Housing Authority admits to leaving $75M in federal funds unclaimed

NYCHA failed to convert 5,000 units to Section 8 housing

New York /
Mar.March 27, 2015 11:05 AM

At a City Council hearing Thursday, the New York City Housing Authority admitted that it left $75 million in federal subsidies unclaimed by failing to convert 5,000 units to section 8 housing.

The financially troubled agency took over approximately 12,000 units of city-and-state-owned housing eight years ago in order to make them eligible for federal money, according to the New York Observer.

But about 4,900 of those are currently not receiving any subsidies at all, Richard Couch, NYCHA’s chief financial officer, told the City Council.

“That could generate tens of millions of dollars every year. A new stream of revenue for the housing authority,” said Council member Ritchie Torres.

NYCHA officials emphasized that Section 8 is a voluntary program for which participants must sign themselves up, and that it is working on an outreach effort to get more tenants involved.

An audit by City Comptroller Scott Stringer last year found that $700 million in federal funds was surrendered by the agency between 2006 and 2011 due to similar circumstances of failing to meet the requirements to receive the subsidies.

This week, Michael Kelly was appointed as NYCHA’s new general manager. [NYO] — Tess Hofmann


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)
Hudson Yards megadevelopment inspires a new line of sex toys
Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Douglas Elliman chairman Howard Lorber (Getty, iStock, Illustration by Kevin Rebong for The Real Deal)
Elliman’s property management arm suffers data breach
Elliman’s property management arm suffers data breach
JPMorgan CEO Jamie Dimon and 270 Park Avenue (Getty, Google Maps)
JPMorgan Chase will embrace “flexible” design for 270 Park HQ
JPMorgan Chase will embrace “flexible” design for 270 Park HQ
Though some companies have received fat PPP payouts, real estate received just 4.6% of the loans distributed in New York. (iStock)
Real estate receives just 5% of New York’s PPP loans
Real estate receives just 5% of New York’s PPP loans
1135 Lexington Avenue and Nir Meir (Google Maps, iStock)
Judge rules against Nir Meir in HFZ’s $19M default case
Judge rules against Nir Meir in HFZ’s $19M default case
Stuart Elliott
Editor’s note: Survival of the retro-fittest
Editor’s note: Survival of the retro-fittest
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...