Reporting Entity—The New York City Housing Authority (“Authority”) is a component unit of The City of New York (“The City”), based upon criteria for defining the reporting entity as identified and described in the Government Accounting Standards Board’s (“GASB”) Codification of Governmental Accounting and Financial Reporting Standard, Sections 2100 and 2600. The accompanying schedule of expenditures of federal awards (the “schedule”) of the Authority is presented on the accrual basis of accounting. The Authority’s financial statements are prepared in accordance with generally accepted accounting principles as prescribed by the GASB, using the economic resources measurement focus and the accrual basis of accounting wherein revenues are recognized when earned, and expenses are recognized when the liability is incurred. The Authority’s operations include five blended component units which are included in the Authority’s basic financial statements, in compliance with GASB 61 The Financial Reporting Entity: Omnibus – an amendment of GASB Statement No. 14 and No. 34. These are legally separate entities with the same governing body as the Authority for which the Authority has operational responsibility and are controlled by the Authority. There is a financial benefit/burden relationship between the Authority and the component units since the Authority is financially accountable as it appoints a voting majority of the component units’ Boards and the component units are fiscally dependent on the Authority in terms of subsidies, grants, shared service agreements and other forms of financial assistance. The blended component units include: • NYCHA Public Housing Preservation I, LLC (“LLC I”) • NYCHA Public Housing Preservation II, LLC (“LLC II”) • NYCHA II Housing Development Fund Corporation (“HDFC II”), Parent Company of LLC II • NYCHA III Parent Housing Development Fund Corporation (“HDFC III”) • New York City Public Housing Preservation Trust (“The Trust”) Stand-alone audited financial statements were not issued for HDFC II, LLC II and HDFC III for 2025 and 2024. The Trust was formed in July 2023 and issued its stand-alone audited financial statements in 2025 and 2024. The Authority receives federal financial assistance from U.S. Department of Housing and Urban Development (“HUD”) in the form of annual contributions for debt service and operating subsidies for public housing developments, as well as rent subsidies for the Section 8 Housing Choice Vouchers program. In addition, assistance is also received under HUD’s Public and Indian Housing Program, Capital Fund Program, and other programs. The accompanying schedule of expenditures of federal awards (the “schedule”) includes the federal award activity of the Authority under programs of the federal government for the year ended December 31, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- The expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Authority has not elected to use the 15 percent de minimis indirect cost rate.
The regulations and guidelines governing the preparation of federal and state financial reports vary by state and federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal and state financial reports do not necessarily agree with the amounts reported in the accompany schedule which is prepared as explained in Note 1 above.
The U.S. Department of Housing and Urban Development (“HUD”) requires that a fee- for- service approach be implemented for the Public Housing Program. HUD recognizes that the Central Office Cost Center (“COCC”) will perform management and owner functions related to long-term capital planning, budgeting, oversight, monitoring, and reporting of the Capital Fund Program. Capital Fund Program management fees has been generated from the Assets Management projects (“AMP”) to fund costs incurred by the COCC for these functions. The Capital Fund Program management fee covers costs associated with the COCC's oversight and management of the Capital Fund Program. These costs include duties related to general capital planning, preparation of the Annual Plan, preparation of reports, drawing of funds, budgeting, accounting, and procurement of construction and other miscellaneous contracts. This fee is not intended to cover costs associated with the physical needs assessments, and the construction supervisory and inspection functions, since these are considered a front-line cost of the project. The Authority charges a management fee of up to 10 percent of the Capital Fund Program formula grant amount. The Capital Fund Program management fee is considered part of the Capital Fund Program Budget line item, Administration, subject to the regulatory limitation of 10 percent of the Capital Fund grant.
Federal legislation known as the “Quality Housing and Work Responsibility Act of 1998” created the Public Housing Capital Fund Program (“CFP”). HUD utilizes this program to allocate capital funds to Public Housing Authorities (“PHAs”) since 2000, when it replaced the Comprehensive Grant Program (“Comp Grant”). Each year, after HUD calculates a CFP formula allocation for each PHA, the Authority enters into a grant agreement, known as a “Capital Fund Amendment to the Basic Annual Contribution Contract.” Upon execution of the agreement, the PHAs are required to obligate 90 percent of that particular year’s CFP grant within 2 years and fully expend and draw down on the funds within 4 years. Capital Fund Program expenditures during the year ended December 31, 2025 were as follows: See the Notes to the SEFA for chart/table