Q&A
Funding challenges and compliance with HUD agreement
1:45:28
·
4 min
Council Member Banks questions NYCHA officials about the funding and resources needed to meet HUD agreement deadlines. Brad Greenburg discusses the funding status of various pillar areas and the challenges in addressing capital needs.
Key points:
- Lead abatement is well-funded, with over $770 million allocated for the first 10 years
- Boilers and elevators have received significant state, city, and federal funding
- NYCHA faces challenges in addressing severe capital needs, particularly in plumbing systems
- The authority is in regular communication with HUD to discuss potential waivers and efficiency improvements
Chris Banks
1:45:28
Does Nitra have the funds and resources to meet the proposed deadlines in the Nitra Hard agreement?
Brad Greenburg
1:45:37
I think we do in key places.
1:45:39
Like I like I said, the led abatement obligation is funded.
Chris Banks
1:45:43
Is the money there?
Brad Greenburg
1:45:45
I think it's gonna be, you know, here's what I'll say is the hardest thing for us is that we have deteriorating physical conditions and a enormous capital need, which the monitor alluded to as well.
1:45:56
There are certain provisions in the agreement that will be incredibly difficult to comply with if we don't address the very severe capital needs, including things like our plumbing system.
Chris Banks
1:46:06
Right.
Brad Greenburg
1:46:07
So if we don't address our plumbing systems, which is a probably $15,000,000,000 need, it's really difficult to address mold and leak compliance.
1:46:15
We've seen this in our packed portfolio where once they do address that capital need, they can keep up with the demand on mold and leaks.
1:46:22
It's hard for us to keep up with that demand as you mix and match materials in our plumbing systems.
1:46:28
And then you are bringing a leak somewhere else in the plumbing.
1:46:30
So I think it's gonna be difficult in some places if we don't address the capital need to get into compliance.
Chris Banks
1:46:37
Well, among the pillar areas, which requires greatest amount of addition of funding to meet the requirements of the HUD agreement.
1:46:45
Which pillar areas are best funded against the need?
Brad Greenburg
1:46:50
Our letter of payment pipeline is probably best funded that has 770 plus $1,000,000 attached to it just in the 1st 10 years from the city plus a couple of grabs we've gotten from HUD that are a few 1,000,000 as well, and then we've got out year money to do the abatement too and the testing.
1:47:07
So that's probably our best funded focus area.
1:47:10
The boilers and elevators have gotten a lot of state money and city money and federal money.
1:47:16
I'd say those are those are by the next most fun.
Chris Banks
1:47:19
Most fun.
1:47:19
Well, nitrile reported a 339,000,000 in unfunded capital needs in 2024.
1:47:26
And included 94,000,000 94,000,000 for the pillar area compliance.
1:47:33
What's nitrous plan for addressing the 94,000,000 in pillow needs that were not funded?
1:47:39
By the authority in 2024.
Brad Greenburg
1:47:44
I think those are probably operating dollars.
1:47:46
Right?
1:47:46
Not capital dollars?
Chris Banks
1:47:49
Yeah.
1:47:49
These are capital.
1:47:52
Capital needs.
Brad Greenburg
1:47:52
Unmet capital needs.
Cesar Godwall
1:47:54
Yes.
Brad Greenburg
1:47:54
$94,000,000.
1:47:56
I guess we'll go back and take a look at those.
1:47:57
I I'm not sure how they ended up getting funded.
Chris Banks
1:47:59
Okay.
1:48:00
Does Nitro anticipate a budget deficit for for forthcoming 2025 budget?
Eva Trimble
1:48:09
As you probably knew, our fiscal year is a calendar year, so we're in our budget process right now.
1:48:15
So I'd have to defer that as we are finalizing our budget to our CFO and our COO.
1:48:20
Our budget CFO and CEO rather, our budget will be going to our board in the next 2 months for approval, and then we're happy to sit down and discuss with you what our final budget position is for next year.
Chris Banks
1:48:31
Okay.
1:48:33
What support do you think nitrogen needs from the city, state, and federal government to accomplish the goals set forth in the agreement?
Brad Greenburg
1:48:43
You know, I think Neil put it probably best.
1:48:45
I mean, mostly resources.
1:48:48
I think we've got a lot of good things that we've done in terms of putting processes in place, and we're making good investments.
1:48:55
Obviously, the more we scale those investments, the better off will be.
Chris Banks
1:49:00
Is Nitro planning to request any waivers from HUD to comply with certain inspections or regulatory requirements to comply with the nitrilehood agreement?
Brad Greenburg
1:49:11
We we really do I mean, Matt said that we really do talk every day with HUD in the attorney's office in the monitor.
1:49:18
We have you gave a good example of of places where we feel like we have, you know, good approaches that maybe we need sign off from Huddl that that could save a little bit of money and also make us operate more efficiently.
1:49:31
There have been other things we've worked on around, like, our operating subsidy, other things we've asked HUD for, and HUD is oh, we have a regular weekly meeting with very senior leadership at HUD to go over these items, and it's been a very collaborative process.
