CM Banks questions OMB on NYCHA capital needs impact of PACT conversions
Banks asks what impact PACT conversions have had on the $78 billion capital needs assessment, noting NYCHA testified that conversions don't impact capital needs. Solomon and DiStefano explain the 2026 PNA shows PACT reduced needs by $3.2 billion, but new needs and inflation offset the decrease, keeping the number stagnant.
20 seconds.
Yes, one last question.
NYCHA's capital needs has long been estimated at $80 billion, and I know it was lowered.
You had mentioned that it was at $78 billion.
Given that significant number of developments have been already converted over to the RADPAC program, I believe
close to somewhere between 27,000 and 30,000 units have been converted, and there's about 62,000 units that are in queue to be converted with this new RFP or expression RFP that's been released by NYCHA.
What impact is that having on the capital needs assessment or the $78 billion of capital needs that exists?
Has there been an impact?
And is conversion really–
Is it decreasing the capital needs of NITRA?
This goes back to the physical needs assessment.
There was a 2026 update, and it shows, as we talked about before, a slight decrease from what we saw last time of 0.8%.
It showed that PAC conversion reduced it by $3.2 billion, and then other completed projects was a reduction of about $500 million.
But then there were other new needs and inflation offsets, which kind of kept the number pretty stagnant.
And the reason why I want clarity on this is because NYCHA gave testimony to my committee.
That when a development is converted over, it doesn't impact the capital needs.
So, but you're giving a different, you know, it's contradicting what they're giving testimony to.
This is outlined.
What they've given testimony to.
The technical report for the physical needs assessment is outlined on NYCHA's website, so you can see the complete breakdown in detail in terms of how they arrive at that number and how it changes over time.
All right.
Well, I look forward to hopefully getting some clarity, and hopefully the administration and NYCHA can be on the same page when it comes to what the actual impact is.
Rad Pack is having on the capital needs.
Thank you.
Thank you, Madam Chair.
Thank you.
Murano versus, sorry, not versus, sorry, I'm thinking tennis and sports.
Murano versus wrestlers, sorry.
My money's on Lincoln in that matchup.
That's right.
Murano and then wrestlers.
Thank you, Chair.