The $450 Million Commitment the Governor has Made to NYCHA
WHERE IS THE MONEY?
Based on an agreement between NYCHA, New York City and New York State, the state funds are committed if NYCHA abides by the agreement.
CAN I READ THE AGREEMENT?
Yes. Click here to read the entire signed agreement.
IS THE MONITOR A PARTY TO THE AGREEMENT?
No, the Monitor is not a party to this agreement, but the Monitor does have certain responsibilities to ensure that the funds are used for the purposes that were agreed to.
WHAT ARE THOSE PURPOSES?
The $450 million in state funds can only be used for capital expenses, and specifically, for the purchase of new elevators and boilers identified in the agreement. See the list of developments which will be receiving new elevators and boilers here.
WHAT IS A CAPITAL EXPENSE?
There are two kinds of expenses: capital and operational. Capital expenses generally include funding used to buy and install equipment, in this case, elevators and boilers. However, repairing a door on an existing elevator, even if it is out of service, would be an operational expense and cannot be paid for with this allocation of $450 million in state funds.
HOW DID NYCHA DECIDE WHICH ELEVATORS AND BOILERS TO REPLACE?
NYCHA performed a technical assessment to determine which elevators and boilers required work immediately, or very soon. The analysis considered (1) the number of work orders whenever there was an outage and a repair needed to be made, (2) the age of the equipment, and the (3) physical needs assessment.
WHERE IS THE MONEY NOW?
The funds remain with the State until NYCHA uses the money in accordance with the Action Plan approved by the Monitor. After NYCHA expends the money, in other words, installs new elevators and boilers, and the Monitor confirms the funds were properly spent, the State will reimburse NYCHA up to $450 million.
WHO APPROVES THE ACTION PLAN?
The Monitor evaluated and approved NYCHA’s Action Plan on November 6, 2019. The Monitor has two critical roles in this process.
- To evaluate and approve the final Action Plan created by NYCHA.
- To confirm that the money has been spent according to that Action Plan.
In this way, the $450 million will be used for the purposes it was intended – elevators and boilers.
WHAT IS THE CURRENT STATUS OF THIS PROJECT?
The Monitor approved NYCHA’s Action Plan on November 6, 2019 and NYCHA is undertaking the work that is required as part of any major capital spending project. See the schedule here.
WILL I BE ABLE TO READ THIS PLAN?
Yes. See the approved GDA Plan here.
WHO DO I CONTACT IF I HAVE MORE QUESTIONS?
If you have any questions or suggestions please call us at 347-809-5555, toll-free number 844-309-6080 or email us at email@example.com.