At a nearly three-hour oversight hearing, the City Council’s Committee on Public Housing pressed NYCHA on its controversial PACT privatization program, which has converted over 31,000 units to Section 8 funding since 2022. Chair Councilmember Chris Banks opened with sharp criticism, calling out the city’s $663 million investment in PACT and Trust programs versus just $148 million for traditional Section 9 public housing. “We should focus on making serious direct investments into preserving public housing,” Banks said, warning against offloading public housing to private management while legacy developments deteriorate. Despite decades of federal underfunding, NYCHA defended PACT as the only viable path to scale $10 billion in capital repairs—funded through a mix of federal Section 8, city capital, and private debt. Deputy Chief Real Estate Officer Heather Beck stated that PACT has already delivered new kitchens, bathrooms, windows, and modernized elevators across 169 developments, with 44,000 units in pre-development. But the program remains contentious: a December 2024 audit found PACT eviction rates five times higher than Section 9, though NYCHA disputed the data, calling the difference “less than 0.17%.” Rent delinquency and eviction causes were attributed to income verification and third-party management—not systemic displacement, officials claimed.
The hearing spotlighted two major preservation tracks: PACT and the newer Preservation Trust, which has drawn commitments from four developments, including Nostrand and Bronx River Houses. These projects will unlock nearly $500 million in upgrades, including heat pumps and full apartment renovations. Yet, scaling remains limited—NYCHA cited federal budget constraints as the reason only PACT and Trust can expand citywide. Meanwhile, the CompMod program, targeting mold- and lead-heavy sites like Gowanus and Wyckoff Gardens, has secured $1.2 billion for holistic rehab across seven sites. But NYCHA admitted these can’t match PACT’s reach. Councilmember Banks pressed on city subsidies: the average per-unit city capital investment in PACT was $146,087 in 2024–25, with total capital investment averaging $316,000 per unit. By contrast, Trust and CompMod costs are still being finalized. Residents and advocates echoed concerns about displacement, rent hikes, and loss of control—though NYCHA emphasized that PACT preserves public ownership and rent protections.
Going forward, NYCHA is also expanding new affordable housing through underutilized land, like Casa Salina in the Bronx and the Atrium in Brooklyn, totaling 1,600 units over the past decade. It’s also exploring a new RFEI to build more low-income housing on private land using Section 8 transfer tools. But the core tension remains: with federal disinvestment entrenched, PACT is positioned as the only path to modernization—despite community skepticism. As Mayor Mamdani prepares to unveil his housing plan, the Council is demanding clearer accountability, resident protections, and a rebalancing of investment toward traditional public housing. For now, the message is clear: without PACT, NYCHA says it can’t fund the repairs hundreds of thousands of residents desperately need.