Governor Hochul Signs Legislation Creating New York City Public Housing Preservation Trust

 

Legislation S.9409-A/A.7805-D Forms Public Benefit Corporation to Help Fund Much-Needed Capital Projects in NYCHA Apartment Buildings

Law Will Improve Apartments While Protecting Residents' Rights

Bill Signing Follows Governor Hochul's Announcement of Historic $25 Billion Housing Plan in FY 2023 Budget

 Governor Kathy Hochul today signed new legislation S.9409-A /A.7805-D establishing the New York City Public Housing Preservation Trust and paving the way for the overdue repair, rehabilitation, and modernization of 25,000 apartments under control of the New York City Housing Authority. Governor Hochul signed the bills today alongside New York City Mayor Eric Adams, Assembly Member Steven Cymbrowitz, and Senator Julia Salazar.

"Today is a major win for all New Yorkers who call NYCHA home," Governor Hochul said. "This legislation will unlock additional federal funding and lead to billions of dollars in renovations — after decades of federal disinvestment — and provide for critical improvements for 25,000 apartments in NYCHA developments across the city. I thank Assembly Member Cymbrowitz and Senator Salazar for sponsoring this bill and commend NYCHA leaders for their advocacy. By partnering together, we have taken an important step to ensure residents have the safe, livable, and quality affordable housing they deserve."

The new law will unlock the authority's ability to invest billions of dollars in capital to stabilize its buildings by establishing the Trust as a public benefit corporation able toissue bonds and raise capital for comprehensive building renovations and improvements.

As a result, basic environmental health and safety issues, such as lead, mold, heating, elevators, pests, as well as other systems work, apartment rehabilitation, and grounds improvements, will be better funded and completed more quickly.

Under the plan, NYCHA - which oversees the nation's largest public housing system- will now draw hundreds of millions of federal dollars in new support per year by utilizing federal Tenant Protection Vouchers that receive a higher per-unit subsidy than traditional Section 9 public housing. This additional subsidy will permit NYCHA to raise debt off the increase for vital capital improvements.

Importantly, the Trust will guarantee homes are kept permanently affordable while also preserving all current rights and protections for residents, including:

• Residents will pay only 30 percent of income towards rent;
• Residents will maintain all current succession rights;
• Apartments will continue to be restricted to low-income residents; and
• Apartment vacancies will continue to be filled using NYCHA waitlists.

In addition, residents will have the right to vote and decide whether to opt-in to the Trust. Residents will also play an active role in determining which vendors are chosen to complete renovation work at their developments.

Today's bill signing is a critical part of Governor Hochul's sweeping plans to make housing more affordable, equitable, and stable. In her State of the State address, Governor Hochul announced a $25 billion, five-year Housing Plan - later passed in the FY 2023 Enacted Budget - that will create or preserve 100,000 affordable homes in urban and rural areas across New York including 10,000 homes with supportive services. The governor also recently signed into law more flexible rules for converting underutilized hotel space into permanent housing.