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AGENCY TESTIMONY
NYCHA's budget structure and funding sources
0:07:36
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Lisa Bova-Hiatt outlines NYCHA's budget structure and primary funding sources for the 2025 calendar year.
- Federal funding comprises two-thirds of NYCHA's operating revenue, expected to be about $1.29 billion in federal operating subsidy
- Rent revenue accounts for one-third of operating revenue, expected to be about $1.05 billion
- Anticipation of $287 million in city operating funds and about $2.29 billion for Section 8 vouchers
Lisa Bova-Hiatt
0:07:36
I would now like to discuss a few details related to NYCHA's budget.
0:07:40
Please keep in mind that NYCHA's budget runs on a calendar year rather than the city's fiscal year.
0:07:47
Thanks to the hard work of every department, especially our finance department, we adopted a balanced budget for 2025.
0:07:57
This is a significant achievement and it follows a balanced budget in 2024 despite an initial forecast of a $35,000,000 deficit.
0:08:07
However, with the increased needs and continued rent arrears, an annual deficit is expected in the coming years.
0:08:17
Federal funding comprises two thirds of NYCHA's operating revenue.
0:08:22
This year, we expect to receive about $1,290,000,000 in federal operating subsidy.
0:08:31
As I mentioned, rent revenue accounts for one other third of our operating revenue and we expect to collect about $1,050,000,000 in rent revenue this year, including approximately a hundred and 25,000,000 in home ARP funding.
0:08:49
Rent revenue is approximately a hundred and $10,000,000 less than we should be collecting.
0:08:57
Our 2025 budget assumes a proration factor of 97.5% for the operating subsidy, $32,000,000 less than what NYCHA is eligible to receive.
0:09:11
We anticipate $287,000,000 in city operating funds for calendar year 2025.
0:09:20
We expect to receive about $2,290,000,000 this year for section eight vouchers and the associated administrative fees.
0:09:30
It's anticipated that HUD will announce the funding renewal rate by May of twenty twenty five.
0:09:36
Current proposals range from 88.6 to 97.5% of our calendar year 2024 expenditures.
0:09:48
This fall short of the current funding level of 99.5% and could impact the number of households served by the program.