March 25, 2025

FY 2026 Preliminary Budget Hearing

Introduction 

Chair, members of the Committee, thank you for having me today. It’s a privilege to discuss the critical work we’re doing at HPD and our shared responsibility to ensure every New Yorker has access to safe, affordable housing.  

I’m here today as Acting Commissioner of NYC’s Department of Housing Preservation and Development. It’s a new title, but at its core, the job hasn’t changed much. 

When I walk through the doors of HPD each morning, I focus on three things: 

First, my job is to care. To believe—deeply—that housing isn’t a privilege, it’s a necessity. To treat everyone who needs our help, like they could be your parents, our friends or my son.  

Second, my job is to take action. Not just to talk about solutions, but to deliver them—every single day—so that more New Yorkers can find stability, security, and a real path forward. 

Third, my job is to build momentum. Because this work doesn’t happen overnight, and the progress we make today is what will put more families into homes tomorrow. 

My focus comes from being a New Yorker through and through. I was born and brought up in  Sunset Park, Brooklyn and while my mother might disagree, I often feel that I was raised by the entire City.  

I need to say, I hate talking about myself, because this moment – when so much is at stake -- I'm not what matters. But my story, how I ended up in this seat, in this building, at this hearing, is the story of so many New Yorkers. Our City made space for family with government support including rental assistance, allowing us to find communities and create incredible lives where now we have the chance to give back and I get to raise my very own New York family.  

To be very clear, I am not here because it is my obligation to give back to the City that gave me so much, I am here because it is an honor.  

Speaking of honors, I’ve worked alongside many of you for years—some of you, decades. We’ve debated, collaborated, and pushed each other. 

So it is my intense joy to say that today, my job is also about making a commitment to you and your constituents – after all our budget is a commitment to taking action – my commitment, HPD’s commitment, is to not just set ambitious goals, but to deliver real, lasting results that make this city more livable, more affordable, and more just. 

I know firsthand that the decisions we make in this room don’t just live on paper—they shape real lives, just as they once shaped mine. But this job, this agency, and this hearing aren’t about me, and they aren’t about you. They’re about the people who are counting on us—the families on the brink, the seniors trying to stay in their communities, the kids who just need a fair shot. And our responsibility—my responsibility—is to make sure we don’t let them down.  

That’s why HPD’s commitment is unwavering. With uncertainty, fear and confusion weighing, now is the time to turn ideas into action. 

Finally, before I begin the overview, I want to take a moment on behalf of the agency to thank Deputy Mayor Carrion for his steadfast leadership of HPD over the last three years. His commitment to community and housing equity has been critical to HPD’s recent successes and we only expect more success to come under his direction in his new role as Deputy Mayor for Housing, Economic Development and Workforce.

HPD’s 2024 Budget Overview 

To get real results, we need to start with a clear understanding of both our resources and our challenges.  

Here are some key figures that reflect our work and our commitment: 

• $1.69 billion: HPD's total expense budget for Fiscal Year 2026. 

• $1.31 billion: HPD’s operational and programmatic budget, with $375 million going to NYCHA. 

• 20: The number of funding sources that flow into HPD’s budget. 

• $492 million: The amount (38%) that comes from the City’s own resources, underscoring our collective investment in affordable housing. 

• $815 million: a significant portion (62%) comes from the federal government  

• $7.6 million: <1 percent comes from the state and other sources.   

• $2.39 billion: HPD’s total capital plan for Fiscal Year 2026 (excluding $875 million in pass-through funding for NYCHA PACT) 

• $20.73 billion: HPD’s FY2026–2035 Ten-Year Capital Plan 

It’s not all about what it coming into the agency, it’s about what we do with it. These resources support teams working on critical areas, from neighborhood planning to enforcement. Our inspectors make sure that every family in this city can lay their head down in a home that offers safety, warmth, and the chance to prosper. 

Here are some key staffing numbers:  

• 2,383: The full-time staff working on behalf of New Yorkers. This includes: 

• 316 staff dedicated to building and preserving affordable homes. 

• 382 inspectors and supervisors keeping our city safe and ensuring homes are secure for every New Yorker. 

• 431 staff dedicated to getting New Yorkers into the homes we’ve created and using the vouchers allocated to us.  

• 383 positions are still open, and our vacancy rate stands at 14%. 

City of Yes in 2025 

Last year, we made history with the City of Yes for Housing Opportunity—modernizing our zoning laws to unlock new housing opportunities across all five boroughs. We took bold steps to cut outdated restrictions, streamline approval processes, and remove barriers that have long hindered housing production. These reforms are already making it easier to build where it makes sense—near transit, in high-opportunity neighborhoods, and in areas that have the capacity to grow. By enabling more mixed-use development, we are not only expanding housing options but also strengthening our commercial corridors and small businesses, ensuring that more New Yorkers can live closer to jobs, schools, and essential services. City of Yes was a critical step toward a more inclusive, sustainable, and economically vibrant New York—but we must continue building on this momentum to meet the full scale of our housing crisis. 

Now that the zoning has been approved, HPD has turned to implementation of new programs and the commitments we made to the City Council. We are bringing in new staff to manage the Universal Affordability Preference program and our capital commitments, are developing resources for homeowners who want to add ADUs, helping more tenants stay in their homes through an expanded Partners in Preservation program, and have been adjusting our projects to take advantage of the new floor area, revised parking requirements, and other new zoning rules. 

Turning Ideas into Action 

We’ve built the foundation—now it’s time to deliver.  

Over the past several years, we’ve crafted bold policies, secured new incentives, and streamlined processes to make housing development faster and more effective. Last year, those efforts resulted in record-breaking housing production, but we know the urgency of the crisis demands even more. In 2025, we are doubling down on our commitment, using every tool available to not only build and preserve homes but ensure they reach the New Yorkers who need them most. 

We are harnessing new tools to drive private development and maximize every opportunity to build and preserve affordable housing. The 421-a extension is now fully implemented, unlocking up to 71,000 new apartments citywide, including 21,000 affordable homes. The 467-m program, which incentivizes affordable housing in high-cost areas, has already led to approvals for 484 affordable units, 485-x is now operational, with applications beginning to roll in, and we expect the first projects utilizing the Universal Affordability Preference to begin this year.  

Meanwhile, we have expanded our preservation toolbox. Too often, preservation is considered secondary to new construction – but it’s a key way for us to create and protect affordable housing. We launched the Community Partnerships for Affordable Renovation program, where we work with CDFI partners to make it easier for owners to navigate assistance. And, J-51 is back, providing critical tax benefits to rehabilitate aging buildings and keep them livable for decades to come.  Our enforcement and preservation teams are working hand in hand to get this message out to owners, that HPD is ready to help them meets today's economic challenges.  

And we’re refocusing on homeownership. For many, owning your own home a critical way to build wealth for yourself and your family while creating stability yourself, your community and the City’s housing market. We have established the Office of the Homeowner Advocate, launched a Homeowner Help Desk and new HomeFix repair program, and recently announced the expansion of HomeFirst, our downpayment assistance program for first-time homebuyers.  

At the same time, we’re bringing new affordable housing to life on key public sites across the city. Transforming underutilized spaces into vibrant, mixed-use communities with affordable homes, retail, and open space. These developments will create thousands of homes, many deeply affordable and prioritized for New Yorkers who need them most, including formerly homeless and working-class families. 

Despite rising costs and new economic challenges, HPD is laser-focused on turning policies into places people can call home. By leveraging every available resource—from public land to private investment, from zoning reforms to tax incentives—we are making real progress toward building a more affordable, inclusive, and livable New York. 

Connecting New Yorkers to Homes 

It’s not enough to just build housing – we need to make sure that we’re connecting people who need support with homes – whether it’s through supportive housing, vouchers or just knowing how to use housing connect. That’s why we’re not just building housing—we’re making sure New Yorkers can access it. Every year, we administer rental subsidies to approximately 45,000 households, ensuring families have stable, affordable homes. Through the NYC Housing Lottery and homeless set-aside placements, we’ve helped secure 40,000 affordable homes in just three years.  

By streamlining procedures and eliminating unnecessary barriers—like credit checks for voucher holders, which has streamlined access to housing for over 4,000 families annually—we’re making the system more efficient and accessible. Beyond housing, we’re also investing in stability and opportunity. This year’s graduates of the Family Self-Sufficiency program collectively saved over $1.3 million to invest in their future, contributing to a total of $14.4 million awarded since the program began. And for families transitioning from shelters to permanent homes, we’ve provided $2 million for essential furniture, helping them settle in with dignity. We’ve also revitalized the Ready to Rent program, connecting free financial counseling with application support so more New Yorkers can successfully navigate the affordable housing process. 

This year, we are intensifying our focus on reducing the time and administrative burden involved in lottery and lease-up processes. We successfully advocated at the federal level to reduce documentation that applicants and owners submit and review. Ongoing feedback sessions with industry partners are prompting us to remove a slew of cumbersome or outdated requirements like paper notarization, post-office rules and paper application processes.  

And across our placement and rental subsidy programs, we are deeply involved in building new tools, technology, and data systems to automate and simplify what are large programs with complex processes, and deliver user-friendly and efficient experiences for all of our staff and stakeholders.  

Enforcing the Housing Code and Protecting Tenants 

Our Enforcement and Neighborhood Services team continues to be on the front lines, protecting tenants and holding bad actors accountable. In 2024, we secured two warrants for the arrest and civil commitment of notorious landlord Daniel Ohebshalom, ensuring he faces consequences for the hazardous conditions at two Washington Heights buildings. In addition, we won a Housing Court case to appoint a 7A administrator for 410 West 46th Street, removing Ohebshalom from the day-to-day management of the building and ensuring tenants receive the repairs and oversight they deserve. These actions send a clear message: landlords who neglect their buildings and put tenants at risk will face serious consequences. 

At the same time, we’ve expanded key enforcement programs to protect more New Yorkers from dangerous conditions. Our Self-Closing Door Proactive Inspection Program is helping limit any loss of life and homes  by ensuring critical safety mechanisms are in place at high-risk buildings. The Heat Sensor Program is requiring sensors in more buildings with recurring heat violations, helping to ensure tenants don’t suffer in the cold. And with our new Certification Watchlist, we’re cracking down on landlords who falsely claim to have corrected violations, requiring more re-inspections to hold them accountable. We’ve also strengthened our enforcement of lead-based paint laws, securing $150,000 in civil penalties against one landlord responsible for hazardous conditions affecting over 790 units.  

To better inform tenants and property owners, updated the ABCs of Housing guide in 2024, providing clear and accessible information about housing rights, safety regulations, and available resources. Meanwhile, our Lead Exemption Online Portal and redesigned HPDOnline are making it easier than ever for owners to comply with the law and for tenants to access crucial building data. These efforts are making our city’s housing safer, fairer, and more transparent for all New Yorkers. 

Our Promise 

When one of the thousands of dedicated public servants at HPD  walk through the doors of 100 Gold in the morning, or any of our offices across the five boroughs, we are collectively focused on the work—the projects that need to move forward, the deals that need to close, and the community meetings we need to lead. 

But  I know when I leave at night and head home to Queens, I’m thinking about the people we serve. 

I think about the family on the verge of homelessness—who can’t afford to wait for housing costs to come down. But I also think about the family who just moved into an affordable home—one they found through Housing Connect, in a neighborhood they love. 

I think about the senior trapped in an inaccessible apartment, struggling to live with dignity. But I also think about the senior who just moved into a home that’s safe, affordable, and built with the community in mind—on public land, with a center where neighbors can gather and support one another. 

And I think about the kid who feels the weight of their family’s housing struggles, even if they don’t fully understand why. But I also think about the kid who gets to grow up with stability, in a home made possible not just by government, but by our partners—nonprofits, faith-based groups, developers—working together to build a future for this city. 

That kid could be yours. That kid was me. 

As Acting Commissioner of NYC’s Housing Preservation and Development, I bring all of that with me—my experiences as a public servant, my time as a colleague, and most of all, my perspective as a New Yorker who will never forget why this work matters. 

And I promise you this: I grew up in a New York that made space for my family—now, I’m here to make sure we do the same for even more people. 

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