New York, NY —

The New York City Housing Authority has begun to rent out 8,400 public housing apartments to tenants with Section 8 housing vouchers.

The move to Section 8 status means federal funds will cover the cost of the apartments, which have been unfunded for years, but critics say they'll no longer be available to low income New Yorkers who are seeking housing in the private market. Councilwoman Rosie Mendez says Section 8 is still the best option.

MENDEZ: The alternative is to do what's been happening in other cities - sell these buildings or demolish some of these buildings.

REPORTER: Switching the 8,400 apartments to Section 8 status is part of the authority's larger plan to reduce a $177 million deficit next fiscal year.