$100M Cut From NYCHA And Housing Programs in DC Deal

The budget deal between President Barack Obama and House Republicans will cost New York City more than $100 million in federal support for public and affordable housing programs.

New York City's Housing Authority lost almost $30 million in operational support and $45 million in federal dollars for things like repairing elevators. Housing advocates say the city has consistently had to try and make up for chronic federal under-funding and these latest cuts will be tough to absorb.

Also targeted for reductions: the program that monitors affordable units at risk of foreclosure.

Benjamin Dulchin, executive director of the Association for Neighborhood and Housing Development, said there are about 100,000 housing units  in that category vulnerable to falling into disrepair. 

"The very resources that are needed to insure that the impact of this crisis is softened for tenants and community residents in New York City don't suffer as much as they otherwise would from the crisis are being taken away at exactly the wrong moment," Dulchin said.

Dulchin said that the city's affordable multi-unit housing was vulnerable to the same wild speculation and mortgage manipulation that helped set the stage for the Great Recession.

He said the city's property maintenance program of distressed properties funded through the Federal Community Development also helped keep property values up for the surrounding neighborhoods. 

Community Development money also supports the work of as many as 20 city agencies and dozens of community based non-profits citywide.

The Federal Community Development Block grant program has been a lifeline for municipalities and traces it origins back to the Nixon era as what was defined as "federal revenue sharing."

It bypasses state capitals and comes with few programatic limitations. This year, the city lost $300 million in the state equivalent in unrestricted municipal aid from Albany as other municipalities saw just a 3 percent reduction from Albany New York City was zeroed out.