FY 2027 Executive Budget Hearing
Committee on Finance | Committee on Criminal Justice | Committee on Housing and Buildings | Committee on Public Housing | Committee on Oversight and Investigations · June 2, 2026 · 5hrs 45m
Source: https://hearinghearings.nyc/hearings/committee-on-finance-executive-budget-hearing/

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Your seats. Good morning. Welcome to the New York City Council Executive Budget Hearing for the Committee on Finance, joined with the Committee on Criminal Justice, Public Housing, Housing and Buildings and the Committee on Oversight and Investigations. Please silence all cell phones and electronic devices. As a friendly reminder, do not approach the dais. If you have any concerns or questions, please see the Sergeant at Arms. With no further ado, we are ready to begin.

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Good morning, everyone. Good to see you all. Welcome to the sixth day of the hearings. I am Council Member Linda Lee, chair of today's hearings. Today's hearings will begin with the New York City Department of Correction, followed by the Department of Housing Preservation and Development and the New York City Housing Authority and the Department of Investigation. I am pleased to be joined by my colleague, Chair of the Committee on Criminal Justice, CM Selvena Brooks-Powers, and we have been joined by Council Members Wong, Bottcher, Restler, Majority Leader Brewer and I think that is everyone right now.

So welcome to our Commissioner, Commissioner Stanley Richards and your team. Thank you all for joining us today to answer our questions. On May 12, 2026, the administration released the Executive Financial Plan for FY26 to FY30 with a proposed FY27 budget of $104.7 billion. The Department of Correction's proposed FY27 budget represents less than 1% of the administration's proposed FY27 budget in the Executive Plan, and this is a decrease of 0.4% from what was originally budgeted in the Fiscal Year 27 Preliminary Plan. This decrease results from several actions, including a vacancy reduction and uniform savings due to the reduction of over 500 positions, civilian overtime savings and contract renegotiations. As of April 2026, DOC was 1,239 less than their FY26 budget headcount.

Throughout this year's budget process, we raised concerns about the chronic overtime spending in Correction as well as the high vacancy rate due to ongoing staffing shortages and the ever-increasing population on Rikers Island. I would also like to take this opportunity to address an issue that is very personal for me. Over 50% of the population — and I know that you know this, Commissioner, because you and I had conversations about this in our former roles — but 50% of the population has a mental health diagnosis. I am hopeful now that contracted providers have been brought back onto the island to provide services that not only provide enrichment, education and life skills but also programs that are vital to maintaining the mental health of the persons in our jail system as they await their trial dates.

However, there is so much work to be done to ensure the custody and care of every individual within the justice system, and I look forward to hearing from you, Commissioner, about how the department will work through these challenges now and in the years to come. I now want to turn it over to my co-chair for this hearing, CM Brooks-Powers, for her opening statement.

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Thank you and good morning. I am CM Selvena Brooks-Powers, Chair of the Committee on Criminal Justice. I want to thank Chair Lee for co-chairing today's Executive Budget hearing and to thank everyone for being here. I think you mentioned the members we are joined by. So today's hearing will focus on the Fiscal Year 2027 Executive Plan for the New York City Department of Correction and the continued fiscal challenges facing our jail system. The department's proposed Fiscal Year 2027 budget totals approximately $1.3 billion and comes at a time when the City continues to face serious concerns regarding staffing shortages, facility conditions, safety, infrastructure and the ongoing effort to close Rikers Island and transition to a borough-based jail system.

The Executive Budget reflects significant investments in jail operations and infrastructure, including funding for cell door improvements, maintenance work across Rikers Island facilities and the accelerated opening of the Bellevue Outpost Therapeutic Unit. At the same time, the department continues to project substantial savings through vacancy and overtime reductions, resulting in the elimination of hundreds of vacant uniform positions despite ongoing staffing shortages and operational challenges.

Today we will examine how the department intends to safely manage its facilities while operating below budgeted headcount levels and reducing staffing positions. We will also focus on programming, visitation, medical escorts, staff safety, detainee safety and overall jail operations. Additionally, this hearing will explore the status of the City's borough-based jail capital plan, which now totals nearly $11.8 billion through Fiscal Year 2030. We will seek clarity regarding project timelines, construction progress, cost increases and how the administration plans to manage continued operations on Rikers Island during the transition period. We will also discuss the ongoing issues of state-ready individuals remaining in City custody, the fiscal burden this places on the City and the operational impacts associated with delayed transfers to state facilities.

The Committee looks forward to hearing from the Department of Correction regarding how the Executive Budget addresses these ongoing challenges and what additional actions may still be necessary to improve conditions, strengthen accountability and ensure the safety of both staff and incarcerated individuals. I would like to thank my staff and committee staff for their hard work: Casey Lifscheme, Senior Financial Analyst; Finance Assistant Director Jack Story; Chad Benjamin, Policy Analyst; Jeremy White, Counsel to the Committee; Julian Martin, my Deputy Chief of Staff; and Renee Taylor, my Chief of Staff. I thank everyone who is joining us today and look forward to a thoughtful and productive discussion on the Department of Correction's Fiscal Year 2027 Executive Budget. Thank you, Chair.

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We have also been joined by Council Member Narcisse. So because of the shortened timeline for the budget hearings, we are having all of our public testimony on one day. Wednesday, June 10 at 9:30 a.m., we are going to have public testimony for all the different City agencies. So please make sure to sign up. For folks that are sitting here and listening actively, make sure to take notes and ask questions when you come in that day. We want to hear from you. So I just wanted to make that announcement.

We are on a tight timeline, so if we can keep both questions and responses as brief as possible, because we want to make sure to get through all the members' questions, that will be greatly appreciated. And without further ado — oh, and the hearing later today at 4 p.m. is actually going to be at 250 Broadway, not here, because we are getting kicked out of this room, right? Yes. Okay. So without further ado, I am going to pass it on to Brian Self, our amazing committee counsel, for the swearing in.

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You may begin. Good morning, Chair Brooks-Powers, Chair Lee and members of the Committee on Criminal Justice and Finance. I am Stanley Richards, Commissioner of the New York City Department of Correction and I am joined today by members of the department's leadership team. Thank you for the opportunity to discuss the department's

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Fiscal Year 2027 Executive Budget and the work ahead of us to strengthen safety, stability and accountability across our system. When I appeared before the Council in March for the Preliminary Budget hearing, I spoke about the vision and priorities that would guide my leadership. I said then that transforming a system like ours is not like turning a speedboat. It is like turning a cruise ship. That remains true today. Meaningful change in a system as large and complex as ours requires discipline, consistency, partnership and a sustained effort. It requires a balance of bold urgency and quiet patience.

In the first four months of my tenure, I have spent a great deal of time listening and learning. I have listened to the dedicated staff who work tirelessly in the jails every day. I have listened to the people in our care. I have listened to advocates, providers, labor partners, oversight bodies and many members of this Council. Listening and learning is quiet work, but it is not idleness. Listening matters because people closest to the work often understand the challenges best, and we cannot undo harm or hope for a better future if we do not understand the challenges that led us to the place we are in today.

While listening is important work, it is not static work. My team and I have been moving with urgency on issues that matter because the stakes are high every single day. Over the first months we have taken meaningful steps towards preparing the department for the future while addressing immediate operational needs. We opened the City's first Outpost Therapeutic Housing Unit at Bellevue Hospital, creating a new model of care for people in custody with complex medical needs and expanding access to specialized treatment in an environment designed to support health and dignity. We reached an important milestone in the borough-based jail transition with the topping off of the Brooklyn facility and continue planning efforts with our sister agencies to prepare for one of the most significant transitions in this City's history.

We also welcomed 261 new correction officers into our ranks, the department's largest graduating academy class in nearly seven years — an important investment in rebuilding our workforce and supporting safe operations. At the same time, we have continued engaging collaboratively with the Remediation Manager and his team as they onboard and establish their operations. We view this work as complementary to our broader goals of strengthening accountability, improving effectiveness, reducing violence and creating systems that are sustainable over time. Real progress requires partnership, and that includes our partnership with the court and the Remediation Manager.

I want to speak candidly about where we are as an agency so that conversations today are grounded in a shared understanding of current conditions. The department does not have control over who is in our care or for how long, but we are a critical player in ensuring there is a strong continuum of care before, during and after one's incarceration. Currently we have approximately 6,700 people in our care, which is significantly above where we were several years ago, despite having fewer staff. We need support from all of our partners to bring that number down, to promote safe operations in the near term and to get to the number we envisioned for the borough-based jails. Continuing to manage a population this large creates operational pressures across nearly every aspect of the department's work, from housing and transportation to medical escorts, programming and supervision.

But population growth alone does not fully describe the challenges we are managing. Today's population presents increasingly complex behavioral health and services needs. As CM Lee described, many individuals come into our care experiencing housing instability or substance misuse, a history of trauma and limited social supports. More than 4,100 people in our care — approximately 60% of the population — have a BREH designation indicating increased interaction with mental health services. In addition, 20% of the people in our care are identified by our partners at Health and Hospitals Correctional Health Services as having serious mental illness. These realities shape how we staff facilities, how we coordinate movement, how we deliver programming and how we partner with Correctional Health Services and others to provide care before, during and after incarceration.

This is why I continue to say that safety and humanity are not competing values. They depend on one another. Our staff are asked every day to manage situations involving complex human needs while also maintaining secure operations. Correction officers are not social workers, but the reality is they often find themselves operating in environments that require compassion, patience, communication and partnership, in addition to their traditional correctional responsibilities. They have one of the toughest jobs in the City and we need to support them in this work.

That is why one of my priorities continues to be returning to what I have called Corrections 101. Safe jails begin with the fundamentals. Housing areas must be properly supervised. Required tours must be completed. Services must be delivered consistently. Concerns must be elevated and addressed appropriately. Policies must be understood and carried out. These are not small things. Many of the issues identified repeatedly across oversight reports, recommendations and operational reviews ultimately point back to correctional fundamentals: communication, supervision, responsiveness, accountability and consistency.

None of this happens without a robust workforce. One of the things that has impressed me most during my tenure as Commissioner is the strength and diversity of the people who choose to work in this department. Women play a critical role throughout this agency at every level of service and make up nearly half of the uniformed workforce. Women serve disproportionately in uniform leadership positions as supervisors, wardens, deputy wardens and executive leaders, including our very own Chief Rembrandt, Chief of Department. We have built a leadership bench that increasingly reflects the workforce and the City we serve. The number of women in uniform leadership positions is something we should recognize, not because leadership looks one way, but because talent and opportunity should not be limited. Building the future of this department means that talented people see corrections as a profession where they can lead, grow and shape outcomes.

That brings me to something I know many people have questions about: the reduction in budgeted uniform headcount reflected in the Fiscal Year 2027 Executive Plan. I want to address this directly because I know our staff are paying attention. Uniform staff are not being terminated and no positions are being eliminated. To achieve this reduction, the adjustment reflected in the Fiscal Year 2026 and 2027 budgets is a reduction in vacant budgeted positions based on current recruitment and attrition projections and alignment with where we realistically expect staff levels to be. We are currently operating below our authorized staff levels and have been for quite some time, and have been candid that recruitment and retention remain difficult, not only in New York City but across corrections and law enforcement nationally. We are grateful that Governor Hochul, with the support and advocacy of Mayor Mamdani and this City Council, restored the 20-year service retirement for our uniform staff. Our members of service deserve parity with other uniformed services, and we are hopeful that this restoration will strengthen workforce stability and improve the ability to recruit and retain experienced staff. Health and safety is more than a number. If we want

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People to stay. We must create conditions where staff feel supported, safe, respected and should expect that they and their families should expect that they come home safely at the end of every tour. That expectation is fundamental. This adjustment runs contrary to that fundamental expectation. In fact, the opposite is true. For years, the borough-based plan has contemplated gradual steps, staff efficiencies over time as infrastructure changes and operations modernize. But our media focus remains on recruiting officers, retaining experienced staff and reducing unnecessary overtime, supporting wellness and making this work sustainable over the long term.

Before I close, I will briefly turn to the Fiscal Year 2027 Executive Budget. For Fiscal Year 2027, the Department of Correction's budget — the vast majority of this, 82%, is allocated for personnel services and 18% for other than personal services. The Fiscal Year 2027 Executive Budget decreased by $121 million compared to the Fiscal Year 2025 budget. Some of the increases to the executive plan include the Bellevue therapeutic housing unit uniformed staff male stipends at in Fiscal Year 2026 and $314,000 in Fiscal Year 2027, now baselined. One-time Bellevue accelerated opening funding in Fiscal Year 2026 only, which also covered rehabilitation housing at the George R. Vierno Center and West Facility and preparation for closing the North Infirmary Command. A one-time increase in Fiscal Year 2027 to replace 1,800 existing cell doors on Rikers Island with high security doors, and a one-time increase in Fiscal Year 2027 for facility maintenance and the purchase of contraband detection mattresses.

This Fiscal Year 2027 Executive Budget also included reductions as part of the Mayor's Executive Order 12 citywide savings initiative. These savings did not compromise safety or services to the people in our care. Some of the savings include contractual deficiencies totaling approximately $6 million in Fiscal Year 2026 and $3 million in Fiscal Year 2027, a civilian overtime reduction in Fiscal Year 2027 and the reduction of 386 unoccupied uniform budget lines in Fiscal Year 2026 and an additional 200 in Fiscal Year 2027, totaling 586 unoccupied lines in Fiscal Year 2027 baseline. These savings amount to approximately that in Fiscal Years 2026 and 2027 respectively.

This fiscal year, the Fiscal Year 2026 Executive Capital Budget and commitment plan totals, which covers Fiscal Years 2026 through 2036 as of the Fiscal Year 2026 Executive Budget. The majority of the capital funding is tied to the borough-based jails program, which totals over the 10-year plan and is allocated as follows: Brooklyn facility, Manhattan facility, Bronx facility and Queens facility. We continue to work diligently to attract and retain both civilian and uniformed staff. The department's total authorized headcount as of the Fiscal Year 2027 Executive Financial Plan is 8,426, which includes 6,674 uniform positions and 1,752 civilian positions. Despite the uniform unoccupied line reductions, our actual uniform staff levels remain well below our authorized headcount. The department will continue to recruit at full force through investing in aggressive advertising and marketing campaigns to attract new staff.

In conclusion, the Fiscal Year 2027 Executive Budget reflects the reality of operating a correctional system in this moment: population pressures, aging infrastructure, staffing challenges, preparation for the borough-based jails and continued investments in modernization and safety. It reflects difficult choices and a commitment to operating responsibly while continuing to move this department forward. We remain committed to closing Rikers Island and preparing the borough-based jails, and we remain committed to ensuring safe and humane conditions for our staff and the people in our care throughout that transition.

Thank you for allowing us to come and present to you. There are no shortcuts and there are no quick fixes, but I believe progress is possible when we are honest about the challenges we face, disciplined in how we respond and committed to keeping people at the center of our decisions. Putting the people first is not simply a slogan. It means supporting staff so they can support others. It means creating safer conditions. It means investing in people and expecting excellence from one another. And when we do that, safety improves, services improve, outcomes improve and public trust improves. Thank you for your partnership and your continued engagement, and we look forward to your questions. Thank you.

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Thank you so much, Commissioner. We have also been joined by Deputy Speaker Williams, CM Salaam and CM Narcisse. I have to say there were quite a few of us on the Council that actually went and did a tour of Bellevue Hospital and the facilities and the mental health programming there. So I just wanted to commend you for doing that because, as we all know, it is very easy to fall through the cracks from different parts of the criminal justice system. So it is really crucial we have a lot of these services that are available to them. So thank you for that, and I know they have an additional request which we are looking at at Bellevue Hospital for their mental health services, so we will be taking a look at that.

Okay, so really quickly, I just have questions related to four different topics and then I will move it along to our chair. So in terms of the outstanding terms and conditions, one of the conditions of funds in the units of appropriations — there are three of the Department of Correction units of appropriations. Those are the Office of Criminal Justice Coordinator, DOC and MOCJ, which are supposed to submit a forecast or relevant plausible policy impact models given the makeup of the actual observed jail population and related trends. The first report was supposed to be submitted on or before January 15, 2026 and cover the period beginning July 1, 2025 and ending December 31, 2025. I believe the report is still outstanding. So I just wanted to get a sense of what you think the timeline would be to receive that.

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Thank you for that question, and I will turn it over to my colleague to speak more specifically about it. We understand that that report is overdue and we want to report accurately on the timeline and what is needed. So we are in the process of conducting an assessment so we could be transparent to the Council and really speak to where the department is and what the plan is moving forward. It is important for us not to just submit a report for the sake of submitting a report. Checking boxes is not something that we want to do. So we ask for your continued patience. We appreciate your patience and your partnership and we will get that report to you with accuracy and detail so that you understand where the department is.

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And if you could also speak to, as you are going through this, what some of the challenges are, if there are challenges.

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I do not think there are any challenges, so to speak. I think it is just a delay. So we will follow up with the Council on exactly when we will submit that, but I think we are well underway on that report and again we are hopeful that you will have it soon.

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Okay, perfect. And if you could get back to us on the timeline, that would be great. Thank you. Okay. Contracts: following recent concerns raised by public defenders regarding privacy and data collection, is the department reconsidering renewing its contract with Securus? Am I saying that correctly? Yes.

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Yes, Securus is the right name. Okay. Again, I am going to turn it over to my colleague to speak to that issue. So the department underwent a public process and received a number of vendors. Securus was one of them and it was selected as the vendor for the communication system that we

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have. We have looked at all of the concerns and the letters and we are still undergoing a review of how we could shore up and make sure that all data security within the contract and even our practices ensures that there are no issues with data privacy, security or otherwise within the Securus contract. So right now we are looking at ways to ensure compliance, but I do not know that we are in a position right now of reconsidering the renewal of the contract. But we will follow up on that as well.

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And how long was that contract?

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It was initially put out for a five-year contract with an option for a five-year renewal, but we are reviewing that internally as well.

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Okay. How many other bidders did you have?

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I think there were five total and it came down to three.

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Finalists. Okay.

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Yes. If you could keep us updated on that progress, if there have to be a cap or whatever it is that they need to fix those issues, that would be great if you keep us informed.

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Okay. I am sure you alluded to this — state reimbursement for state-ready programs. At the preliminary budget hearing, you testified that the department receives reimbursement on a per-diem basis for all the state-ready individuals who are in your care for more than 10 days. Is that correct?

Yes, that is correct.

Okay. And what is the current reimbursement rate you receive from the state?

I am the Deputy Commissioner of Budget and Finance. We received — I am sorry, your question was how much is the reimbursement rate?

Yes, the reimbursement rate.

So it is about a hundred dollars a day per individual in custody for over 10 days, excluding those in medical status.

Okay.

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In the Council's preliminary budget response, we recommended that the state and the city enter into an agreement to make more equitable reimbursements, as it costs over $400,000 to house a person on Rikers Island for one year. I actually think it costs more, does it not?

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But in any case, is that a conversation that has been happening or that you would be willing to advocate for? We would love to engage in conversations with our state partners about that. At the moment, we are under an agreement between the Department of Correction and the state, and further conversation is always welcome.

Okay. I think what I would really like is for the state to take the state-readies, and they have been — I just want to acknowledge their work. They have been really good since the lift of COVID, when we had close to a thousand state-ready people. That number has significantly come down and they continue to take people up. So we usually hover around about a hundred, just over a hundred state-readies, but they have been consistently taking people up and I really just want to acknowledge Commissioner Martin's team for working with us to move people up.

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Okay, and how many state-ready persons have been in your custody for more than one year? Because you said hundreds, but is that for the over-10-days stay, then?

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When I look at the census on this, it is usually about a little over a hundred people, a combination of newly sentenced and on parole. Okay. Well, I do not think we have — do we have anybody that has been... no. We had, when there was the state wildcat strikes, we had people who were here way longer than they should have been that were sentenced. Now it is usually not longer than four to six weeks from sentencing until transfer, and that cadence is pretty consistent now.

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Okay. And have there been any reimbursements to the department for state-ready persons held in custody since last year? Five million dollars year to date, I

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believe the last reimbursement was around, but just over $2 million approximately.

Okay. And then so to date there are approximately — just as you mentioned, Commissioner — a hundred state-readies currently on Rikers right now. How many do we have? Chief, as of today: 131. Yes. Okay.

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Great. And I am just going to ask a few questions about capital and then pass it off. I know you are not eligible to receive capital funding outside of the borough-based jail projects without applying through other agencies. Can you walk us through what that process entails and what projects have you applied for via that process and were they approved?

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Yeah. Thank you. So as you know, we cannot apply for capital funding unless the capital funding request meets the five-year useful life term, which DCAS would need to certify that whatever project we initiate has value beyond five years. We have asked for a waiver in 2025 for some fence repair. That waiver from the Comptroller was denied. That was the only waiver we requested.

Okay. And are you able to calculate the total amount of expense funds that have been spent on potential capital projects? Because sometimes I know that agencies need to, you know, switch things around. Can you list those projects?

Yes. So it is a little difficult to say exactly, because there is an opportunity cost when it comes to not having availability for capital funding. Essentially, any kind of facility maintenance and repair project that we would have done that would have been capital — if we had to use expense dollars to do that, over since 2022 when capital funding became ineligible, would be the cost of that. We have

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to look into it exactly for what the exact numbers are, and we could follow up with that, but that is the general gist of that.

Okay. And then concerning the borough-based jail design-builds, which I visited the one in Queens I think a couple of years ago — there is funding budgeted for 2033 in the capital plan for a community center in each borough with a facility. So can you just clarify what the function of the centers will be and why it is not scheduled to begin until 2033?

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In each of the borough-based facilities, as we were doing community engagements very early on, what we heard is that communities wanted some kind of community use space. So each of the facilities will have a community use space that will be managed, I believe, by DYCD. Okay. And that space will be available and used by DYCD for community services.

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And it will include wrap-around type services and access to services, obviously, for those in the

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jails too. Yes, every borough-based jail will have space for service providers. So as people are being discharged, they will be able to engage with service providers and get services right there.

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Okay. And with the budget being so far out, have you factored in inflation and other cost increases that will most naturally happen in the time?

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While the borough-based jails will be operated by... I think that question is probably best for someone else to speak to the budget projections. As you know, the cost as originally projected versus what the cost is now is influenced by market influences over time, cost increases for materials and that sort of thing. They would be in a better position to answer that specific question.

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Okay, great. The capital commitment plan includes funds through Fiscal Year 2027 for repairs related to damage from Hurricane Sandy, including replacement of damaged trailers and roof construction for multiple facilities. Have these repairs happened over the last 13 years and do they still need and require funding?

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So generally these are just leftover federal funding. Right? We are not utilizing them. We are not operationalizing these. They are essentially supposed to evaporate over time, but the City still needs to conduct reconciliation and for that purpose they are in our budget at the moment. But we are not operationalizing them at all.

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Okay. And then so would it be possible then to have it reallocated to some other

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necessary capital projects, or because it is federal, does it have to stay in

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that? That is right. No, it is restricted to federal funds. Okay.

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All right. I am going to pass it off to Chair Brooks-Powers.

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Thank you, Chair. I am going to start with staffing and overtime. The executive plan reduces the Fiscal Year 2027 uniform budget headcount by 586 positions when compared to the budget uniform headcount at adoption. How do you anticipate that this will affect day-to-day operations and future overtime spending within the department? Thank you.

(00:38:59)

Thank you for that question. I think there are two variables on that we need to pay attention to when it comes to overtime. One is we have to fill the vacancies. We are a 24-hour operation. Safety is a primary concern and so overtime is largely driven by asking officers to do additional shifts. As we hire, we will be able to reduce the reliance on overtime. The other variable is population reduction. Working with all of our partners at community-based providers, the City Council and new investments that the City Council has made in diversion programs, we begin to bring down the population. As we bring down the population, we will be able to reallocate those staff and so we should see a reduction in overtime.

But as I said earlier, this is sort of a cruise ship moment. I think we need to chip away at it and we have alignment right now with all of our partners to work on that. So we are recruiting heavily. We have a class that we will be starting in the middle of the year, we have another class that we are going to be starting at the end of this year, and we have to be launched. So we are working really hard to try to bring people into the department so we can reduce our reliance on overtime.

I know we have spoken before in terms of the efforts to attract applicants to positions, and I would like to know what changes, if any, you are planning to make to the job descriptions, eligibility requirements or training. Are you shifting the way in which you are recruiting and also what is being offered with these positions to make it more attractive to potential applicants?

So we are doing a couple of things. You might have seen we really professionalized our marketing and advertisement with commercials really showing the diversity of the work opportunities that the department has. We are also really elevating the department's profile on social media. I think part of what was preventing people from signing up and joining the department was all of the bad press that was happening about the department — people did not see that as a place where they wanted to build a career. We are trying to change that. We worked with DCAS to try to waive the test fee and we are making headway there. We have a recruitment team that is going out and recruiting. Talking to Commissioner Martyr from the Veterans Department about tapping into some of the military installations close by New York to see if people who are coming out of the military are interested in joining Correction. So we have a full court press on trying to recruit.

We implemented a new strategy where everyone who signed up for the test will be receiving a letter from me welcoming them into the department, letting them know that the highest level of this agency is interested in joining, wants to see you, and values and appreciates you for signing up. We are hopeful that those efforts, with the efforts of our partners, will yield the kind of classes we need to make sure that we can reduce overtime because we are bringing in new staff.

(00:42:47)

I like that. I like what I am hearing around that. How many Department of Correction staff are eligible for retirement this year? I will turn that over to my colleague.

(00:43:02)

As of today, there are approximately 460 individuals who can retire as of today — uniform members of service. And does the department...

(00:43:13)

...expect to be able to fill all the vacancies left by retiring staff in the upcoming year?

(00:43:20)

We are certainly working on it. That is part of the challenge. We just had a class of 261 and we got a group of over 400 that is eligible for retirement. When we look at how many of those take it up — historically, about 88% of those who had retirement eligibility retired. So me and the team are working on how do we retain those officers. We are proposing a number of strategies to try to increase retention.

The appointment from the City Council, the Mayor and the Governor signing off on 20 years was a huge incentive. I think our officers felt respected, they felt valued, they felt heard, because they have been advocating for that for many, many years and now they have an administration and a City Council that has stood with them and said we believe in you and we see you. I think that goes a long way. That is part of the change we are doing in the department — this is a rising tide lifts all boats moment. We need to value our staff and appreciate our staff, and when we can do that for them, they can show up in ways that value and appreciate the people who come into our care.

(00:44:37)

Thank you for that. The Nunez federal monitor's reports offer many recommendations for better staff management. While we know that the remediation manager will also have a role in staff management, can you outline your strategy for how to better manage and replace staff going forward?

(00:44:59)

One thing we have done is we issued a reorganization. The Office of Administration, which manages our staff deployment, is now reporting into our Senior Deputy Commissioner, in partnership with the Chief of Department. We are engaging in a post analysis — we are doing that both with the COC and with a consultant, and we are working in partnership with the remediation team. The goal really is to assess what is the staff and structure we need to manage this particular population in this situation. That work is ongoing and is in partnership with the remediation manager. The budget for Correction...

(00:45:55)

...Academy recruits is being cut by 77%, a total reduction of $3.5 million. Why is this cut being proposed and is the department expecting to hire 77% fewer recruits?

(00:46:13)

I will turn it over to our Senior Deputy Commissioner. Can you talk about the cut that was mentioned? I do not have that information.

(00:46:21)

Regarding the Correction Academy recruits, I understand it is being cut by 77%. That is not going to happen. We will...

(00:46:33)

...have to follow up. We do not have that as a cut in our budget overall.

(00:46:45)

So it was not entered as an official change, but it was entered into the report as year over year, so it showed a decline of $3.5 million.

(00:46:57)

So you are going to get back to...

(00:46:59)

...us. We will have to get back to you. I am not aware of that.

(00:47:02)

Okay. And budget...

(00:47:04)

...documents show the following number of officers assigned to court pens: 333 in Manhattan, 226 in the Bronx, 187 in Queens and 150 in Brooklyn. Can you give an explanation for these numbers and how many people in custody are typically in each of the...

(00:47:23)

Give me a moment — the Chief can speak to the number. I do not know if we have the number for court pens, but I can tell you we do about 700 court transportations every day. The boroughs with the most admissions, when you look at them, are Brooklyn, Bronx, Manhattan, Queens and Staten Island. 700 court transportations a day — I do not know how it breaks out by borough, but that is the number we see on transportation. Maybe Brooklyn is showing the least amount.

(00:48:11)

Good morning. Sherry Amour, my Chief of Department. Yesterday it was 653 — 651 court count — and the breakdown is as follows: on any given day, Manhattan is 379, Brooklyn is 98, Queens is 83, the Bronx is 83 and Staten Island is eight. Thank you.

(00:48:38)

I am going to pivot to the cell doors, which I think is the most common topic. In recent correspondence, the department has stated that approximately 2,900 doors currently need repair, yet expected facility closures and other efficiencies will reduce the number of doors that need repair by approximately a thousand, adding $23.7 million in this plan to repair 1,800 doors. Can you walk us through how exactly you arrived at this figure and why you believe that only 1,800 doors need to be repaired, and which housing units will be prioritized for these...

(00:49:23)

...repairs? Yes, I will ask our director who runs FMRD to speak specifically to that question. But for us, this is a safety and urgency issue — to fix as many doors as we can while simultaneously reducing population and preparing the department for the future of borough-based jails. Over time, my hope is that the 1,800 will get us to a place where we have reduced population through our partnerships and have begun to transition into the borough-based jails. But I think that is an ongoing assessment and that is what we have right now.

Thankful for all, and be thankful to Mayor Mamdani and First Deputy Mayor Dean for supporting this initiative and understanding how critically important safety is for officers and for the people in our care. So I will turn it over to the director.

(00:50:41)

Sure. In recent correspondence, the department has stated approximately 2,900 doors currently need repair, yet expected facility closures and other efficiencies will reduce the number that need repair by approximately one thousand, adding $23.7 million in this plan to repair 1,800 doors. Can you walk us through how exactly that figure was arrived at, and why the department believes that only 1,800 doors need to be repaired? And then once you answer that, I would like to know which housing units are going to be prioritized with the repairs.

(00:51:21)

So as the Commissioner stated, I think very clearly and well, it is an ongoing assessment, compiled with the depopulation, the phasing out of the facility, and so on and so forth. As far as the location that is being identified, that is OBCC Tower, and the thought process was that that is one of the primary locations that has the greatest need for safety and security, particularly for doors.

(00:52:09)

So of the 1,800 doors, how much would OBCC account for?

(00:52:15)

They are all... okay, so you are only focusing on OBCC? Yes, for this — this 1,800 doors will be for OBCC.

(00:52:26)

In a perfect world, if you get the money to fix these doors, is the problem solved on the door issue at that point?

(00:52:36)

In a perfect world, we would continue on this project and continue changing out doors as necessary. So then, in fact, the 2,900 doors is still the true number if everything stayed the way it is — no population reduction, no borough-based facilities. Yes, but...

(00:53:05)

...we are not going to stay that way. We know the borough-based jails is imminent. So with that in mind, is the 2,900 still something we need to consider? Because if we are looking at trying to support the need of the department, we want to know the true number in terms of the doors needed for safety.

(00:53:26)

Right. So as I said, there are sort of two variables to respond to. There are two variables. One is the population reduction — we reduce population, we can consolidate. We reduce population, we can consolidate housing units and take units where the doors are not working offline. So there are two things: borough-based jails, which you identified as some time off, but population reduction is right in front of us. If we do that, we can consolidate and would not need to get to the 2,900. So there are two sort of variables driving it and that is why it is sort of an ongoing assessment.

(00:54:13)

Thank you for the clarity. The preliminary plan baseline was $2.5 million for the door replacements, then the executive plan added $23.7 million for fiscal year 27. What is budgeted to repair doors in fiscal year 27 and also what is the cost to improve or replace one door?

(00:54:39)

The director could talk about the cost per door and finance can talk about the budget.

(00:54:46)

The cost to repair one door system is roughly around $14,000. If I had to give you an exact amount I could get back to you, but it is just a little over that.

(00:55:09)

Regarding the budget for next year, the $2.5 million that we received was absorbed as part of the total fiscal year 27-28 $23.7 million that we received. We are still baselining in fiscal year 28-29 to continue this replacement as needed. The objective is to focus on the facilities that require the most attention — right now it is OBCC — but we will continue ongoing assessments and figure out which facilities need it the most, in hopes of servicing the facilities that will potentially be open for the longest period of time before the borough-based jails are online.

Again, over time, as the borough-based jails come online and we consolidate housing areas, we will be able to repurpose the doors in those facilities. Therefore, we will not require the total 2,900 that we were anticipating, which is why we only requested 1,800 doors total. I think that is what you were looking for. Thank you.

(00:56:12)

In the same vein, but pivoting to the borough-based jails, have you made progress with City Hall concerning next steps of transferring land parcels over to DCAS per Local Law 16 of 2021?

(00:56:32)

We are constantly assessing what we could do to turn over property to DCAS, working with DCAS and our partners on that. We will be turning over a facility once it gets decommissioned and we are looking for every opportunity as population reduction happens to strategize what are the places we can consolidate, so we can continue to turn over properties. Those are ongoing conversations and I think we have demonstrated our commitment to closing Rikers and moving off the island. We opened up the outpost of beds and now we will be turning over RNDC to DCAS.

(00:57:22)

I am going to ask one more question and then I am going to yield so my colleagues can ask questions.

(00:57:26)

On average daily population, Commissioner, you have spoken about your intention to better utilize the 6A early release program, and you have testified that you have assigned more staff to review people for potential release. The Board of Correction made recommendations in July 2025 to update the eligibility requirements for the 6A program. Do you agree with those recommendations and are you planning to implement them?

(00:57:56)

My commitment is to assess everyone who comes in on a City sentence to see if they could safely be managed in the community. 6A, as you know, is not a diversion program — it is a work release program. So we vet people, both sides eligible and connected to services, when that is appropriate. We are going to use 6A. But the reality of it is, I think, we have a little over 500 City-sentenced people in our care. We have 6,700 on average people in our care. 6A is not the tool to help us do population reduction. It is a tool to help people transition from our care into the community with appropriate services.

I think as we look at population reduction, the City Council has been an amazing partner in supporting alternative incarceration and supervised release, and has been building out the transition housing. I think those are the tools that, with the courts' partnership, could help us meaningfully reduce population.

(00:59:09)

Noted. Commissioner, how many people have been released via 6A since you started in this position?

(00:59:29)

My name is Nelle Cologne. I am the Deputy Commissioner for Programs and Community Partnerships, and I want to answer this and kind of frame it in two ways. One is that there have been approximately 10 people, but that is not the full picture — we have offered it to more than 10 people. Ten people have accepted. We have approached approximately 15 people. Five of those have refused and 10 have...

(00:59:58)

...agreed. I just want to add some context here. There have been ongoing conversations under this administration about how we utilize 6A, and there are currently options we are exploring for how we are using it to the best of our ability and looking at what supports people need in the community. We want to make sure that before we put somebody on 6A on a work release program, they actually have all of the support that we would like to see them have.

Do you find that housing is a factor in access and eligibility for this program? Are there people who would be good candidates for the program but lack stable housing and are therefore not released?

(01:00:42)

Housing is not a factor in not releasing, and I say that because we work closely with the Mayor's Office of Criminal Justice and all of our community-based providers like the Fortune Society, who have actually been able to secure transitional housing for people. It has not appeared to be a barrier for us because every person that has identified that they need housing has received housing through these partnerships.

(01:01:08)

We have also been joined by CM Epstein on Zoom and we will start with our Deputy Speaker, followed by CM Cabán. Hello. Good morning. I have been asking all the agencies questions about the status of the department. They will develop new training courses related to conflict resolution and appropriate use of force and ensure all uniform staff complete the training by the end of 2026. Have these new training courses been developed? If not, how many staff have completed the training so far?

(01:01:52)

Thank you for that question. I will ask my colleague to answer specifically, but let me just frame it: racial equity, as in the equity plan, is something we are committed to. As I said earlier in my testimony, nearly half of our officers are women. When you go above the rank of captain, it goes up to 60%, showing that our officers are trained with appropriate skills to manage the current population. We have 60% with BRAD designation and 20% seriously and persistently mentally ill, so it is important for them to be trained.

(01:02:36)

So with respect to the specific program that you are referencing, the training curriculum is under development. We are working on that, so no one has been specifically trained yet on that. But I think we are still optimistic that we will be on pace by 2026 to complete that training and to have all uniform officers complete it.

(01:02:54)

That is the journey. That is what we endeavor for. We do have thousands of officers. We still hope we can do that, but again, it is because we have to make sure that the jail is secure and we move the officers into the training in batches.

(01:03:11)

The plan states that it will track violent incidents disaggregated by race. Has the department already identified racial disparities in violence, use of force or disciplinary actions within the facilities? We track uses of force. I do not believe we track it by the lens you described, but we track use of force in multiple ways. That is one of the Nunez requirements, so we look at it by facility, we look at it by incident and we look at it in multiple ways. I need to get back to you on whether or not it is tracked as you described. Okay, thank you. You all said that you were going to start tracking it disaggregated by race, so you set that plan.

(01:04:08)

I need to get back to you on where we are at with that.

(01:04:10)

One strategy identified in the plan to improve staff retention is the development of an employee satisfaction survey. I know you talked a lot about employee satisfaction and supporting employees, and I actually found out that I think I have the highest number of correction officers in my district, so this is important to me. So how far along are you in developing and implementing that survey?

(01:04:41)

We have already implemented a survey and we are developing teams of leader officers in each of the facilities that will be the credible messengers about getting feedback on what the officers need. Staff wellness and staff support are really important to me. That is why I am out there touring and talking to officers. I do not want to just collect data for the sake of collecting data. I want to collect data and hear what they are experiencing so we can take action on it. We have done it and we are going to be running it through the remaining facilities.

The other thing that we started doing: we have a wellness center where care staff operates and we provide hot meals. When I came, they were providing hot meals in the wellness center where officers really cannot get to because they were on post. The person who now oversees care understood that and understood we were missing something, and we have created rotating food delivery. So when care makes breakfast, they deliver it to the facility to make sure the officers who cannot get off post and cannot get out of the facility have a hot meal to eat. That has been received really

(01:06:05)

well. Just one more question in terms of how your racial equity plan is referenced or included in the FY27 executive budget. Two things: there were several goals in your plan requiring new technology systems to improve data tracking and reporting, so I just wanted to know if any of that is reflected in the FY27 executive budget. Different things such as new data systems to support historical data tracking, a digital log book system to track compliance and minimal standards, and a new programming tracker system. And then you also said that you plan to expand a therapeutic housing unit in partnership with Correctional Health Services, so I just want to know if there is funding reflected in the executive budget to support those facilities and services.

(01:06:59)

I will have our finance team talk about the budget, and our programs team can talk about what we have done with programs in terms of substance misuse and the partnership with Correctional Health Services.

(01:07:16)

So yes, we have been implementing many, many projects that are aimed at that specifically. The largest project we have is our jail management system project, which is a combination of both capital and expense funding. It is close to — I want to say it is over 60 million. Yes, $60 million. On the Bellevue therapeutic housing unit, we were allocated approximately $2.1 million as part of the 2026 plan for the accelerated opening.

(01:07:53)

Yes, and I will answer the program questions. If we dive a little bit deeper into that specific goal, the first strategy within that is the Correctional Health Services expansion, which does reference the Bellevue therapeutic units, which did open. We have been working in close partnership with Correctional Health Services to make sure that our programs are supportive and supplementary to the clinical work that

(01:08:17)

they are really providing. As we move along in how we are expanding program opportunities across multiple facility sites, I am going to use the example of our substance misuse services. Since that has been implemented, we have opened up a sober living community in one of our facility sites with the opportunity to expand, we hope, shortly. We have also expanded substance misuse education courses as well as peer-related groups across multiple housing units throughout the agency in multiple jails. We are fortunate to bring, while not the clinical treatment that is done by Correctional Health Services, additional therapeutic access and support, and that is from the lens of substance misuse services.

We are also partnering with the Osborne Association on a trauma-informed care contract, and in the last six months have onboarded the majority of the staff associated with that contract. We have them now at two sites providing groups to people in our care. We are ensuring that we are expanding therapeutic access and over the last six months have been very intentional about where we are having this access.

(01:09:33)

That sounds great, but given this is a budget hearing, could you share how that is reflected in the executive budget? Is it reflected there?

(01:09:42)

Yes. If we look at the Division of Programs budget, it is approximately about $27 million. About 85% of that is contracts, so that is roughly about $23 million associated with contracts. How we articulated that in the specific racial equity plan is that we identified about $22 million worth of those contracts as associated with advancing the racial equity

(01:10:10)

plan. Thank you. CM Cabán, followed by Brewer.

(01:10:14)

Thank you. Good to see you, Commissioner. Thank you all for being here. I want to kind of pick up where Chair Brooks-Powers left off on the conversation on Intro 6-A. I appreciated that you also said, hey, this is not the strategy to incarcerate. We have got a long ways to go. The census is historically high, unfortunately, and it is true that you do not get a say in who goes through those doors, but you do have a responsibility once they are there.

It was interesting — yesterday we had the public safety executive budget hearing and the NYPD Commissioner testified that everyone on Rikers was there on a felony, which we know is demonstrably false. So you started talking about the population a little bit. I know you said that as of today the population is a little over 6,700 — right about that? Yeah, above it. So it is about that, and then a bit over 5,000 of that are people who are held on pretrial detention, so they cannot afford to meet the conditions of their bail.

These are the numbers as of the 31st — I did not check this morning, but as of a couple of days ago, over 370 incarcerated for misdemeanors, a hundred incarcerated on technical violations, and then I thought this was disturbing: there are seven people as of a couple of days ago who are there on violations, not even crimes. They are incarcerated on violations. So there is room to decarcerate, and decarcerate pretty heavily, and we have done it before.

My question for you, Commissioner, is: do you agree that in order to reverse this trend we are seeing of an uptick in the census, NYPD and prosecutors need to be partners in working to reduce the census? Because like you said, Intro 6-A alone is a fraction. What are

(01:12:19)

your thoughts there? I think, as Mayor Adams said, for all of these entrenched problems that New York has been dealing with, it is going to take an all-of-government approach. So yes, it is going to take partnership. When I framed out the strategy for my administration and said it is people first, there are four pillars to people first. Number one is safety, and that is making sure that we get contraband out of our facilities. Two is program innovation. As you said, we do not have control over who comes in, but when they come in we have an obligation to provide care for them and an opportunity for them to build a new life. So creating program innovation. And then the population reduction is diversion.

My deputy commissioner and I and my team have talked about creating a second-look opportunity with prosecutors and defense. We need to take a look at whether there are people in our system that we could safely divert to have their cases managed in the community. I am willing to be in those conversations. I am willing to convene around those conversations because when we reduce population, we can then begin to consolidate population, we can then begin to address our overtime issue and our staffing challenges. When we get the people who could be served in a better situation — like the people with serious persistent mental illness — that means our officers do not get splashed and do not have to be social workers and clinicians when they are not. This is an all-of-government, all-of-City moment that requires the partnership you describe. So yes, I agree that we need to have all hands on deck.

(01:14:16)

Thank you. I just want to summarize that for the record. It is a multipronged approach. We need everybody, including NYPD and prosecutors, to rethink how and when they are utilizing or setting somebody down the path of ending up in Department of Correction custody. You are acknowledging that there is just an overwhelming amount of BRAD designation in the jail system, meaning people who are struggling with mental health issues that need a different kind of care. I appreciate that that is the approach. I am really proud and grateful to have your leadership. I was just concerned when the Chair asked the really good question yesterday of the Commissioner — hey, do you see a role in helping with the census on Rikers — and she said no, I do not know where we come in on that. So I really, really appreciate the holistic approach you are taking. Thank you, Chair. Great. Thank you. CM Brewer,

(01:15:13)

followed by Restler. Thank you very much and congratulations on everything. One question: Bellevue. I know I have been there a couple of times. How many people are there now? Approximately 96. Okay, that is great because it was like 104 beds. Next. Yes. How... Next. Is the food — I mean, I am a nut on this topic. So as you know, James knows and Chelsea knows, we visited the cafeteria, we ate the food, we met with the staff, we gave them awards. But the food budget has been cut from $19 million to $18 million.

(01:15:52)

And obviously we want good food. So how are you going to rationalize that given inflation, but also the need — I think as you are talking about programming, which is important, so is health in my opinion — and also supporting local farmers? It is a great question and I am going to turn it over to our Senior Deputy Commissioner who can talk to you about food and nutrition. He oversees it, and I can tell you we heard you and we appreciate your comments and we are looking into the food that we provide.

(01:16:25)

From growing... and a little salt, just once in a while. Thank you. We

(01:16:28)

heard you on the salt. Yes.

(01:16:32)

So with respect to the salt, we do follow nutritional standards. We follow the standards for the health of the people in custody and for the food that we serve. With respect to the budget, we do not have any shortfalls there and we were not cut in the most recent financial plans in any way that would impact our food budget. In fact, the whole team at Nutritional Services is looking at ways that we can deliver more and better food every day. Over the last

(01:17:03)

two weeks we have piloted getting a sense of what everybody's favorite meal is and whether we can roll out more of that. We are adding more of those meals to our menu right now. We are actively putting out a survey on food and we are developing a new tech system to develop a new menu and to make sure that that menu is in accordance with our food policy and standards.

(01:17:27)

Okay, so you have not been cut.

(01:17:29)

We have no budget issues there. What is the food budget, do you know? $19.9 million.

(01:17:37)

Okay, okay. Thank you. And then I assume you will work with GrowNYC because your staff knows how to do that, because that would mean fresh fruits and vegetables. If you ever fixed that pier, the boat could go from the hub across the river right to Rikers Island. I am just saying. Yes. On voter registration — we did talk about that when I was last at Rikers — I am wondering if you are inviting the Campaign Finance Board or the Board of Elections, and whether all the tablets are updated to be able to facilitate that. We do have a big election. I do not know if they will make it for the primary, but we have a big one coming up. I think the Deputy Commissioner of Programs could answer that.

(01:18:17)

She is very good at programs. Oh, thank you. So we were, last year, talking about voter registration. Actually, in the month of... we piloted at our jail sites a congregate voting effort so that every person that had signed up for an absentee ballot was brought in to do their absentee ballot in a congregate space, socially distanced and set up so it felt more like a true voting experience. We piloted it with our goal and intention that as it comes up and when we receive our absentee ballots for the larger election, not just the primary, we are able to actually utilize that system with the Campaign Finance Board as well as with the Board of Elections, so that we are bringing a truer voting experience for those who have signed up for their absentee ballots.

(01:19:09)

Do you know how many people signed up? Do you have the data yet?

(01:19:12)

For the primary I will have to get back to you on the exact number, but because for the primary you have to be registered in a specific party, it was just over a hundred. I think it was close to 120 people who had absentee ballots given to us, provided to us at this time. But I do just want to highlight that voting is still occurring. Yeah, okay, quickly.

(01:19:38)

Another report noted that workers' compensation for employees exceeds that for all other City agencies. When they receive their workers' comp, what category of leave are they designated to? I remember this report. Is it sick leave, medical leave or something else? This has been something that the press has picked up on, as you know. So what progress has been made toward implementing the recommendations? Chief,

(01:20:07)

could you speak to that? Good morning. We have to get back to you on exactly what we are implementing from the recommendations. Okay, good.

(01:20:18)

CM Brewer, I will jump in on that. The policy adjustment is ongoing. We are working on how to adjust the policy, which was one of the recommendations. The second recommendation was the appointment of a person responsible for that. We already have an individual who oversees, as part of her function, the workers' compensation claims. We are assessing whether or not it is worth creating a new position, expanding that portfolio, or contracting her portfolio to just cover workers' compensation. So we are still under assessment for that and the policy considerations are under development.

(01:20:57)

Okay. It seems to me that is an important issue because it does come up quite a bit. All right, thank you.

(01:21:03)

Thank you. CM Restler, followed by Wong. Thank

(01:21:05)

you so much to the co-chairs today for your tremendous leadership. I just want to start by saying, Commissioner, of all the meetings I have had in the first five months of the year, going out to see you and your team at Bellevue was among the very best. It felt like we are just experiencing a tremendous moment at the Department of Correction, with leadership that really cares about delivering much better outcomes for the people who are incarcerated, the people who work at Rikers Island, the families of the people at Rikers Island, and everybody who is connected to the criminal justice system. The care that you bring to this work and the experience you bring to this work is tremendously and urgently needed, and I am really excited about everything that you and your team are going to accomplish in these next few years. I am grateful

(01:22:00)

It sounds like we are making good progress at Bellevue, and I want to thank the Deputy Speaker and CM Brewer for their questions. At your preliminary budget hearing, I mentioned that at your executive budget hearing I was going to come back for an update on Woodhall and which are the next phases of our correctional health therapeutic bed facilities. These were all fully funded by the de Blasio administration. They never went away. We just did not have the will or the commitment from the Department of Correction to move them forward over these last four years, which was disgraceful, and I just want to say that very plainly.

Can we get a plan — you know, a hundred and fifty-odd beds at Woodhall and the hundred-odd beds in our central facility? I will have our first deputy commissioner speak to that, but I can tell you what we have done differently from the last administration. Where the last administration used an intermediary to talk with the Department of Correction and Correctional Health Services, we have now stood up a standing meeting with the Department of Correction, Correctional Health Services, to make sure that we are all in the room and we are walking through the decision points we need to make and the steps we need to take, with everybody being in the room as opposed to having conversations with a few and then passing them on. What a difference it makes when somebody actually wants to solve the problem rather than being a barrier to it. Exactly so.

(01:23:25)

We get it. We appreciate it. But I would say — tell me, how are we doing on the money? This is a budget hearing. We need to understand what the timing is.

(01:23:34)

Yeah, here we go. Council Member, as the commissioner said, we are working in an all-hands-on-deck way with H+H, Correctional Health Services, the CEO of the Department of Correction. We are going through the final designs now.

(01:23:57)

Some will be a little bit faster. We are looking at likely 2029, but trying in every way we can to move that up as much as possible. We do have an update on timing.

(01:24:11)

Both are along the same timeline. Woodhall

(01:24:15)

would likely come first. Just for the record, when these were announced it was anticipated that Woodhall would open in 2023 and the other in 2025. There are hundreds of people that will suffer on Rikers because of the failures of the Adams administration here. I appreciate you all getting this back on track.

I think what I will just ask is my final question. It is a big one, so I will just leave it as open-ended for you to respond to. We are three years away from Brooklyn opening. There are more than twice as many people from Brooklyn and Staten Island in your custody today than can be accommodated in the Brooklyn jail. What are the specific things that we can point to in this budget? What are the things that we need to be prioritizing and investing in moving forward to actually drive the population down so that everybody from Brooklyn and Staten Island — I am looking out for you, Frank — can be accommodated in our facility?

Secondly, the Adams administration sliced in half the number of therapeutic beds that were planned for the Brooklyn facility. Have you begun to identify strategies for how we

(01:25:19)

can provide alternative therapeutic care models to serve more of the people, recognizing, as you do in your testimony, that nearly 60% of the people in custody today have a mental health designation?

I think the strategy is population reduction. The City Council has been amazing in supporting diversion. So the more we can expand that capacity, the more we can bring online housing — and committed to and rolled out a housing plan — those are the kinds of resources people in our care need when they come home. We have strong partnerships with service providers like Fortune Society, Osborne Association and others.

(01:26:02)

You know anyone at those organizations? I know something about one of them, all the way

(01:26:07)

back. Yeah. Look, the mayor and this Council — we need to start prioritizing significant expansions of those investments. We are not going to hit our population reduction goals if we do not have the money in the budget right now to actually get on track. All of us together need to start getting real serious, real quick. So thank you very much. I really appreciate you. That is something we are looking at in the budget as well.

(01:26:29)

CM Wong, followed by

(01:26:31)

Morano. Thank you, Commissioner Richards. The original cost of the borough-based jails was about 8 billion dollars, and today when we look at the budget the costs have ballooned and the completion dates have slipped to 2031 or 2032. At what point do we — does everybody in this room — acknowledge that closing Rikers is no longer fiscally or logistically credible? What are we doing to face that reality? Can you talk about it?

(01:27:15)

As I said in my opening remarks, I think we have to continue to focus on population reduction. As a department we are doing everything in our power to expedite the borough-based jail process. We are committed to closing Rikers, and every step we take, every decision we make, we hope that we are demonstrating as an administration our commitment to closing Rikers Island. I cannot speak to the 2027 deadline — I think that is a City Council conversation — but we are committed. Make no mistake, we are committed to closing Rikers. If we can begin to do population reduction, and there are things we cannot do alone, but in partnership with community partners and the courts we could begin to do it. I think in the last Lippman Report there is a blueprint on what we can do to bring down population through case processing, through increased diversion and housing stability. The question is whether or not this is the moment — and I believe it is — where we can work in partnership to make that happen.

(01:28:29)

I read the Lippman Report myself. I also read the legal analysis published by City Journal earlier this year, which says that the current jail plan, the borough-based plan, violates the correction law, which requires Rikers to remain the City's jails until new facilities are operative and funded. If that is true, then it potentially requires the Council to amend Local Law 49 before any closures can legally proceed. Do you agree with that, or is that something you would have to look

(01:29:12)

into? I think that is probably a question for the Law Department in terms of how that law would work. I think my role and my commitment to the City Council is that this administration is going to work every single day to pull the levers that we can pull to expedite the borough-based jails and reduce the population. We do not have control over who comes in. We do have control over how we treat people when they come in, the kind of resources we leverage to ensure that when they leave they do not come back, and to connect them to our community partners. That commitment I give to you right now and to the City Council. Do I have time for round two later? Thank you.

(01:30:00)

Okay, CM Narcisse, followed by Mealy. Thank you.

(01:30:04)

Thank you, Chair. Thank you, Commissioner, for your testimony. I appreciate you being here. You testified that the department currently has approximately 6,700 people in custody and that we need support from other stakeholders to get that number down for the borough-based jail system. What population level does the department believe is necessary for the borough-based plan to function as designed, and what specifically gives you confidence that we can get from 6,700 to that number, whatever that number is?

(01:30:39)

Thank you for that

(01:30:39)

question. The number is what we are building to, which is 4,100 beds in the borough-based jail system. So we need to bring that number down to around that number. I think what gives me hope is what we did when we all pulled together in the midst of a medical crisis — COVID — where we saw the population go down to around 3,700 or 3,600, because we all pulled in the same direction. We knew that leaving people in jails and trying to place people in our shelters was not a safe and healthy place for them, and so we pulled together and we leveraged City resources and community partnerships to bring the population down safely. We brought the population down, and I think that is the kind of effort we need to have right now, where we do not see opposition as the thing to focus on — we see our partners as the thing to focus on. Because this is New York City, and this is a moment where New York City can do big things. We can show the country that in New York City, a city of over 8 million people, we could safely reduce our reliance on incarceration, make sure communities are safe and thriving, and make sure people who were incarcerated can build a new life. We have done it before and we can do it again.

(01:32:06)

You spoke eloquently about the importance of a robust workforce and noted that staffing shortages remain one of the challenges. Yet the budget reduces 586 uniform positions. I know you alluded to this earlier, but to reiterate: if staffing is essential to safety, why is the City reducing authorized uniform headcount?

My colleague can speak more specifically to that, but I can tell you what we looked at is what our hiring projections are. We have had vacancies for many, many years, and like other correctional systems they are dealing with staffing shortages as well. The number that we put in there is a number that we feel allows us to hire up so we can have safe jails and be able to reduce the vacancies, because those would be positions that we would not be filling anyway. I would just add that the budget still allows us to hire over a thousand correction officers today if we wanted to. So we have the resources to hire the staff we need to bring down all of our overtime issues. This is a very thoughtful process to think about what our true operational needs are. But we can still hire. Do you want to make one more point, or do you want to wait for round two?

(01:33:35)

Thank you. Thank you, Chair. As you said, one of your priorities is — I think you call it Corrections Adrian One, which I think is a great term and a great philosophy: proper supervision, commitment to accountability, responsiveness, consistency, everything. If you had to identify

(01:33:55)

the single greatest obstacle preventing you from consistently getting those fundamentals right today, what would it be?

(01:34:09)

I think it is a couple of things. One, I think, is morale. Staff come to work and have not felt valued or part of the process. They have felt isolated, just like the people in our care. I think when people feel diminished, they show up in ways that reflect that diminished value they feel. Part of what we are doing is saying, as we look at population reduction and safety, we have to also look at how we value our staff and appreciate our staff so that

(01:34:52)

when they show up to do the job, they show up with their full selves and they show up doing exactly what they need to do. So morale is a big piece of it. The other piece of it is that I think we have tried to punish our way into compliance, and if we have learned anything over the decades, it does not work. So how do we create teachable moments for our staff? Where people are coming in and want to do the right thing but do not do the right thing, how do we use those moments as teachable moments rather than punishment moments?

(01:35:29)

We are giving staff the tools and the support necessary to show up and do the job as needed, and that is what this administration is doing right now.

(01:35:39)

Thank you. We have been joined by additional Council members. We have CM Nurse, followed by Salem.

(01:35:47)

Good morning, Commissioner, and thank you to your leadership. Thank you, Chair. Thank you for your work. As a matter of fact, this is a new approach — lived experience — which is very important. My question comes from my lived experience as a registered nurse doing reentry programs and visiting folks.

(01:36:08)

Reports show over 17,000 missed medical appointments in June 2025, up roughly 35% from earlier in the year. What is this budget funding to reverse that, and what monthly targets are you committed to?

(01:36:34)

I will start by saying I agree that every person in our care, when they need medical attention or request medical attention, should receive it. There is no question about it. The question is how do we get there. Part of it is around staffing, part of it is around creating efficient systems to allow us to track it, monitor it and address it in a timely way. I will have my colleague talk to the specifics.

(01:37:08)

I will probably need to follow up on the following questions: how many escort and transport posts are currently filled on a typical day, and how many of those missed appointments are attributed to no officer

(01:37:26)

being available to transfer the person? I am James Boyd, Deputy Commissioner for Quality Assurance and Compliance. Good to see you again, Council

(01:37:37)

Member. I have to circle back. Do you swear to tell the

(01:37:41)

truth, the whole truth and nothing but the truth before the Council Members? I do. Medical access to care, as you know, remains a top priority. We are contributing to that conversation with our partners at Correctional Health Services to make sure we are finding innovative and creative ways to support people who have high medical needs. As the commissioner alluded to in his testimony, we are dealing with a population that has a high level of care needs.

I have to go back and look specifically at the snapshot you are referring to when it comes to missed medical appointments. But overall, in calendar year 2025, there were just over 773,000 scheduled appointments. Of those, there were 5,500 instances of missed medical appointments due to no escort, accounting for less than 4% of non-production and less than 1% of scheduled appointments. I do not say that as a measure of success or an acknowledgement of success — there is more work to be done. I think this is an opportunity to work toward a forward-facing solution, and I do think that means leveraging technology and system integration.

For the long-standing partnership we have had, there has been a reliance — through no fault of anyone's own — on operating with paper and emails. Just last year we launched a pilot to use a clinic production dashboard, a shared application that allows us to track the universe of clinic production regardless of whether appointments are scheduled, unscheduled requests or walk-ins. That was a game changer, because these applications allow for transparency so everyone knows if someone is getting access to whatever level of care they are supposed to receive in a facility, regardless of whether they are being transferred to another facility. We had success at one facility and we are hopeful that we are going to be rolling this out at a larger facility, hopefully this month. I do think that is the source of hope and optimism for improving access to care for people in custody. When everybody knows what is happening, if we are just relying on paper and lists and emails it is ripe for inefficiencies. Having more data, documentation and a more efficient system allows us to tackle this problem a little bit more

(01:40:15)

clearly. On the staffing — we are working on the staffing to make sure we get the support. I do not have that staffing metric, but we can certainly circle back.

(01:40:24)

That escort is needed to get those folks to their destination.

(01:40:28)

Good morning. Good morning. On collaborating for the staffing — the staffing is part of the escort function for the clinic, but we have taken it even a step further. Anyone can escort a person in custody to an available appointment. So we have taken this step further in that we are not just relying on clinic staffing for that — anyone can assist by taking the person in their care to the clinic.

(01:40:55)

Let me put that in operational context. There are always challenges, as you know. When it comes to priorities, the priority is safety first. We make sure that all of our housing units are fully staffed. When the warden is looking at where staff need to be assigned, the priority is safety first — so it is the housing units — and then we staff for escorts and other

(01:41:29)

activities. Chair, I have one more question. If the jail population were lowered or was able to be consolidated, which facility would you close first? What plans, if any, do you have to spend money on the physical infrastructure at Rikers? How much money do you plan to spend during fiscal year 2026 and fiscal year 2027?

(01:42:00)

Is that in the budget? If so, it would be included in the executive budget. I have it under a line item, but if you want me to repeat it...

(01:42:13)

No, no, no. We will have the Deputy Commissioner answer the budget question and then the Chief can answer what facility she would want to close if we were able to reduce the population.

(01:42:29)

On the budget side, and we alluded to this earlier, due to the off-Rikers plan, we are not capital eligible to do any kind of infrastructural repair on our facilities themselves. So any sort of repair would have to be done through the expense budget of what already exists. So there is not anything necessarily carved out within the budget structure specifically, because it is all encompassing for the entire island. But exactly where we would designate that or where we would allocate those funds for which facility — that is always ongoing. It is whichever facility needs it the most. But in terms of speaking purely on the capital side, we cannot utilize capital funding for the repair of our facilities themselves. So I want to be clear about that.

(01:43:21)

Okay. And I am so worried about the care of the officers who are working out there as well. So I will leave it at that.

(01:43:28)

Wellness is very important as well.

(01:43:30)

Thank you. Thank you. Councilmember, followed by... how do you do.

(01:43:37)

I was going to answer that. Not too close, not because of the name of RNDC. I know that is where we house our young adult population, but we can repopulate them in another facility. I would look to close RNDC, follow behind AMKC, follow behind... follow behind... pros and cons. Thank you.

(01:44:01)

Thank you, Chairs, and great to see you. Just a few questions. So on state readiness, in terms of the persons the Council identified, 66 million in

(01:44:14)

unclaimed state reimbursements for incarcerated state-ready persons in City jails, which the executive plan did not reflect — what is the status of recouping those funds, and how many people are currently held in City jails awaiting state transfer? I know part of that question has been answered earlier in terms of the people being held, but...

(01:44:34)

Yeah, so we sort of alluded to this earlier. Right now I do not exactly know how those numbers were derived — the 66 million — because we have a very prescribed way of how we get reimbursement from the State. It is a hundred dollars for each individual in custody who has been in our care for over 10 days after their declaration day, meaning the day that we tell the State that they were ready to be transferred. 66 million seems to be a high amount, so we are going to need a bit more detail on that. But yeah, we can get the details to you all as well.

(01:45:18)

I apologize. Can you repeat the second part of it, please? The second part was: what is the status of recouping these funds, and how many people are currently being held in City jails awaiting state transfer?

(01:45:36)

State-ready: 131, 230 in terms of the investigations capacity.

(01:45:49)

The plan creates a Senior Deputy Commissioner for Investigations to oversee the Criminal Intelligence Bureau, trials and adjudication. How will this position improve accountability for use of force and in-custody incidents, and what reporting will be made available

(01:46:10)

publicly? Yeah, so underneath the new org chart that we submitted, the Remediation Manager will oversee all investigations. So that is the IDEA unit, the Investigations Division, which is the gang investigations unit, trials, and adjudication — which is where members of service get their formal charges, which are charges that are handled on the facility level. And adjudication, which is part of how the people in our care get their infractions adjudicated.

The idea is to consolidate those units under one Senior Deputy Commissioner. The Remediation Manager was hired and started yesterday, to really streamline the process and create efficiencies. Because one of the things we want to do is have procedural justice. I look at cases now that have been going on since 2024, and that is not fair to our officers. That is not procedural justice — that officers who have had an interaction and it has taken two or three years to get their case adjudicated. So this role is to create those kinds of efficiencies. This role is not to have more punishment. Accountability is going to be part of it — it always has been — but it really is about creating efficiency so that members of service can have the procedural justice to get their cases heard, adjudicated and finalized, and they can move on with their career, as opposed to having an infraction or a charge hanging over their head for two or three years. I look forward to working with Nick and his team and the Senior Deputy Commissioner to create those efficiencies by way of policies, workflows and outcomes.

(01:48:20)

Thank you. I just have one last one. In terms of conditions spending, records indicate it covers mold removal, painting and contraband detection mattresses. What measurable improvements in housing unit conditions does the department expect, and how will progress be tracked for facilities serving residents from communities most affected by incarceration? Thank you.

(01:48:47)

Thank you for that question. My whole approach is building out what I call "everyone starts with an A." Traditionally in corrections, you have to earn your way into better housing or into some extra privilege. What I want to create is a system where everybody starts with an A, and that gives people something to hold on to, as opposed to trying to earn something that they do not believe they would receive. So we are building out — we have hired an Associate Commissioner to help us build a young adult program. We are working with Nick, the Remediation Manager, to build out the pilot program for restrictive housing that will help us pilot how we do restrictive housing while meeting the local law requirements. We are building out program services in the facilities to ensure that people, when they come into our care, have something to hold on to, as opposed to something that they feel they have got to earn but do not believe they will ever earn.

(01:49:58)

Thank you, CM Feliz. Thank you so much, Chair. Good morning, everyone. Good to see you all. Thank you for being here and thank you for all the work you do on the issue of public safety in our City. I have a few questions about overtime and also mental health related issues. I guess I will start with the mental health questions. What are the top mental health related issues facing people at Rikers Island? What are the top issues that people generally seek help for?

(01:50:30)

I could not speak to that specifically — I am not a physician. Correctional Health could speak to that. What I do know is the indicators: about 60% of the folks are BRAD H., and I know Correctional Health Services has very specific criteria to hit that eligibility. I do not know what that is. Other indicators include having multiple sessions with a mental health provider while in our care. But I would defer to Correctional Health in terms of what the primary diagnoses are for the people in our care. And what is the average wait time for mental health related services when someone seeks services? I do not know — I do not know if we could answer that. Probably, again, I think that might be a Correctional Health Services response. We could speak to them and get back to you, but yeah, we would need them to answer that.

(01:51:43)

All right. And on headcount, what is the current vacancy rate?

(01:51:58)

Our current vacancy on the uniform side is approximately 15%.

(01:52:07)

15%. How much in overtime was spent, or is projected to be spent this year, and how does that compare to last year's overtime spending?

(01:52:18)

We already covered that. No, no — give me just a moment. Okay, so as of our overtime projection, we are tracking to spend approximately 364 million total. That is both civilian and uniform. And last year was approximately 340 million that we spent. 340. Okay.

(01:52:44)

Last question. Payroll records released by the City Controller revealed that 58 of the City's top 100 users of overtime are Department of Correction employees, each of whom recorded at least 1,800 hours of overtime in fiscal year 2025. I am just curious — how is that possible? Well, I am sorry, can you say which exact part? How is that possible — 1,800 hours of overtime in fiscal year 2025?

(01:53:19)

Yeah, so I would have to work with you to understand those exact numbers that you are referencing. But with respect to what we are doing about it, I am beginning to put in strict restrictions on people that are coming up as having excessive overtime. So we have processes going into place now to do that.

(01:53:38)

And what are some of those measures that we are taking to decrease overtime and make sure that if there is overtime, people are actually working those hours?

(01:53:46)

There are certain individuals that will not be allowed to receive any overtime whatsoever, based on the hours of overtime that they have worked fiscal year to date. And then we are also adding a number of new approval processes on overtime. So in some cases, it will not be an immediate supervisor that can even approve overtime — it would be someone like myself.

(01:54:07)

All right. Thank you so much. Okay. And then CM Wong, really quickly. Thank you. Actually, the figure I got was that the Department of

(01:54:25)

Correction is projected to spend approximately 370 million in overtime in fiscal year 2026. That is large in a budget of... so just that is the number I have, and if you could explain that that would be great. But that was not my question. My question is that your headcount budget is 6,474 with a 16% vacancy rate, so that is a vacancy of 1,036. And is not this budget cutting 586 budgeted uniform positions? So is not your budget ratifying a failure in recruitment, or is something else going on? That is my question.

(01:55:13)

Sure. I will answer your first question. So due to the efforts that Senior Deputy Commissioner LeBec just mentioned about overtime reduction, even though that was initially budgeted at 370, we are doing everything in our power to reduce that to the extent possible, using the measures that were just mentioned. So even though 371 million was initially budgeted at the preliminary stage, the current projections are lower than that.

(01:55:44)

And in terms of the headcount reduction, we want to again state that this will not have any impact on hiring, it will not have any impact on the posts, and it will not have any impact on recruitment. The reason for that is we still have over 1,000 unoccupied vacant lines that we could still hire up to. The department will take every measure to aggressively hire and not just that, but to retain as many uniform members of service as possible. So it is not going to have any material impact on hiring at all.

(01:56:24)

Thank you. I have one minute left. My district is right next to the borough-based jail, and as of today I do not see any shovels. I have not seen any construction, and I have not seen any infrastructure redesign, rerouting of roads or widening. Do you have an update or do you have a timeline on that? Because again, I have not seen a single shovel

(01:56:52)

at the site. Thank you. I will ask our Assistant Commissioner Alex Maldonado to address the timeline on

(01:57:00)

the borough-based jails. Brooklyn is obviously the furthest along.

(01:57:06)

And we are finalizing the design on the remaining facilities. First we go through the design phase and then we move to construction. And this is the same for Manhattan. Correct — not a single shovel yet.

(01:57:21)

Queens, Manhattan and... okay. Thank you.

(01:57:32)

I do. Thank you. My name is Alex Maldonado and I am the Assistant Commissioner overseeing the borough-based jails for the department. I can confirm what was said — that we are working with our partners to finalize the design as well, and you should see shovels, as it were, and some street closures in your neighborhood in particular this summer, related to the construction activities. Thank you.

(01:58:00)

Okay. Thank you, and I will send it back to Chair Brooks-Powers. Thank you, Chair.

(01:58:07)

I am going to talk briefly about the Lighting Law. At the preliminary budget hearing, when asked about the status of Lighting Law installation and compliance, you responded that you were in the final stages, citing legal and technical issues. Can you provide an update on where you are with this today, and has the staff completed their training in the usage of this technology?

(01:58:34)

Yeah, we testified exactly as you said — that we were at the finish line. We are dancing at the finish line right now. What we have done is we engaged with the defender organizations who are going to be the end users of the product, and we are finalizing terms of use, which we flagged as quite onerous for the persons in custody. So we wanted to make sure that that was fair and reviewed by their attorneys. That is what is occurring right now. As soon as that is finalized — which I have directed and anticipated will be done this week — we will be ready for immediate implementation to start rolling out, identifying the users and getting it onto the tablets for the individuals in our care to use.

(01:59:25)

All right. I will ask you the questions for the final stretch.

(01:59:30)

How is the department facilitating connections to community based programs, both when a person is in custody and at the point of their release? What changes have you made from the prior administration?

(01:59:42)

I can speak to that partnership. Thank you. Well, I think one of the biggest things that has occurred really robustly is the onboarding of FedCap and the Fortune Society team members for transition planning and transportation services, as well as the beginning of the subcontract with Hundred Suits for Men, which has allowed us to provide transportation for people directly to the location that they need to go — such as a service provider — upon getting released from custody. So those services have occurred across multiple sites. Almost all of our jails have a transition provider employee who is going in and increasing the number of discharge plans completed with people in custody, but then also ensuring that we make sure they have the support and the referrals needed for community based services.

I think just to highlight what is happening inside and what is happening outside — most of these providers also have very strong linkages to community based services, whether it is somebody coming to their specific site or they are doing referrals to a location that is close to where they live. So if, for example, somebody has been working with the Fortune Society while they are in our care, and it is determined that there might be a different location or a different nonprofit that they might be better served with based on where they live, they will do those referral services through the community reentry network that is in partnership with the MOCJ

(02:01:16)

contracts. And what other steps are you taking to help safely reduce the jail

(02:01:25)

population? Yeah, as I said, unfortunately we do not have control over who comes in the front door or when people leave, other than those who are sentenced to City time. What we have been doing is working with our partners to make sure that they are engaging with the population and leveraging the resources that are in the community. Through our partnerships, we are trying to get cases processed faster, trying to get people who are appropriate for diversion connected with service providers — Osborne and other service providers — leveraging supervised release and working with the Center for Justice Innovation on supervised release. We cannot control who comes in and who goes out, but we can leverage the partnerships we have, and that is what we are doing. Every opportunity I get to say we need to work together on population reduction, I hope motivates and engages people to seize this moment to reduce the

(02:02:42)

population. My final question is: as the population in custody increases, does the department believe that funding for services like food, clothing and bedding is accurately budgeted?

(02:02:58)

The budget we presented is based on the population we have, and we anticipate the population going down. If the population were to increase and we needed to increase our budget, we would work with OMB and our City partners to make sure that we are able to meet the basic needs of the people who are coming into our care. Thank you, Commissioner. Chair...

(02:03:26)

Okay, I am just going to ask you a really quick question on behalf of the Deputy Speaker, since she had to leave, about the racial equity plan. So the plan includes goals related to improving safety, accommodations and programming for transgender, nonconforming and non-binary individuals in custody. Have the LGBTQ+ Affairs coordinated

(02:03:46)

weekly and monthly meetings? Have they been occurring regularly, and what concerns or disparities prompted the initiative? I could not speak to that. Thank you.

(02:04:03)

I want to preface with I do not have the exact frequency of meetings that are being held, so I do not want to misrepresent the number of meetings that are being held or how frequently they are being held. But what I can say is that we do have an LGBT Affairs Unit. That is a team of about three coordinators that work for the department, led by Adrienne, Executive Director. That team has been doing work alongside various partners. We actually in this last fiscal year onboarded a partnership through a small contract with Destiny Tomorrow so that we can begin to expand our access to services for our transgender, gender non-binary, non-conforming population and use these long-term goals in collaboration with people who are in custody.

And so how will incarcerated individuals participate in that process? Well, I think there are a few avenues of how we are working to address this. One, it was mentioned, there is a new Associate Commissioner that is assigned to work with emerging adult populations and her entire work is centered and grounded on hearing from people who are in our care, whether that be through focus groups, whether that be through large-scale surveys, and whether that be through various talk sessions. As for implementing various programs, the work that is being done specifically for the emerging adult population is likely work that can be scaled to all of our populations, and so we are evaluating that as we move forward with this plan to see how we actually ensure... because I will say annually we do conduct surveys and focus groups with people in our care about how we do that in a more effective way, so that we are guiding our program rubrics and guiding our evaluations of our programs in a way that is a little bit more meaningful.

(02:05:48)

Thank you. And I think with that we are done with this portion of today's hearings, and so I just want to thank you again, Commissioner, and to all of your team members for being with us today. Thank you.

(02:06:01)

And I think we are just going to quickly transition because we have HPD up next. Quiet down on the floor, please find your seats, ladies and gentlemen. Just a reminder, there are no food and beverages allowed in the Chambers. You can finish that outside if you have to. Thank you for your cooperation.

(02:14:03)

Okay, I think we are all set. So good afternoon and welcome to the second Fiscal Year 2027 Executive Budget hearing for the day, focusing on the Department of Housing Preservation and Development. I am CM Linda Lee and I am pleased to be joined by my colleague CM Pierina Sanchez, who is the Chair of the Committee on Housing and Buildings. I want to recognize we have been joined by CM Wong, CM Salaam, and I think that is it for now.

So welcome, Commissioner Dina Levy and your team, and thank you all for joining us today to answer our questions. On May 12, 2026, the administration released the Executive Financial Plan for Fiscal Years 2026 to 2030 with a proposed Fiscal Year 2027 budget of $124.7 billion. The Department of Housing Preservation and Development's proposed Fiscal Year 2027 budget represents less than 1% of the administration's proposed Fiscal Year 2027 budget in the Executive Plan, and this is an increase of $60 million or 5.6% from what was budgeted in the Preliminary Plan. This increase results from several actions, mostly stemming from the SPEED Report and Mayoral Housing Plan, including code enforcement expansion, housing vacancies survey reallocation, supportive housing, Third-Party Transfer legal fee reimbursement, collective bargaining staff adjustments, asylum seeker reallocation and an increase in funds for Home First. As of April 26, HPD has 366 less than their Fiscal Year 2026 budget headcount.

In the Council's Preliminary Budget response, the Council identified several areas related to where the City could re-estimate revenue to claim as savings and to claim a combined additional revenue from fines and fees collection for Fiscal Year 2026 and Fiscal Year 2027. While we appreciate the inclusion of the fines and fees in the Executive Budget Plan, the $27 million accounted for by the administration is well below what the Council had presented. We have also been joined by CM Wilson. And now I want to turn it over to my co-chair for this hearing, Chair Pierina Sanchez, for her opening statement.

(02:18:05)

Thank you so much, Chair, and good afternoon. We meet today at a moment of real possibility. Since becoming Housing Chair in the Council, I have called for our City to confront the housing crisis in its full complexity — not just a crisis of affordability, but one of housing quality, safety and ultimately survival. Mayor Mamdani's first housing plan reflects that reality and is a critical component of achieving those goals. I am encouraged by the ambition released last week. You are embracing an all-of-the-above approach that this moment demands: building new housing, preserving existing homes, protecting tenants, supporting homeowners, preventing homelessness and confronting the stress most at risk.

This is a great framework and the work begins. The plan sets a goal of constructing and preserving 400,000 homes over the next decade and includes a serious focus on preservation, housing compliance, homeownership and all the rest. But rightly it names the Bronx, and to us that matters because the Bronx is hurting. 10% of our households, our homes, our families are facing an eviction filing each year and 26% of Bronx households are reporting three or more violations and deficiencies within their homes. Families in our borough are calling 311 again and again for complaints and feel that repairs never come. This is personal.

But also this is tragic because we are seeing that in older buildings and across the outer boroughs, fires have doubled in the last two years. This is due to proximate causes like self-closing doors that are not closing, people leaving doors open behind them, missing smoke detectors. But fires are displacing families, fracturing communities and taking lives, like the young child that we lost on Bainbridge Avenue just a few weeks ago.

These tragedies are the result of decades of deferred maintenance, disinvestment and systems that too often respond after the harm has already happened. Major building systems should be replaced on a roughly 20-year cycle, experts say, but for decades we know that in New York City this has not been the reality, and the bill collector is here. That is why the preservation work ahead of us must be sharper, more targeted and more accountable. Programs like Article 11... every single preservation tool that we have in the City of New York must be evaluated through the simple lens of whether they are stabilizing buildings, protecting tenants, improving conditions and saving lives.

The central question before us today in my estimation is whether the housing plan's ambition is met in the proposed Executive Budget for Fiscal Year 2027. The Fiscal Year 2027 Executive Plan proposes a budget of $1.14 billion for HPD, which excludes NYCHA PACT funding, and that is approximately $80 million less than the Fiscal Year 2026 adopted budget. The Executive Capital Commitment Plan also totals $16.9 billion, excluding NYCHA PACT funding.

The plan also identifies new needs of $1.2 million in Fiscal Year 2027, which are critical investments that include additional code enforcement staffing, tenant interim lease repair funding and a new mortgage assistance program financing, as well as incentives for basement unit conversions and...

(02:21:56)

...17 additional positions related to the SPEED Report to streamline and expedite development. We are also pleased to see an increase of $5 billion across the Executive Capital Commitment Plan, including approximately $500 million for... it is a good investment. We understand that this increase is intended to account for new requirements under the Construction Justice Act as well as to supplement additional production and preservation.

I want to highlight that there is important work already underway and we look forward to your partnership in implementing the network of billions in housing and infrastructure commitments that we secured through City of Yes, which I will continue asking about. We are also advancing the Safer Homes Act together to go after the worst landlords, and that will need to be reflected ultimately in the budget upon passage. We are continuing conversations around COБА, Speaker Menin, small lots and big impact. Work is also underway and we are working to better support aging, deeply affordable housing, including struggling co-ops and Mitchell-Lamas before they reach crisis.

So just to highlight before wrapping up, the central questions we are looking at today are: does the Executive Budget match the ambition of the housing plan? Does HPD have what it needs in order to deliver? Will preservation dollars reach the buildings and communities most at risk? And how will we move faster from commitment to completion? I am excited to be here today and excited for your testimony. Before we begin, I want to thank the Finance staff, especially Finance Analyst Carla Serrano, Assistant Director Daniel Croup, Deputy Director of Finance... and Percy Sutton Fellow Katherine McMahon, for their work on this hearing, as well as Legislative Committee staff Austin Malone, Billy Jose, Spencer and... and Mohammed Shahid. Finally, I would like to take this opportunity to thank my team: Chief of Staff Maria Lobos, Deputy Chief Ben Ratner, Gerard Fernandez, and Dylan Campos.

(02:24:04)

Thank you, Chair. Great. And we have also been joined by CM Maloney, CM Avilés and CM Wong. And with that, just a couple of logistical announcements. So I have been saying this at every hearing, but we are consolidating all the public testimony into one long day on Wednesday, June 10, starting at 9:30 a.m. So for those that are sitting here listening to the hearing, please come back on June 10 with any questions that you have and sign up for testimony. So again, June 10, Wednesday, starting at 9:30 a.m. And also just to quickly announce, the hearing that is scheduled for later today at 4:00 p.m. will be across at 250 Broadway, so that is where the hearing will be.

(02:24:49)

And with that, I will pass it off to our amazing Committee Counsel Brian... for the swearing in.

(02:25:20)

Chair Sanchez, Chair Lee, members of the Committee, thank you for having me back. Two months ago I testified here for the first time as Commissioner and described my priorities for leading New York City's affordable housing agency. Then I outlined four primary areas of focus. First is my commitment to making sure that we fix what is within our reach, from completely revamping the Housing Connect lottery and marketing system to ensuring that our partners get clear and timely communication about projects, simplifying complex procedures and replacing them with common sense reforms. Second was my promise to build more housing faster and more efficiently, because this housing crisis will not abate unless we build significantly more housing of every type and in every neighborhood — more housing for seniors, those earning the lowest income, homes for people with special needs, for people still living in shelter and for those looking to become first-time homeowners.

I also spoke about the need to maintain the affordable housing that we have worked so hard to create, because housing growth without preservation will leave us standing in place. Almost half a million New Yorkers live in regulated housing and we must ensure that their homes remain safe and affordable for decades to come. And finally I reaffirmed our commitment to protecting tenants, because our work does not matter if people do not feel safe and secure once inside their homes.

Since we have begun the work of advancing those commitments under the leadership of Mayor Mamdani and in partnership with other agencies across the City, we have laid out a plan across three documents: the SPEED Report, the Executive Budget and our 10-year housing plan. Taken together, these outline a housing agenda that is unprecedented in its ambition and scale, and they tell the story of how we will fund and execute a housing transformation over the next decade. Building 200,000 affordable homes while also preserving 200,000 existing units of housing is a monumental yet vital task. We will work with our partners at City Hall to ensure that we have the resources needed to achieve these goals while continually employing cross-cutting and time-saving efficiencies in every facet of our work.

The ramp-up will take time, but with more than $22 billion for housing across HPD and NYCHA programs in the five-year capital plan, we have put forward a major down payment on that promise. That capital investment is matched with expense funding to build out our capacity, including funding for 41 new staff positions in Fiscal Year 2027: 14 new positions for our code enforcement and litigation teams and 27 new hires for our development division.

In Block by Block we outlined plans to finance approximately 16,000 deeply affordable homes over the next two years, a 35% increase compared to Fiscal Years 2024 and 2025. 50% of those units will serve very and extremely low income New Yorkers, and 5,700 of those units will provide new homes to households coming out of shelter, a 40% increase over the previous two fiscal years. The plan also calls for an expansion of funding for supportive housing by 57%, with a dedicated $1 billion over the next two years. And for seniors, we will build 2,000 new homes, a 20% increase in Fiscal Years 2027 and 2028. This includes a pilot that will make senior-restricted apartments alongside family units, intentionally creating intergenerational communities.

Critically, we will address the often-asked question of affordable to whom, by changing the way we serve the lowest income New Yorkers, deepening affordability levels for financed projects that serve households at 30% of the Area Median Income through new investment in the Executive Budget. We will reduce initial rent burdens for these households down to 25% of their monthly income. For a household who earns just under $46,000 a year, the rent will drop from roughly $1,150 to $950 per month. That household saving of $200 may go towards buying groceries, paying an electric bill or towards saving for the future. This new initiative will serve approximately 2,500 extremely low income New Yorkers over the next five years.

Growing our housing stock will be game-changing for neighborhoods across the City. But as I stated, it will only be impactful if we preserve the housing we have already built. Block by Block commits to preserving and stabilizing 200,000 homes over the next decade, an investment on par with our new construction goals. The Executive Budget provides more than... in capital for preservation for fiscal years...

(02:30:16)

27 and 28, more than a 35% increase compared to the last two fiscal years. This will set HPD on a path to finance roughly 15,000 units over the next two years. In direct response to advocacy from our partners, we will also launch a new supportive housing preservation program to ensure that our most vulnerable renters continue to have access to decent, safe and affordable housing. In addition, we have dedicated hundreds of millions of dollars specifically to preserve and improve our Mitchell-Lama housing stock, some of the most important housing the City has ever built. Most of these buildings are more than 50 years old and in desperate need of capital investment. In addition to the 15 Mitchell-Lama projects that are currently in the preservation pipeline, this dedicated funding will enable us to reach an additional 2,800 Mitchell-Lama units over the next two years.

Block by Block also commits to preserving our distressed rent stabilized housing stock using discretionary tax exemptions such as the updated J-51 program and other preservation tools. HPD will work with grassroots organizations and the Mayor's Office to Protect Tenants to beat back speculative investment in regulated housing, instead transferring these distressed buildings to community-controlled stewards, including tenants, community land trusts and joint venture partnerships between direct residents and developers.

The plan also includes a new interagency initiative with a particular focus on the Bronx, where so many of the City's housing challenges are most acute. 10% of households in that borough are subject to an eviction filing every year and 26% report three or more maintenance failures inside their homes. These challenges are a product of historic patterns of racial discrimination and segregation. In the past decade, HPD has financed over 42,000 affordable homes in the Bronx, but it is clear that it is time to take a holistic approach that considers more than just housing and that relies heavily on deep community engagement. We look forward to working together with our partners at the Department of Health, the Mayor's Office to Protect Tenants, residents and leaders across the borough to execute this long overdue initiative.

Our investment in preservation will also be critical to advancing the Safer Homes Act and the Community Opportunity to Purchase Act. These two pieces of proposed legislation will enable distressed buildings to be transferred to responsible landlords and in some cases to the tenants themselves. We would like to thank CM Sanchez and CM Nurse for your leadership in advancing these. This also extends to our homeowner community and those seeking access to that opportunity for the first time. For too many New Yorkers, homeownership remains out of reach, particularly in Black and Brown communities which have historically been underserved. The Mayor's Executive Budget marks a serious effort to change that. Funding for homeownership has increased by 12% in the Executive Budget, which will allow us to create and preserve approximately 5,700 units of affordable homeownership over the next two years. This includes increasing funding for the Open Door program, allowing us to finance 600 new homes, and funding for our down payment assistance program Home First, which will reach more than 350 first-time home buyers in the coming two years.

With the launch of our new program, Our Home, we are reviving New York City's celebrated tradition of providing dedicated resources to convert rental buildings into resident-controlled, affordable cooperatives. Our Home will aim to finance the conversion of 300 new affordable co-op units in fiscal years 27 and 28. We are also doubling down on our commitment to assisting existing homeowners who are struggling to maintain their homes. We will raise the Home Fix loan cap from $60,000 to $100,000 to facilitate badly needed home repairs and we are relaunching the New York City Mortgage Assistance Program, or MAP, an affordable loan product which provides a lifeline to homeowners who have fallen behind on their mortgage, preventing additional foreclosures and preserving generational assets.

Lastly, I would like to highlight the significant commitments outlined in Block by Block dedicated to improving our code enforcement system with a focus squarely on holding negligent landlords accountable. A key component is a new initiative called Fix the City, a dedicated enforcement effort targeted at the City's worst landlords. We will use all of our enforcement tools in strategic combination: roof-to-cellar inspections, removing negligent owners from day-to-day management with aggressive use of Article 7-A, and coordination with law enforcement to pursue criminal charges where appropriate. We will not relent until buildings are made safe or transferred to responsible new owners.

We will also launch a new effort partnering with organized tenant associations to schedule interagency enforcement days — coordinated portfolio-wide inspections that will take a comprehensive look at chronic maintenance issues. These building-wide sweeps will enable our litigation and anti-harassment units to identify pervasive noncompliance and move quickly to pursue legal action wherever it is warranted.

This summer, we will also work with the City Council to identify strategic improvements to the Housing Maintenance Code based largely on feedback received from tenants during the Rental Rip-Off hearings. This will include a review of underlying conditions, exploring expansion of the types of violations that justify rent withholding and creating processes for tenants to schedule appointments for follow-up code inspections.

Before closing, I would like to take a moment to express my concern about the devastating fires that have affected many of your districts in recent months. These devastating fires are happening far too frequently and it is simply unacceptable. We are committed to working alongside our partners at the Department of Buildings and the Office of Emergency Management to better understand what is driving this pattern, to determine whether landlord noncompliance is a contributing factor and to working closely with members of this Council to identify strategies to curb this citywide emergency.

I will end my testimony with a reminder that while the investments outlined in the Executive Budget and the 10-year housing plan are truly historic, our success will hinge on how effectively and efficiently we deploy these resources. Much of that is within our control, whether it is coordinating among agencies to make government more accessible, or modernizing outdated environmental reviews. The time has come for us to get out of our own way. At HPD, I am proud to work alongside 2,500 dedicated public servants who spend every day working to create and protect housing affordable to all New Yorkers. The housing plan in many ways is a meaningful expansion of that hard work, but it is also an acknowledgement of the need for continued coordination between HPD and the City Council, not just in oversight but through action, because tackling New York's biggest challenge depends on our ongoing collaboration. We will not achieve it all at once or in a single budget cycle, but steadily, relentlessly, block by block, using every tool we have. I look forward to our future partnership and I am happy to answer your

(02:37:46)

questions. Thank you. Great. Thank you. We have also been joined by CM Epstein on Zoom as well as CM Joseph. Two things I want us to just note before going to my questions, which is that I am excited to hear about the senior affordable housing more specifically, as someone who ran senior centers and homebound Meals on Wheels programs. The intergenerational aspect of that I think is amazing.

(02:38:07)

Because so many of our communities across the City, especially immigrant communities, do have multiple generations living in one home. So I am really excited to hear about that program. And then also just the affordable homeownership — I have parts of Southeast Queens, and I know a lot of my colleagues in Southeast Queens. We would always talk about how affordable homeownership is not discussed enough. So I am glad that this is also included in the plan, which we are excited to see.

(02:38:33)

Okay, so I just have a few questions before I pass it to the Chair. In terms of the Executive Plan, we saw a vacancy reduction of 56 positions baselined into fiscal year 30 as part of the administration's mandate to identify savings. When accounting for the 41 budgeted positions added to the department as new needs, there is a net decrease of 15 positions in the Executive Plan. So are all 56 positions that were removed and claimed as savings going to be eliminated?

(02:39:03)

Yes, that is right. So the vacancy reduction was an attempt to look back at all of the vacancies, some of which, to be frank, are very, very old. Some of those positions have been absorbed by other staff and some of them have been consolidated. So yes, those will be permanently removed positions. We are still working through with the leadership at the agency to figure out exactly which positions will comprise that 54. However, I do want to say that in addition to the 41 new...

(02:39:28)

...this actually is a path to allow us to start hiring for all of the remaining vacancies that are still open — over 300 at the agency — and so we do expect to be growing the staff significantly and quickly as a result of completing the vacancy reduction.

(02:39:43)

Okay, great. And then also getting rid of the 241, I am sure, makes it easier as well. Much easier. Okay. The largest savings is $750,000 baselined starting in fiscal year 26 for the removal of two positions. Can you provide an overview of this program and how New Yorkers interact with the program?

(02:40:10)

Okay. Thank you for that question. So to clarify on the vacancy reduction: what we did was take a head count and available dollars from various budget lines where they were available, and now we are going through the process of identifying the specific positions that would be assigned to that line. The line in question is actually just taking head count from where it was available in one of our budget lines in our Economic Opportunity and Regulatory Compliance division, but that did not eliminate a specific position — it is just a head count. We are just moving the funding for now and going through the process of determining what specific positions will be eliminated.

(02:40:50)

That is good to know. Which department or division saw the largest vacancy reduction? I am sorry...

(02:40:58)

CM, do you want to take that one?

(02:41:00)

We have not yet completed the process. If we have not yet defined the 54 positions, we have not sorted out which unit in particular will feel it. We are trying to look at where the vacancies are — the older positions that have been absorbed either by existing staff or through consolidation. As soon as we have completed that exercise, we would be happy to report back on which positions.

(02:41:22)

Perfect. Thank you. And then also the types of positions that were eliminated as part of the vacancy reduction as well — whether it is inspector, inspection positions, legal, clerical or administrative. That would be great if you can include those as well. Of course.

(02:41:39)

So I just want to clarify, because I know that we definitely do not want to see a decrease in services. So I just want to clarify for the record: as these positions are baselined into the out years, we do not anticipate any sort of decrease in services, correct? That is correct.

(02:41:55)

Okay.

(02:41:55)

And then my last question is just something that came up because we have been having roundtables with a lot of the nonprofit providers. One of the things that was expressed to us was that for the nonprofit partners that do build affordable housing, they go through a really rigorous process with HPD and it takes quite a long time to get all the checks and balances in order, and then separately they have to go through another separate approval process with DOB. I am just wondering, from your perspective — I know you are relatively new in the role — but are there ways that we can sort of streamline that and have some of it at least be simultaneous instead of sequential? That makes sense because, as we know, as these projects get delayed it just keeps increasing the cost. So when you think about tax dollars and things like that, I feel like if we could streamline that process it would save on costs as well as put more money into the

(02:42:55)

project itself. We completely agree. As you know, the SPEED report is all about how to move more quickly in terms of what we are building and also how to avoid having duplicated processes with agencies passing things back and forth. So I think that is a big part of the work that we are working toward. I think in terms of the process between HPD and DOB, it really comes down to whether or not the projects are coming in on terms. So one of the other things we are

(02:43:20)

working on is really a prioritization framework for our pipelines so that folks really understand what the agency is prioritizing. One of the big things we will be prioritizing is cost efficiency as well as whether or not units are getting built, both in terms of the programs that we care about and the typology of housing but also where that housing is getting built. I do think that as we start to tighten that process, we will be able to move projects between us and through approvals much more quickly.

(02:43:48)

Okay, fingers crossed. Okay, great. Chair Sanchez, thank you. Thank you. I think this is the first hearing we have had... well, thank you. I am excited. This is exciting. It is an exciting moment. There is a lot of ambition going around and I completely agree that it is going to be up to us to take what is on paper, what is written down, and move that into reality.

(02:44:16)

Also, Commissioner, thank you for acknowledging and recognizing what is happening in the Bronx and Queens and the outer boroughs. Even as a Council member, I still often feel like I am yelling into the void, and so it is really heartening to hear you acknowledge us.

(02:44:35)

My first question: it does feel like the Bronx is burning again and we are seeing — it is not a feeling, it is a doubling of the number of fires in the Bronx and Queens in the last two years. It is a dramatic increase in the number of fatal fires, the number of New Yorkers we are losing to these fires. So just to pick up on the last bit of your testimony, can you highlight the ways in which data on where fires are happening and the risk factors believed to be the most important

(02:45:10)

are featured in preservation and code enforcement work? I appreciate the question and I share all of what you said — it is true. It has been pretty devastating to witness the number of fires and fatalities as a result. I would say at the moment we are still trying to understand if there is a causal or specific thing that is causing the fires and, to be frank, I do not think we know the answer to that just yet. We have started conversations with Emergency Management and with the Fire Department to see if there are patterns in the data and if there are things we need to do from a Housing Maintenance Code compliance perspective. We already do a fair amount, as you know, of outreach and

(02:45:55)

coordination around self-closing doors and the importance of that, and also having smoke detectors. But I do think your point is correct: to be preventative, we need to understand what is causing the rash of fires. I do not want to speculate about that because we do not yet know, but I think it is really key to figure it out in order for us to then come up with solutions that we would propose.

(02:46:19)

Thank you, Commissioner. I am going to push back because FDNY testified yesterday in no uncertain terms that it is the electrical systems within buildings that is the primary cause of the uptick in fires. So I am happy to hear the conversations are happening, but the question is where this was apparently not happening before. Where is HPD incorporating these findings? It should not just be when fires are increasing the way that they are right now, but in general the code enforcement agencies — so many of them — housing lives across so many agencies in the City of New York. This should be reflected in the plan and we want to see these agencies talking to each other.

I am moving toward the housing plan itself and this potential disconnect that we are seeing in our analysis of the housing plan versus the Executive Budget. There is a lofty goal of 400,000 units created or preserved in the next 10 years. The plan is also setting out an ambitious vision for preservation and code enforcement. I am concerned, and we in our review are concerned, that there is a lack of new staff to carry out these proposals. How does HPD intend to meet the ambitious goals of the housing plan without a significant infusion of new staff lines? To make this very concrete, there is this example from the report: the City commits to investigating every heat complaint as an individual case starting in fiscal year 2026. However, in the budget we are seeing only seven new inspectors.

(02:47:56)

in fiscal year 27. So how can you achieve that really increased inspection goal in the plan's vision of robust code enforcement with such a modest staffing increase? So a couple of things. First, looking back at the last five years, it is worth noting that the staff for the division that oversees code enforcement has actually increased 11% even during the 2-for-1 hiring freeze. They have continued to grow that staff and as you saw, there are 14 new positions that have been dedicated specifically to increase our enforcement capacity for enforcement days, for Fix the City and for the commitments we have made regarding heat. So I do believe those things are going to be critical. The other thing that is worth noting is there are 23 hires of inspectors specifically that have now been cleared. As I said earlier, having completed the vacancy reduction we can now move to fill all of our vacancies. That will take some time, but 23 are already in process. So we will continue to grow our code enforcement appropriately so that we can meet all the commitments laid out in the housing plan.

(02:49:09)

Thank you. Thank you, Commissioner, for clarifying that. Are unfilled positions exempt from the last administration's 2-for-1 hiring rule? Can you confirm whether the rule has been eliminated within the agency?

(02:49:21)

Yeah, that is exactly right. So once the 56 positions that we are going to eliminate have been identified and that is complete, which we are very close to completing, we will both share with the Council what those positions are, but it will also free us up to hire over 300 vacancies across the agency that will no longer be subject to the 2-for-1. Sorry, 56. What did I say? 56. Okay.

(02:49:47)

Thank you. That is helpful clarification. So moving from the vacancy reduction — the reduced vacancies of 56 positions — I am encouraged to see areas where the agency is making targeted additions to its headcount. In addition to staff added as part of the SPEED initiative, which we will get to, HPD is adding 10 new positions in the Office of Development. Can you share where within that office those titles are going to be added, and within the office, where the greatest need is?

(02:50:21)

So I do want to clarify that between the housing plan and the SPEED report together, it is actually 27 new heads that will be coming on for the development team. In the SPEED report they make pretty specific designations for how those staff will be allocated — there for environmental approvals, for permitting. For the housing plan hires there is a little bit more flexibility. We probably will be focused very heavily on project management in order to keep the pipeline moving. We will also probably be working to increase a little bit of our staff in our Office of Neighborhood Services, where all of our public sites move through and then ultimately go to development. So specifically it will be environmental permitting, project managers, preservation and public sites — a lot of preservation and public sites.

(02:51:16)

Okay. Thank you. Just two more for me and then I want to move over to two colleagues. The executive plan claims $920,000 in fiscal year 2026 savings from the tax lien sale outreach due to contracting delays. Although the 2026 sale... sorry, my device is being very glitchy and just jumped away from my question, which is not helpful.

(02:51:46)

Although the 2026 tax lien sale was paused, the Council was not consulted on this reduction. Has the administration determined if the tax lien sale will resume in fiscal year 27? If it does next year or in a future year, can the City commit to restoring this vital funding for outreach to homeowners to know the payment options available to them?

(02:52:08)

Councilmembers, so as part of — I think it is the PEG, right — where we look to find important savings, one of the places we identified was this $2 million contract for outreach for the lien sale. Primarily that felt logical because the lien sale, as you know, is paused. Half of the contract, about a million dollars for fiscal year 2026, remains available to the vendor, the Center for New York City Neighborhoods, and they are going to begin outreach now. All future funding — so $2 million a year starting in fiscal year 27 and the out years — is untouched and remains available.

Okay. Thank you. My final question, and I will come back for more if we have time because we do have a hard out at 2 p.m. The question is around the new housing plan. I am heartened to see that 50% of the goals — 50% of what is going to be produced — is targeting ELI households, extremely low income and very low income households, over the course of the plan. Can you give us a sense of how many new ELI units HPD expects to finance over the next two fiscal years, or as specific as you can get? And can you give us a sense of the other 50% of the plan's goals — what income targets do you foresee for those?

(02:53:51)

Absolutely. So again, the portion of new construction — which is what I think we are talking about, the new units that are going to come online — so 50% of that each year, so 4,000 a year, potentially a little more, will serve ELI households. The remainder are going to be subject to our term sheet. So 2,000 of the units will be for seniors. Those tend to be very low income units. We do not yet have a final count on supportive, but we do have a big commitment specifically for supportive that will be within that number as well. Most of our financing programs, including LIHTC, serve an income range that has to average to 60%.

(02:54:41)

Thank you. Just an add-on, and then going back to two colleagues. How much new funding is dedicated for neighborhood...

(02:54:47)

Pillars per fiscal year over the next five years? I do not know how much is...

(02:54:54)

So we are going to look that up to make sure we give you the right answer. Pillars has been a little bit slow going, as you know. We have not closed a project in fiscal year 2026, but we are trying to revamp it through the lens of — you know, there are a number of portfolios of rent regulated housing out there that are now transferring either through voluntary sales or through foreclosure. So we hope to see Pillars getting its legs. I think we have a project right now that is getting close to the end of the pipeline. Maybe my colleague needs a minute to look up the exact allocation for Pillars for the next five years. Did you find it? No. Keep looking and I will get back to you on it.

(02:55:36)

All right. I will remember. Okay. Thank you so much, Commissioner.

(02:55:40)

Okay, sorry, my back is killing me so I will stand up. Okay. We have been doing... CM Restler, who is somewhere here, as well as CM Hudson. She is not here. So we are going to start off with CM Wong, followed by CM Wilson. Thank you.

(02:56:01)

My first question is about the budget. The capital commitment plan jumped from the preliminary plan to the executive plan — that is a 102.8% increase in a single revision cycle. What specific projects drove that doubling? Can you answer that? Are you asking what projects we will finance with those new funds? So that is sort of what we just covered in terms of the projections for what we intend to do over the next two years — 16,000 units. Well, let us talk about the 6,200 vacant NYCHA units and how many of them will get renovated in this budget cycle.

(02:56:45)

So that would be a question more appropriate for NYCHA, as you know HPD does not oversee the vacant units.

(02:56:50)

For NYCHA. Oh, okay. Thank you. Thank you.

(02:56:55)

Great. CM Wilson, followed by...

(02:56:56)

CM Maloney. Thank you, Chair. Good morning or good afternoon, Commissioner. Thank you. I have some questions about artist housing. So over the past decade, American cities have been creating artist housing — nearly 3,000 units — with well over a thousand more on the way. But in New York, for the first time ever, we have seen a decrease in artists and cultural workers. In my district, affordable housing like Westbeth and Manhattan Plaza are extremely successful, very popular anchors in our community. So what role does artist housing now play in the City's affordable, livable and culturally vibrant future, and how is HPD coordinating to ensure that artists are part of the bigger picture of our housing plan?

(02:57:49)

Thank you for the question. So we have been meeting with the advocates and the guilds that are actually advocating very strongly for more artist housing. I obviously know both Westbeth and Manhattan Plaza — Mitchell-Lama — that I used to actually work in. So we understand that there is a need and we understand, particularly, I think we are sensitive to the fact that the way artists are compensated makes it challenging for them sometimes to qualify through Housing Connect. We have heard that there are challenges because some months they do not have flat income — the income fluctuates. We are sympathetic. We are trying to determine what can be done in terms of designated artist housing. I think there is some tension there, if I am to be fully frank, about whether adding artist housing serves all communities equally, so I think we are just cautious about the fair housing implications there. But we are continuing conversations to determine whether HPD needs to do more in that space. I hear you on the fair housing, but of course there are artists in all communities that could be served by guidance on an artist preference housing, like using data from a dedicated artist survey that reflects the diverse economic and cultural makeup of artists' communities.

(02:59:08)

Can I just clarify your question? The question is, could we produce data on that question or publish that? Yes, that is my question.

(02:59:13)

I mean, perhaps use that to guide our work. If there are data sets on this question — and again, having met recently with the coalition dedicated to this very question, we did get into some of the statistics. We were getting into the definitional change that they seem to be adopting around artists — what do they call it, live-work, but not necessarily folks who are employed daily in the artist space. So I think we are very open to continuing the conversation. If there are data sets that you would like to share with us that you think could inform what policies you are advocating for, we would be very happy to sit down and talk about it.

(02:59:55)

Excellent. Thank you. CM Maloney, followed by CM...

(03:00:00)

Feliz. Thank you for being here. My questions are around 485-X tax reforms, which requires developers of buildings with over a hundred apartments to pay construction workers a minimum of $40 per hour. According to recent data, just a certain percent of proposed developments have a hundred units or more and are registered to take that tax break. So my question is whether this is incentivizing a shift to smaller projects and if you have analyzed the impact on the total volume of affordable housing units.

(03:00:39)

Great. I would start by saying that we are looking at the question of 485-X, but I think it is also worth pointing out that we do have over 300 registrations currently in our pipeline for 485-X. I think it is also worth mentioning that 71 projects this fiscal year have units. We are talking both internally and with HPD as to whether or not we are seeing more projects tend towards 99 units or less. There are some certainly, but we have not found anything in that space that looks untoward or outside of what is allowed. So we will continue to monitor it. We do want to see this program take off and we will continue to explore whether or not there are issues with folks not building or leaving developable space on the table.

(03:01:34)

Of that 300, how many are over a hundred units?

(03:01:38)

So we would have to — I have not done an analysis of what is in the pipeline, but we could certainly do that for you and get it to you. Thank you.

(03:01:44)

And how does HPD determine whether or not a project development is truly separate buildings or one project? And adding to that, what indicators — like if the buildings have unified design or if they have a shared financing model or common ownership — are used to indicate this is one project or truly multiple separate projects?

(03:02:12)

That determination is actually not made by HPD first. It is first made by DOB and then ultimately by DOF as it relates to tax benefits. So that is why I say we have been meeting with DOB to understand how they do the analysis of what is legitimately one building or two buildings. They have looked deeply at the applications that have come through — the ones that have closed — and again, they think it follows history, that what has been classified as two separate projects meets the legal definition. But as I said, we will continue to look at it and are happy to get you the information on the 300 registrations that have not yet closed.

(03:02:44)

And I would be curious what those numbers are. And then how can HPD incentivize the development of larger apartment buildings, which presumably would have more affordable housing units? That is true. All right, thank you very much.

(03:03:01)

Any more questions? Okay. CM Avilés, followed by CM Joseph.

(03:03:07)

Thank you so much, Chair. Thank you for your testimony and the work you do. I was curious if we could talk a little bit about...

(03:03:17)

the SARA funding for senior housing. It is one of the most important things our City needs to do for our aging population. Can you tell me what the current funding for this fiscal year is for this program? Yeah, so I can talk to you about what we have projected we will produce over the next two fiscal years, and I need a moment to pull up what sort of...

(03:03:41)

set aside we have for it specifically. So again, the goal right now is to do a thousand units a year over the next two years — so 2,000 units of senior housing. One of the challenges, to be frank, is that almost all of our senior housing requires Section 8, and because the federal government has been abandoning their obligations in that space, we are looking for more creative ways to make sure that we keep producing senior housing. One of the ways to do that, as I mentioned, is through mixed projects that are both set aside for seniors but also allow for family units, which would then create a cross subsidy enabling the project. I think we are also enamored by the idea of creating intergenerational communities. Absolutely — so many of our families are intergenerational, and it would be great to support that. So currently my understanding is that SARA projects are on hold given the federal cuts. Is that...

(03:04:43)

correct? No. I am happy to report that is not correct. We have, I think, about a dozen projects already in the pipeline that have an allocation of project-based Section 8. Those projects have not yet been countered but will continue to move through our pipeline and will continue to move.

(03:04:58)

And then, as I said, we are using other sources that we can access, including NITRO vouchers where possible, to make sure that we continue to take projects forward. So the 2,000 units that I mentioned going forward are new commitments to keep SARA moving. And for those that are currently in the pipeline, do we have an understanding of how many units those are expected to produce?

(03:05:23)

I am going to check with my colleague Patrick. Do we know? He is just waving it over — 2,000 in the pipeline now. 2,000 units. That is not to be confused with the 2,000 prospective. That is retroactive — in the current pipeline.

(03:05:37)

And is there an estimate of when those 2,000 will come to fruition?

(03:05:44)

Again, we are working to expedite the timeline it takes to have projects move to closing through our pipeline. I think we could get you a detailed projection of how many projects that is and when they are expected to actually go to construction closing.

(03:05:58)

Thank you. I know these are challenging and one of my biggest heartbreaks is the consistency of having our seniors have nowhere to live and tripling up in apartments in very unsafe conditions. Yes. Okay. One thing — oh, I think I got those numbers.

(03:06:16)

I just want to flag we have a property at 68 Nelson Street in Red Hook that was found to have court-ordered corrections and well over a year remains outstanding with conditions significantly worse. I will talk to the team after...

(03:06:37)

after the hearing. Thank you. I just want to get you the number that you asked for on the funding for SARA. Do you have it? Yeah. Okay, so...

(03:06:50)

and that is for this year, so it is $158 million for...

(03:06:54)

SARA in this current fiscal year. Great. Thank you so much. And I am sorry — so the $158 million, I am trying...

(03:07:06)

to understand how these investments — what their equivalent production value is. Like, a hundred million gives us 50 units? Can you give me a sense of...

(03:07:24)

how these investments are kind of leveraged and how you equate what the production value is? So production is based on our term sheets and how much subsidy and how much...

(03:07:36)

capital needs to go in to build each unit. I do not want to — Patrick, do you have more to say here? But the $158 million is what we would be using to produce the 2,000 units. That is what is happening, right?

(03:07:49)

Now, okay, that is helpful. I know it is not a well formulated question, but I understand. It helps me. Thank you. Great. CM Joseph, followed by Restler. Thank you, Chairs.

(03:07:59)

Good seeing you, Commissioner. I am over here. Thank you. You have heard and seen a lot, so my questions are: what would need to change about the way HPD does enforcement to stop landlords from neglecting their buildings? What we saw was deplorable. The older adults living in the worst conditions I have ever seen.

(03:08:23)

So, a couple of things I would like to say. In the housing plan, there are two initiatives that are really meant to address exactly that type of housing, and we want to do it in a very targeted way. We are calling it "Fix the City." Like the name or not, the intention is to really go after chronic landlord neglect, where there has been a willful refusal to comply with the law. We do have, obviously, tools — litigation. We have a whole unit dedicated to bringing litigation. One of the challenges is that even when we bring cases, they sometimes languish in court. So one of the things I am happy to report, and I think there was reference to this in the housing plan, is we have gone proactively to meet with the Office of Court Administration to work on an initiative in which they will issue a directive to all housing part judges that will create an expedited calendar for certain types of cases.

There are four types of cases that we are talking about. One is Article 7-A. Another is for vacate orders where we are bringing cases against landlords who have had a fire, the units are vacated, everybody is displaced, and they never bring them back. The third would be for comprehensive cases and the fourth would be for any type of C violation that affects essential services throughout the building — no heat, no gas services. So exactly, I saw the no stove. What we saw was, as you are correct, unacceptable and requires strong action. I think the whole point of Fix the City and the enforcement days initiative is to really step up how we are going after landlords who would just allow tenants to live like that.

(03:10:04)

I have a quick follow up. Are the penalties for violations priced appropriately to make landlords comply? Because I think some of them say they will take the penalty versus fixing the apartments, and we saw that in several units that we walked into.

(03:10:18)

Yes, I think it is a question of whether or not the penalties are severe enough. So again, part of Fix the City is to step up not only civil enforcement but also potentially criminal enforcement. We have been talking to the Attorney General's Office, where there are potentially much more serious consequences for continued noncompliance. I would argue that in many of the cases where we see the kind of distress that you are talking about, they do not pay the fines.

(03:10:46)

So a quick question then: of the violations the City issues, what percentage is actually being collected when you do find these landlords? I have some statistics...

(03:10:57)

Of those statistics, I would say in our program we probably have the highest collection rate. This is where the agency is making repairs, right? We are doing repairs when the landlord refuses to do it. I think this is for charges that occurred in 2025 — there was about $26 million and a collection rate of about 70%.

(03:11:28)

Wow. So what percentage of those landlords pay on time? I do not know. The money, unfortunately, does not come to us — it goes up into the general fund. So I do not have a clear sense of exactly how quickly. But I think again, HPD is probably your best collection rate. I just said this last time and I want to repeat it: our goal is not really extracting penalties, it is getting the housing fixed. We do need to step that up, and if fines are not compelling enough, I think we need to take stronger action.

(03:12:06)

And how do you plan on working with 311 to better fix the system? When I call, my case is not closed, but I have never seen an HPD inspector.

(03:12:15)

So one of the things I think we spelled out in the housing plan is also how to do better coordination — not only when a person calls and lodges a complaint with 311. Often what happens, as you know, is inspectors go out, the homeowner is not there, they do not gain access. So one of the things we are proposing to do going forward is to create a system where, when we miss a tenant trying to inspect a unit after a complaint has been filed, we will then schedule an appointment. Starting out, we will be using text messages to do that, and then ultimately we will upgrade our technology so that that can actually be done online, allowing both the homeowner and the code inspector to agree on an appointed time when they will come back out.

(03:12:59)

Great. Thank you, Chairs. Great. CM Restler, followed by... thank you so much. I firstly just want to say how lucky we are to have Chair Sanchez leading this committee, and also thank her for her remarkable endurance on hearing two of four of the day. I think everybody should bring pastries and cupcakes and other nice things to her. Thank you, Commissioner, for joining us.

(03:13:24)

So, a few things I want to jump into. First is legislation we passed at the end of last year with great help — I want to thank Deputy Commissioner Santiago — our indoor cooling bill, landmark legislation, Local Law 23 of 2026. I guess technically it passed into law this year. All tenants have access to indoor cooling during the summer months. While full implementation does not take effect until 2030, there are certainly areas — technology, analysis, planning — where we can begin to prepare for this massive shift in New York City. Were there any new needs requests submitted relating to this law for this year?

(03:14:09)

No, we did not make any requests for new needs. We have begun the process of starting planning for rulemaking, which I believe we will put out in 2027. Right now, the rules are particularly focused on the inspector qualifications for going out and ensuring that the hardware that is put into the unit as part of the cooling bill requirements is up to standard. We have not yet anticipated additional costs that the agency would incur as a result of enforcing the new law.

(03:14:43)

But there will be significant additional costs. When you say you have not yet anticipated it, it is just that you have not done that analysis yet — what those costs will be?

(03:14:48)

We have not yet identified a picture of what the costs would be. Right now the focus has been creating the rulemaking, and then over time...

(03:14:56)

Because technology projects, as you know well, can be such a bear and take years to actually complete. I just want to make sure that we are on top of the needs — we want to champion them with you. It sounds like none were submitted for this year, but I cannot imagine that we would not need them for next year. If we need to begin that planning process now, we just want to make sure that we are all organized. This was, of course, part of the platform for Mayor Mamdani during his campaign, and I know we all want to see it successfully implemented. On agency electronic notifications:

(03:15:28)

We have legislation that could save significant costs for other agencies, to allow for electronic notifications of landlords and other stakeholders that you engage via email rather than everything going through paper mail in the year 2026. I am just wondering if HPD is working toward an electronic notification system. Is this something that you have identified as a priority? Are there cost savings that you have identified here as well?

(03:15:56)

Yes, but to your point there is also cost incurred. So one of the challenges for us implementing exactly what you are talking about — this online...

(03:16:05)

notification system — is that it would require additional technology. That is something we have started to cost out and are working with OMB to figure out what the final budget for that and other technology upgrades would be that we need to do for code enforcement, including inspecting vacant apartments. There is a fairly large series of questions that we are asking about — like what upgrades do we need. I think at least partially we have identified a vendor for some of those and are just trying to finalize this.

(03:16:34)

Final question as my time expires. I am excited to dig in on the housing plan with you and your team. More excited about a lot of expansion of new construction — on the preservation side, something that we have raised with you previously, and I think we owe you some details that we will get you imminently. We are very concerned about expiring 421-a buildings that have no good cause protections, and just wondering as you are thinking about the preservation expansion — that was significant, you know, with the four and a half billion additional dollars in funding received in the capital plan — is this an area that you think we can target? Any thoughts you can offer there?

(03:17:11)

Yeah, this has been very much on our minds. Right now there are about 8,000 units — about two thirds of the eligible projects that were expiring. These are the affordable units as part of the 421-a that have opted into the 421-a 17 program, which extends the affordability as long as the developer can add an additional 5% affordable units. There are more expiring, obviously, and that will continue happening year over year. We are exploring whether there is more outreach we need to do, whether there are more resources we need to bring to bear. We are also very committed to making sure that we do not lose the affordable set-asides in the 421-a. We appreciate that and want to work together on it. I am over time...

(03:17:54)

But for 10 seconds, I just really want to underscore: I do not think it is just about the affordable units. The market rate units have been subject to rent regulation over these years, and in districts like mine they can triple or quadruple in rent. We really need to focus on how to keep those as units that middle income families can live in today, because they will only be available to extraordinarily rich people if we do not protect them.

(03:18:16)

I agree, and I live in one, so...

(03:18:19)

I would also point out that we do understand that those units remain stabilized during the tenancy, so they would not lose stabilization protections while the tenant remains in place. But we agree — if the tenant leaves, it would become fully market rate. Understood. Great.

(03:18:39)

We have been joined by Council Members Morano and Riley. Next we have... followed by...

(03:18:44)

Hudson. Thank you, Chairs. And also thank you, Commissioner. I am over here.

(03:18:48)

Oh, good. I love the intergenerational housing. I want to know what the percentage is. If it is a general intergenerational...

(03:19:00)

Housing — it is an excellent question. I do not know that we have actually gotten to a finalized term sheet. The question of how many units would be restricted for seniors and how many would be...

(03:19:09)

family size units will really come down to making sure that the cash flow for the project works. We will be doing some modeling and some underwriting to create a term sheet. I am going to look to see — it looks like nobody wants to add to that. So I think it would be a mistake to commit right now to how many units of a generational building are for seniors and how many are for families, but we would find the balance that way. So I was wondering — does the senior not know how much housing things are going to get after the 421-a is no longer able to build anymore?

(03:19:38)

No, SARAH will continue to build. As we said, I think we also have a clarifying point about how much money there is in the budget for this. There are 2,000 units that are currently in our pipeline and an additional 2,000 units that we are committing to for senior housing specifically for seniors over the next two years.

(03:19:55)

Then your team just said the $158 million for...

(03:19:59)

SARAH. I think that is where we want to make a correction.

(03:20:03)

Yeah, that is for the current fiscal year. But the question is: for the current fiscal year, how many units? 2,000 units. 2,000 units only costs $79,000? What kind of units will those be? I am not aware of any unit that you can build for $79,000. Let me do the math. I am very sensitive with numbers. $158 million divided by 2,000 units — that is $79,000 per unit. So that...

(03:20:28)

is the subsidy that we have to contribute to make the projects go. But I am not sure I understand your question. I thought you were saying it is less expensive to build these units, and for me it does not make sense that for $79,000 we can...

(03:20:41)

build a senior unit — SARAH units for...

(03:20:45)

seniors. So also, to clarify quickly: that is for the current fiscal year, fiscal year 2026. For the new fiscal year coming up, fiscal year 2027, the budget is $300 million and about...

(03:21:00)

$300 million additional for the SARAH program. Okay. How many units for this year? How much money is it going to cost per unit?

(03:21:12)

It is around 1,600 units, and it does not make sense. I think we have gotten a little confused. So I am just going to ask: if you would like an accounting of how much money and how much subsidy goes into each SARAH unit for the current fiscal year and for the upcoming two fiscal years, we would be happy to get all of that to you in an easier to follow report and then to sit down and talk about it if you have concerns about what...

(03:21:37)

it costs. Sure, because it does not make sense to me — $200,000 for the housing. And also it is only $22 million for each apartment?

(03:21:53)

The average is $600,000. It does not make sense to me that $20 billion can build 200,000 affordable housing units — 200,000 units of new units and 200,000 preservation units. This is, you know, $22 billion, which is a huge down payment towards getting to that goal. I think we are going to be in a ramp up period, and as we said in the housing plan, the goal is to be producing over 20,000 units by 2031.

(03:22:32)

200,000 units.

(03:22:33)

And by what time? By 10 years? So many years. So right now, as the plan lays out, we will be producing about 14,000 units this year and a little bit more than that in the next year, and as we continue to ramp up the goal is to be producing over 20...

(03:22:50)

thousand — 20,000 units per year by 2031. Okay. Thank you. You are welcome.

(03:23:00)

Okay, CM Hudson, followed by Morano.

(03:23:01)

Thank you. I want to apologize because I did steal CM Restler's cushions with the hopes that it would give me a boost, but I know you cannot really see me over CM Morano. Okay, I appreciate the lean. You mentioned in your testimony hundreds of millions of dollars specifically to preserve and improve our Mitchell-Lama housing stock, and I am wondering how specifically those funds will be allocated. Can you share which of the 15 Mitchell-Lama projects are currently in the preservation pipeline?

(03:23:36)

We absolutely can. I do not have them sitting here today, but we will happily send you a report of all the Mitchell-Lama projects. I know Towers in your district is among them. Yes, it is among the 15, I believe. Okay, great. And so your question is how will the funds be distributed. We obviously have an asset management role for the New York City Mitchell-Lama portfolio, and so we will be targeting those funds to the projects that are most in physical and financial distress. There is a list — I have some of them in front of me — but there are a fair number that need attention. We are very happy to have a dedicated source specifically for Mitchell-Lama preservation, which will sit incrementally on top of what we already dedicate in a given year through our normal preservation pipeline. Okay, great. Would love to...

(03:24:26)

continue that conversation offline. Thank you. And then with regards to emergency housing vouchers — in response to the elimination of the Emergency Housing Voucher program at the federal level, you announced a program of two years for the 2,500 emergency housing vouchers the agency currently administers. Can you provide more insight into what the stopgap entails?

(03:24:50)

So this actually started long before I got to the agency. I just want to give a shout out to the team. So the team worked really hard, knowing that the federal government was sort of retreating from this program — which is terrible — to transition all of our holders to our HOME programs. These are federal funds, and one of the things HOME allows for us is called Tenant-Based Rental Assistance, or TBRA for short. It is a two year time-limited program, so it is a bridge. But it does apply — it is eligible to every one of the 2,000 EHV holders who are in our pipeline. They started well in advance of the funding running out. You do have to go through a new application process, a new sign-up — it is a different federal source. But we have made huge progress in transitioning virtually all of our holders. We have not completed it yet, but we have reached out to all 2,000 and have started the process of converting them over to this.

(03:25:56)

That is great and good news. Thank you. Does the program incur additional costs? Just time and staff, but we are...

(03:26:05)

muscling through it, all right.

(03:26:08)

And then how do you plan to support impacted households after the two years of the program? I think...

(03:26:13)

We will have to continue looking for all available resources. I mean, there is a hope that the federal government might decide to reinvest in housing sometime between now and then. That would be the best option. But short of that, we will potentially get new HOME funds in out years and so we will have to look, at least with you, no more than a year in advance to see if we can continue going. You can extend, but that is contingent on the funding being available from the federal government.

(03:26:42)

Great. Thank you so much. Thank you. CM Morano?

(03:26:46)

CM Morano, followed by Riley. My apologies to my

(03:26:50)

colleague for the inconvenient leaning. It is not the first time leaning to the right has gotten me in trouble in this body. Commissioner, your testimony discusses financing 200,000 new units and preserving 200,000 existing units, while the capital commitment plan increases by billions of dollars. What is the average public subsidy per unit under this plan and what specific steps are you taking to reduce that cost over the next five years? I am not trying to be duplicative of my colleagues' question, but I am just trying to get at: if

(03:27:23)

we are spending substantially more money, how do we know we are getting more housing rather than simply paying more

(03:27:30)

for housing? Yeah. So a couple of things to say on that front — I appreciate the question. The first is what I described earlier, which is this prioritization framework that we are doing with our pipelines. This will really be a message out to our development partners that we want to see cost efficiency as one of our top priorities. That will solve some of it, but obviously not all of it.

So the second thing I would point to is the work that we have just done through the SPEED initiative. While that is a lot about time, as you have probably heard, time is money. Creating these efficiencies in the way housing gets built and the time it takes to build — having, just as an example, the SEQR reform come, thanks to the Governor and the Legislature — that is a huge, huge cost savings to projects. It could cost more than a million dollars for that. We have heard significantly more than that just to get through an environmental review, many, many of which do not have any findings. So anyway, these efficiencies through SPEED, we think will help really drive cost savings in production.

And then lastly, we are exploring — and I think the plan talks about this — are there sort of innovations in new construction that we need to take a harder look at, particularly modular. So in what they call in housing, housing not built on site, we have seen some significant savings in total development costs through modular. We would like to see more and we have held a roundtable recently to determine: are we missing something, is there more to do here? But I think it is going to be a combination of factors that help drive down the development cost.

(03:29:00)

Towards the end of your testimony, you said the time has come for government to get out of its own way, which is right up my alley. Can you identify specific processes or approval requirements

(03:29:15)

that currently add substantial cost and delay to housing projects without providing a meaningful public benefit? Well, not to be redundant, but SEQR was a very good example. We did a look back — I am going to get the numbers wrong, so somebody will hold me to that — but we looked back at, you know, dozens and dozens of projects that had gone through a very lengthy and very expensive SEQR review and, looking back, less than 1% had any findings of any kind. So the thinking — and again, it is really millions of dollars and months and months of time — that was a perfectly logical, common sense reform that will change the total cost of development and the time it takes to bring housing to the market. Thank you.

(03:30:00)

CM Riley, thank you. Chair, good afternoon, Commissioner, great seeing you again. With the limited time I am just going to focus my questions on homeownership. Given the City executing projects for the creation and preservation of approximately 5,700 affordable homeownership units over the next two years, can you break down how many of those units will be newly constructed versus preserved and which boroughs they will be expected to be located in?

(03:30:26)

Definitely the first part. So right now the expectation is that 1,450 of those units will be new to the market. That is a combination of our Open Door new construction program, our NCP program which is the conversion of rentals to co-operatives, the new cooperative program called Our Home, and HomeFirst which is our down payment assistance — which is basically new, typically for first-time home buyers. It is almost a third. So: Open Door, HomeFirst which is our down payment program, and Our Home which is our new cooperative. The rest would be a combination of things like HomeFix, which is the home repair program, the new MAP program which is going to be a foreclosure prevention program for existing homeowners, our Article 7-A work which we see as a preservation tool for existing homeowners, and then a ton of work we do in existing preservation and refinancing.

(03:31:29)

Have you been coordinating with neighborhood rezoning plans on incorporating homeownership opportunities within those plans?

(03:31:37)

We do, and we do want to see more of it included where it is appropriate. I think this administration is putting a lot of emphasis on making sure homeownership is a key part of our housing plan. I think I have said this to you when we met, but I used to run homeownership for the State and it is very meaningful to me, so I am very pleased to see this new commitment.

(03:31:59)

In the housing plan, can HPD provide data on the racial demographics of the current HomeFirst and Open Door participants and are these programs reaching the communities they were designed

(03:32:11)

to serve? We absolutely can gather that data. I do not have it here for you today, but we will happily gather it and share it. Okay.

(03:32:19)

The plan anticipates assisting more than 350 first-time homeowners within the HomeFirst buying program. Given the scale of the need in New York City, why is that number relatively modest and what additional resources will be required to significantly expand that participation?

(03:32:37)

Yeah, it is a fair point. I mean, it is a bigger number than has been done in years past, but I appreciate that it is not a big enough number. One of the things we have started to talk about is better coordination — and I do not just say this because I used to oversee it — but SONYMA, the State of New York Mortgage Agency, has a down payment assistance program for first-time home buyers and specifically for home buyers of color. So I think there is a question as to whether or not we could be marrying these tools together in order to expand. Also, just being more strategic about making sure SONYMA is working in New York City.

(03:33:08)

Sure. Just a few questions. Thank you. The new Our Home initiative — we spoke about this during our visit a couple of months ago, so I am really happy that is part of the Mayor's plan. What criteria were used to identify the buildings that are eligible for this program?

(03:33:28)

A good question. To be honest, I think the consideration is that there could be more appetite. So I think right now, because the funding is — we are not expecting to do more than about 300 units — and also because, having worked in this space, we understand that converting from rental to collective homeownership is challenging. I think we will be targeting this to smaller buildings. I do not think we have put an absolute cap on that, but I am thinking about it. I would also say where tenants have been very clear that this is a priority for them — to convert to homeownership — that would also be a place to prioritize. And then lastly, I would say what I said in my testimony, which is there are a number of buildings that are transferring through voluntary sales or just through foreclosure, unfortunately, but those are also opportunities where tenants, because of this term sheet, would have an opportunity to raise their hand and say we want to be considered as part of the ownership. Thank you.

(03:34:23)

My last question, and I thank you for raising the cap on the HomeFix loan cap program. What analysis was conducted to determine that $100,000 reflects the current rehabilitation costs for New York City right now?

(03:34:36)

Past experience running the program. So we do know that, like for-profit developers and nonprofit developers, homeowners are contending with rising costs in the labor market and supplies with tariffs. So looking back at the data that we had from having run the program for

(03:34:52)

many years, we identified $100,000 as a much more appropriate level to get the needed repairs done. Thank

(03:34:58)

you, Commissioner. Thank you. Right. Thank you. So just a final round from me. I think we are going to hear from a Borough President in just a bit, but I just want to pick up on a couple of things my colleagues said. So CM Maloney was gentle in her questioning, but I do want to uplift the concern around 45- and 99-unit projects being used. That concern came to me in the form of a note that folks in the industry suspect that projects are trying actively to circumvent the wage, affordability and oversight requirements that kick in at a hundred units. So I just want to elevate that concern from CM Maloney.

And then on Mitchell-Lamas, CM Hudson's question — since you knew her project, do you know if 2865 Kingsbridge Terrace is on the list as well? I do not know. I do not know if any of my colleagues here know. It is not already on there? You do not know whether it is or not? We do not know, but we will find out. And if you give me one second, I actually do have a list of your district and my note to myself is that it is in an odd construct, which is a problem. So that is an odd construct and we need to... we probably should talk about why that is happening because in essence the tenants are calling code enforcement on themselves. Yes. But one of the things we are looking at there is to sell the garage, as I understand it, which would generate capital, which would give us a real boost to get into the building and start to address the repairs. But that is an odd construct and something we should probably follow up on — like why tenants are not sort of recognizing their ownership and acting more like owners. Yeah, absolutely. And a huge shout out to Justin, Don, Lynn and Nicole and everyone for answering the questions on this property. There are a lot of red flags going on there, so I just wanted to make sure to raise it here.

(03:36:59)

The executive plan includes an additional $1.2 million in the City funds baseline starting in fiscal year 2026 to provide financial incentives in the basement conversion program for up to 100 homeowners and 100 tenants a year starting in fiscal year 2027. The program also received additional capital funding in the executive plan through the Plus 180 program. Can you share with us how owners and tenants will be selected for these incentive programs and how HPD plans to publicize both the basement incentives and the Plus 180 program?

(03:37:35)

So I think you are aware, Council Member, that we launched New For You, which is sort of a one-stop shop for new programs. It is a place where homeowners can go and look at pre-approved models of accessory dwelling units that have been approved by all the different agencies so that it would be a quicker timeline to get them online. It is also a place where we will promote the basement apartment program, which is not quite open for business yet but it is coming soon. And finally, it is also where folks can get directed to Neighborhood Restore, who is providing the technical assistance to both homeowners for either basement or ADU conversion.

At the moment we are trying to work through the 3,000 inquiries we got expressing interest in the program to identify who is serious, who wants to follow up, and to collect the additional documentation we need from each person in order to move them through. So it is basically who gets their documents to us first. But I think with the basement apartments we will also want to look at where the highest risk is, based on what we know about historic flooding and the risks associated with that. We will be looking to see if we can

(03:38:49)

prioritize folks who are living frankly below flood elevation and should not be. Beyond the 3,000 homeowners that expressed interest,

(03:39:00)

is there a way for

(03:39:02)

other additional homeowners to express interest? It remains open, and so we keep calling through basically in batches. They go over to Neighborhood Restore as we identify projects that look viable, and then follow-up happens between Neighborhood Restore and the applicant to get additional documentation. And then it is frankly a somewhat arduous process to go out and evaluate the land. Is there, if it is a stand-alone, is the property big enough to hold the stand-alone? If it is a conversion of an existing structure on the property, whether that is a basement or just an addition to the home — all of these things factor into whether or not it is a viable project. Not every project, unfortunately, is viable. So first we are looking for eligibility and then we are looking for sort of physical

(03:39:51)

viability. Got it. Thank you. I feel compelled to say this out loud: there is a disconnect between properties that the Department of Finance classifies as one- or two-family homes and in many instances the certificate of occupancy is only for a one-family home for the same property. So just, you know, I want to flag that for you as you continue to talk to homeowners about that disconnect and the potential higher taxes that some folks may be paying.

A quick one: is the City acquisition pool being implemented by a partnership generally between agencies, and who is the technical advisor that is helping craft the RFP that will go out soon and also help evaluate the proposals you get back? Ultimately, you know, we will either fund one or more proposals. We are not locked into necessarily one. So yeah, it is a collaborative effort between the three agencies.

(03:40:56)

Okay. Thank you. Moving to federal threats — it is not so much a threat as a reality. HPD has lost $485 million in federal funding between the fiscal year 2026 executive budget and the fiscal year 2027 executive budget: $145 million in Community Development Block Grants and $340 million in other federal sources. Which areas of the agency are these cuts affecting the most? How has the executive plan begun to address any new funding needs emerging at HPD as a result? And to follow up on the question on emergency housing vouchers — you talked a little bit about the tenant-based vouchers that were able to be identified. Can you provide an update on the rollout of the HOME tenant-based rental assistance vouchers? How is that going in terms of receiving applications and everything that you need from tenants?

(03:41:52)

Yeah, so we have had good uptake and I think we have now mailed to, if not the entire population, close to the entire population. So we are — I feel that we, and again the team deserves all the credit here, have gotten ahead of this so that we will be able to make the transition before the EHV funding at the federal level expires.

(03:42:14)

And if you would like to know

(03:42:14)

exactly how many households have actually signed up and transitioned onto the program, we can get you that and certainly follow

(03:42:23)

up. To your earlier question, we have been generally fortunate that the HOME funding has stayed pretty flat. I might ask... to comment. I believe the CDBG funding has also remained pretty steady. It has not increased, which is what we would actually like, because dollar values are worth less over time because of inflation. Where I think we have had the most critical cuts is the Section 8 budget. The reserves that were swept, creating a shortfall for us, has been really, really

(03:42:55)

challenging and we remain very concerned that we need full funding for the Section 8 program. That is just something not really replaceable by City or State government. Did you want to add to that?

(03:43:08)

So yeah, just to add to that — the CDBG funding, excuse me. So what happens is that for the current fiscal year, at times there is rollover funding from the prior year that was not used, so the current year will have a higher amount but not for the next fiscal year, reverting to the baseline. That is why you are seeing that drop to what the flat line is. But this year we had the rollover and as new funds get allocated, you see an increase in the federal budget. Great. Thank

(03:43:49)

My last thing is not really a question, but rather a comment. You know, I think the housing industry is really excited to see your focus, Commissioner, on lowering operating costs. So I would be remiss if I did not use this as an opportunity to elevate that I urged the administration, the Mayor and everyone on down to work with the Council to resolve the City of Yes expansion lawsuit, because it is an important place, an important way to stabilize even more homes and units across the City of New York with steady income streams for those owners. DOB is not testifying before the Council, but I do want to highlight on the record that I remain concerned about inspector head counts there. So you can let the Commissioner know. We are really keeping an eye out for vacancy reductions. The previous administration did tremendous harm to the inspection staff at the Department of Buildings and we have sort of been recovering ever since. I just want to make sure that I say that on the record. Those are my last comments.

(03:45:04)

Okay. Well, with that, I want to thank you, Commissioner, and turn it back to the Chair.

(03:45:26)

Actually, I think we are good. I think that is the end of this portion of the budget hearings, so I really want to thank you, Commissioner, and your team for coming. Thank you so much. Shortest hearing in history.

(03:45:42)

I know, right? Magic. And we are going to the next portion soon. Okay.

(03:49:18)

We are going to move into our next portion, which is testimony from our Manhattan Borough President. So if everyone could quiet down. Sorry, Sergeants, if I am taking your job. Okay, we can start, right? We are good to go. Okay, perfect. So feel free to start whenever you are ready.

(03:49:42)

Thank you. Thank you, Chairs Lee and Sanchez and the members of your Committee on Finance and Housing and Buildings, for allowing me to testify in support of investing in housing in this year's City budget. I do not have to tell you, but housing remains one of the City's most pressing public policy issues. In January, to take Manhattan as a specific example, the average rent hit $5,711 a month. That is an all-time high. For the first time on record, the median monthly rent exceeded $5,000. More than 60% of Manhattan residents are renters. Nearly one half of households are rent-burdened and a quarter or more are severely rent-burdened. Failing to address the housing shortage could cost our region 730,000 jobs and a trillion — with a T — in lost economic output by 2035.

I would concur that the City, thanks to your efforts, is meeting the moment with urgency. I am excited to support the Mayor's new block-by-block housing plan to build 200,000 new affordable homes and preserve 200,000 more. In my preliminary budget response, I called for at least $4 billion a year in capital commitments and, thanks to the support of the City Council, the Executive Budget not only meets but exceeds this, with $4.8 billion in FY27 and another $4.5 billion in FY28. This funding is essential to increase the supply of quality affordable housing as our agencies staff up and become more efficient in the ways that the money is spent. To that end, I am glad to see that the Executive Budget increases agency expense budgets to ensure that the capital funds are used efficiently. The recently released SPEED report from City Hall is a landmark attempt to cut the red tape slowing down affordable housing production. We need the funding for the staff to deliver on these commitments and to ensure speed in production can be accomplished without compromising quality. I for one strongly support the investments that the Executive Budget proposes for these agencies.

Manhattan has a unique opportunity to address the housing crisis with office-to-residential conversions. Too many conversion projects are stalled, not by financing, not by zoning, but by arcane provisions of the building code. One of the most consequential is the operable windows requirement, which poses an enormous cost for offices with high-quality HVAC systems. Last year, I wrote and passed legislation in the State Senate that was re-passed this year to allow residential conversions to use mechanical ventilation as an alternative to operable windows, aligning New York with a nationwide standard. That regulation dates back to the 1870s. This Bill will hopefully pass the Assembly soon and be sent to the Governor. I urge the Council to join me in calling on all to get this common-sense legislation over the finish line.

Now, in my role as Manhattan Borough President, I have been proud to do my part by saying yes to virtually all the housing development proposals that have come across my desk in the last five months, recommending approval of applications that will build 1,400 new residences in Manhattan. I look forward to continuing to support rezonings that will deliver urgently needed housing, especially in neighborhoods that have seen very little affordable housing development.

Building more housing is only half the equation. Equally important is keeping New Yorkers in their homes. When right to counsel is adequately funded, at least 89% of tenants facing eviction in housing court stay in their apartments. But citywide tenant representation in housing court has dropped from 71% in 2021 to 42% in 2024. I would urge the City to increase right to counsel funding — and I know I am speaking to the choir here — by at least $350 million to restore the program to its intended coverage levels.

I am also pleased to announce that for the first time, the Manhattan Borough President's office is hiring a borough organizer dedicated to organizing tenants across Manhattan, creating what we are calling a Manhattan Tenants Union. Many tenants do not know their rights or that they share a landlord with hundreds of other renters throughout the borough. Our borough organizer will be on the ground at community centers, at tenant association meetings and in buildings, ensuring that tenants know what protections they have and have the collective power to enforce them, because tenants are stronger united.

Finally, no conversation about Manhattan housing is complete without a mention of NYCHA. Manhattan is home to 203 NYCHA developments housing 91,010 Manhattan residents — an irreplaceable source of affordable housing for low-income residents. A 2025 needs assessment found that NYCHA requires $78 billion over two decades to reach a state of good repair. I welcome the additional NYCHA capital commitments in the capital plan and I urge the City to double down on these investments in the coming years. NYCHA residents are also particularly exposed to federal funding instability. A proposed rule that I am sure you are familiar with would terminate housing assistance. The federal termination of the Emergency Housing Voucher Program is putting more than 7,200 NYCHA voucher holders at immediate risk of losing rental assistance.

(03:56:09)

I would urge the City to conduct a thorough assessment of the potential federal impacts and commit to supporting families at risk — from low-income public housing residents living in deteriorating buildings and federal funding cuts, to market-rate tenants experiencing record-high rents. New Yorkers are indeed facing an existential housing crisis. The FY2027 adopted budget reflects the pressing need to invest in all types of housing for New Yorkers today and for generations to come. I want to thank you for your support of that budget, everything that you are doing to increase it, and for the opportunity to testify today.

(03:56:50)

Thank you so much, Borough President, and for your continued support and fight for more housing, affordable housing and right to counsel, which is very big and important for the City Council. So thank you so much.

(03:57:02)

Yeah, echoing that. Thank you so much for taking the time to join us today. Thank you very much.

(03:57:06)

See you soon. Okay. And I think that closes out our portion of the budget hearings. Next we will move to NYCHA. Again, thank you.

(03:57:51)

...

(04:01:09)

You guys are good? Okay. All right.

(04:01:15)

We are getting kicked out at four, so I wanted to get started. Okay. So good afternoon.

(04:01:23)

Welcome to the third FY2027 Executive Budget hearing for the day, focusing on the New York City Housing Authority. I am Council Member Linda Lee and I am proud to be joined by my colleague CM Chris Banks, who is the Chair of the Committee on Public Housing. We have been joined by Council Members Wong, Morano, Marte and Encarnación. Welcome to Commissioner Lisa Bova-Hiatt — am I saying that correctly? Perfect. So welcome to you and your team and thank you all for joining us to answer our questions today.

On May 12, 2026, the administration released the Executive Financial Plan for FY2026 to FY2030. The proposed FY27 budget of the New York City Housing Authority represents 0.3% of the administration's proposed FY27 budget in the Executive Plan. Although NYCHA also receives a large amount of their operating budget from sources outside of the City, it is an increase of 4.5% from what was originally budgeted in the FY27 preliminary plan. This increase results from several actions, primarily the addition of funding for vacant unit readiness and NYCHA's new critical repairs initiative. As of April 2026, NYCHA's headcount was 182 less than their headcount at the end of 2025.

The Council is happy to see the inclusion of additional funding to address many of the longstanding capital needs across NYCHA's portfolio. In recent hearings we have discussed at length the necessity for NYCHA to bring more vacant units online faster, issues with mold, leaks, elevators and other key infrastructure issues. While the authority faces historic disinvestment from the federal government, it reflects this administration's priorities to see an increased investment in NYCHA. I am interested in hearing more about how these funds will be deployed, what their impacts will be and how they play into the broader housing environment across the City, and NYCHA's savings targets in accordance with the mission of the Chief Savings Officer is also something that we are looking forward to hearing about.

I now want to turn it over to my co-chair for this hearing, Chair Banks, for his opening statement.

(04:03:47)

Thank you, Madam Chair, and to the panel, thank you for being here today. Good afternoon and thank everyone for attending and for tuning in virtually as well. Welcome to the joint Committee on Finance and Committee on Public Housing for the Fiscal Year 2027 Executive Budget and Executive Capital Commitment Plan for the New York City Housing Authority. I am CM Chris Banks, Chair of the Committee on Public Housing, and I would like to again thank everyone here today and all my speaker colleagues for being here. I also want to recognize the members on both committees and thank them for their continued commitment to public housing and, of course, the entire City.

NYCHA houses more than 500,000 New Yorkers — approximately one in every 17 City residents. These individuals include some of our most vulnerable populations: working families and low-income New Yorkers who often rely on limited public benefits and support services. As the largest public housing authority in the nation and the City's largest residential landlord, NYCHA plays a critical role in ensuring housing stability for hundreds of thousands of New Yorkers.

After decades of disinvestment, NYCHA continues to face an existential challenge. We cannot claim progress when funding swings from $500 million one year to just $140 million the next. This type of inconsistency is exactly what defines the systemic disinvestment in NYCHA that has endured for years. The federal government has steadily reduced its commitment to public housing and the State's contribution in this year's budget falls dramatically short of what is needed to address the $80 billion capital need. At the same time, this administration continues to emphasize privatization strategies through RAD and PACT conversions, directing substantial resources towards those initiatives, while traditional Section 9 public housing remains severely underfunded.

Together, these decisions have pushed NYCHA to a critical juncture, one that threatens the long-term stability of its housing stock, the well-being of its residents and the future of public housing in New York City. The Mayor's housing plan released on May 26, titled "Block by Block," rightly recognizes NYCHA's essential role as both a provider of deeply affordable housing and a key component of the City's broader housing strategy. But recognition alone is not enough.

This committee wants to understand how NYCHA plans to scale its operations, accelerate repairs and return vacant apartments to service. We cannot simply continue investing additional resources without a clear strategy for execution. We need to understand NYCHA's plan to improve operational inefficiencies, strengthen project delivery, reduce vacancies and ensure that investments are translating into measurable outcomes for the residents. Time is of the essence and we cannot afford to continue the delays, mismanagement or missed opportunities when thousands of New Yorkers remain on a waiting list while apartments sit vacant.

We must also hear clearly and concretely how this administration intends to position NYCHA moving forward. NYCHA cannot be treated as an afterthought nor reduced to a vehicle for privatization. It must be fully invested in as a cornerstone of New York City's housing future — the very commitment made by the Mayor as landlord to New Yorkers and the same platform on which he was elected.

The Fiscal Year 2027 budget does include increasing investments in critical repair initiatives, including the vacant unit readiness, lead and asbestos abatement and elevator, mold and leak remediation. These investments are necessary and we welcome them. However, there remains a long road ahead if we are serious about stabilizing NYCHA and ensuring residents are afforded the safe and dignified quality of life they deserve. While the committee

(04:08:34)

is encouraged by the investments in NYCHA's Section 9 portfolio, they continue to be outpaced by the administration's investment in RAD and PACT conversions. The Fiscal Year 2027 Executive Plan includes an additional $200 million for PACT conversions in Fiscal Year 2028, bringing the total capital commitment for PACT to nearly... over this year and the following two fiscal years. By comparison, Section 9 capital commitments total approximately... over the same period.

Today we look forward to hearing from NYCHA's leadership about how they are balancing investments across the authority, how these funds will translate into meaningful improvements in residents' daily lives and how accountability will be maintained as an increasing share of the portfolio transitions to private management. Simply put, this committee is asking: how does NYCHA plan to steady the ship?

Time is not on our side. Every delayed repair, every vacant unit left offline and every missed opportunity to invest in the housing only deepens the challenges facing hundreds of thousands of New Yorkers who call NYCHA home. I would like to thank again the Finance Chair, the Speaker for their leadership as well as the committee staff who helped prepare today's hearing — Spencer, Cheema, Jose and the entire team. With that, I will pass it back to the Finance Chair. Thank you.

(04:10:21)

Thank you. Okay. We have been joined by Council Members Brewer, Restler and Hudson. Before we begin, just a few housekeeping things. We are going to have an all-day public testimony hearing on Wednesday, June 10, starting at 9:30 a.m. So it is going to be an all-day affair. We look forward to seeing everyone there from the public for testimony. So Wednesday, June 10 at 9:30 a.m. The hearing that is right after this will be held at 250 Broadway across the street on the eighth floor. So without further ado, I am going to have our amazing committee counsel Brian Scarfo administer the oath.

(04:11:33)

Chairs Chris Banks and Linda Lee of the Committees on Public Housing and Finance, other distinguished members of the City Council, like your residents, community advocates and members of the public. Good afternoon. I am Lisa Bova-Hiatt, Chief Executive Officer. I am pleased to be joined by Chief Operating Officer Eva Tremble, Executive Vice President of Finance and Chief Financial Officer, and Nicholas Scott Martinez, Chief Asset and Capital Management Officer, Dylan Baker-Rice, and other members of NYCHA's leadership team. NYCHA's Board of Directors approved our adopted budget. Thank you for this opportunity to share updates on NYCHA's fiscal outlook for calendar and fiscal year 2026, as well as the progress we are making to transform our organization and our residents' quality of life.

Since we last sat before the Committee, Mayor Mamdani has released a block-by-block housing plan for a new era. NYCHA is a central part of the Mamdani administration's recently released housing plan. Over the next four years and beyond, NYCHA will play an essential role in not only stewarding the City's existing affordable housing but also in creating new opportunities for current residents and other low-income New Yorkers. As laid out in the housing plan, NYCHA is focused on programs and new initiatives to improve and expand upon its work within three core areas: addressing major capital needs and supporting effective operations that are accountable to resident experiences and participation; delivering deep capital reinvestment and positioning NYCHA as the trusted 21st century stewards of publicly owned housing; and supporting economic mobility for NYCHA residents.

With the City's renewed focus, NYCHA will remain a valuable resource and a platform for opportunity for the New Yorkers we serve. In 2026, with a total of $5.6 billion in the five-year capital plan across existing funds, investments made in the 2026 preliminary plan and new additions in the Mayor's first executive budget, the Mayor's budget is dedicating the most City capital to NYCHA in recent history. We are incredibly grateful for the City's support of our mission. Mayor Mamdani and his administration are investing $500 million in new capital funding over the coming years that will enable us to comprehensively renovate thousands of homes through our innovative PACT and Trust programs and initiatives, which provide residents with fully renewed homes while maintaining their rights and protections as well as the integrity of our public housing.

Additionally, approximately $78 million in new City capital funding will enable us to address and turn over thousands of vacant apartments more quickly. In addition, the City committed approximately $76 million in new expense funding over fiscal years 2026 to fiscal year 2030 to address mold, elevators and vacant apartments. All in, total City support for public housing and Section 8 conversions increased by $650 million for fiscal years 2026 to 2030 in the fiscal year 2027 executive budget. In addition to new funding, NYCHA is currently investing over $6 billion using City, State and federal sources in its Section 9 properties across 500 capital projects.

In recent years, NYCHA made significant progress in turning over vacant apartments to be occupied. Annual move-ins have increased by more than 50% since 2023. The average turnaround time has been cut by 73 days since August 2024, and standardizing environmental testing and abatement has been implemented to ensure that every turned-over apartment is lead-free, mold-free and asbestos-safe. The lead and asbestos work is time-consuming and costly but critical to protecting resident health and safety. The average cost to make each apartment move-in ready is about $59,000, driven mostly by environmental remediation requirements and the scale of repairs needed across our aging portfolio.

Further, the number of apartments requiring turnover work is not static, as people continue to leave NYCHA for various reasons. NYCHA also facilitates transfers of existing residents to newly open units, including statutorily mandated categories such as survivors of domestic violence or those requiring accessibility accommodations. As a result, vacancies continue to cycle through NYCHA's system even as turnover performance steadily improves.

As of May 2025, about 6,000 vacant apartments remain in NYCHA's vacant portfolio. To address these challenges, the City announced it is investing the largest capital commitment to vacant unit turnover in the City's history in the recently announced executive budget and in the Mayor's block-by-block housing plan. The City committed $256 million in capital funds and $118 million in expense funds through fiscal year 2030 to restore vacant NYCHA apartments and prepare them for tenancy. With this additional funding, NYCHA will be able to renovate more units and house more New Yorkers in deeply affordable homes.

We thank the City Council for its repeated advocacy and leadership on this issue. We will continue providing updates to the Council on our efforts to address the conditions in these units and bring more housing to as many New Yorkers as possible. We remain laser-focused on our mission of serving thousands of New Yorkers. To that end, we are making the best possible use of the limited federal funding that is available while also pursuing innovative strategies for bringing billions of dollars of investment to our properties, delivering to residents the quality of life they deserve. The figures in our adopted budget that we shared with the

(04:18:49)

Council remain the same. We anticipate a balanced budget by year end with $5.6 billion in expected expenses matched by our total anticipated funding, and we expect to invest in capital funding in our development this year. However, the rent revenue deficit remains a major challenge. We collected only about 87% of the rent charged, and current arrears amount to approximately $493 million across 61,000 households. We are relaunching an informational campaign to let residents know how they can get help with paying down their arrears.

Additionally, there is still uncertainty about the level of federal funding we will receive, and we remain concerned about federal funding cuts that could affect our operations. Congress's appropriation bill for 2026 decreases operating funding for public housing authorities nationwide by 14%. If NYCHA does not receive competitive shortfall full funding to make up the gap, we would need to reduce operating spending by up to $158 million by year end.

Even if we must make cuts to keep our budget balanced, we will always prioritize residents' health and safety, along with services. We know that members of the Council are as concerned as we are about the fate of the federal government's Emergency Housing Voucher program. Once the federal government announced last year that it would be ending this critical program with funding running out by the end of 2026 — four years earlier than expected — we began developing a plan to assist the approximately 5,200 NYCHA participants.

While NYCHA does not have the funding necessary to transfer households to the traditional Housing Choice Voucher Section 8 program, we are working hard to provide them with a new subsidized housing option. To that end, we reached out to participants through multiple rounds and modes of communication to encourage them to complete a public housing application, which we are accepting through this summer. As of May 27, we have received 1,275 public housing applications from households, and we have begun matching some of those applicants with vacant apartments across our housing portfolio. The City has identified $80 million in HOME funding to reallocate to the HOME program to assist a portion of NYCHA's current participants. The proposed use of funding is contingent on approval. NYCHA takes seriously the timeline under which we are operating and is working with referral partners, participating in cross-agency working groups with City Hall, and looking for any approach to assist voucher holders.

We are wholeheartedly devoted to pursuing every possible strategy to ensure that NYCHA remains a vital resource of affordable housing for New Yorkers for today and for decades to come. Thank you for your critical partnership and support as we continue making progress on behalf of the families we serve. We are happy to answer any questions you have.

(04:22:47)

Thank you, Commissioner. We have also been joined by Council members. I am going to try to zip through my questions to give more time, so really quickly. Obviously NYCHA is a huge part of the Mayor's housing plan, especially when talking about affordable housing. So in the housing plan, the report outlines that a host of new financing tools, some of which you have outlined, are being created to achieve the widespread capital funding needs across the portfolio. One of these tools is called the Subordinate Market Rate Revolving Term Loan, or do they call it SMART? Is that a thing?

SMART, SMART. Sorry, I read it. SMART, SMART loan, which is a City-controlled loan product intended to be self-sufficient. What is the structure of the loan program? How much funding will be available to recipients and what is the repayment timeline and interest rates? Thank you.

(04:23:44)

So much for that question. I am going to turn it over to Heather Beck, who is our Interim Chief Real Estate Officer. You just have to be sworn in.

(04:24:04)

Thank you for that question. The SMART loan is a new product, if you will, that we have created with our partners at Fulton Elliott and Chelsea Redevelopment Project for the first time. It is really a loan that works because we are leveraging the mixed-income opportunity at that site. It is a publicly driven loan and it is one that the public will continue to control and manage. I think one of the things that we are really excited about is that it will be something we can replicate in other parts of the City if the market allows. It is a product that we are using with HTC. Okay. And what types of projects are eligible? Essentially anywhere where we can build mixed-income housing and do market-rate, affordable and affordable housing. Those proceeds help us leverage the debt for that one.

(04:25:11)

Okay. And was funding included in FY27 to support this loan type?

(04:25:16)

Yes, and this, as I said, is something we are anticipating using in the Fulton Elliott and Chelsea project as soon as we are able to move forward with that. Sometimes the housing projects get delayed, so that is why I wanted to double-check.

(04:25:30)

Okay. Can you share any of the other funding tools that the administration and NYCHA plan to use to address the authority's capital needs?

(04:25:41)

I do not have that detail for you. I will pass it to Anika, our Chief Finance Officer. Thank you for that question. In the housing plan, the Mayor's budget makes significant investments in several priority areas, one of which is $500 million to support the renovation of Section 9 units through PACT and the New York City Public Housing Preservation Trust. Okay. During the

(04:26:07)

preliminary budget hearing, NYCHA expressed that they were facing a reduction of federal operating subsidy of approximately 14%. Do you have any updates you can share

(04:26:17)

with the Council regarding the funding loss from this cut and the associated proration rate? Thank you for that question, Council member. So yes, as we mentioned, this year's reduction nationally is $789 million, which is the 14% that you referenced. It is the largest decline in recent history, exceeding even what we budgeted conservatively. So the direct impact to NYCHA is a potential $158 million reduction in our operating funds. There is currently an 87% interim proration rate, which is creating both a cash crunch for NYCHA on a monthly basis as well as a general potential deficit in our budget. One of the tools that Congress also passed is a competitive shortfall grant. Funding on that application is out. NYCHA probably turned around our application in less than a week, and so we have applied for that funding. We do anticipate, based on our advocacy with Congress and our conversations, that we should receive enough to mitigate our deficit. But it remains uncertain and we do not anticipate receiving a formal response until later. Got it.

(04:27:33)

And how is that going to... if you could paint a picture, how would that impact the services, the budget and the projects that you have?

(04:27:40)

So at this point, we are moderately confident that we will receive the shortfall funding. We are eligible for $600 million. The pot itself is only $337 million. We think we will probably receive the $158 million that we need based on the national appropriation and the other needs. We are not anticipating having to make any direct cuts to resident services at this time. Okay.

(04:28:15)

Great. You answered my next question. And then NYCHA's 2026 to 2030 annual budget book shows that NYCHA anticipates a deficit of $263 million in 2027, with deficits ranging from $206 million to $265 million in 2

(04:28:30)

030. So again, what steps are you planning on taking to address this in the out years? And are savings measures that were used to address the shortfall this year, such as overtime control, central office savings and those measures, is that helpful?

(04:28:45)

Sure. So NYCHA operates on a slightly different fiscal year than the City and a different budget timeline. We pass a budget once per year, so we anticipate that we will be passing a budget at the end of this year that would take care of 2027, bring us into balance and then also start to deal with our structural deficits. I would say at this point everything is on the table, but of course we would prioritize programs that support the hard-won agreement in our pillar areas — things that directly deal with resident services, life, health and safety. But yes, overtime constraints, yes, potential contract cuts. Everything is on the table.

(04:29:25)

Okay. So now that the State budget has been decided, is there anything in there that will cover or help cover the shortfall? Not that we can

(04:29:34)

tell at this time. I believe we received $140 million from the State and will be working with them to do a grant agreement. There is also $50 million, I believe, which is to be shared between NYCHA and Mitchell-Lama. We do not anticipate that any of that funding would support our operating deficit.

(04:29:54)

Okay. And in the follow-up letter to the Council following the last preliminary budget hearing, you had mentioned that the negotiated amount has yet to be allocated, including $5 million in FY27 and FY28. Are any of those allocations included in

(04:30:18)

the plan? Yes. So we are pleased to report that there is only $10 million left to be allocated. $53 million was allocated in the executive plan to vacant unit readiness, specifically on the capital side for PACT. Okay, great.

(04:30:32)

And then quickly going to savings — did NYCHA just submit proposals for savings to the administration, and if so, why are there no savings included in the plan? Or correct me if I am wrong.

(04:30:44)

Sure. So NYCHA participated in the Chief Savings Officer exercise. I am the Chief Savings Officer. We did submit proposals. We believe in supporting the City through the structural deficit. None of our proposals were included and we will remain engaged. Okay. Do you know why? Most of our money is federal and not... okay, there is not much room around that we can do to support the City's

(04:31:11)

structural deficit. Okay. So were you subject to any requirements to adjust your capital commitment plan, as we have heard some other agencies have? Not that I am aware of.

(04:31:25)

No, we have not adjusted our capital commitment plan. We remain committed. We have shared that plan and worked on it, and our commitment rate remains the same. Okay. And

(04:31:37)

then just lastly on headcount — headcount has declined by 183 positions since the end of the calendar year. Are there specific positions or departments in NYCHA where staff are leaving at a higher rate than others?

(04:31:53)

That is a really interesting question. Thank you, very thoughtful. So in general, we see higher rates of attrition in our positions in the field versus central office. We also see different attrition rates within various skilled trades positions as well. But I am really pleased to report that NYCHA's vacancy rate is currently less than 5%, and our vacancy rate in key positions like caretakers is 1% and maintenance workers is 3%. So we are working very hard with HR and many other parts of the organization to ensure that we have the right people at the right time.

(04:32:35)

Okay. And do you have enough staff necessary to undertake, and the right staff to undertake, additional work that funding added in this budget will need? Yes, we do. Okay, that is good. We have heard in prior hearings that staffing for some maintenance roles like plastering can be challenging due to the unique construction of NYCHA. So what steps have you taken to train the workforce in the necessary skills to do this work, and are there any resident-specific training programs?

(04:33:07)

Thank you, CM. Yes, plastering is our most difficult to hire trade. It is not something found in the private sector much anymore. In order to address the difficulties in recruiting, a few years ago we started our own plastering academy where we work with the plaster helper, or what we call caretaker, and we work with them in order to do intensive training, special training in order to get them to pass the practical exam, which will enable them to be a full-time plasterer. We have had, I think, three or four classes — I can double check — and each class is about 10 people, so we have been able to increase our ranks quite a bit through that program.

(04:33:48)

Okay. I would just add that, due to the good work that they have been doing at the academy, our plasterer vacancy rate is only 5% currently, so it is certainly bearing fruit.

(04:34:00)

What was it previously, before the academy started? We would have to get back to you on that. Okay. Reminding me of parts with the tree pruning — I feel like that is a very difficult position to fill.

(04:34:12)

Okay. Just lastly, can you speak to NYCHA's strategy for staffing going into the future, as large portions of the portfolio undergo the PACT conversion? Will NYCHA be reducing their head count to account for the smaller number of properties within the portfolio? It is always a bit of a balancing act because, while we are shrinking our portfolio, the buildings that we have have significant maintenance and operating needs. We do try to balance shrinking in accordance with the federal funding that we are going to receive, but also ensuring that we have enough people in the right places in the field in order to continue providing services to our residents.

(04:34:52)

Okay. We have also been joined by CM Sanchez. Sure, thanks. Thank you. Chair.

(04:35:01)

I guess I will start with capital, and particularly with PACT. The executive budget includes, in addition to $500 million for PACT in fiscal year 2028, as we have discussed before, the administration's continued investment. This is concerning, especially when the vast majority of NYCHA residents are still living in Section 9 housing. How many additional unit conversions does NYCHA estimate that this added funding will facilitate?

(04:35:35)

Thank you for that question. Right now, NYCHA has just over 13,000 units in our planning and pre-development phase. Those are units where we are engaging residents and resident leaders. Some of those have partner teams selected and designated; others are earlier on in the process. We will work with the City to make sure we are able to close projects as they are ready, utilizing that funding over the next fiscal year.

(04:36:06)

Are there specific developments that this funding will go towards, and if so, what are the timelines for improvements at those developments?

(04:36:16)

Yeah, we anticipate converting a number of projects throughout the end of this year. A lot of those are projects that have been in planning and pre-development for a number of years, and we can get you the specific list of sites that we anticipate closing and their timelines.

(04:36:31)

All right, thank you. Has NYCHA determined a total amount of funding needed to reach the target of the 62,000 units converted to PACT?

(04:36:41)

Yeah, that is a very interesting question. We have a pipeline of 13,000 units, as I said, and a number of sites that we need to identify to get all the way to that 62,000 unit count. Each of our projects has a different scope and budget, and so that will be something that will evolve over time. We do not have a specific dollar amount right now to get to that 62,000 units.

(04:37:09)

Okay. What is the total number of units currently in the PACT pipeline and this plan?

(04:37:16)

There is also, in fiscal year 2026, funding for PACT conversions — just over $1 billion in fiscal year 2027. Is this a new addition of $500 million for fiscal year 2028, or is there a new addition?

(04:37:44)

I am not sure I followed all of those, but I think we have been working closely with the City to make sure we have the capital funding needed for the upcoming fiscal year.

(04:37:52)

Right. So what is the appropriate amount for that $500 million? How was it determined that this was the correct amount to be added for fiscal year 2028? Okay, I will pass that back. And so...

(04:38:12)

I think that question is probably best posed for someone at City Hall. We communicate with them on our needs. We always need additional funding. We are grateful for the PACT funding, and as Heather said, we are happy to get you the list of sites that that funding will support.

(04:38:30)

Okay. Is NYCHA experiencing a slowing in the number of developments opting to go through the PACT conversions? Is there broad support for PACT?

(04:38:44)

Yes. I think, as we have also shared in prior hearings, we have severe capital needs. As Lisa said earlier, that is approaching $80 billion across our entire portfolio. So through both PACT and the Trust program, we anticipate converting around 85,000 units to the project-based Section 8 program. That is our goal and we continue to work toward that goal as quickly as we can, knowing that the needs in our buildings are continuing to grow. The longer we wait to make those investments, the more expensive they become.

(04:39:25)

All right. I know this was answered. I think, as we have mentioned before, the administration is planning to use the new SMART loan system to facilitate the potential new developments at the Fulton, Elliot and Chelsea sites. Can you explain how this fund will help facilitate this development? Sure. And so...

(04:39:52)

The SMART loan is a product, as I said, that we have developed. It is a loan that helps us bridge the gap between what we are able to raise as debt from the property and really helps us make the initial investment in the first phase of that project. What we anticipate being in the first phase of that project is the demolition of the first two buildings and the construction of the first two replacement buildings. So that loan is helping with that initial phase. It is a publicly controlled loan and it is something that NYCHA and the City will be able to use for future reinvestment in additional affordable housing production. Thank you.

(04:40:38)

I want to move on to the Critical Repairs Initiative, or the CRI. The Critical Repairs Initiative is a City-funded, NYCHA-coordinated expansion upon the model of the OCC call center that takes outstanding complaints from NYCHA residents and gets them addressed by coordinating with NYCHA's mold response unit, independently of the OCC, and expands to encompass a broader range of complaints to effectuate repairs on critical and longstanding conditions impacting habitability. The CRI was introduced alongside the executive budget and is supported by $20 million of City funding for fiscal years 2027 through 2030, with $15 million of that across the next two fiscal years. My question: can you expand on what types of complaints the CRI will help to address, and will the office be staffed by NYCHA employees or by an independent party?

(04:42:02)

Thank you, CM. We are very excited to launch this new Critical Repairs Initiative program. It is, as you said, modeled off the successful program of the OCC call center, but this is a new, separate initiative where we have taken a lot of the lessons learned from that and are building on it. It will focus on severely damaged open walls, things that...

(04:42:22)

...impact the habitability of the apartment.

(04:42:27)

Habitability of the apartment — issues with the kitchen and bathroom, cabinet issues, significant floor and ceiling damage, things like that.

(04:42:36)

The CRI will be a...

(04:42:39)

...combination of staff and outsourcing. We do expect to use the same initial call center that is being used to help support the intake, but then we will have additional case management services provided by NYCHA staff as well as additional skilled trades dedicated to actually doing the work and closing the cases.

(04:43:01)

All right. We know the OCC has been very effective. How many complaints has the OCC received over its lifetime? Yes, the OCC — their program does make all of their reports public for anyone to see.

(04:43:23)

The OCC has assisted a total of 33,000 households as of January 31, 2025, with at least 21,700 direct and indirect mold and leak-related complaints.

(04:43:36)

Okay. I know that there was a commitment to expand the scope of the OCC, and I guess with this new program now in place it will deal with different areas. Will heat, hot water and elevator repair complaints also be received by the CRI? Those complaints will not be part of it — heat and elevator complaints will continue through the regular process. The CRI is related to in-apartment habitability issues, as mentioned: bathroom and kitchen fixtures, ceiling and wall damage, things like that. Is there any consideration to make those part of the scope of the CRI?

(04:44:19)

Not at this time, though we are always open to thinking about where this would go, but right now...

(04:44:24)

That was a commitment that was made to expand it, and specifically to expand it for heat, hot water and elevator repairs.

(04:44:32)

Right now, our heating complaints are resolved in under eight hours and our elevator complaints are resolved in under 10 hours. This is increasing in performance year over year since the start of the HUD agreement. So what we wanted to do is focus on the critical issues affecting residents in their apartments that impact life, health and safety, and that is why we have started with those types of repair complaints. Is that also available for the PACT-converted developments as well?

(04:45:09)

I would have to look into that because I do not know if we have those stats available for the PACT-converted developments.

(04:45:13)

Okay. Well, if possible, if we can get that, I appreciate that. I guess we will go...

(04:45:29)

...into the Vacant Readiness Program. The fiscal year 2027 executive plan includes an additional $40 million of expense funding and $100 million of capital funding for the Vacant Readiness Program. This brings the total funding for the program to nearly $360 million over the next five years. We have heard over the last few hearings that apartment turnover in course is driven largely by... I just want to get to my questions. What is the current number of vacancies across the Section 9 portfolio, and how many additional apartment turnovers will the funding added in this plan facilitate?

(04:46:26)

As of April 30, 2026, we have 6,122 vacancies. Thanks to the historic levels of funding in this executive budget, we anticipate being able to increase our monthly production by another 92 units a month to 490 units a month, which would be another 1,100 a year. In total, we expect to do 5,880 units in the next year.

(04:46:53)

1,100. Okay. During the preliminary budget hearing, you informed the Council that NYCHA facilitated 4,703 units moving through the program in calendar year 2025. If the added funding supports the turnover of 1,100 additional apartments during the next fiscal year, this would bring the 12-month total to over 5,800 apartments.

(04:47:25)

Does this reconcile with NYCHA's anticipated number of vacant apartment turnovers? Yes, we...

(04:47:33)

...anticipate doing 5,880 apartments next year.

(04:47:38)

And what can we do to help increase the number of turnovers per month per year?

(04:47:44)

Thank you for that offer. We have been focused on increasing our turnover year over year, and actually since City fiscal year 2023 we have had a 116% increase in our vacant unit production. We have been focused on performance metrics and managing and increasing our coordination with the environmental programs related to asbestos that are a critical part of the turnover process. We are laser focused on continuing that and achieving this new target of 490 per month.

(04:48:16)

Okay. And what is the total number of apartment turnovers currently funded in the Vacant Readiness program over the next...

(04:48:25)

...five years? The current funding is baselined, so we anticipate being able to do that. However, I do want to add that a significant portion — 53% — of the total funding for our vacant unit turnover process is actually NYCHA federally funded, so it is very dependent on our ability to maintain our own funding that we dedicate towards this program.

(04:48:47)

Okay. Well, at the last hearing we heard that hiring more staff for repairs in NYCHA apartments is sensitive due to the nature of NYCHA's construction, requiring specific skill sets for maintenance staff like plasterers. Does NYCHA have the necessary maintenance staff to utilize the full allocations of the Vacant Unit Readiness program in each fiscal year?

(04:49:20)

Sorry, in each of these fiscal years? Yes, we are confident we can fully utilize the funding that was allocated in the executive budget and reach that 490 per month goal. Most of that work is done through overtime of our skilled trades staff, but we are confident that we can make that work.

(04:49:39)

And does NYCHA have outreach programs to drive residents toward promoting the workforce and professional development or skilled trade partnerships with the authority?

(04:49:51)

Most of our skilled trade, maintenance worker and other positions are civil service positions, and so we often talk with residents about making sure they are following up with DCAS testing and other avenues in order to obtain those civil service positions.

(04:50:05)

Okay, thank you. The NYCHA housing plan reports a standard average cost per apartment for the vacant unit turnovers of about $59,000, and this includes $25,000 for asbestos abatement, $15,000 for lead abatement and $19,000 for general repairs. What portion of these costs are City expense and capital funds used for, and how does that differ from the way federal funds are deployed?

(04:50:40)

We primarily use the capital funding that we receive from the City for the asbestos removal and the lead abatement part of the vacant unit turnover process. All of the rest is covered by expense funding, either from the City or the federal budget.

(04:50:58)

Okay. Well, we have heard a few different figures cited throughout the last six months outlining those costs. During the preliminary budget hearing, you informed the Council that the average cost for the full scope of work was approximately $40,000...

(04:51:15)

...thousand, which average across for the vacant unit turnover is accurate. We did some refinement of our costs at the end of the calendar year, which is also our fiscal year. We were able to take a look at our total spending for the calendar year and we did update our costs as part of the housing plan in order to make sure we had the most accurate projection. So $59,000 — that is the correct number. It is indicative. Okay.

(04:51:48)

Does it result in additional apartment turnovers...

(04:51:56)

...faster? Is it a function of the authority being able to take on work across a larger number of units? Yes, the level of funding that we are receiving now will enable us to take on additional units in this program, and it definitely allows us to work quickly. Knowing that we are going to have this funding available, we can better plan and organize for the year ahead as well as the out years.

(04:52:23)

Okay. I guess we will go into resident engagement. NYCHA, at the beginning of last year, began conducting "NYCHA in Your Neighborhood" forums where residents can meet directly with NYCHA staff to discuss ongoing issues and complaints, and get information and receive services from a number of other City agencies. I would like to also highlight that I know tomorrow there is going to be one — tomorrow at 6:30 p.m. to 8:30 p.m. at the Van Dyke Community Center. This is not too far outside of my district. They are going to have another one. What has the resident turnout looked like at the forums, and what feedback has NYCHA been receiving? When would residents meet with NYCHA at these forums to raise complaints and issues, and how is NYCHA tackling the feedback and effectuating change?

(04:53:29)

From incoming Councilmember. We are so excited to have launched our NYCHA in Your Neighborhood event in the Bronx and we had over 300 residents registered for that event. It was packed the entire two hours and the best part about it was the ability to meet face to face between residents and NYCHA senior staff. That was the primary feedback that we heard. We are so often conducting business over email through the contact center, but to actually put a face to the name finally of the resident that had been asking for services and seeking help. We were able to have our entire senior team there across all of the neighborhood staff as well as our central heat and elevators and our environmental teams, and residents could find answers and get the resources they need directly from the teams providing it. It was an incredibly successful event. We are very much looking forward to our event tomorrow in Brooklyn and we hope that we have the same turnout tomorrow despite the fact that it overlaps with the Knicks.

And this has been structured with two breakout sessions. It is a combination of topic-specific tables such as heat and asbestos or environmental issues, and it also has resource tables where residents can go and get answers on different topics as well as from our city agency partners. In addition, we have the neighborhood staff, which is the direct property management staff, neighborhood administrator, the neighborhood planner who is in charge of sequencing and scheduling all skilled trade repair orders. So you can go and you can say I am still waiting for my plaster ticket, is there any way I can... you know, it is getting worse, I need it to get escalated. They can bring that to the planner and we will see what we can do. Residents are also welcome to attend. We have our Section 8 leased housing department there as well to answer any questions about their voucher and their subsidy.

(04:55:36)

When it comes to the emergency housing vouchers, in our budget hearing we heard that the federal funding for the emergency housing voucher program was set to expire later this year. At that time, NYCHA was conducting outreach to the 5,200 households to get them signed up for the Section 9 waitlist. As of that hearing, approximately 1,000 households had completed the Section 9 application and were placed on a waiting list. I would like to first of all thank you for sending the list of the districts where those households are located in the different Council districts, and have some follow-up questions. Particularly, can you provide an updated figure for the number of households that were signed up for the waitlist?

(04:56:38)

Thank you for that question. As of May 27 we have received 1,275 public housing

(04:56:47)

applications from households and we have begun matching some of those applicants with vacant apartments across our

(04:56:56)

portfolio. Has there been any state assistance given or any help from the state? No. Okay.

(04:57:10)

Yeah, there were numbers thrown out that there was $50 million...

(04:57:14)

Let me understand that there is a proposal from the Senate. Do you want to... I am actually unclear whether or not yet. There is a proposal for an increase of... million dollars for NYCHA. Repeat...

(04:57:32)

But I am not sure whether or not that was in the budget or if it is proposed as a separate Bill. This was last week, but we can certainly find that out and get back to you.

(04:57:44)

Thank you. The Committee has been informed that the cost for these 5,200 households was $128 million annually. Can you confirm this amount is correct?

(04:58:00)

I actually have it as $124 million, but...

(04:58:02)

That is close enough. I do not know if Lillian... we have our leased housing staff here, she might know the exact number.

(04:58:16)

Lillian Harris: I do not have that exact figure but $124 million sounds correct. Okay. NYCHA

(04:58:23)

has recommended that households apply for Section 9. Have any of these households been placed in apartments as of now? Thank you for that question. We currently have matched 310 participants to units in our project-based portfolio.

(04:58:47)

Are there any PACT vacancies that are located in PACT developments?

(04:58:55)

At the moment, no. It is my understanding that there are not vacancies in PACT developments. However, there are PACT vacancies that we are going to match HCV voucher holders with.

(04:59:11)

All right. I believe it is a little over 170 vacancies that exist within the PACT developments out of the 2,700 or 2,900.

(04:59:20)

And I believe that 27 was the stat we gave in the hearing. I do not think we have any

(04:59:26)

updated... any updated figure. And I was at 17. Yeah.

(04:59:32)

We can double check that and get back to you. Okay.

(04:59:38)

Is NYCHA exploring placing these households under other housing subsidy programs, such as coordinating with HRA to ensure households will qualify for City assistance?

(04:59:52)

We are exploring all options at this point. I have not had direct conversations with HRA myself, so I defer to them as to whether that would be a viable option. But there are multiple housing opportunities that we are leveraging. For example, as mentioned, the City announced that they are adding $80 million to the HOMES budget, which is tremendous. That is going to help 1,700 participants and we are working diligently with our PACT partners to identify vacancies. So we are exploring all options.

(05:00:41)

Would the households under the EHV program meet City FHEPS qualifications such as the work requirements or income limits?

(05:00:51)

That I cannot answer specifically. Okay.

(05:00:54)

Yeah. It would be a case by case basis. We would have to take a look at each individual case and...

(05:00:58)

Is transitioning these households to Section 8, the Housing Choice Voucher program, an option as well? Currently transitioning them to a Housing Choice Voucher is not an option. And why is that?

(05:01:12)

Sure. I mean, if we can use every tool to...

(05:01:17)

Well, we are not allowed to because the Section 8 program... NYCHA's overall Housing Choice Voucher program is in shortfall. You are not allowed to issue new vouchers. But for our RAD PACT, we did request additional flexibility, but that was denied. So at this point we are not able to put any participants into the regular NYCHA Section 8 Housing Choice Voucher program.

(05:01:43)

All right. Thank you.

(05:01:45)

Sure. I just wanted to circle back to the question you had concerning PACT vacancies. As of my last report, that number is 1,994 and is going up. So this is 1,994. Is there a breakdown of the source of these vacancies?

(05:02:11)

I can certainly provide that. I could follow up on that.

(05:02:15)

Thank you. So that is 1,994 vacancies that exist in the PACT developments. All right. Thank you.

(05:02:27)

Now I will allow my colleagues to ask their questions. Thank you.

(05:02:31)

Great. CM Brewer, followed by...

(05:02:37)

Thank you very much and thank you for being responsive, both in holding office hours of course, but also Daniel getting that big award from Sloan was a huge deal and so congratulations. That was very deserved. A couple of questions. First, I know that others will ask about the vacancy and the Progressive Caucus really feels strongly about more money for you to do it, but how do you go about inspecting the vacant units?

(05:03:02)

That is one question and

(05:03:05)

then the other one is for those who are not paying rent. I know, even in the PACT there was a situation where we had... and with all due respect to the management there, they did not realize that they could get a one-shot deal, could get Social Security, and so we did. We went back in and we got them on a program for future rent. I do not think there is just enough sometimes, even though you spend a lot of time. Each case is very, very time consuming to address

(05:03:29)

the back rent. So I do not want to hear about inspections for those... sometimes you have got unauthorized individuals. How do you do those inspections, what is the cost, and then how are we going to get some of these people to pay rent, sometimes with one-shot deals? Thank you.

(05:03:48)

Councilmember, we started in April to do monthly apartment inspections of the vacant apartments in order to ensure that they are secure and preventing any unauthorized occupants. We did 10,600 inspections and out of those inspections we had seven instances of an unauthorized trespasser that was removed in coordination with law enforcement.

(05:04:14)

Wait. Only seven, only seven.

(05:04:15)

That is not bad. Okay. Yeah, it obviously changes day to day, but we now have a monthly process to stay on top of that.

(05:04:25)

Okay. And then in terms of those that are not paying their rent, which is a fairly large number, 400-and-something...

(05:04:32)

So our housing assistance and property management team continue to follow up with all of our residents to reinforce rent payment. We have been doing additional outreach and education and communications to our residents about the importance of paying rent. However, we understand that many of our residents are struggling with a variety of financial needs and so we work hard to connect them with services either through our Family Partnerships department or with our Resident Economic Empowerment Services in order to get them the help that they need.

(05:05:03)

We have an excellent relationship with our partners

(05:05:04)

at the Human Resources Administration in order to have one-shot deals or other benefits available at sites. You know, is it going down, the number of those who are not paying? We currently have around 61,000 households that are in some form of rent arrears and our rent arrears balance is currently $493 million as of the end of... and this is even after we applied $297 million of rental payment support across the various programs. Okay. All right. So in each case I know it, but I am doing them. I know how time consuming they really are.

(05:05:46)

Go ahead. I am sorry to interrupt. I just wanted to say that when you look at our individuals paying on a monthly basis, our rent collection was 87%. But I think the greatest challenge, even though we are so many years after the pandemic, are those pandemic and COVID-era arrears. So connecting them with resources... as you know, we were so incredibly grateful that we did get money from the State. It came very late for some people, so they still have not been able to get out of that backlog.

(05:06:29)

Okay, but I mean, I got $35,000 once for back rent. I am very good at it. The other question I have is just quickly, the Manhattan Together group, what they are going

(05:06:41)

to Harbor View and elsewhere, telling people they can get money for fixing the mold and the leaks. I guess mostly through... what program is that that they are running around telling people to apply for?

(05:06:59)

It is quite pervasive. I am not entirely sure what they are communicating, but I have a feeling they are referring to the Ombudsman call center, which was created as a result of the NYCHA consent decree. It does handle mold and leak critical repairs.

(05:07:13)

How does that work, because they are going around stating that people will be able to get all their problems in those two areas addressed? Is

(05:07:21)

that correct? The Ombudsman call center has been a tremendously successful partnership where they have had 33,000 complaints come through and they work with NYCHA in order to escalate those repairs and to make sure that we are prioritizing appropriately those done.

(05:07:41)

Okay. And there are many more situations where they could also be addressed. These two... it is again that the Ombudsman call center was created as part of the NYCHA consent decree and is specific to mold and leaks. Okay. All right. Thank you.

(05:07:53)

Thank you, Councilmember,

(05:07:56)

followed by... Ah, thank you for being here. Thank you, Chairs. I am extremely disappointed that this administration is following the vision of the previous administration and really only investing in RAD PACT, $500 million, and ignoring Section 9 residents. It is a moral stain on this City and our vision for affordable housing and so I just wanted to get that on the record. It is extremely disappointing, especially when we hear almost every single month testimony of Section 9 residents saying we need the repairs, we need help, we need to fix our doors, we need to fix our elevators, but we continue to turn a blind eye and just subsidize developers. Developers are chosen to do RAD PACT because they are the ones that are supposed to fix the issues, but it seems like it is continuously the City putting up the bill, fronting the bill and giving the developers an extremely sweet deal.

I just wanted to show my disappointment for that. On the residential engagement, I know my fellow colleague CM Harvey Epstein wrote a letter saying that when it comes to the upcoming hearing in Manhattan it is only going to be in Harlem. Just hearing the numbers of the residents that attended the Bronx hearing, 300 residents, I feel like that is not a lot when you are thinking about tens of thousands of residents that live in public housing per borough. We are requesting a hearing in Lower Manhattan to make sure that we can get residents from, you know, Chelsea to the East Village down to the Smith Houses here, so they could have an opportunity, especially since many of our residents work during the day and possibly will not be able to make it up to Harlem for a hearing.

(05:09:48)

Absolutely, Councilmember. That is our intention as well. Our goal has always been, from the start of this program, to do two forums per borough, with one in Queens and one in Staten Island to start, and then see how they go, see what the response is, and then think about what a regular cycle and cadence would be. So we are starting with

(05:10:10)

the Bronx, Brooklyn and Manhattan. Manhattan is on the seventeenth. We are looking forward to that.

(05:10:16)

Then we have our annual plan hearing, so we are taking the summer off and we will reconvene in the fall with a Lower Manhattan location, another one in the Bronx, Brooklyn, Staten Island and Queens. Thank you. And once

(05:10:30)

you have the address of that Lower Manhattan residential hearing, please share it because we will tell our residents and others.

(05:10:36)

Absolutely. We will actually be seeking suggestions for where we can do it, so happy to follow up with your office. I will have a few.

(05:10:42)

And Councilmember, I just wanted to let you know that the administration has continued to invest also in Section 9 public housing and between fiscal years 26 and 35 there has been an investment of $2.5 billion from the City. I will say that NYCHA is very fortunate that we are one of the few public housing authorities that does get money for Section 9 from our local government. Thank you. I

(05:11:19)

want to just move quickly to elevators. It says that we are going to have around $5.9 million for elevators in this executive budget for the next three years. How many elevators do you think that can fix? Because when we look at how much it costs to fix a public bathroom in New York City, sometimes it is $4 million, so I do not expect the number to be that much. And you know, it is really disappointing because that is actually one of the biggest complaints that we get is elevators breaking down or not functioning. It is extremely disturbing for our older adults, especially if they live on the higher

(05:11:51)

floors. Thank you, Councilmember. I understand that frustration. However, I am pleased that our elevator performance every year since the start of the agreement has continued to improve, with our current number of 10 hours to restore an outage. The funding that is provided as part of this executive budget will be very specifically targeted to additional staffing for elevator mechanics and materials in order to install something called waterproof door operators. These enhance preventative maintenance, so it is not for new elevators, but it is for a really key preventative maintenance function. The door operator is a common cause of mechanical downtime and we have seen that by changing that elevator part specifically and doing increased preventive maintenance there, we are able to minimize mechanical downtime by 50

(05:12:41)

percent. And with this new investment, will it go across the whole portfolio? Okay. Thank you. I am done.

(05:12:49)

Sure. Thank you. Okay. CM Wong, followed by Restler.

(05:12:53)

Okay. Thank you. I do not see any budget items on legal costs. My question is, I am aware of squatters occupying many of the 6,200 NYCHA vacant units. What are you going to do about them? Are there legal procedures or do you just let them stay and tell them to pay rent? What is being

(05:13:16)

done? No, we definitely do not let them stay. We would love anyone to pay rent, but we have a tremendously successful partnership with the NYPD's Housing Reclamation Bureau and we have been able to coordinate activities in order to make sure we are reclaiming units that are unauthorized. We have cleared over 600 units to date in that partnership and we are continuing to work together with them. So anytime we are made aware of an unauthorized occupant, we work with our law department, we bring it to NYPD and we work swiftly to remove them.

(05:13:53)

Thank you. My next question is there is no mention of how many non-functioning boilers are in your NYCHA buildings. Can you talk about it? Like, is every boiler working or are there...

(05:14:06)

Buildings with non-boilers. We had a tremendous heating season that just ended on Sunday night. We were able to provide pretty consistent heat with a record of under eight hours for restoration of heat outages. That is well below the 12-hour requirement of our HART agreement and even much further below the 24-hour requirement for private landlords in this City. Now that we are in the off season, we have started our boiler overhaul process and we touch every single piece of equipment during this off season to make sure they are ready for the heating season to come.

(05:14:49)

But as far as you know, are there non-boilers like they need...

(05:14:52)

Replacement there. There are some others that are taken offline for repairs and there are many boilers that are in our capital portfolio, which Dylan can talk about, but we are able to maintain boilers in order to maintain...

(05:15:06)

Jeanne, but are there buildings with no working boilers like right now?

(05:15:11)

There are buildings with no working boilers, but that does not necessarily mean they do not have heat. We have boiler plants that have six boilers and we only need two to maintain heat, which means we are able to take one or two offline, do the repairs that are needed, then we can bring those back online and do repairs on others. So you do not necessarily need every single boiler in a plant in order to produce heat.

(05:15:35)

Thank you. Thank you, Joe.

(05:15:36)

Just as a follow up — if there are buildings without boilers that are active, we address those with mobile boilers. But as was being said, there is a down cycle, so we are able to repair those boilers that are not in use while keeping those other boilers in use, so we keep heating active. As far as the portfolio, we have completed 215 boiler projects and are on track to hit our target of 297 by the end of this year.

(05:16:09)

Restler, followed by Encarnación.

(05:16:12)

Thank you so much, Clearly, and Chair Banks. I just want to reiterate that Charlie is on her third hearing of the day — three or four — and everybody should bring her pastries and cupcakes and other nice things. She is a trooper. I do not know that any of the rest of us would do quite as well as she has been doing. Much to your surprise, I am going to focus this conversation on vacancy. Thank you for smiling.

I will do a couple of quick ones. To confirm, despite the federal cuts, you are anticipating maintaining your federal funding in vacant readiness. That is our goal. Yes. And with the additional City funding, you are expecting to be able to repair upwards of 5,800 units over the course of the next 12 months. Correct? Have you done any updated modeling on how many vacant units you think we would have in 12 months time with that investment?

(05:17:14)

It is a very dynamic analysis. We can certainly follow up. I do want to just say that I find the partnership with the Progressive Caucus has been really great. I appreciate the time that you all have committed outside of these hearings to really work with us on this issue and to problem solve together.

(05:17:28)

And I should have said nice things about you before I started asking questions. Also to say that we very much appreciate the forthcoming engagement, the collaborative spirit and the commitment to trying to help address these issues together. We have been greatly appreciative of your thoughtfulness and availability in engaging with us to try to help drive down vacant units at NYCHA. So, you know, we do not...

(05:17:58)

...anticipate that even with this additional investment there would be a significant decline in the number of vacant units at NYCHA in 12 months. What alternative strategies can we deploy, or could we consider, that could help us reduce the number of vacant units further?

I do believe with this historic level of investment in this Executive Budget we will begin to slow the curve of the growth, and that is a key goal for now. This is a medium-term problem. We have a backlog of vacant units, but as we continue to drive down the turnover time and continue to increase production, we are slowing that growth and that growth will eventually change into a negative trajectory. We are also continuing to make significant progress on the environmental hazards, which both take up a significant amount of time and cost in the process. So as we continue to do our lead abatements and as we continue to do asbestos removal, that will continue to allow us to turn over units more quickly. We will see that trajectory change in time.

(05:19:05)

You do have some vendors available to do some of this work. Are they a viable route for us to drive down vacancies?

(05:19:14)

The vendor cost is much greater than our in-house costs, so it is a program that we use sparingly. We also use it in a targeted way. In addition, there are skilled trades they do not provide, like plastering specifically, that we still have to supplement with our own staff.

(05:19:30)

And has OMB any suggestions of alternative City resources that could be made available to support and supplement NYCHA's efforts here?

(05:19:40)

We are continuing to have all of those conversations with the administration in order to find any other solutions to our production. And do you have, considering...

(05:19:49)

...such a substantial percentage of vacant units going to transfers, have you been working to identify what a functional zero is, or a functional goal on vacancies is? My recollection is that at the conclusion of the de Blasio administration we were at 486 vacancies and now we are north of 6,000. A variety of different dynamics have changed in those intervening years, but is that 500 number a realistic goal? No, definitely not. We think a...

(05:20:16)

...realistic goal for vacancies would be approximately 3,600.

(05:20:21)

And could you explain why we would need to maintain such a high level of vacancies?

(05:20:27)

That would equate with the average number of move-outs. We are seeing approximately 300 move-outs per month, and that is an average approximation. 300 move-outs per month, and so we would want to stay on top of the exits. So we have 3,600 move-outs and then, as you know, 55% of our move-ins every month are transfers. So in addition to the people leaving NYCHA, we have people transferring, and those two together create the vacancy. So our goal would be to have a level that equals the move-outs. That is how we came up with the 3,600.

(05:21:09)

I am not sure why we would want to maintain that number. I would be interested in understanding that a little bit further — why that is the goal. I would have thought that if there are 300 people moving out, I mean, we want to fill as many apartments as we can as quickly as we can. Maintaining 3,600 vacant apartments just because that happens to be the number of people that move out over the course of the...

(05:21:27)

...year. I would not say we want to maintain it, but I think when you talk about a functional zero, what with a natural business cycle would be — that is what we would call it. So we always have people moving out every day, so there is always going to be that churn. That is a complex set of numbers. We would want to, you know, have at least — we think 3,600, which would be the move-out level — would be what we think would be a natural rate of vacancies.

(05:21:59)

I think it is clear what the capital resource needs are to be able to drive down vacancies regarding the remediation work. I think figuring out what the most cost-effective strategies on the expense side are is something that we are really committed to working on together. So we look forward to getting on your schedule again very soon. I appreciate your thoughtful answers today and more generally for your willingness to engage with us as a caucus. Speaker Menin has embraced this campaign, as has Chair Banks and many other colleagues, and we are grateful for their support as we work to fill as many apartments as we possibly can. Thank you too. Thank you.

(05:22:35)

Thank you, CM Encarnación, followed by Ossé.

(05:22:40)

Say hello. Good afternoon. So I just want to run by some numbers and make sure I have them right. You said there were 13,000 units in pre-development or the pipeline for PACT. Yeah, and I can get you the exact number, just checking the number. And then 85,000 was the units with the goal that you had for full conversion into the...

(05:23:01)

...PACT program. So right now in pre-development — so that is planning and engagement, have not yet converted — we have 13,538. For the PACT program we have a 62,000 apartment goal and out of this goal we have converted 32,151.

(05:23:24)

So the money... Trust? Yeah.

(05:23:25)

And then for the Trust program, we also have an additional 25,000 units that will convert through the Trust model, and those are all together. Those are all Section 8 conversions.

(05:23:38)

But the money that is set aside, that was identified — this is for the units that are in the pipeline or new units. The money that we have been provided by the City will help support conversions in the near term so that the units, the 13,000 units...

(05:23:55)

...there on my plans are known additional units.

(05:24:00)

Yeah, and then we will continue to work as a group with NYCHA to identify additional units to meet that 62,000 unit goal. At the end of the day, from my understanding, the PACT program is something that the residents have to vote in, so...

(05:24:17)

...residents vote to get into the program. So they do not vote for that. Is that correct?

(05:24:22)

Yeah. So residents will vote to join the Public Housing Preservation Trust program, so the Trust model in that right requires a vote. Correct. That was legislated through the State. The PACT program is a similar conversion program, but there is no requirement for us to hold or facilitate a vote.

(05:24:44)

Got it. Thank you for that. And then in terms of safety and all that — you know, during a recent walk-through at one of the developments in my district, we had this development with about 29 front doors for the development. I do not believe one of those doors was locked or had a working intercom. Also in the Bronx, we have developments that have had previous Council discretionary funds allocated for lighting. Not even a year later, the lights are out. So I am just trying to figure out where in this budget repairs for our safety come from, where that is prioritized, because even when the Council is giving money for some of these programs, it is not even a year and the lights are out. It is kind of problematic for us.

(05:25:30)

Yeah. Thank you, Councilmember. Thank you for that question. Obviously safety and security is paramount for us and for residents. Within the budget we get allocations, often by Council members, for safety and security programs. That varies development by development. Within the current fiscal year and current fiscal budget we have new doors we have been working on at various developments that are addressing concerns around safety and locking. That is a combination of City funds and federal earmark funds, and we have been working to advocate with residents for additional funding. As far as lighting programs, this is spread throughout all the different developments, but...

(05:26:15)

...if you want a specific breakdown or a question about a project, because there is a prioritization of where those doors would be needed — there is a prioritization in the sense...

(05:26:30)

...of where it is most needed, and wherever we have funding is where we work on those projects.

(05:26:37)

First, we are advocating. We work with resident leaders to advocate for new doors and obviously we are focused on those developments where there are the most safety...

(05:26:46)

...concerns or the most broken doors. As the money comes in, we prioritize those first. For lighting, we actually have an on-call contract, so we are able to shorten the timeline for the construction of these projects. That is one of our fastest capital projects. The specifications are standardized and it means that generally in about a year and a half we can go from design to construction.

(05:27:12)

But then less than a year later it is not working again, so that is...

(05:27:15)

If there are issues at a specific development where lights are not working, I do not have them. Yes. Okay, then we will happily follow up with you because they are within the period of warranty, and so it would be covered under the contract and we would bring the manufacturer back there. Obviously that is a big concern for us and something we would address through the contract.

(05:27:36)

Okay, perfect. I will let you know that. But when you say advocating, you mean — when you were advocating for those moneys, who are you advocating to? The federal...

(05:27:44)

Yes, federal. So both actually at the State level and the federal level.

(05:27:50)

Okay. All right, my time is up. Great.

(05:27:59)

CM Narcisse. Thank you.

(05:28:00)

Chairs. Good afternoon. I wanted to raise some issues that constituents have brought to my office in preparation for this meeting. When residents in my district are seeking information on the NYCHA website or on the NYCHA Office of Impartial Hearings, I found that the grievance and termination of tenancy procedures page is completely shut down and links to an outdated or non-existing page. This complaint is in addition to the overall concerns with the process of impartial hearings. My question is, is NYCHA allocating any funding to ensure that the Office of Impartial Hearings is, one, fixing the website, and two, working on further outreach to increase better transparency with the grievance and termination of tenancy procedures? Thank you so much.

(05:28:57)

For that question — we were unaware that there was an issue with the website crashing or showing outdated or nonexistent content. If you send us the link that would be very helpful. We sometimes find out about these things when people reach out to us and let us know, so that is the first thing. And then Anika can let you know — I think it was a question that was asked during the last hearing as well with respect to the resources being provided to...

(05:29:31)

...the Office of Impartial Hearings. Just to remind the process...

(05:29:33)

Yes, we can certainly get back to you on that.

(05:29:37)

Okay. I think I did raise something like that in the last hearing, right? Yes.

(05:29:41)

And I believe it was a question that was answered after the hearing.

(05:29:46)

Because I remember seeing...

(05:29:47)

Okay, but we can share it with you. Great. Thank you.

(05:29:51)

There are constituents in our district who have had work orders that have been canceled without resolution, only to have a new work order number opened for the same issue. This leads to their old complaint being pushed out further, delaying the issue. What is NYCHA's current process to resolve work orders and what are the tiers for work order completion?

(05:30:12)

Thank you, Councilmember. I am sorry to hear of the situations happening and I encourage that when you hear about that, you reach out to our office so we can look into that and understand what is going on. In general, we have increased our productivity across our skilled trades so that we are now actually responding to over 101% of our complaints in a year, which means we are starting to actually get to the backlogs. Different types of complaints have different response times and we have to sequence the skilled trades in order, but we are happy to follow up on any of those specific concerns that you have.

(05:30:46)

Thank you. And will the agency be allocating any additional funding to ensure work orders are completed in a timely manner?

(05:30:57)

Right now our funding is consistent and baseline for that work.

(05:31:03)

And more time, please, if I can just give you the answer, if that is okay. The Office of Impartial Hearings is funded at $3.87 million.

(05:31:12)

Okay. Thank you. There also needs to be more transparency in scheduling. How are residents notified and are they given the courtesy of scheduling time so they can allow access to their units to avoid delays in service? I know that this has been, you know, frequent. Absolutely. That is a key tenet of our neighborhood model, so every neighborhood...

(05:31:32)

...has a neighborhood planner and a planning secretary. Residents are supposed to work with their neighborhood planner to schedule their skilled trade appointments at their convenience, so they know they are going to be home. Also, because of the way the work order process works, at the time the maintenance worker comes to the apartment and diagnoses the problem, they are given a slip with all of the follow-up work orders that are going to be needed. So then a resident knows...

(05:31:57)

...right away that this is something that is going to take three more appointments or two more appointments, so they have an understanding of the full scope of the job at the time the maintenance worker comes. Thank you. Sure.

(05:32:08)

And just a reminder, we have our neighborhood event tomorrow night at Manhattan and all of the neighborhood planners and administrators will be there for residents to ask their questions directly of their planners. Thank you.

(05:32:20)

It is most likely going to be well...

(05:32:22)

...attended, I hope so.

(05:32:25)

Definitely. I want to talk a little bit about comprehensive modernization. Is comprehensive modernization still a viable tool being used by the Authority to deal with the capital needs of public housing at NYCHA?

(05:32:46)

I am comprehensive modernization. Thank you for the question. It is a limited avenue, so currently there is not a beyond the first four projects, and we have found funding for an additional three projects. That is why we are advocating for Section 8 funding, because that is the primary tool. Given the fact that we are able to achieve more subsidy with those avenues, we can reach that higher level of modernization. The funding sources — is it only the federal and the City? The City capital and the City.

(05:33:22)

Invest comp mod. Yes, the City invested in comp mod through the City Capital Action Plan. And how much was invested in comp mod?

(05:33:33)

About $1.1 billion, and that is in this budget. Part of that carries through this budget. How much is carried over into this budget? That is currently in this budget — we will have to get back to you on the exact number that remains in this budget.

(05:33:51)

Beyond that, what is currently in the pipeline? Developments that are being comp modded are the first four projects, which are St. Nicholas, Toad Hill, Wyckoff... There is also Levitt, Latimer and Watson. Those are being funded through FEMA funds through an IDA grant. That is the entirety of the pipeline. Is NYCHA currently exploring building more Section 8 — sorry, Section 9 — housing anywhere? Thank you for that question. So Section 9, as you have heard a few times today, is chronically underfunded and it is not a viable tool for us, especially for new construction, because we would need to be able to leverage funding to pay for the new construction and we are unable to do that off a Section 9 funding source.

(05:34:56)

Is there an effort or a strategy by NYCHA to get more capital money invested in comp mod? No, there currently is not a plan for additional funding. And why is that?

(05:35:19)

Dollar for dollar, we are able to do more through Section 8 with the subsidy because of the high capital outlay looking at full funding for the full project just with City dollars without access to the additional subsidies, so it just costs more. Are there any developments where NYCHA is currently exploring this? We do not have any transactions right now. Can NYCHA speak to the goals of the development partnership opportunities RFP and what have been the results of that so far? Yes, I am happy

(05:36:07)

to speak to that. So last year we released the development partnership opportunities RFP, asking for proposals from partners that have private assets, to see if we could partner with them to use our federal tools — federal tools like project-based vouchers, transfer of assistance, and maybe there would be a transfer of development rights opportunity. We received proposals back from potential partners. We received 57 different project proposals. We are at the very end of our due diligence and selection process and I think we will have some new projects that we will announce soon. But again, as a reminder, those are projects that are utilizing private property or private land or buildings, and that can provide new housing opportunities to our residents or generate revenue for the Housing Authority.

(05:37:12)

All right, thank you. That concludes my questions. Thank you.

(05:37:15)

Okay, we just wanted to go back to one question that you answered. You asked us to correct what you heard on the Housing Access Voucher Program. Yes. So we did check with our staff and we were told that the program is funded at $50 million statewide, and that is to prioritize families that have lost federal assistance, and it could potentially assist us in closing the funding gap. So we will work with our state partners to get access to that funding. And how much is needed overall?

(05:37:48)

$124 million.

(05:37:49)

$124 million, and that is

(05:37:51)

just for all of our RAD vouchers. Okay,

(05:37:54)

there are other voucher holders in the City of New York as well.

(05:37:58)

Great. So I am just going to ask a couple of questions on behalf of the Deputy Speaker, who could not be here, on the racial equity plan. She has been asking this to all the City agencies. So the first question is around the short-term goal one, which relates to educating supervisors and managers regarding employees or residents with disabilities. Does NYCHA currently administer reasonable accommodation law training both at the managerial level and at the staff level? Yes.

(05:38:35)

I am sorry. Can you repeat that question?

(05:38:37)

Sure. In terms of the short-term goal, does NYCHA currently administer reasonable accommodation law training both at the managerial level and at the staff level?

(05:38:51)

Thank you so much for that question. I am not sure, so I do not want to misspeak. We will get back to you on that question.

(05:38:58)

Okay. And the second part of that question is, are both central office staff and in-development staff required to take these

(05:39:07)

trainings? We will get back to you. Okay.

(05:39:09)

And I know that she would probably say this, so I will channel my inner CM Williams — these are goals that were outlined by each agency, so we would love to get feedback on where things are at. The medium-term goal outlines the expanded language access implementation plan, which I know CM Williams is especially passionate about. And I know that NYCHA currently offers many materials in multiple languages, and I am curious how this expanded plan will further improve language accessibility efforts within the Authority. If you could

(05:39:44)

speak to that. Thank you so much for that question. NYCHA has a language access officer that handles a lot of the translation services and language access services. On a day-to-day basis, our staff are trained to use the language access line to facilitate interpretation in real time. This program enhances the resident experience, allowing those with limited English proficiency to communicate their needs in a prompt and efficient way. For residents who are deaf or hard of hearing, in-person interpretation can be provided through a request by NYCHA frontline staff on behalf of a resident, such as at the property management office, customer contact center or walk-in centers. NYCHA is also working on providing on-demand video remote interpretation, and this is slated to be in place this year in 2026. NYCHA also has a dedicated ADA coordinator who oversees such requests and oversight of broader accessibility initiatives across NYCHA.

(05:40:58)

Aside from the language line —

(05:40:58)

because I have had to use it before, but do you also have staff that reflect the top ten languages? We do have translators on staff, and even though the federal government has eliminated translation of important documents from its website, NYCHA has taken steps to continue to provide assistance to limited English proficient residents and members of the public. We prepare our own translations of vital documents in our five covered languages and the languages we most frequently encounter, and those efforts are ongoing and will continue.

(05:41:38)

Okay. And for example, when we have NYCHA in Your Neighborhood, we had translation services there, and everything that was said, people were able to hear and understand.

(05:41:52)

Okay, perfect. The long-term goal discusses economic mobility and opportunity through the Section 3 program, providing jobs within the Authority to its own residents. Can you share the current rate of Section 3 employment, the target number and the steps that NYCHA is taking to achieve that target?

(05:42:11)

Yes. Thank you for that question. Section 3 is critical for us. It is critical given the amount of spending and it is really a primary economic pathway for residents. So we follow the HUD target of 25% of total labor hours to be allocated towards Section 3, with 5% out of that 25% for targeted hires. We have job placement programs, mentorship programs and construction worker pathways, so both internally there are opportunities for residents and for broader Section 3 workers across the portfolio. On the Section 9 side, we are far exceeding our goal. We are at over 63% — or 16 million labor hours — for broader Section 3. For targeted Section 3, those that are for residents and resident pathways and businesses, we are right at 13%. For our PACT programs on the Section 8 side, we also are far exceeding our target. Overall we are at 29% for Section 3 workers, and then for the targeted Section 3 workers we are at 8%, which is above the

(05:43:38)

5%. Okay, great. Thank you.

(05:43:40)

Okay. Her last question was: the Office of Technology and Innovation runs the Big Apple Connect program, providing free internet and cable for NYCHA residents. The program is currently funded at $40.9 million for fiscal years 26 and 27, and $40.9 million for fiscal year 28 and onward. The report does not mention this program as a tool for improving equity and economic mobility for NYCHA residents. Does the Authority believe that expanding this program would have a positive impact for residents and align with the goals outlined in this plan?

(05:44:14)

Thank you, CM. As you mentioned, that program is run by OTI, so I would recommend that you speak to them about the program. But we understand that all NYCHA developments are able to take advantage of Big Apple

(05:44:27)

Connect. Is there coordination between you and OTI on that?

(05:44:31)

On a case-by-case basis.

(05:44:34)

Okay. And what percentage of the NYCHA portfolio by unit, development or number of residents have access to the program?

(05:44:42)

100%. Okay, perfect.

(05:44:45)

Okay, I think that is it for those questions. Okay, I think we are actually done, and early by ten minutes, so thank you so much for coming and testifying today and we will follow up with any questions that we have. Thank you so much.

(05:45:02)

Thank you.