DOB and HPD play critical roles in fixing New York's housing crisis
|
Today, the New York City Council's Committee on Housing and Buildings, chaired by Council Member and Deputy Leader Jumaane D. Williams, held a preliminary budget hearing to review the financial priorities of the Department of Housing Preservation and Development (HPD) and the Department of Buildings (DOB).
HPD and DOB play a critical role in addressing the housing crisis. The allocation of funding to both agencies has a tangible effect on programs and policies designed to support tenants, protect all New Yorkers, and create and preserve affordable housing.
"The decisions made in this budget will have real impacts on families throughout New York City," said Council Member Williams. "We have an opportunity to use the budget to impact the affordable housing crisis and address the fears, frustrations and concerns New Yorkers have about displacement and the future of our communities. Preserving and creating affordability is the top concern for New Yorkers and we must make sure it's prioritized."
The central concern at today's hearing was ensuring both HPD and DOB are provided with the necessary resources to prioritize the needs of our communities. The hearing covered the Fiscal 2017 Preliminary Operating and Capital Budgets for HPD and the Fiscal 2017 Preliminary Operating Budget for DOB.
The Committee examined all components of HPD's $876.2 million dollar expense budget, and $3 billion dollar City Capital Commitment Plan, along with details and progress related to Mayor de Blasio's Housing Plan. Council Member Williams also questioned HPD with regards to state issuance of tax-exempt bonds, 421a, J-51, vacant lots, Mitchell Lama housing and other topics.
The Department of Housing Preservation and Development works to maximize the production and preservation of affordable housing for low- and moderate income families in New York City by enforcing housing quality standards, financing the development of housing development and preservation, and ensuring sound management of the City's affordable housing stock. In conjunction with these housing objectives, the Department supports a comprehensive community development agenda by conveying City owned properties, both occupied and vacant, to responsible private owners, while promoting retail development, homeownership initiatives, and productive community
partnerships.
The Department's Fiscal 2017 Preliminary Budget is $123.2 million more than the
Fiscal 2016 Adopted Budget of $753 million. The increase is primarily due to new staffing needs associated with administration; preservation unit; the development unit; the division of neighborhood strategies, and funding for building façade and elevator repairs.
It is imperative that HPD's budget fosters the creation and preservation of affordable homes. From January 1, 2014 to December 2015, HPD financed the creation and preservation of more than 40,204 affordable units citywide. More than 75 percent of the units financed to date were for extremely low, very low, and low-income families, affordable to households with annual incomes of $62,150 and below. A further 9,227 units were financed for moderate and middle-income households. To date, Brooklyn has the most units constructed and preserved, for a total of 11,847 units from Fiscal 2014-2016.About 75 percent of the units financed for extremely low income households are located in the Bronx and Brooklyn. Similarly, about 65 percent of the units financed for very low-income and low income households are located in the Bronx and Brooklyn. If Mandatory Inclusionary Housing (MIH) is passed by the Council, the program is expected to impact and increase the number of newly constructed units developed.
The Committee also evaluated the DOB's $155.4 million dollar expense budget and received updates on the Department's progress related to the Building One City initiative. Council Member Williams questioned DOB further on how the intended goals of the initiative relate to the extremely concerning rise in construction related incidents, injuries and fatalities.
The Department of Buildings ensures the safe and lawful use of more than one million buildings and properties by enforcing the City's Building Code, the City's Zoning Resolution, New York State Labor Law, and New York State Multiple Dwelling Law. The Department enforces compliance with these regulations through plan examinations, permitting, property inspections, and licensing functions. Anyone who intends to demolish, alter, or build an addition to an existing structure or erect a new structure must obtain a building permit from DOB to ensure that the resulting property structure complies with all applicable laws.
The Building One City initiative was introduced in the Fiscal 2016 Executive Budget and was comprised of several initiatives and actions to streamline online operations and reduce processing times for construction applications, strengthen proactive enforcement tools, and expedite inspections to speed the review process for new affordable housing production. These actions provided about $40 million in new funding, approximately 320 new positions and $120 million in new resources over the next four years. Comparatively, this year, the Department has implemented only marginal changes in the Preliminary Plan.
DOB collects revenue from the issuance of licenses and permits, charges for services such as inspection fees, and fines for late filings. In recent years, DOB has implemented several revenue generating initiatives, including improved service delivery in enforcement and development areas and implementing an online inspection program. These actions have resulted in a significant increase in the Department's ability to collect revenue. In Fiscal 2017, the agency expects to generate $220.2 million in revenue, while total expenditures are projected to be $155.4 million.
The budget for HPD and DOB provides an important opportunity to ensure we are using all available tools to alleviate the affordable housing crisis.
|
