Introduction
Affordability has emerged as one of the most pressing issues for New Yorkers. In response, the Democratic Party has vowed to create a more affordable city for its residents, aiming to protect those hurt by the city’s soaring real estate prices. With a citywide vacancy rate of only 1.4 percent, it has become exceedingly difficult for local government officials to deliver on promises of accessible housing. Simply put, there is not enough housing to accommodate everyone in New York City (NYC).
Currently, around 85,000 New Yorkers have vouchers for Section 8 housing—a program that limits recipients’ rent contributions to 30 percent of their income and uses government subsidies to cover the remainder. In 2024, 630,000 individuals applied for Section 8 vouchers and only 200,000 were randomly selected for the program, revealing a large, unmet need for government aid in the competitive NYC housing market.
While this program was designed to decentralize poverty and let residents choose where they live, those selected for the program are often given no choice. Instead, they are concentrated in the Bronx and South Brooklyn neighborhoods. While only 16 percent of New Yorkers reside in the Bronx, 46 percent of voucher holders live in this borough. On the other hand, less than 10 percent of voucher holders live in Manhattan, which houses 21 percent of the entire city’s residents. Unfortunately, attractive areas of the city have rent prices too high for Section 8 to accommodate. Thus, NYC’s leaders are looking to other solutions to improve the living conditions of their low-income residents.
Background: What is New York City’s PACT Program?
In 2016, the NYC Housing Authority (NYCHA) created a program called the Permanent Affordability Commitment Together (PACT). As part of former President Barack Obama’s Rental Assistance Demonstration (RAD)—an initiative that aimed to increase investment in affordable housing to improve living conditions—PACT partially privatized NYC buildings by giving developers public housing units in exchange for money to renovate their complexes. Aiming to convert 62,000 apartments by 2028, PACT plans to oversee $13.2 billion in renovation costs.
NYCHA accounts for half of the affordable housing complexes in New York City. However, they only receive $800 million annually from Congress, which is not enough to care for all tenants within its budget. In order to complete all of the current work orders submitted by its tenants, NYCHA would need $73.8 billion, which is impossible under the current $67 billion federal budget for low-income housing. RAD provided a solution, allowing for twice as much federal funding and potential partnerships with private and nonprofit developers to improve living conditions. Its success, evident by its 83 percent completion rate of work orders, encouraged NYC policymakers to adopt PACT.
In July of 2020, The Blueprint for Change introduced a transformative plan that would allow NYCHA to utilize the NYC Public Housing Trust. This would allow its housing complexes to access money gained from Tenant Protection Vouchers (TPV), a type of Section 8 assistance that keeps vouchers tied to a specific site so that tenants are kept in their current space. Since each TPV voucher is worth double the amount of a traditional NYCHA voucher, this would increase the funding available for NYC’s subsidized housing. Even more, the transition to Section 8 through PACT would allow private management companies to remain on-site and better complete maintenance requests. By entering a 99-year lease with PACT, NYCHA is able to keep public ownership of its building complexes while being privately managed by other developers.
Arguments in Favor of PACT
Tenants in NYCHA housing often report dissatisfaction with the lack of renovations, highlighting the poor condition of their buildings. PACT helps solve this problem, reporting an 83 percent rate of timely completion for work orders—a significant improvement from the 394-day average it takes NYCHA to complete requested repairs. Supervisors of housing complexes partnering with PACT have reported very positive experiences, giving supporters confidence in its ability to reach its goal of improving the living conditions of 76,000 NYCHA tenants.
Furthermore, PACT allows tenants to have more control in their living situations, making them the ones who decide how their housing is managed. For example, tenants are engaged in decisions to switch housing locations, giving them more information about their situation and how they can improve it.
Arguments Against PACT
Despite its potential benefits, tenants have expressed concern about the potential dangers of privatizing public housing, such as the displacement of tenants and increases in rental prices. Others also worry that privatization will make them vulnerable to unfair treatment from landlords, such as overcharging rent or unjust eviction. With limited legal protections, entering the 99-year lease required by PACT could further hurt tenants by putting NYCHA buildings into the hands of creditors for private development. Private developers may view NYCHA housing as an opportunity for profit, acting at the expense of the public housing sector rather than helping it.
While tenants are able to vote on whether or not they want their buildings to participate in PACT, many are concerned that the lack of education surrounding the program will prevent tenants from making informed decisions. For one, about 75 percent of tenants were reported to be unaware that PACT exists. Thus, many are under the false impression that public housing is becoming private. Some residents have also reported that their buildings have moved forward with PACT plans without consulting them, highlighting the lack of communication between building managers and tenants. As a result of the lack of support from tenants, nine out of ten members of the Citywide Council of Presidents voted against PACT.
Conclusion
Overall, the decision on whether or not to participate in PACT is extremely complex. Despite the ongoing maintenance challenges faced by NYCHA housing, the introduction of private developers has proven to offer potential solutions. However, such a large shift in the management of NYC’s affordable housing requires a careful evaluation of its possible outcomes and long-term implications so that tenants, and their housing, remain adequately supported.