FOR IMMEDIATE RELEASE: January 18, 2018
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NYCHA ANNOUNCES NEW PARTNERSHIPS TO REPAIR AND UPGRADE 1,700 APARTMENTS ACROSS 17 DEVELOPMENTS
The three development partners will address over $300 million in capital needs and improve daily operations at 17 NYCHA developments.
Part of NYCHA’s Permanent Affordability Commitment Together (PACT), these partnerships will enable significant repairs, maintain NYCHA ownership control, and guarantee residents’ tenant rights.
Over 4,000 residents in 1,700 apartments will receive extensive, long-overdue repairs, such as elevator replacements, new boiler and heating systems, and bathroom and kitchen upgrades.
NEW YORK – Today, the New York City Housing Authority (NYCHA) announced three developers selected to partner with the Authority under its Permanent Affordability Commitment Together (PACT) program. This move will provide $300 million in badly needed repairs to 1,700 apartments across 17 developments in the Bronx and Brooklyn, upgrading systems like heating and elevators as well as renovating residents’ apartments.
This will bring the total number of NYCHA apartments repaired and upgraded through PACT to 3,077, with $640 million in total new investment. See before and after photos of other PACT projects here.
At a time when federal support for NYCHA has fallen, PACT generates a sustainable funding source for extensive repairs and ongoing property management while guaranteeing permanent affordability and protecting tenant rights. PACT is New York City’s implementation of the federal government’s Rental Assistance Demonstration (RAD), which includes collaboration between NYCHA, residents, and housing advocates.
“PACT invests in communities and residents and delivers on our commitment of long-term affordable housing for future generations of New Yorkers,” said NYCHA Chair and CEO Shola Olatoye. “Through our development and community partners, we are improving resident quality of life and getting closer to our NextGeneration NYCHA goal of safe, clean, and connected communities for all public housing residents.”
Last year, NYCHA announced three bundles of apartments in the Bronx and Brooklyn for conversion under RAD. New York City’s version of RAD, called “PACT,” requires ongoing resident engagement, capital investment, and guaranteed tenant rights. Before NYCHA’s first RAD conversion at Ocean Bay (Bayside), residents, community advocates, and the Authority collectively agreed upon a set of Guiding Principles to ensure tenants maintain their same rights after the conversion.
NYCHA has selected Gilbane Development Company, Dantes Partners, Apex Building Group, and The Kraus Organization for the first bundle of developments in the Bronx; RDC Development for the second bundle also in the Bronx; and Hunt Development Group and Pennrose Properties for the Brooklyn bundle.
“Gilbane Development Company is pleased to be part of the PACT program to transform Twin Parks West, Highbridge and Franklin Rehabs. This project will upgrade and preserve much-needed affordable housing while creating new employment opportunities and community spaces for families to enjoy,” said Gilbane Development Company President Ed Broderick. “Along with our development partners Dantes Partners, The Kraus Organization and Apex Building Group, we look forward to working with NYCHA and residents to improve their homes and build better futures.”
“This project is not just about an investment in the preservation of public housing, but an investment in the community that the housing supports,” said Matthew Rooney, Principal of RDC Development. “We have seen the remarkable impact that the public-private partnership has in going beyond just preservation of the quality and affordability of housing in our city, by offering jobs to local and NYCHA residents, contracting with local businesses, and restoring the homes of residents. MDG and Wavecrest are thrilled to work with the City to serve some of the most vulnerable New Yorkers by providing a safe, beautiful, and affordable place to call home.”
“On behalf of the development partners, Pennrose, Hunt and Acacia, we are thrilled to partner with NYCHA on this exciting rehabilitation project,” said Timothy I. Henkel, Partner and Senior Vice President, Pennrose, LLC. “We look forward to executing the modernization of the Bushwick II properties and Palmetto Gardens that will lead to enhancing the residents’ sense of home and feeling of a shared community.”
New capital investments in these developments will overhaul heat and gas systems, interiors and common spaces, and elevators. Additionally, there will be improvements to building security, entry systems, and installation of additional security cameras.
All proposals were required to include a social services partner to enhance the community. BronxWorks, Catholic Charities, and Acacia Network will supplement the developers’ efforts with permanent, on-the-ground community services.
The developments in this PACT include some of NYCHA’s most challenging buildings. The majority of the 1,700 units are atypical in the NYCHA portfolio. They are mostly scattered-site developments with low-rise buildings (less than 7 stories) and are spread throughout 17 developments and 59 individual residential buildings.
Under PACT, these apartments will shift to project-based Section 8 funding. The buildings will be privately managed while NYCHA retains ownership. This model will ensure the new management company meets all tenancy guarantees and provides agreed-upon repairs. Residents in these developments will see $316 million invested back into their buildings in approximately two years.
NYCHA’s Community Development team held 24 resident engagement meetings to discuss how RAD would improve residents’ lives. NYCHA and the new development partners will continue to host resident meetings throughout the conversion process.
This is NYCHA’s second PACT venture. The first conversion took place at Ocean Bay (Bayside) in Far Rockaway, Queens. This was the largest single-site RAD transaction ever, investing $560 million into the development.
PACT DEVELOPER SELECTIONS
Gilbane Development Company, Dantes Partners, Apex Building Group, & The Kraus Organization
RDC Development & Catholic Charities
Hunt Development Group, Pennrose Properties, & Acacia Network
About the New York City Housing Authority (NYCHA)
NYCHA’s mission is to increase opportunities for low- and moderate-income New Yorkers by providing safe, affordable housing and facilitating access to social and community services. More than 400,000 New Yorkers reside in NYCHA’s 326 public housing developments around the five boroughs, and another 235,000 receive subsidized rental assistance in private homes through the NYCHA-administered Section 8 Leased Housing Program. For more information, visit www.nyc.gov/nycha, and for regular updates on NYCHA news and services, connect with us via www.facebook.com/NYCHA and www.twitter.com/NYCHA.