To Ease Budget Crunch
Council: City Should Let HA Slide on Payments

By MICHELLE FRIEDMAN

The Housing Authority's $210 million in required annual payments for city services such as sanitation, police and the PILOT (Payment in Lieu of Taxes) Program should be temporarily waived in an effort to ease the projected deficit of more than $170 million over the next four years, City Council Members said at a June 18 hearing.

The Chief-Leader/Adrienne Haywood-James COMING UP SHORT: Housing Authority Deputy General Manager for Finance Felix Lam tells a City Council hearing that the Federal Government is giving the HA just 82 cents in aid for every dollar it receives from the city, calling that a major factor in the agency's current budget problems.

A report from the Council's Public Housing Committee stated that the HA has paid the city $73 million under the PILOT Program - exempting public-housing residents from property taxes - $268 million for water and sewer services, and $2.4 million for sanitation-related services since 2006.

$100M Police, Seniors Tab

Additionally, the HA pays more than $100 million annually for police protection and senior services.

According to testimony by HA Deputy General Manager Felix Lam, the HA receives only 82 cents from the Federal Government for each dollar allocated by the city, a leading factor in why the projected deficit is so high.

"I hope this is seen by the Congress and Senate," asserted Public Housing Committee Chair Rosie Mendez. "The sentiment of preserving housing may not be the same across the nation, but in New York City we are 100-percent committed."

Although Ms. Mendez acknowledged the lack of support from the Federal Government, she also faulted the HA for not coming to the Council sooner for assistance.

"Why have you waited until May to paint this awful picture?" she asked. "Please come to us immediately, because that will give us time to advocate and fight for you."

"New York must support and sustain quality housing and services for low-income New Yorkers," testified Gregory Bender, a policy analyst for United Neighborhood Houses. "The HA remains the city's primary provider of affordable low-income housing serving over 180,000 families, 500,000 residents, in 340 developments across the city. Moreover, the HA has demonstrated that it is committed to providing low-income New Yorkers with safe, quality communities and not solely a roof over their heads."

Non-Core Services Face Cuts

All non-core HA programs - including 146 senior centers, 136 community centers, and 117 child-care and Head Start programs - are threatened by budget shortfalls.

Another revelation, that the HA has been forced to take $300 million from its capital budget just to function - elicited a heated reaction from Council Members.

"What we need is a 10-year operating plan for the capital budget," said Councilman James Vacca.

Other Council Members agreed that the city needed to restructure its funding for the HA, with Federal support, in an effort to devote all capital monies to new construction initiatives.

HA residents testified that the already-decrepit conditions of their developments cannot stand further reductions in funding.

"I don't know what to tell my residents," concluded Ms. Mendez. "All I can tell them is we are evaluating the situation."