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AGENCY TESTIMONY
Current financial situation and future outlook
0:10:42
ยท
3 min
Annika Lescott-Martinez, NYCHA's CFO, provides an update on the current financial situation and outlook for 2025-2029.
- Rent arrears stand at $545 million as of February 2025, affecting 46% of NYCHA households
- 2025 budget is balanced at $5.4 billion, but significant deficits are expected in future years
- Five-year capital plan includes $7.8 billion in sources, with $6 billion for minor and major capital repairs
- $3.4 billion available for investments in 2025, including $3 billion for major and minor capital repairs
Annika Lescott-Martinez
0:10:42
Good morning.
0:10:43
My name is Anika Lescott Martinez.
0:10:45
I'm the EVP and Chief Financial Officer of NYCHA.
Chris Banks
0:10:51
Make sure the red light is on please.
Annika Lescott-Martinez
0:10:53
I'm sorry?
Chris Banks
0:10:54
Make sure the red light is on so we can hear you.
0:10:56
Thank you.
Annika Lescott-Martinez
0:10:56
Can you hear me now?
0:11:00
Now?
0:11:01
Thank you.
0:11:02
Good morning.
0:11:03
Just going to give you a few short updates on the NYCHA twenty twenty five to twenty twenty nine financial plan.
0:11:09
Next slide please.
0:11:14
Great.
0:11:15
So our rent arrears through 02/28/2025 stands at $545,000,000 That means that approximately 67,000 households or around 46% of all NYCHA households owe some portion of arrears.
0:11:32
This is after we successfully advocated for and received $161,000,000 in ERAP funds through the state with $150,000,000 already being applied to tenant accounts.
0:11:45
This data does not yet reflect the COVID rental arrears program or the home art program.
0:11:51
Data indicates that our cumulative twelve month rent collection rate is relatively steady at 63%.
0:11:58
This includes new charges as well as arrears.
0:12:00
And this may mean that while some households have not yet been able to completely catch up on their arrears, more households are back to making regular rent payments each month, which demonstrates an important step in the right direction.
0:12:13
Next slide please.
0:12:16
So I won't spend too much time here.
0:12:18
This is our twenty twenty five sources and uses.
0:12:21
Lisa went through it in her testimony.
0:12:23
The key pieces here to note is that NYCHA's budget is $5,400,000,000 it assumes a billion dollars in rent revenue including a hundred and 25,000,000 in home ARP funding to support our tenant arrears and that is a program that we are actively working through.
0:12:41
In terms of our uses, 1,860,000,000.00 of personal expenditures provides for salary and fringe for 12,051 full time employees as well as a $182,000,000 overtime budget.
0:12:56
And great news, we do expect a balanced budget at the end of calendar year 2025.
0:13:01
Next slide please.
0:13:04
While we have been able to balance our budget in 2025, significant deficits loom in the out years.
0:13:10
So NYCHA will implement additional cost saving measures through the years to mitigate our deficits in 2026 and beyond.
0:13:19
We do go through an annual budget process where we adjust all of our estimates for sources and uses and so we do expect to be able to make meaningful progress towards closing our deficits in the out years.
0:13:31
And lastly, on our capital budget, our five year capital plan includes $7,800,000,000 in sources.
0:13:41
6,000,000,000 will be invested in minor and major capital repairs at NYCHA properties.
0:13:46
In 2025 alone, that means $3,400,000,000 in funds will become available, of which 3,000,000,000 will be invested in major and minor capital repairs at NYCHA properties.
0:13:57
We are really grateful for our city support.
0:14:01
The city is providing 1,700,000,000.0 specifically for the HUD SDNY agreement so we can continue to make meaningful progress towards our compliance goals.