New York Housing Conference releases new Policy Brief: Housing Capital Budget Cliff, showing the steep decline in resources in upcoming years to build and preserve affordable and public housing.
New York City’s housing capital budget, which includes City funding for the Department of Housing Preservation and Development (HPD) and the New York City Housing Authority (NYCHA), decreases dramatically in FY2027. It drops from $4.5 billion in the current fiscal year (FY2025) and $4.3 billion in the next (FY2026) to $2.4 billion in FY2027, averaging $2.2 billion throughout the following eight years. NYHC analyzed the City’s Preliminary Ten-Year Capital Plan, updated every two years. The City will update the plan with the Executive Budget in April and adopt it in the fall.
The current housing capital funding includes $1 billion of City of Yes housing funding for HPD and NYCHA over the next four years as part of the City for All agreement by the Mayor and the City Council. Even with the additional funding – which comes out to more than $825 million for HPD and $175 million for NYCHA – housing capital decreases dramatically after FY2026. The intent of the City of Yes capital funding was to be additive but without a baseline funding level of $4 billion for housing capital, this funding will plug budget holes rather than support additional needs.
Under the current capital plan, NYHC estimates that HPD would produce 1,750 fewer affordable new construction units per year, compared to average production in recent years. In the Ten-Year Capital Plan, HPD will produce 15,750 fewer units of new construction affordable housing. Over that same time, NYCHA will have 72% less city funding to repair traditional public housing, and PACT and the Public Housing Preservation Trust are at risk with zero capital funds allocated after FY2026.
See full analysis here.