Congressman Dan Goldman Fights for NYCHA Funding by Calling on HUD to Comply with Cost Saving Law
Federal Law Requires that Public Housing Agencies Receive Full Financial Benefit from Negotiated Utility and Waste Management Costs
Would Equip NYCHA with $50 Million a Year to Address Critical Capital Repair Backlogs
Goldman Joined by 12 Members of the New York City Congressional Delegation
Read the Letter Here
Audio of the Press Conference is Available Here
Washington, DC – Congressman Dan Goldman (NY-10) and Senate Majority Leader Charles Schumer (D-NY) today led 11 members of the New York City Congressional Delegation in a letter to the U.S. Department of Housing and Urban Development (HUD) urging them to comply with federal law and reverse course on regulations that shortchange Public Housing Authorities (PHAs) like the New York City Housing Authority (NYCHA) by preventing them from receiving the full financial benefit of their negotiated savings from utility companies. The members are requesting an update on HUD’s plan to comply by September 8, 2023.
By aggressively negotiating rates with utility companies, NYCHA saves tens of millions of dollars. However, current HUD regulations and policies shortchange PHAs like NYCHA by only allowing them to retain half of their negotiated utility savings. These regulations are in direct conflict with the Quality Housing and Work Responsibility Act of 1998 and cost NYCHA $50 million per year that could be used to address desperately needed capital repair backlogs.
“As you know, the statutory language in the Quality Housing and Work Responsibility Act of 1998 clearly states that ‘a public housing agency shall receive the full financial benefit from any reduction in the cost of utilities or waste management resulting from any contract with a third party,’ but HUD’s regulations and policies almost always only allow PHAs to retain just half of their negotiated utilities savings,” the Members wrote. “We urge you to abide by the Act and support PHAs that face the most significant challenges of backlogged repairs. For example, the New York City Housing Authority (NYCHA) works hard to aggressively negotiate significant savings from utilities. If allowed to retain the full benefit of their negotiated utilities savings, NYCHA would be able to use that additional $50 million per year to address needed maintenance that poses potentially life-threatening harm to public housing residents, including loss of heat in winter, loss of air conditioning in summer, lead, mold, broken elevators and locks, and more.”
State Senator Brian Kavanagh said, “I want to thank Congressman Goldman for leading this effort to allow NYCHA to retain its full utilities savings, which would provide $50 million annually to direct towards desperately needed building repairs. Public housing in New York City has been systemically underfunded for decades, with hundreds of thousands of residents living in unacceptable conditions and years-long backlogs for repairs and improvements. It is long past time that we invest fully in public housing, to provide safe and quality living conditions for all residents. This initiative of Dan Goldman and his congressional colleagues is an important step forward.”
Assemblymember Grace Lee said, “Funding for NYCHA means better, safer housing for public housing tenants across New York City, including in the 13 developments in my district. NYCHA receives reduced utility rates so it can responsibly serve its residents, but it needs access to 100% of these savings to fund its operating deficit and make repairs to the aging infrastructure in its buildings. My colleagues and I have been fighting throughout the year to fund NYCHA at the state level, and now I am proud to join Congressman Goldman to fight for NYCHA to receive the support it deserves at the federal level too.”
Assemblymember Harvey Epstein said, “New York City’s public housing is underfunded despite the tremendous value it brings to our communities. HUD needs to follow the law, which would allow NYCHA to retain $50 million per year. This additional funding could help address the years-long backlog of needed repairs and improve the quality of life for tenants.”
Councilmember Carlina Rivera said, “As the nation’s largest Public Housing Authority, it is unacceptable that tenants languish in public housing awaiting necessary repairs for years. HUD must comply with federal law to allow NYCHA to save millions in negotiated utility savings that can be allocated towards improving the quality of life for its residents. I applaud Congressman Dan Goldman’s efforts to provide NYCHA resources to benefit its nearly 340,000 residents.”
Earlier this year, Congressman Goldman also led his colleagues in calling on Congress to require the Department of Housing and Urban Development (HUD) to abide by the statutory language in the Quality Housing and Work Responsibility Act of 1998 to save the New York City Housing Authority (NYCHA) hundreds of millions over the next several years. The 1998 Act states that “a public housing agency shall receive the full financial benefit from any reduction in the cost of utilities or waste management resulting from any contract with a third party.” The letter to the Appropriations Committee also directs that the savings be used by NYCHA to address potentially life-threatening harm to public housing residents, including loss of heat in winter, loss of air conditioning in summer, lead, mold, broken elevators and locks, and more.
The letter was signed by Senator Kirsten Gillibrand (D-NY), House Minority Leader Hakeem Jeffries (NY-08), and Representatives Nydia Velázquez (NY-07), Jerrold Nadler (NY-12), Gregory Meeks (NY-05), Yvette Clarke (NY-09), Grace Meng (NY-06), Adriano Espaillat (NY-13), Alexandria Ocasio-Cortez (NY-14), Ritchie Torres (NY-15), and Jamaal Bowman (NY-16).
NYCHA is the country’s largest Public Housing Authority, serving nearly 340,000 residents in over 160,000 apartments. New York’s 10th Congressional District is home to 31 New York City Housing Authority developments with over 35,000 residents.
As one of his first acts in the House of Representatives, Congressman Goldman, along with Congresswoman Nydia Velázquez (NY-07), introduced the Public Housing Emergency Response Act. This bill would allocate $70 billion in funding for capital repairs and upgrades to public housing throughout the country. $32 billion of the allotted aid would be expected to flow directly to NYCHA.
Read the letter here or below:
The Honorable Marcia L. Fudge
Secretary
Department of Housing and Urban Development
451 7th St. SW
Washington, D.C. 20410
Dear Secretary Fudge:
We write today to urge you to act to ensure that the Department of Housing and Urban Development (HUD) complies with federal law and reverses course on regulations that shortchange Public Housing Authorities (PHAs) by preventing them from receiving the full financial benefit of their negotiated savings from utility companies.
As you know, the statutory language in the Quality Housing and Work Responsibility Act of 1998 clearly states that “a public housing agency shall receive the full financial benefit from any reduction in the cost of utilities or waste management resulting from any contract with a third party,” but HUD’s regulations and policies almost always only allow PHAs to retain just half of their negotiated utilities savings.
We urge you to abide by the Act and support PHAs that face the most significant challenges of backlogged repairs. For example, the New York City Housing Authority (NYCHA) works hard to aggressively negotiate significant savings from utilities. If allowed to retain the full benefit of their negotiated utilities savings, NYCHA would be able to use that additional $50 million per year to address needed maintenance that poses potentially life-threatening harm to public housing residents, including loss of heat in winter, loss of air conditioning in summer, lead, mold, broken elevators and locks, and more. This matter is of the utmost importance, and we urge you to address it as soon as possible. We request that you update us on your plan to do so by Friday, September 8th.
Thank you in advance for your time and attention to this request.
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