Res. No. 730

Resolution calling on the New York State Legislature to pass, and the Governor to sign, legislation to conduct a thorough study on the RAD/PACT program to assess the effects of conversion on residents and the program’s impacts on tenant rights, security, and community well-being.

By Council Members Banks, Won, Hanks, Ayala, Narcisse, Brooks-Powers, Cabán, Louis, Riley, Marte, Avilés, Joseph and Marmorato

Whereas, Rental Assistance Demonstration (“RAD”) is a federal program created in 2011 that converts Section 9 public housing into Project-Based Section 8 housing, wherein private developers can take over management of a development and thereby leverage funding normally not available under Section 9; and

Whereas, Permanent Affordability Commitment Together (“PACT”) is the local iteration of RAD in New York City (“NYC”), administered by the NYC Housing Authority (“NYCHA”) and kicked off in 2015 with the conversion of the Ocean Bay (Bayside) Apartments in Queens, with NYCHA’s website listing 139 developments as part of the PACT program as of January 2025; and

Whereas, RAD/PACT conversion has been controversial in NYC, with reporting citing tenant complaints around the voting process for deciding to enter the PACT program, including a lack of engagement from NYCHA and private developers, and the inability of residents to have their voices to be heard; and

Whereas, Tenant surveys and resident testimony at City Council oversight hearings have shown that PACT residents continue to experience issues with living conditions after conversion, including adverse heat, hot water, and mold conditions; and

Whereas, Residents have also raised concerns regarding unclear conversion timelines and issues with the new private management, such as poor communication and outreach, a lack of effective work order tracking, and little oversight of their operations; and

Whereas, RAD/PACT conversions have also apparently complicated the NYCHA transfer process, with online news outlet CityLimits reporting in May, 2023, that people who had been approved for a transfer to a pre-conversion development had found their application denied after the development’s conversion; and

Whereas, It has also been reported that conversions have led to increased rents and higher eviction rates at PACT developments in comparison to NYCHA developments, with a 2022 survey of Ocean Bay Houses residents finding that 61 percent stated their rent had increased, an unlikely occurrence under Section 9, and a March, 2024, article from The City, an online news outlet, reported, based on its review of NYCHA records, that PACT property managers had initiated one eviction case for every six apartments in 2023, compared to NYCHA’s rate of one case for every 72 apartments; and

Whereas, The NYC Comptroller’s Office released an audit in December, 2024, that found that, in addition to the accelerated eviction rates, PACT property managers did not have standard operating procedures developed by NYCHA for items like pre-eviction outreach, they failed to perform an adequate frequency of outreach contact attempts for residents at risk of eviction, and they did not report all their activities for eviction and pre-eviction proceedings; and

Whereas, The number of NYCHA apartment units converting to PACT is expected to increase, with NYCHA’s stated goal being the inclusion of 62,000 apartments in the PACT program by 2028; and

Whereas, Given the number of reported concerns and issues surrounding the RAD/PACT conversion process and the efforts to continue converting NYCHA developments into the PACT program, a comprehensive study should be conducted and made available to allow NYCHA residents, advocates, and officials the best opportunity to evaluate the effects of the RAD/PACT program; now, therefore, be it

Resolved, That the Council of the City of New York calls on the New York State Legislature to pass, and the Governor to sign, legislation to conduct a thorough study on the RAD/PACT program to assess the effects of conversion on residents and the program’s impacts on tenant rights, security, and community well-being.

CCK

LS #18320

1/21/2025