CBC President Carol Kellermann issued this statement on behalf of the Citizens Budget Commission:

“To address NYCHA’s astounding $32 billion in capital needs over the next five years, radical changes need to be undertaken immediately. NYCHA is New York City’s primary provider of deeply affordable housing and the ongoing deterioration of its developments is putting that housing at grave risk.  Without dramatic change, by 2027 90 percent of NYCHA’s housing units will have declined to the point at which they are at risk of no longer being cost-effective to repair.

The current plan, which includes $8 billion in capital investment over the next five years (including the funds required by the recent federal consent decree), is significant but is still dwarfed by the $32 billion need. Preserving this crucial stock of deeply affordable housing will require significant organizational changes, innovative strategies, and even more capital funds.

Rather than continue as the nation’s largest landlord, NYCHA should transition to an affordable housing steward employing a full range of strategies. It must tap its underutilized assets, including air rights and potential infill development, and adopt best operational practices in procurement and building maintenance.

In total, CBC has identified an additional $7 billion in combined savings and new revenue that can significantly slow the deterioration and put NYCHA on a path toward sustainability over the next five years. A more detailed report outlining our analysis and recommendations will be forthcoming in the next few days. These changes will require partnership with federal, state, local, tenant, and labor stakeholders, significant management reforms, and greater use of public-private partnerships to improve and manage developments.”