about the plan and the upcoming public hearing. The final proposal will be submitted to the U.S. Department of Housing and Urban Development (HUD) for approval and if approved, exact rent changes will be calculated on an individualized basis as part of the 2009 annual review process.
The vast majority of NYCHA households (72% or 124,728 households) who already pay 30% of their incomes for rent would not be impacted by this proposed increase. If the proposal is approved, 28% of NYCHA's households, or 49,374 households who pay on average 20% of their income for rent, will have their rent adjusted over two years.
If you currently pay less than 30% of your income for rent, you may receive a rent increase under this proposal. Households that pay less than 30% of income for rent would be divided into three (3) income bands and rent increases will be 5%, 10% and 15%, respectively, for two years. The table below outlines the proposed increase in the rent cap for each income band based on apartment size. Please be advised that the table is only a guide.
Targeted Rent Initiative Letter en Español (in PDF)
Targeted Rent Initiative Letter 中文 (Chinese) (in PDF)
Targeted Rent Initiative Letter Русский (Russian) (in PDF)