HUD has created a stop-loss program for housing authorities like NYCHA that stand to lose a lot of money. If NYCHA changes the way it manages its developments to behave more like a private firm – producing balance sheets and five-year plans for each individual property, for example – by a deadline set by HUD, the reduction in annual subsidy will be limited to $3 million. The deadline had been set for this week, but was pushed back to the autumn.
If NYCHA is not in compliance, the authority will slowly lose more and more money each year for the next five years until it either suffers the entire $60 million annual loss of subsidy or proves it has changed its management practices to fit the new guidelines. NYCHA spokesperson Howard Marder says the Authority believes its current practices meet the new standards.
NYCHA already is cutting costs wherever it can. “We’ve consolidated management offices,” Marder explained last week. “We’ve cut back on overtime on the weekends by having people who come in to clean on the weekends work two fewer hours.” NYCHA has also stopped taking on new hires.
“Wherever we can try to find something that will save money,” he said, “we’ll do it.” Meanwhile, housing authorities in southern states will collectively gain in the coming years.
Lawmakers are trying to come up with money to support NYCHA. In 2006, Mayor Bloomberg allocated $100 million as the authority implemented a new financial plan, and the City Council has chipped in another $20 million. At the federal level, U.S. Sen. Chuck Schumer and Rep. Nydia Velazquez of Brooklyn have introduced legislation to provide another $100 million annually for a total of 21 housing projects that are currently unsubsidized.
Wyche of the Coney Island Houses hails from North Carolina but has lived in New York since 1964. She's optimistic that NYCHA will eventually receive more funding – but is unhappy with the inconveniences residents in her area have been forced to deal with.
“What bothers me is that residents are talking about living in filth,” she said. “I’m a Southern girl. I don’t believe in filth.”
