According to a report from the city comptroller’s office, private companies operating numerous public housing campuses in New York City are evicting tenants at a significantly higher rate compared to the New York City Housing Authority.
According to auditors employed by Comptroller Brad Lander, the eviction rate in approximately 16,000 NYCHA apartments managed by private companies was more than twice as high as the rate in the rest of the public housing system in the previous fiscal year (July 1, 2023, to June 30 of this year).
According to auditors, private companies were responsible for evicting tenants from approximately 1 out of every 200 apartments they manage. In comparison, NYCHA evicted tenants from roughly 1 out of every 866 apartments. It is worth noting that both these figures are lower than the citywide eviction rate, which stands at around 1 out of every 166 apartments.
According to the report, private management companies initiated eviction proceedings against approximately 10% of households residing in those apartments in 2023. The majority of these cases were related to nonpayment of rent and did not ultimately lead to evictions.
The New York City Housing Authority has transferred management of 24,584 apartments across 69 campuses to private companies through the Permanent Affordability Commitment Together (PACT) program. Under this program, the federal funding for each apartment has been transformed into Section 8 vouchers, providing additional financial resources. Additionally, private companies now have the ability to issue bonds and obtain loans for renovations, while also assuming responsibility for repairs and rent collection.
Mayoral candidate Lander emphasizes the importance of informing tenants residing in other NYCHA campuses about the elevated eviction rates. He believes that it is crucial for them to be aware of this information before making a decision on whether to participate in the PACT program, choose the Preservation Trust option with greater public control, or maintain the current status quo.
According to Lander, it is crucial for residents to have access to clear and accurate information regarding each potential pathway. Many residents have expressed that they currently lack this necessary information.
According to him, the private managers were not taking sufficient measures to prevent evictions or negotiate payment arrangements with tenants who had outstanding rent. The auditors discovered that there was inconsistent communication with tenants who were at risk of eviction, and private managers were taking legal action against tenants for as little as $250 in overdue rent.
According to him, this audit offers valuable insights that can benefit both NYCHA and its residents. It can help NYCHA to improve its oversight of the PACT program, while also empowering residents to make informed decisions about the future of their housing.
NYCHA, along with the private companies overseeing public housing and their proponents, have been working diligently to address concerns surrounding evictions and displacement ever since the program’s inception in 2016. They emphasize that the incidence of evictions remains exceedingly low.
NYCHA spokesperson Michael Horgan criticized the findings, stating that the PACT program has already allocated approximately $7 billion towards public housing.
“In this report, the comptroller’s office does not take into account NYCHA’s financial and operational challenges and provides only a superficial assessment of the [housing] authority’s work with no substantive programmatic recommendations,” Horgan said. “The fact remains that there have been very few evictions under PACT, and the program upholds resident rights and protections and provides households with ongoing social services and financial assistance to resolve existing rental arrears.”
According to the spokesperson, it is unquestionable that both NYCHA and the private management companies prioritize the goal of ensuring that New Yorkers have a place to live. Any insinuation suggesting otherwise is not only misguided but also false.
According to NYCHA, it is estimated that approximately $78 billion is required to carry out renovations, which includes addressing lead contamination and repairing boilers, for its aging housing units that have suffered from years of neglect by the federal government. A federal monitor recently commended the agency for making strides in improving the safety of its buildings, but also acknowledged that there is still plenty of room for further improvement.
The public housing authority has resorted to the private management model as a solution to its budget shortfall, as it seeks alternative sources of funding not provided by the federal government. The NYCHA’s financial difficulties have been exacerbated by unpaid rent accumulated during the pandemic. However, the state has recently allocated $185 million to cover overdue rent for numerous tenants.
During the past two fiscal years, the auditors from the comptroller’s office thoroughly examined eviction data at the PACT campuses. To conduct their review, they analyzed the “monthly legal proceedings reports” submitted by the companies to NYCHA.
The review encompasses the Hope Gardens complex, which consists of 1,300 apartments spread across approximately 50 squat, three-story townhouses and three high-rise buildings in Bushwick. According to Gothamist’s initial report, the developer responsible for overseeing the renovations at the campus terminated the management company in charge of Hope Gardens due to their subpar performance towards the end of last year.
The eviction rate at Hope Gardens was lower than the PACT average, standing at 0.38%.
The eviction rate at the 722-unit Murphy and Baychester Houses, which is managed by C+C Management, was only 1.52%.
According to a representative from C+C Management, the company chooses to forgive any outstanding rent payments when they assume control of a property. For further inquiries, they directed us to NYCHA.