Through the exemplary efforts of NYCHA’s Capital Projects Division, NYCHA is spending capital funds received from HUD (U.S. Department of Housing and Urban Development) and has successfully spent stimulus funds received through ARRA (American Recovery and Reinvestment Act)as of spring 2012 to perform major rehabilitation work at NYCHA developments.
NYCHA has been on target and on deadline for spending all of its capital funds. HUD provides public housing authorities two years to obligate 90 percent of capital funding and four years to expend 100 percent of capital funding. According to HUD’s records, as of July 2012 NYCHA has never missed a capital funding obligation due date, and has never asked for an extension.
Through a combination of ARRA funds and HUD capital funds, NYCHA has expended and obligated more than $1 billion in capital funding since 2009 on replacing roofs and elevators; repairing brickwork, upgrading heating systems, and installing new refrigerators and stoves into thousands of NYCHA apartments.
NYCHA fully spent the 2009 ARRA funds as of February 2012 (ahead of schedule)
NYCHA fully spent the 2008 HUD capital grant as of June 2012
NYCHA obligated 90 percent of the 2009 HUD capital grant as of 2011
NYCHA obligated 90 percent of the 2010 HUD capital grant as of June 2012
NYCHA Residents Benefit from Capital Funds Spending:
More than 730 NYCHA residents got jobs completing ARRA-funded work at NYCHA developments.
NYCHA spent more than $70 million in Stimulus funding to rehabilitate elevators.
NYCHA designated more than $20 million in Stimulus funding for special projects, including replacing refrigerators and stoves.
How NYCHA Spends Federal Funding to Make Repairs:
NYCHA carefully plans how to spend the scarce resources it receives from HUD to perform major building rehabilitation work. When NYCHA receives federal capital funding, it must establish a design and procurement process. This process includes procuring a designer; the designer then designs the project; NYCHA then bids for a construction contract. This process can take up to 24 months to complete. HUD understands that this is a process that takes time, which is why HUD allows public housing authorities two years to obligate 90 percent of capital funds and a total of four years to expend 100 percent of funds.
Once NYCHA has paid vendors for work performed, NYCHA can then apply for reimbursement of capital expenditures from HUD. NYCHA is spending its capital funds as quickly as the process allows and has never requested an extension and has met all of its deadlines in utilizing capital funds.