NEW YORK, NY April 21, 2006 —The New York City Housing Authority plans to raise rents for tenants with the highest incomes. The measure is supposed to help rescue public housing as it continues to receive less money from the federal government.

In the past the New York City Housing Authority has relied on reserves to close budget gaps but that pot of money has dwindled and is two years away from being depleted. Facing $168 million deficit this year, the public housing authority has decided to raise rents for 27 percent of its residents whose average income is just over $41 thousand. A family of four making this amount would go from paying $519 to $624 a month for a two bedroom apartment in two years.

NYCHA will also receive a one time cash infusion of $100 million from the city. The rent increase comes on the heels of fee hikes for things like parking and apartment repairs. Notices just went out to residents and some advocates for the poor say they are already getting calls from distressed tenants. The plan must still go through a hearing process and be approved by the federal government.