Why is the Mixed-Finance Modernization Plan critical?
NYCHA has 21developments that were originally built by the State and City after World War II. Beginning in 1995, funding for these State and City developments was gradually eliminated. Currently the State and the City provide NO funding for these public housing units. This means that NYCHA has had to maintain these 21 developments and their approximately 21,000 apartments, by sharing the federal funds it receives for its other 325 public housing developments. In other words, NYCHA has maintained the State and City developments as federal public housing even though they have not received their own federal subsidy—nor any other government funding—for their maintenance. Almost two-thirds of NYCHA’s current $150 million deficit- approximately $90 million- is due to meeting the unsubsidized needs of the State and City developments on a yearly basis. NYCHA can no longer afford to divert federal subsidies from the federal developments.
