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Q&A
Council Member Brannan questions NYCHA on capital needs and budget priorities
0:46:42
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Council Member Justin Brannan inquires about NYCHA's capital needs, budget allocation, and prioritization of projects. Shaan Mavani, NYCHA's Chief Asset & Capital Management Officer, explains the agency's focus on core compliance areas related to resident health and safety, as well as the challenges in addressing all capital needs.
- NYCHA has $78 billion in capital needs, but only a $7.8 billion 5-year capital plan
- Investments are prioritized based on HUD agreement pillars: heating, elevators, waste and pest management, leaks and mold abatement
- About half of the $78 billion capital needs are expected to be addressed through the PACT program and Public Housing Preservation Trust
Justin Brannan
0:46:42
Thank you, chair.
0:46:43
I wanted to ask about the capital needs.
0:46:46
I see there's seven a little over 78,000,000,000 in capital needs.
0:46:51
Is that right?
0:46:53
Okay.
0:46:54
And but the five year capital plan is around $7,800,000,000 So I guess two questions.
0:47:01
If the capital need is $78,000,000,000 5 year capital plan is barely $8,000,000,000 how how are we gonna prioritize and triage those needs?
Shaan Mavani
0:47:11
Sure.
0:47:12
Thank you, councilman Brennan.
0:47:13
So we in with the current capital plan and since the HUD agreement in 2019, we focus investments on core compliance areas that relate to resident health and life safety.
0:47:26
So under the HUD agreement, we have our focus pillars, the heating, elevators, waste and pest management, leaks and mold abatement, and then a few other areas.
0:47:37
That's where most of our capital funding is allocated.
0:47:40
So of our portfolio today, which is about $6,000,000,000 active investment, dollars 2,000,000,000 is in heating, Over $05,000,000,000 is in elevators and some of those statistics that were in the testimony.
0:47:51
But basically, we focus most of our investment in the pillar areas.
0:47:55
Obviously, in addition to that, we have a number of programs that have been funded by the city that are very critical.
0:47:59
So we have a $1,500,000,000 roofing program.
0:48:02
We have over, half a billion dollars in facade work and brickwork that's critical as well.
0:48:07
And then we obviously have, generous contributions from city council members, that typically are focused on things like community centers, playgrounds and other amenities on the campus.
0:48:16
It's only about 1% of our budget, but it is a significant number of projects.
0:48:20
And so largely our funding goes directly to specific areas we're required to invest in for compliance and for resident health and safety.
Justin Brannan
0:48:28
So but how I mean, sounds great, but the pillars, it sounds like it covers just about everything.
0:48:33
So how do you triage within those within that bucket?
Shaan Mavani
0:48:36
Sure.
0:48:37
So maybe I'll just make two comments.
0:48:38
Out of our $78,000,000,000 of need, about a third of it is within apartments.
0:48:43
So everything from windows to flooring to fixtures.
0:48:46
And that's where we're not able to invest because it doesn't directly relate to those compliance areas.
0:48:50
So there's a significant portion of need that we're not able to meet today that relate to kind of day to day apartment quality of life.
0:48:59
Within each area we have prioritization that's based on that type of asset.
0:49:03
So as you would imagine, for something like heating, our prioritization is based on things like the rate of heating outages, work orders that are put in, and then what we typically call the useful remaining useful life of the asset.
0:49:16
So in a heating system, whether it's the boilers or the piping or other types of components, they have a typical life anywhere from five years up to eighty years.
0:49:25
And as those assets get to the end of their life, they start to have a lot more problems.
0:49:30
They fail more frequently.
0:49:32
We have to continually repair them.
0:49:33
And so when we're prioritizing funding in any area, we look at the key factors that should drive where the systems are in most need of investment, and then we invest on that basis.
Justin Brannan
0:49:43
And how much of that would be covered by PACT, the PACT?
Shaan Mavani
0:49:47
Our when we put out the 2023 physical needs assessment, which is where that $78,000,000,000 number comes from, at the time we were able to project that about half of that need, 40,000,000,000, would be addressed through our PACT program as well as the Public Housing Preservation Trust.
0:50:04
So those tools allow us to address about half of that need as we go.
0:50:09
And, you know, otherwise, we're looking for either extending those strategies or looking for additional capital investment for the remaining need.
Justin Brannan
0:50:16
Okay.
0:50:17
Thank you very much.
0:50:18
Thank you, chair.
Chris Banks
0:50:19
Thank you.
0:50:22
We have councilman Batra.