Five Year Operating Plan Calendar Years 2018-2022

Five Year Operating Plan Calendar Years 2018-2022

December 20, 2017

New York City Housing Authority

Board Members Shola Olatoye, Chair & Chief Executive Officer Derrick D. Cephas, Vice Chair Jacqueline Arroyo, Resident Board Member Zaire Dinzey-Flores, Board Member Victor A. Gonzalez, Resident Board Member Nnenna Lynch, Board Member Jacqueline Young, Resident Board Member

Management Vito Mustaciuolo, Acting General Manager & Chief Operating Officer Tricia Roberts, Vice-President for Finance Vacant, Executive Vice-President for Legal Affairs and General Counsel David Pristin, Executive Vice-President, Chief of Staff Robert Marano, Executive Vice-President, Chief Information Officer Lakesha Miller, Acting Executive Vice-President for Leased Housing Cathy Pennington, Acting Executive Vice-President for Operations Kerri Jew, Executive Vice-President, Chief Administrative Officer Deborah Goddard, Executive Vice-President for Capital Projects Takisia Whites, Executive Vice-President for Real Estate Sideya Sherman, Executive Vice-President for Community Engagement & Partnerships Edna Wells Handy, Acting Executive Vice President and Chief Compliance Officer Georgiana Okoroji, Director, Financial Planning & Analysis

2018 Five Year Operating Plan

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New York City Housing Authority

Table of Contents

2018-2022 Operating Plan .............................................................................................................. 4 Overview..................................................................................................................................... 4 FY 2017 Accomplishments......................................................................................................... 5 Government Finance Officers Association (GFOA) .............................................................. 5 Position Budgeting.................................................................................................................. 6 Implementation of Personnel Action Request (PAR) Approval Process................................ 6 Staff Augmentation Approval Process.................................................................................... 6 Financial Plan Application Database (FPAD) ........................................................................ 7 Cost Allocation Certificate and E-Confirmation Process ....................................................... 7 NextGeneration (NextGen) NYCHA...................................................................................... 8 Closing the Year ................................................................................................................... 14 Additional Revenues ............................................................................................................. 19 2018 Outlook ........................................................................................................................ 21 Budget Line Item Discussion.................................................................................................... 23 Basis of Presentation............................................................................................................. 23 Revenue Categories .............................................................................................................. 24 Expenditure Categories ......................................................................................................... 27 2018-2022 Operating Plan by Funds ........................................................................................ 34 All Funds............................................................................................................................... 34 General Funds ....................................................................................................................... 35 Housing Choice Voucher ...................................................................................................... 36 Categorical Grants ................................................................................................................ 37

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New York City Housing Authority

2018-2022 Operating Plan

The New York City Housing Authority (NYCHA or the Authority) Board adopted the Fiscal Years (FY) 2018-2022 Operating Plan on December 20, 2017. This Five Year Plan incorporates initiatives to reduce the financial gap.

Overview

The 2018 Plan projects an Operating surplus of $12 million. The Operating Plan consists of three component funding sources (funds): General Funds, Housing Choice Voucher Program (HCVP) Funds, and Categorical Grants Funds. The General Fund consists of the operating activity of NYCHA's developments along with the Central Office Cost Center (COCC). The HCVP Funds reflect the administration of the Section 8 Program. The Categorical Grant Funds reflect all other grant programs by which NYCHA receives funding from federal, state, city and private sources for the administration of a variety of community development and benefit programs.

2018 All Funds Revenue

($ in Millions)

Tenant Rental Revenue $1,074.4 32.2%

Operating Subsidy 885.6 26.5%

Other Revenues 270.6 8.1%

Section 8 Housing Assistant Payment

1,033.7 31.0%

Section 8 Admin. 74.4 2.2%

NYCHA continues to experience a structural deficit stemming from ongoing federal underfunding, operating of approximately 4 thousand unfunded City/State public housing units,

2018 Five Year Operating Plan

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New York City Housing Authority

as well as mounting "uncontrollable" costs such as pension and benefits related expenses. To mitigate the structural deficit, in May of 2015, Next Generation NYCHA (NextGen) was launched. This ten year strategic plan to protect and strengthen public housing changes how NYCHA is funded, operates, rebuilds and engages with residents, will help the Authority overcome the challenges of declining government funding and aging infrastructure.

2018-2022 Operating Plan Summary

($ Millions)

2018

2019

2020

2021

2022

Revenues

Revenue from Operations Other Revenus

Total Revenues

$1,096 2,243

$3,339

$1,109 2,204

$3,313

$1,119 2,207

$3,326

$1,129 2,205

$3,334

$1,138 2,229

$3,367

Expenditures

Personnel Services Other Than Personnel Services

Total Expenditure

$1,319 2,008

$3,327

$1,331 2,010

$3,342

$1,344 2,011

$3,355

$1,361 2,000

$3,361

$1,379 2,003

$3,382

Surplus/(Deficit)

$12

($29)

($29)

($28)

($15)

FY 2017 Accomplishments

In the face of financial challenges, NYCHA continues to focus on its mission of providing safe and affordable public housing, while addressing the needs of our residents. With support from the City of New York's current administration, and with an emphasis on safety and service levels, the following was accomplished in FY 2017:

Government Finance Officers Association (GFOA)

After adopting the FY 2017 Plan, NYCHA submitted its 2017 Budget Book to a panel of independent reviewers, the Government Finance Officers Association (GFOA). In August 2017, for the third consecutive year, NYCHA was awarded the Distinguished Budget Presentation Award for the current fiscal year. This award is the highest form of recognition in government budgeting.

The Distinguished Budget Presentation Award program was created by the GFOA in 1984 to recognize state and local governments that prepare budget documents of the highest quality as established by the National Advisory Council on State and Local Budgeting. Any type of government agency across the country can apply. This honorable award is for the transparency and accountability of the budget. NYCHA has received this distinguished award since FY 2015

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