A development that took place on Monday was the Mayor’s renewed control over the City’s public schools. The legislation that came out, vests the power over the public schools in the New York City’s Mayor, Bill De Blasio, for another three years. The members of the Senate called for a face-lift to the underperforming schools by making available increased funds.

However, what came as a deathblow to the city’s single largest housing program was the news of an annual operating deficit of $98 million.

The Mayor, Bill De Blasio, on Tuesday, would announce measures to contain the burgeoning budget deficit gripping the New York City Housing Authority (NYCHA). NYCHA that houses over 400,000 residents is in a state of complete disarray. It requires repairs and overhauling in as many as 180,000 apartments, which would mean a total of $16 billion to be spent.

The estimated loss figures put forward by City Comptroller, Scott Stringer are over $100 million in housing inventory, coming at the back of incomplete records, missing inventories and lax controls. Even an estimate by the Citizens Budget Commission, which is an independent nonprofit fiscal advocacy group, pegs NYCHA’s operating deficit to scale to $400 million by 2019.

Though it seems like a bitter pill to swallow, the new proposal is necessary to put the house in order. The new plan entails an increase in rent collections and charges for parking spaces, to make up, in part, for the losses suffered. It also calls for scaling down operational costs by a redeployment of staff and putting the unused land to use for providing affordable housing to the people.

The proposal also brings in a change by introducing private companies into the project’s fold. This would mean a complete revamping of the capital structure, with the private companies bringing in money to fund the repairs under the project.