A Q&A with Holly Leicht

Q: What does HUD do to combat homelessness in New York City and why has the population of homeless war veterans diminished, even as general homelessness is as high as it has ever been in the city?

HL: The steep decline in the number of homeless veterans in New York City is a great example of how coordinated government attention to an urgent issue can produce real results. The Obama administration launched an ambitious initiative in 2010 to eradicate homelessness in the U.S., starting with veterans. Targeted federal investments like HUD-VASH vouchers, which fund housing and social services for veterans, undergird an unprecedented collaboration among all levels of government and the nonprofit sector, resulting in improved data collection, better outreach and referral processes, and quicker rehousing for the chronically homeless. Thanks to these combined efforts, even as overall homelessness rates have gone up in New York City—largely driven by an increase in family homelessness—veteran homelessness has decreased by 65 percent since 2011.

Q: The New York City Housing Authority is in a state of crisis. Other than administering diminished federal funding to the authority, is there anything HUD can do to aid NYCHA?

HL: Like many public housing authorities around the country, NYCHA is caught in the “perfect storm” of reduced congressional funding and an aging housing stock—a challenge made all the greater because of NYCHA’s vast scale, with over 178,000 units. HUD views itself as NYCHA’s partner, not just its regulator, and we are working together to identify untapped funding sources. One example is the Energy Performance Contract that Mayor Bill de Blasio and HUD Secretary Julian Castro announced in April. This multi-phased EPC—the largest HUD has ever done—will enable NYCHA to make energy-saving capital improvements at 89 developments and reinvest a large portion of the resulting savings. Another promising avenue is HUD’s Rental Assistance Demonstration program, which allows a housing authority to leverage a long-term Section 8 contract to access private equity for capital needs.

Q: The Buffalo Municipal Housing Authority is in an arguably worse state than NYCHA is. Can you say anything about the authority’s recent plan to reverse the high rates of vacancy in its buildings?

HL: Like NYCHA, the Buffalo Municipal Housing Authority must pursue a long-term, diversified plan to systematically address its aging buildings. For BMHA, this will likely entail a combination of major rehabilitation, demolition and redevelopment. BMHA’s leadership recognizes the need for a comprehensive approach to its portfolio and received a HUD Choice Neighborhoods grant in 2010 to develop a plan. The major barrier, however, is funding the plan’s implementation—when one competitive source didn’t pan out, BMHA didn’t have a plan B, and as a result, the authority continues to have an occupancy rate of only 84 percent, with no immediate path to rehab or replace more than 500 vacant units. After receiving a “substandard” performance rating from HUD, BMHA responded with a revised plan that includes multiple funding strategies, and we’re working with them to drill down on specific milestones and timeframes.

Q: How is HUD involved in efforts to make New York more resilient in the wake of Superstorm Sandy and in the face of future extreme weather events?

HL: President Obama’s Hurricane Sandy Rebuilding Task Force directed that recovery funds should make the region less vulnerable in future storms and more resilient in the face of rising sea levels. To this end, HUD sponsored the Rebuild by Design competition and is funding implementation of seven winning concepts, ranging from a “living breakwater” of oysters off Staten Island to an integrated system of green and grey infrastructure along the Mill River on Long Island. We’re working closely with the state and city to ensure that recovery dollars are not used to put people or infrastructure back in harm’s way. In some places, this means buying and demolishing damaged homes that are below sea level. But in most places, it means smarter rebuilding, which can be as straightforward as elevating structures or as complex as developing individualized protective measures for every subway entrance in the flood zone.