Q&A
Discussion on affordable housing capital funding and state budget impact
5:57:44
·
3 min
Council Member Sanchez inquires about the impact of the state budget's additional $14 billion debt capacity on affordable housing funding. Director Jiha explains the constraints and challenges in allocating funds for affordable housing, citing competing needs and limited remaining capacity after accounting for other commitments.
- The state budget provided an additional $14 billion in debt capacity, but HPD shows no growth in their capital plan.
- Director Jiha acknowledges the importance of affordable housing but emphasizes the need to balance it with other critical city needs.
- Even with the additional debt capacity, only about $8 billion will be left by fiscal year 2031 after accounting for various commitments.
Pierina Ana Sanchez
5:57:44
And sometimes not so friendly faces, but mostly friendly faces.
5:57:48
So you're gonna be shocked that I'm gonna ask about affordable housing, and affordable housing capital.
5:57:54
So 1st and foremost, I want to just start with the state budget.
5:57:57
The state budget provided the city with an additional $14,000,000,000 of debt incurring power.
5:58:03
However, even with the additional debt capacity, we've heard that growth in agency capital plans is still being restricted, and in particular, HPD shows no no growth in their in their capital plan.
5:58:15
So the first question I wanted to ask was what is your reaction to the New York Housing Conference's analysis that given the 2,100,000,000 in HPD capital funding next year, affordable housing production will will be approximately 30% less, than the average over the past 6 years from 18 to 23?
5:58:33
And secondly, while the mayor and the governor have both made increased construction of affordable housing a primary goal in their administrations, this HPD capital plan does not provide still does not provide the funding necessary to meet the mayor's stated goal for investing investment in new affordable housing.
5:58:50
With the provision of additional debt authority, is OMB willing to increase the city's investment in the creation of new and affordable housing to meet the goals?
Jacques Jiha
5:58:59
I'm gonna hide behind the fact that, the, the time line between the state budget and our budget was totally out of whack.
5:59:07
So, therefore, the action took place after the exec executive budget comes out.
5:59:12
So, therefore, there was nothing in the budget for housing.
5:59:14
But I'm just kidding.
5:59:16
We,
Alexa Avilés
5:59:17
Well played, sir.
Jacques Jiha
5:59:19
We are extremely, we understand exactly the challenges that, dealing with affordable housing was something that we take seriously.
5:59:28
As you know, we are very constrained by the fact that, we reach, we are about to reach our debt capacity, and we're fortunate to have the governor give us the extension of about $14,000,000,000 with 2 of those 14 basically dedicated to, school construction authority for class size.
5:59:51
So, we'll continue to work with, city hall and, and the HPD and NYCHA to understand their needs, to review their needs, but knowing at the same time that that $14,000,000,000 doesn't solve our problem.
6:00:08
Okay?
6:00:09
Because by the time we reflect the above based gels, by the time we reflect, the increased construction for COSCOs of the SCS, Quick Construction Authority, and the BQE, even with those $14,000,000,000 we're only going to have about $8,000,000,000 left by fiscal year 31.
6:00:31
Okay?
6:00:31
Which doesn't give us a lot of
Pierina Ana Sanchez
6:00:33
Which we can dedicate to affordable housing?
Jacques Jiha
6:00:35
Which we, we cannot dedicate the entire thing to affordable housing because you need to have room you need to have room, because of as part of your capital plan because you have cost overruns, you have delays, you have a number of things.
6:00:53
And very often, you know, you you also have to take into account other needs, other critical needs we have, around, this this city.
6:01:01
But again, we're working with city hall.
6:01:03
We will be working with HPD, and to see what can be reflected in future plans.
