Is NYC Mayor Zohran Mamdani’s new housing plan and relevant budget allocations what we expected from a member of DSA? Why is a Democratic Socialist advocating privatization for NYCHA, especially after years of evidence it doesn't work, and the only true beneficiaries are members of the real estate class?
Living For The City With Michael G. Haskins
Special Guest: Layla Law-Gisiko, president, City Club of New York
Summary
Last week, NYC Mayor Zohran Mamdani released his housing plan, the 112 page Block by Block. In it, Mamdani proposes $5.6B over ten years for NYCHA capital improvements, a large amount but one paling in comparison to the estimated need of $78B. Of surprise to people not paying attention given Mamdani’s support last year’s of the Charter Ballot measures and his embrace of pro-development group, OpenNY, is the fact he is allocating almost $2B to assorted privatization schemes like RAD, PACT Section 8–which pay private developers to take over NYCHA buildings, collect rent, and make repairs. The mayor has already been accused of neglecting NYCHA tenants during his series of ‘Rip Off’ hearings.
Law-Gisiko says on paper the plan may seem reasonable. In practice, instead of directly funding NYCHA’s budgets, millions in subsidies will be apportioned to private for-profit driven developers. Landlords who participate are guaranteed to charge market rate rents, which can be five times what NYCHA is paid per unit. Therefore, it's more costly to the public and that money isn't automatically used for repairs and maintenance. If only NYCHA received the same subsidies as these private entities, many problems would be solved.
Furthermore, once privatized, tenants have fewer rights under Section 8 than under Section 9 {traditional public housing} including the right to relocate, which is important for example in domestic violence cases, when an emergency relocation for a family is necessary to remove them from potential harm.
The affordable housing crisis has never been so stark, she explains, despite an increase in the housing supply by 9% since 2010 according to a report issued by the NY State Comptroller in 2025, with housing affordability worsening over the decade. The majority of units constructed have been market rate or luxury. Law-Gisiko believes relying on a system where supply and demand are the only metrics considered and the only solution offered, it’s no wonder we can’t build our way out of this crisis, which essentially is trickle-down housing.
The controversial push to ‘streamline’ approvals by reducing environmental review requirements, those Charter changes dramatically limit oversight, public comment and input, and projects no longer have to go through ULURP, so there is less transparency.
This deregulation trend, which dates back at least to Michael Bloomberg, reveals a push for policies that are disenfranchising, limiting the say people have in what's happening in their neighborhoods. And by the way, the senior policy advisor of the Charter Revision Commission from 2025 is now senior policy advisor to NYCHA.
Law-Gisiko emphasizes NYC must fully commit to public housing as a concept and to building more public housing; NYCHA buildings must be owned by NYCHA and fully funded. Mamdani’s budget needs to reallocate this money from HPD to NYCHA and NYCHA needs to become a builder again.
Also, it’s critical to understand NYCHA buildings don't have to be decrepit, that this is a choice and lack of political will. She warned we’ve been conditioned to believe NYCHA buildings are perennially in extreme disrepair, that nothing can be done–a false narrative, with little physical evidence proving this narrative.
It’s incumbent on us to remind Council Members in particular we care about public housing. There’s a crucial NYC Council hearing on June 10 and everyone should contact their representative. https://council.nyc.gov/
Background and Overview
Fiorella Laguardia had the most ambitious plan for public housing, creating NYCHA in 1935 with Eleanor Roosevelt. We have been chronically damaging and disinvesting in NYCHA for decades.
- Fed funding down over the last 2 decades by 35%
- NYC has been selling properties to private corporations since 2016
- NYCHA IS NYCs largest landlord, and considered one of its worst
- NYCHA has been under federal receivership since 2019
- NYCHA is currently suing 16 senior citizens, residents of the Chelsea/Elliot Houses for refusing to vacate their homes; there is a TRO in place against NYCHA. The Appellate Division hears oral arguments on June 11.
Law-Gisiko maintains Mamdani’s plan is simply more of the same, especially as promoted by Eric Adams. She says there are no new core ideas. The plan is somewhat smoke and mirrors with a proposed labor agreement, while simultaneously diverting attention from the privatization emphasis.
According to real estate industry magazine the Real Deal, private developers are amongst the plans biggest winners. The first beneficiaries are: Related Companies and Essence Development, the entities pushing for the controversial demolition proposed for the Fulton and Elliott-Chelsea Houses, where more than 2,000 NYCHA apartments would be replaced. It’s widely considered a land grab for Hudson Yards. Fulton House in Chelsea meager subsidy under $1000 per unit, if private, receive almost $5000 5x as much, more expensive in tax dollars, appetite to spend a lot of money for private devs instead of spending it on actual PH.
A 2024 NYC Comptroller audit exposed evictions in PACT properties at higher rates than traditional NYCHA developments, and matching rates in the citywide private rental stock. NYCHA failed to ensure standard procedures, which varied widely among PACT managers, or to follow procedures for pre-eviction filings and executions; They also failed to perform adequate outreach, or to report all eviction and preeviction activity.
The Indeypendent newspaper reported based on a 2022 Human Rights Watch analysis living conditions declined and deteriorated, an increase in housing violations in PACT buildings, as well as a reduction in oversight and tenant protections.
While NYC has a Fair Clause Act, the cap on units under the public housing law–often used as an excuse–NYC is far from reaching its quota.
There hasn't been much opposition from electeds–including those representing the Chelsea complexes, or even from DSAs Rep. AOC or Rep. Nydia Velazquez, theoretically big proponents. The mainstream media has consistently parroted for years big real estate’s story about NYCHA and the City of Yes–generally considered a massive giveaway by Adams to his only constituency, the real estate industry.
Pressure also must be applied to our state and federal electeds, especially the NYC delegation, as public housing is a federal program, disinvestment came first on the federal level, and they should advocate for public housing, prioritizing more $ for NYCHA; on the state level, there are bills in the next legislative cycle generating additional funds for public housing like the Stock Transfer Tax.
There is a giant role for communities and neighborhood organizations to play re projects under this accelerated approval framework, Law-Gisiko believes. Democracy works when it's participatory, it’s a ‘contact sport’. She urged listeners to attend Community Board meetings, ask questions, read, get involved. When we keep showing up, being involved, vote, thats where we make a difference.
