Nycha Outlines the 'Plan to Preserve Public
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Vol. 36, No. 5 First Class U.S. Postage Paid — Permit No. 4119, New York, N.Y. 10007 nyc.gov/nycha MAY 2006 NYCHA OUTLINES THE ‘PLAN TO PRESERVE PUBLIC HOUSING’ Highlights Include $100 Million Mayoral Allocation and Limited Rent Increase ON APRIL 20TH, IN THE NEW YORK CITY HOUSING AUTHORITY’S (NYCHA’S)CENTRAL OFFICE IN LOWER MANHATTAN, JOINED BY NYCHA’S BOARD AND MEMBERS OF THE EXECUTIVE STAFF, CHAIRMAN TINO HERNANDEZ OUTLINED AN AGGRESSIVE SEVEN-POINT PLAN TO PRESERVE THE 179,000 APARTMENTS IN 344 DEVELOPMENTS ACROSS THE CITY THAT CONSTITUTE NEW YORK CITY’S PUBLIC HOUSING. Highlights of the “Plan to Preserve Public Housing” (PPPH) include an unprecedented allocation of $100 million from New York City to NYCHA, to help close the Housing Authority’s $168 million budget gap for Fiscal Year 2006, and proposed rent increases for the 27% of residents who currently pay much less than 30% of their incomes in rent. The allocation by Mayor Michael R. Bloomberg will allow NYCHA to continue to provide services to residents while it implements its budget-balancing plan. “NYCHA is at a defining services to our residents and to moment in its history, facing maintain our 344 developments. recurring annual deficits that have “The preservation of public reached $168 million in Fiscal housing is of paramount Year 2006 alone,” the Chairman importance to Mayor Michael R. stated. “In response, NYCHA has Bloomberg,” the Chairman made cost containment a priority, continued. “So it is with the cutting over $408 million from our Mayor’s steadfast support that I budget already. We have also present a plan that ensures used our cash reserves to cover NYCHA’s future and preserves these deficits, allowing us to public housing. Our residents, continue providing essential (Continued on page 2) NYCHA Chairman Tino Hernandez with Vice-Chairman Earl Andrews, Jr. at NYCHA’s Central Office in Lower Manhattan, announcing a seven-point “Plan to Preserve Public Housing.” The Plan provides solutions for closing a $168 million gap in the operating budget for Fiscal Year 2006 and establishing long-term structural fiscal balance. NYCHA Basketball Championship Play-off NUMBER ONE! NYCHA held its final Basketball Tournament Championship Games on April 8th at City College in Upper Manhattan. Over 200 teams from all five boroughs participated in the Citywide basketball program, which began in January and ended with the Championship. The winners for the Boys’ Divisions from the following Community Centers are: Senior: Douglass; Junior: Bronx River; “The Plan To Preserve Public Housing” is also available in Bantam: Hammel; and Future: Baychester. The winners for the Girls’ Divisions are as follows: Russian, Chinese, French and Haitian-Creole at NYCHA Senior: Albany; Junior: Albany (shown above); Novice: Douglass; and Future: Douglass. The season Management Offices and on the web site at nyc.gov/nycha. starts up again in February. For more information call Citywide Programs: (212) 306-3342. PAGE 2 PAGE 4 PAGE 5 RENT REFORM NOTICE FOR TOWN HALLS MORE ON THE PARKING AND PROPOSAL AND PUBLIC HEARING APPLIANCE FEE INCREASES THE HOUSING AUTHORITY JOURNAL 2 MAY 2006 THE ‘PLAN Limited Rent Reform Initiative TO PRESERVE RENT IS A CRITICAL SOURCE OF REVENUE FOR THE DAY-TO-DAY OPERATIONS OF PUBLIC HOUSING’ NYCHA’S 344 PUBLIC HOUSING DEVELOPMENTS. NYCHA has not (Continued from page 1) adjusted its ceiling rents since 1989 despite extreme market who work hard to provide for their pressures to do so. As part of the “Plan to Preserve Public families and who contribute Housing” (PPPH), NYCHA is now asking the residents who have enormously to the city deserve the highest household incomes to allot a slightly greater share of and require this extraordinary their incomes towards rent. effort.” How Rents Are Kept the households at the highest The Chairman cited examples Affordable incomes pay, on average, 15% of public housing authorities in Two key factors determine or less of their incomes for Chicago, Atlanta, Pittsburgh, public housing rents: (1) by law, rent. Newark, and Philadelphia, which public housing residents pay no These households would be faced similar challenges and more than 30% of their house- divided into three income made different choices. “Their hold income towards rent, and bands, and rent increases choices have led to the (2) a “ceiling” or maximum rent would be phased in over a two- demolition and reduction of based on apartment size year period. In no case will any public housing. This is not an caps the amount a household rent exceed 30% of income. option for New York City.” pays for rent regardless When would the new The Chairman pointed out that of income. Residents pay rents be implemented? the $100 million allocation from whichever is less. NYCHA will seek resident the city was consistent with the Who would pay higher input on the rent proposal Mayor’s commitment to the rents? through public meetings and long-term viability of public Under the proposal, the vast will submit the proposal to HUD housing. “This allocation gives majority of NYCHA households as an amendment to the 2006 Annual Plan for implementation NYCHA the time and resources (73%), whose incomes average $11,587 and who already pay by September 1, 2006. Rent to put the other elements of the 30% of their income in rent, will increases would be rolled out Plan in place.” not be affected. NYCHA will in phases as part of the annual With regard to one of those seek rent increases for only the income verification and recerti- elements, the limited rent segment of NYCHA households fication process for NYCHA increase, the Chairman (27%) who are paying ceiling households. emphasized that the most rents. This group has an aver- For more information, check vulnerable families would not be age income of $41,480 and with your Management Office affected. “We are proposing pays far less than 30% of their or log onto nyc.gov/nycha. that a small segment of NYCHA income towards rent. In fact, households (27%) – those who have the highest household incomes and pay a smaller See page 4 for the Notice percentage of their income in for the Town Hall Meetings rent – allot more of their income towards rent. These households and Public Hearing for the currently pay ceiling rents and Amendment to the FY 2006 those at the highest incomes and Draft FY 2007 Agency pay 15% or less of their incomes for rent. Annual Plans. “Given our fiscal challenges, if we are serious about saving public housing, with the city’s The Housing Authority tremendous commitment 72 years behind us, and our own efforts of Public Housing Journal in New York City to cut costs, this is the right balance of actions to ensure the ESTABLISHED 1970 • CIRCULATION 200,000 long-term viability of public housing in New York City.” Published monthly by the New York City Housing Authority Department of Public and Community Relations The Chairman attributed the 250 Broadway, New York, N.Y. 10007 deficit to federal subsidies that Tel. (212) 306-3322 • Fax (212) 577-1358 have not kept pace with the nyc.gov/nycha Michael R. Bloomberg...........................................Mayor rising cost of operating public Tino Hernandez.......................................................................................Chairman housing. These costs have been Earl Andrews, Jr. ............................................................................Vice-Chairman driven by soaring energy prices, JoAnna Aniello...............................................................................Board Member Vilma Huertas..........................................................................................Secretary pension, healthcare, labor, and Douglas Apple.............................................................................General Manager other non-discretionary costs Sheila Greene..................................Director of Public and Community Relations which have risen by 49% over Eileen Elliott .................................................................................................Editor Heidi Morales....................................................................Editor, Spanish Edition the past five years. Allan Leicht .........................................................................................Staff Writer After presenting the elements Deborah Williams ................................................................................Staff Writer of the Plan, Chairman Hernandez Peter Mikoleski, Kevin Devoe............................................................Photography encouraged the participation of If you are interested in placing an advertisement in the Journal, please public housing residents and call our marketing representatives in Marketing and Revenue Operations at (212) 306-6616. The inclusion of any advertisement in this Journal other stakeholders. “NYCHA is does not constitute any endorsement by the Housing Authority of the making difficult choices. But we advertiser or its products or services or any other representation by the must,” Chairman Hernandez Housing Authority with respect to such products or services. (Continued on page 6) THE HOUSING AUTHORITY JOURNAL MAY 2006 3 CHAIRMAN’S MESSAGE Questions and Answers The ‘Plan to Preserve Public Housing’: Summer Jobs About The ‘Plan To We Need Your Input Available Preserve Public Housing’: The New York City Housing Authority is proposing a seven-point I WOULD LIKE TO TAKE THIS OPPOR- In the Summer “Plan to Preserve Public Housing”. For specifics, please review TUNITY TO