A looming $205 million budget shortfall due to sequester-related federal funding cuts have the New York City Housing Authority (NYCHA) preparing to make drastic cuts to staff and programs.
The loss of close to 10% of its funding has the NYCHA "cutting through the bone", according to Chairman John Rhea. On Wednesday, he announced how the agency is preparing to spread the pain among its many programs, reports Matt Chaban.
"Much of the cuts will come to NYCHA’s workforce, with the authority implementing a hiring freeze and also seeking to institute furloughs and possibly layoffs as well," he notes. "There will also be cuts to a number of both senior as well as community centers in NYCHA developments."
"There will be impacts to those living outside the housing projects, as well. As Crain’s previously reported, NYCHA will forgo issuing new Section-8 vouchers this year, which will leave some 5,000 families on the waitlist without any hope of winning a rent subsidy."
As the housing market recovers, and the city's dwindling affordable housing supply comes under increasing threat, the cuts to an agency that provides assistance to 650,000 New Yorkers and receives more than 80% of its funding from the federal government come at an especially inopportune time.
FULL STORY: Drastic cuts loom for NYC Housing Authority
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