Citizens Budget Commission:

Trustee Breakfast

September 18, 2015

NYCHA Houses 1 in 12 New Yorkers

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NYCHA’s Housing Stock is Aging

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$1 Billion Loss in Operating Funding Since 2001

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Financial Position - Operating

Current Reserves: Less than One Month

30% Decrease in Federal Capital Funding Since 2001

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Why NextGeneration NYCHA Now?

To preserve the precious resource of public housing and to improve the lives of residents.

Aging buildings in need of repair Significantly reduced federal funding for repairs, supplies, and

renovations Large senior population aging in place Low-income families in need of affordable housing

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NextGeneration NYCHA Vision

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Safe, Clean, and

Connected Communities

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NextGeneration NYCHA Strategies

Fund

• 1) Secure relief from PILOT

• 2) Improve collection of resident rent and fees

• 3) Lease ground floor spaces

• 4) Reduce central office costs

Operate

• 5) Transform to digital organization

• 6) Localize property management

• 7) Pursue comprehensive sustainability agenda

• 8) Increase safety and security

(Re)Build

• 9) Refine capital planning strategy

• 10) Provide land to support creation of affordable housing units

• 11) Use HUD programs to preserve units

• 12) Adopt design excellence practices

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Engage Residents• 13) Transform from direct service provision to a partnership model • 14) Leverage philanthropic dollars through a 501(c)(3)• 15) Connect you to quality employment

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100% Affordable10,000 Units

$100-$200mm

Sites: All 5 boroughsAffordability: All levels

50% Aff/50% Market~6,000 Units

$300-$600mm

Sites: Higher-valueAffordability: 60% AMI

(up to $46,600 for a family of 3)

Strategy #10: New Construction of Affordable Housing

Site Selection Considerations for New Construction

1. Existing conditions of NYCHA Development and Capital Needs2. Development Opportunity 3. Proximity to other Public Investments & Partnership Opportunities4. Potential monetary return to NYCHA

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Site C

Site E

Site D

HOLMES TOWERS WYCKOFF GARDENS

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Using HUD programs to rehab and preserve RAD, Tenant Protection Vouchers, Project-

based Section 8, other

Ocean Bay – Bayside: 1,400 units Scattered sites (inherited from City): ~6,000 units Obsolete, per HUD: ~8,000 units Unfunded City and State (LLC2): ~5,000 units

Strategy #11: Preservation of Affordable Housing

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• Raise $200 Million over 3 years: A partnership model eliminates the financial burden on NYCHA to be both an effective landlord and a primary service provider. The Fund will invest in new and existing partnerships to create a network of connected communities.

• Increasing operational flexibility: improve innovation and the scope of services available to NYCHA residents. The Fund will allow for a more creative approach to partnership, fundraising and service delivery.

• Consistently measure the outcomes and impacts of resident services: the Fund and its partners can ensure excellence in service delivery and communication by incorporating feedback loops and adapting services.

• Support resident leadership development: Residents and communities are part of any partnership framework. The Fund will support NYCHA’s new resident engagement model by collaborating on the launch of a Resident Leadership Academy to develop the capacity of current and emerging leaders.

Strategy #14: Launch Fund for Public Housing

The Fund for Public Housing to Launch in 2015Mission Statement

Public housing keeps New York City a city for all people. The Fund for Public Housing enables the

innovation necessary to develop cleaner, safer, and more connected public housing integrated into NYC

communities.

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The Fund: Five Areas of Focus in a Collective Impact Model

Youth and Education

Health and Wellness

Economic EmpowermentSenior Services

Sustainable Neighborhoods

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NYCHA as Convener

The Fund’s Year One Outcomes: Doing Business Differently

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Financial

• $50 million raised• $100 million in the

pipeline• NYCHA no longer direct

service provider = $50 million cost savings annually

• Fundraising strategy operational

Strategic

• Link 20,000 residents to services by transforming social service delivery model

• Create resident owned worker cooperatives

• Train 1,000 residents by creating Resident Leadership Institute

• 20 additional community partners in Zone model expansion

• Integrated campus redesign to bring units on line and increase connectivity

Continue to Focus on Our Core Business

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• Identify and implement best practices in property management

• Improve maintenance and repair

• Modernize procurement and supply chain management

• Make our buildings more resilient and sustainable

• Improve resident and employee safety

• Contribute to the City’s effort to reduce homelessness

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What Will NextGen Accomplish?

Status quo $2.5b cumulative operating deficitImplement strategies $230m operating surplus

Financially stable

operations

Attract new resources

Address $17b capital need

Improve quality of life

for NYCHA residents

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NextGen’s Impact on the Operating Deficit

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NextGen’s Impact on the Capital Deficit

This is NextGeneration NYCHA

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Safe, Clean, and

Connected Communities