By, Devyn Novikoff, NYUAPPR

As of 2025, the New York City Housing Authority (NYCHA), like many government agencies grappling with chronic underfunding, faces a staggering $78 billion deficit. Housing developments across New York City (NYC) require approximately 20 years, and $78 billion in repairs—a 73 percent increase since the last assessment just five years ago. The agency lacks the resources, and capital to handle the mold, asbestos, hot water shortages, and other unsafe conditions that plague developments. NYCHA owns, and operates the city’s public housing developments, and has the largest housing stock in the United states with over 400,000 tenants. As reported in February 2025, it takes approximately 415 days for NYCHA to complete a repair––an increase from 370 days in May 2024. In order to facilitate timely occupancy, NYCHA must promptly inspect and repair vacated units prior to the arrival of new tenants. The increased repair time has caused a surge in unoccupied apartments which backlogs waitlists, and exacerbates the housing crisis. In another instance, as of January 2024, the number of vacant units had risen to nearly 5,000—compared to just 460 two years prior. NYCHA is responsible for the welfare of their tenants, and cannot fulfill their obligations without new, innovative solutions.

In the city, federal Section 9 subsidies fund public housing; Congress annually allocates funds for NYCHA’s maintenance, repairs, and other operating expenses. However, for the past three decades the government has continued to divest in Section 9 subsidies, straining public housing agencies such as NYCHA. There are two competing preservation models that aim to generate revenue, and alleviate NYCHA’s cost burden: Permanent Affordability Commitment Together (PACT), and NYC Public Housing Preservation Trust. Considering both the ineffectiveness of the status quo, and the risky, relatively unregulated nature of PACT, the NYC Preservation Trust is the most viable solution to the city’s public housing crisis. The Trust reaffirms the city’s commitment to supply affordable housing while maintaining the integrity of the public housing system. 

In 1935, Mayor Fiorello LaGuardia created NYCHA to combat the housing crisis that swept NYC during the Great Depression. Originally, LaGuardia designed NYCHA for working-class families, not those living below the poverty line. In the 1960s, however, congress restricted access to Section 9 housing to low-income tenants. Although philanthropic in theory, social issues, and crime accompanied the large concentration of low-income families in the city’s public housing developments. Disenchanted by Section 9 developments, the federal government started to divest from federally subsidized public housing, and implemented policies to restrict its growth, and development. Rental arrears have increased since COVID-19, and about 67,000 NYCHA households owe rent, amassing to $545 million in total arrears, and funding the agency has not received. The federal government is responsible for two-thirds of NYCHA’s operational revenue, but tenant rent covers the rest. In order to remain affordable, NYCHA tenants cannot pay more than 30% of their income on rent. Deductively, the lower a tenant’s income, the less rent NYCHA receives. The catastrophic combination of continued federal divestment, and growing rental arrears has strained NYCHA beyond self-sufficient repair. The agency is in desperate need of revenue that no one will offer. 

Given NYCHA’s dire state, the agency urgently needs to explore alternative solutions. PACT is a public-private partnership; NYCHA leases the development to a private management company who become administratively, and financially responsible for the building’s maintenance, and operation. Both PACT, and the Preservation Trust would convert public housing developments from Section 9 funding to Section 8. Section 9 programs require annual congressional appropriations which subsidize government-owned developments, while Section 8 ties the subsidy to the tenants, and operates on a housing-choice voucher system.  While both subsidies rely on federal investment, Section 8 vouchers apply to approved private residences which is less financially strenuous for the government than directly funding public housing. Moreover, Section 8 projects involve long-term guaranteed contracts and funding, whereas Section 9 is vulnerable to annual political and economic volatility.

Under the Preservation Trust, there is no third-party or private management involved. Rather, the Trust receives Section 8 project-based vouchers, and NYCHA retains both management, and ownership of the development. The privatization of government-subsidized housing raises concerns about oversight, regulation, and tenant protections. In order for private managers to profit without breaking affordable rent requirements, they are more likely to undermine administrative and operational standards. 

The Trust hires NYCHA to manage the building, and has a board that works together to make decisions. The Board includes NYCHA leadership, NYCHA resident leaders, labor representation, and a local government representative. Certain NYCHA developments throughout the city have held elections where residents vote whether to remain within Section 9, convert to PACT, or enter the Preservation Trust. The most viable future for NYC’s public housing stock is a hybrid approach that primarily implements the preservation Trust, and reserve PACT conversion for severe, emergent cases. The Trust maintains public ownership, while simultaneously accessing more reliable, lucrative revenue sources, and upholding tenants’ rights through more government oversight. 

The PACT program is promising, but is riskier than the preservation Trust due to its integration of the private sphere. PACT is the NYC specific offshoot of former President Obama’s 2011 Rental Assistance Demonstration (RAD) program. PACT allows for private companies to manage public housing developments, which is beneficial because they can access private capital, like tax loans, and investors, for revenue, and repairs. About 30,000 units have already converted to PACT in 2024, and maintenance results are promising. Managers complete reservations, and fill vacancies at a quicker rate. However, tenants, and housing advocates are skeptical of PACT, and the Section 8 model in general, as there is less transparency, oversight, protections, and higher eviction rates. Private landlords do not have to abide by the same stringent guidelines that NYCHA developments have. City elected officials have greater influence over Section 9 developments when advocating for their constituents than they do with private managers. Emergency transfers for tenants experiencing health, and safety issues are not approved as easily as they are under Section 9 management. PACT units are also not subject to the federal monitor’s purview that NYCHA developments are.

Currently, no NYCHA residency sites that converted to PACT actually voted to do so. In 2024, Coney Island Houses, and Unity Towers both voted against PACT conversion. In a preliminary election in April 2025, Jacob Riis House residents also voted to remain under Section 9. Zulay Velazquez, a longtime resident of the Jacob Riis House for over 40 years, said, “I want to keep Section 9 the way it is because we have more rights that we fought for, for decades.” While tenant trepidation is understandable, continuing to operate within Section 9 is not realistic. 

The Preservation Trust accounts for many of the issues tenants and policymakers have with PACT. Under the Preservation Trust, there are no third party or private companies involved in managing developments, absolving the fear of creeping privatization in the public sector. The Trust, though, can still access the same revenue streams as PACT, and generate more funds independent of government subsidies to maintain units and keep the public housing stock afloat.  The Preservation Trust prioritizes long-term solvency and public control and provides tenants with voting rights. 

The Trust is an ideal combination of Section 9, and PACT, but has potential to be meaningless if not implemented effectively. The Trust is specifically catered to NYC, and its housing market, environment, and demands, but is a relatively new program. As a government model, the Trust could face the same bureaucratic obstacles. Consistent political commitment to funding, operating, and overseeing the Trust and its developments is crucial to its success. Different political administrations policy agendas, and priorities could destabilize the entire program or change state laws to undermine its original purpose. The Trust should procure long-term capital funding, similar to housing projects like City of Yes which spans its building goals across multiple decades of funds. Meaningful housing policy requires gradual development, and investment, not only because it’s pragmatic, but to protect the government, and agencies from overspending. Tenant rights are a crucial component of the program, so the Trust advisory board must include a tenant representative with voting power, to ensure that they are protected, and listened to. 

The Trust requires more time, work, and resources than PACT. Implementing safeguards to protect the program from political, economic, and bureaucratic vulnerabilities requires capital and immense cooperation. However, given the current state of the public housing market, and the volatile realities of PACT, it is a worthy investment. NYC has always been a city of opportunities, which is not achievable without creating meaningful policies to uplift, empower, and protect citizens.