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Homes and Community Renewal

2009-A-03: Federalizing State Public Housing

To: All Housing Authorities, Chairpersons and Executive Directors

From: Robert Damico, Downstate Director
          Housing Management Bureau

Date: November 13, 2009

Subject: Federalizing State Public Housing

We want to bring to your attention an important opportunity that DHCR is encouraging housing authorities with federal public housing units to explore. The American Recovery and Reinvestment Act of 2009 (ARRA) includes a clause that allows housing authorities to add State-aided units to their federal public housing portfolios and receive additional operating and capital subsidies under the federal program. This provides a path for New York State housing authorities receiving ARRA funds to federalize State public housing projects.

We are continuing to gather information regarding the prescribed process to be followed. We understand that a November 23, 2009 deadline has been established for authorities to submit a Letter of Intent and a full proposal for each project to be federalized. There is a HUD requirement that a minimum of $2,000 per unit of ARRA funds be expended for capital improvements; the funds must be obligated (under a construction contract) by March 17, 2010 with 60% of funds to be expended by March 17, 2011; the remainder of funds must be spent by March 17, 2012.

If you have an interest in pursuing this opportunity, we suggest you contact your HUD Field Office Representative for specifics regarding the required Letter of Intent and project proposal. We request that you provide us with a copy of your submission to HUD so that we can coordinate efforts during this process. DHCR will be your primary contact for providing information and obtaining State approval should it be required.

If you intend to respond by the November 23rd deadline, please contact me immediately at (212) 480-7252 or This will best able us to assist you in the preparation of your proposal.

Last updated on 05/11/10