1. Citizens Budget Commission: Trustee Breakfast September 18, 2015

2. NYCHA Houses 1 in 12 New Yorkers 2

3. NYCHA’s Housing Stock is Aging 3

4. $1 Billion Loss in Operating Funding Since 2001 4

5. Financial Position - Operating 5 Current Reserves: Less than One Month

6. 30% Decrease in Federal Capital Funding Since 2001 6

7. Why NextGeneration NYCHA Now?  To preserve the precious resource of public housing and to improve the lives of residents.  Aging buildings in need of repair  Significantly reduced federal funding for repairs, supplies, and renovations  Large senior population aging in place  Low-income families in need of affordable housing 7

8. NextGeneration NYCHA Vision 8 Safe,Clean, and andConnected Communities Communities 8

9. NextGeneration NYCHA Strategies Fund 1) Secure relief from PILOT 2) Improve collection of resident rent and fees 3) Lease ground floor spaces 4) Reduce central office costs Operate 5) Transform to digital organization 6) Localize property management 7) Pursue comprehensive sustainability agenda 8) Increase safety and security (Re)Build 9) Refine capital planning strategy 10) Provide land to support creation of affordable housing units 11) Use HUD programs to preserve units 12) Adopt design excellence practices 9 9 Engage Residents 13) Transform from direct service provision to a partnership model 14) Leverage philanthropic dollars through a 501(c)(3) 15) Connect you to quality employment

10. 10 100% Affordable 10,000 Units $100-$200mm Sites: All 5 boroughs Affordability: All levels 50% Aff/50% Market ~6,000 Units $300-$600mm Sites: Higher-value Affordability: 60% AMI (up to $46,600 for a family of 3) Strategy #10: New Construction of Affordable Housing

11. Site Selection Considerations for New Construction 1.Existing conditions of NYCHA Development and Capital Needs 2.Development Opportunity 3.Proximity to other Public Investments & Partnership Opportunities 4.Potential monetary return to NYCHA 11 Site C Site E Site D HOLMES TOWERS WYCKOFF GARDENS

12. 12 Using HUD programs to rehab and preserve  RAD, Tenant Protection Vouchers, Project- based Section 8, other  Ocean Bay – Bayside: 1,400 units  Scattered sites (inherited from City): ~6,000 units  Obsolete, per HUD: ~8,000 units  Unfunded City and State (LLC2): ~5,000 units Strategy #11: Preservation of Affordable Housing

13. 13 Raise $200 Million over 3 years: A partnership model eliminates the financial burden on NYCHA to be both an effective landlord and a primary service provider. The Fund will invest in new and existing partnerships to create a network of connected communities. Increasing operational flexibility: improve innovation and the scope of services available to NYCHA residents. The Fund will allow for a more creative approach to partnership, fundraising and service delivery. Consistently measure the outcomes and impacts of resident services: the Fund and its partners can ensure excellence in service delivery and communication by incorporating feedback loops and adapting services. Support resident leadership development: Residents and communities are part of any partnership framework. The Fund will support NYCHA’s new resident engagement model by collaborating on the launch of a Resident Leadership Academy to develop the capacity of current and emerging leaders. Strategy #14: Launch Fund for Public Housing

14. The Fund for Public Housing to Launch in 2015 Mission Statement Public housing keeps New York City a city for all people. The Fund for Public Housing enables the innovation necessary to develop cleaner, safer, and more connected public housing integrated into NYC communities. 14

15. The Fund: Five Areas of Focus in a Collective Impact Model Youth and Education Health and Wellness Economic Empowerment Senior Services Sustainable Neighborhoods 15 NYCHA as Convener

16. The Fund’s Year One Outcomes: Doing Business Differently 16 Financial $50 million raised $100 million in the pipeline NYCHA no longer direct service provider = $50 million cost savings annually Fundraising strategy operational Strategic Link 20,000 residents to services by transforming social service delivery model Create resident owned worker cooperatives Train 1,000 residents by creating Resident Leadership Institute 20 additional community partners in Zone model expansion Integrated campus redesign to bring units on line and increase connectivity

17. Continue to Focus on Our Core Business 17 Identify and implement best practices in property management Improve maintenance and repair Modernize procurement and supply chain management Make our buildings more resilient and sustainable Improve resident and employee safety Contribute to the City’s effort to reduce homelessness

18. What Will NextGen Accomplish? 18 Status quo  $2.5b cumulative operating deficit Implement strategies  $230m operating surplus Financially stable operations Attract new resources Address $17b capital need Improve quality of life for NYCHA residents

19. NextGen’s Impact on the Operating Deficit 19

20. NextGen’s Impact on the Capital Deficit 20

21. This is NextGeneration NYCHA 21 Safe,Clean, and andConnected Communities Communities