July 5, 2018

Community Developments: Estimated Unmet Capital Needs for NYCHA’s Portfolio

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Community Developments

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  • A report finds that the New York City Housing Authority (NYCHA) needs $31.8 billion to cover the projected costs of repairing and replacing its deteriorating public housing developments over the next five years. According to the report, the bulk of this need results from the age of the NYCHA portfolio, in which the average building is roughly 60 years old and 70 percent was built prior to 1970. The report points out that NYCHA needs to invest $3.1 billion in mechanical repairs and upgrades, including $1.3 billion for repairing and replacing heating systems. Finally, the report also projects that the unmet capital needs will grow to $45.2 billion over the next 20 years. (The New York Times, July 2) As previously reported in Community Developments, last month the City of New York and NYCHA reached an agreement with the federal government that requires the city to invest over $2 billion more than what has already been promised to the agency over the next ten years—$1 billion within the first four years and then $200 million annually for the remaining six years—to make much-needed repairs in tens of thousands of public housing units. 
     
  • The Los Angeles City Council has approved the Exposition Corridor Transit Neighborhood Plan, which will allow the development of taller, mixed-use buildings within a half-mile radius around five train stations. The plan, which aims to boost transit ridership, reduce dependency on cars and create vibrant neighborhoods, rezones 256 acres of land, mostly from industrial and light manufacturing uses, to residential and office space. It also alters several single-family zones to allow “neighborhood-scale mixed-use development that creates ground-floor commercial activity” with the “capacity for multifamily housing.” (Curbed LA, July 3) 

Upcoming Events

  • On Tuesday, July 10, the Center for Indian Country Development at the Federal Reserve Bank of Minneapolis, in partnership with Enterprise and a number of partners, will debut a new handbook that aims to help increase homeownership opportunities for Native American communities. The new handbook will be launched and discussed during the lunch program, which will feature Enterprise’s CEO Terri Ludwig, Assistant Vice President and Director of the Center for Indian Country Development Patrice Kunesh, and Executive Director Salish & Kootenai Housing Authority Jason Adams. Learn more about the release event of the new handbook.
     
  • On Thursday, July 12, Enterprise Community Partners will host a webinar on “Creative Placemaking: More than Murals” to discuss lessons from delivering the Enterprise Climate and Cultural Resilience grant program over the past year. This webinar will feature Nella Young, senior program director at Enterprise, and Meghan Venable-Thomas, cultural resilience fellow at Enterprise, and will be moderated by Mia Scharphie, founder of Creative Agency. Register here for the webinar.
     
  • On Thursday, July 12, the Up for Growth Coalition will hold “A Briefing on the Nation’s Housing Shortage and Affordability Crisis”. This panel will feature U.S. Representatives Denny Heck (D-Washington) and Steve Stivers (R-Ohio), as well as a number of housing policymakers, including Enterprise’s Senior Director for Congressional Relations Liz Osborn, President & CEO of Make Room USA Ali Solis, and Executive Director of the Up for Growth National Coalition Mike Kingsella. Register here for the event

In Case You Missed It

  • Earlier this week, HUD officially published two notices in the Federal Register implementing a number of changes to the Rental Assistance Demonstration (RAD) program’s new authority in the Fiscal Year 2018 Appropriations Act. The RAD program converts public housing properties to project-based Section 8 contracts that can leverage private capital and financing. In the first notice, HUD announces that it will increase the program’s statutory cap from 225,000 units to 455,000 units as of January 1, 2019. The notice also modifies the process under which HUD sets initial contract rents for awards made pursuant to this expansion of RAD, simplifies the process to withdraw and replace existing awards for public housing agencies (PHAs), and indicates what steps PHAs must take to reserve their position on the RAD waiting list if they have already submitted letters of interest. The second notice expands the ability of PHAs to rent bundle project-based voucher contracts that are both in and outside of the RAD program, permits PHAs to establish project-specific utility allowances for covered projects, provides alternative developer fee limits when a PHA has a waiting list preference for families exiting homelessness, and creates a streamlined conversion option for PHAs with a housing portfolio of 50 or fewer units.

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