HUD Secretary Shaun Donovan, along with New York elected officials and housing authority representatives made the announcement at Rutgers Houses in Lower Manhattan on March 15, 2010. Joining Donovan were New York Governor David Paterson, Senator Charles Schumer, Congresswoman Nydia Velazquez, Mayor Michael Bloomberg and New York City Housing Authority (NYCHA) Chairman John Rhea.
HUD has approved a financial transaction that will keep the 721 public housing and Section 8 units at Rutgers Houses affordable, as well as thousands of similar apartments throughout the city.
Included in this agreement is the approval to provide public and private funds to rehabilitate a total of 20,139 units in 21 public housing developments in New York City and provide ongoing federal operating subsidy from the U.S. Department of Housing and Urban Development (HUD) for 11,743 of the public housing units in the 21 developments.
According to a quote from HUD Secretary Shaun Donovan, the Recovery Act will help families that live in the apartments and will create hundreds of jobs. Donovan said, “HUD is proud to join with the State, the City and NYCHA to safeguard affordable housing for thousands of families well into the future. HUD’s approval of this agreement and the funding the Obama administration is providing through the Recovery Act will not only help the families who live in these apartments, but will create hundreds of jobs and ensure necessary repairs can take place. This one agreement will benefit roughly the same number of public housing units in New York City as there are in the whole of Chicago’s public housing inventory. This is a great day for the future of New York City’s public housing.”
On March 15, 2010 HUD Secretary Shaun Donovan and NYCHA Chairman John Rhea signed documents that conclude a complex, multi-step process that gives NYCHA the go ahead to use $108 million it received from HUD though the American Recovery and Reinvestment Act of 2009 (Recovery Act). The HUD funds, in addition to other funds, will be used to rehabilitate the 20,139 units of public housing covered by the agreement.
In 2009, HUD awarded 3,400 public housing authorities nearly $3 billion in Recovery Act funding to make capital improvements to their public housing stock. NYCHA received $423 million in this funding.
Written by Christine Nyholm