HUD New York Director Responds to Mayor Foster

The New York Director of the Office of Public Housing Luigi D’Ancona, explained how flat rate rental increases work at housing authorities and said his staff will review market survey documentation used by the Peekskill Housing Authority board in its recen, in a letter to Mayor Mary Foster dated July 13.

D’Ancona’s letter was a response to that called recent rent increases by the Peekskill Housing Authority “unconscionable," and asked HUD to consider deferring any rent increases until D'Ancona thoroughly reviewed the matter. 

The Director’s letter explained that housing authorities are entities created under state law and that local government-appointed and elected leaders on the board govern each housing authority.

“At the same time, HUD has important oversight obligations with respect to the use of Federal public housing funds, and continues to carry out those responsibilities vigorously,” D’Ancono wrote.

D’Ancona said that the PHA maintained artificially low flat-rent levels for years until 2010 when flat rents ranged from $500-$875.

“The result of this was two-fold: higher income residents were paying exceedingly low rents (as a percentage of their incomes) and the PHA’s developments were being starved of rental revenue that should have been available to make repairs and pay for services.”

A small percentage of the PHA’s highest-income residents will be affected by the increase and no family will be required to pay more than 30 percent of adjusted income towards their housing expense, the letter said. D’Ancono wrote that that the

increased income will be used to improve condition of buildings to benefit all tenants.

After explaining how flat-rate rentals and governance of housing authorities work, D’Ancona stated:

“Based on your concerns, my staff has discussed this matter with the PHA Director to confirm that the PHA Board members were aware of the applicable regulations as they deliberated and voted on the establishment of a revised flat-rent schedule. In addition, my staff will review the market survey documentation used by the PHA in support of the new flat-rent schedule to ensure that the appropriate factors were taken into consideration.”

Read the full letter in the PDF attached to this article.