Mengqing Chen, MLA I 2017
Organization: NYC Housing Preservation and Development (NYC HPD), New York, NY
Sponsor: Harvard Club of New York Foundation
” This week, the Budget Division Director gave an orientation on how the NYC Housing Preservation and Development is funded and how the department distributes funding for a variety of uses.
Driven by the Executive branch of government (i.e. the Mayor), the city is required to have a balanced budget, and to maintain firm dividing lines between expenses and capital. The expenses include salaries, services, other purchases, and a four-year plan, which encompass Personal Services and Other Than Personal Services (OTPS). The latter refers to program costs and operating costs. The capital supports new construction and rehabilitation projects, which is the source of funds for primarily loans, and a ten-year plan.
The NYC budget cycle runs from July 1st to June 30th the next year. This is also called the fiscal year. On July 1st, there will be an adopted budget from the federal, state and city governments; then in September and November there will be capital and expense plan reviews. In January, the Mayor will approve a preliminary plan. After hearings and reviews, the preliminary plan will become the Executive Plan in April. On June 30th, the fiscal year ends. In FY 2017, the NYC budget is 83.98 billion, with 71% of the total coming from the city, 16% coming from the State and 9% coming from the federal government. The adopted budget for HPD in FY 2017 is 1.26 billion. From that total figure, 1.04 billion goes directly to HPD and 221 million goes to NY City Housing Authority (NYCHA) , because part of NYCHA’s tax levy and disaster recovery funding flows through HPD’s budget.
In the chart you can see the adopted budget of 1.04 billion for FY 2017. 29.1% of the total is restricted to federal disaster recovery funding and cannot be used for other programs. 46.3% of the total budget is derived from Federal funding, which is reserved for Section 8 housing. The available resources come from the City and CDBG (Community Development Block Grant) funds, which account for 242.3 million out of the 1.04 billion budget.”