FOR IMMEDIATE RELEASE: May 23, 2017
NYCHA RELEASES REQUEST FOR PROPOSALS FOR PERMANENT AFFORDABILITY COMMITMENT TOGETHER (PACT) PROGRAM TO RAISE FUNDS FOR REPAIRS AND PROTECT 1,700 PUBLIC HOUSING APARTMENTS
PACT is New York City’s implementation of the federal Rental Assistance Demonstration (RAD) program which enables significant repairs and creates permanent affordability while NYCHA retains ownership control and residents maintain same strong 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 roof replacements.
In the Bronx, PACT will improve quality of life for over 2,600 residents throughout nearly 1,000 apartments.
NEW YORK––Today, the New York City Housing Authority (NYCHA) released a request for proposals (RFP) for the Authority’s Permanent Affordability Commitment Together (PACT) program. This RFP is for NYCHA’s second PACT of 1,700 apartments and marks a milestone in the process to raise revenue and bring badly needed repairs to residents. PACT is New York City’s implementation of the federal government’s Rental Assistance Demonstration (RAD) program, which includes collaboration between NYCHA, residents, the community and housing advocates. As part of Next Generation NYCHA, the Authority’s long-term strategic plan to create financial stability and improve residents’ lives, PACT generates a sustainable funding source for extensive repairs while guaranteeing permanent affordability and protecting tenant rights.
“PACT is fundamentally about protecting our residents and the future of public housing,” said NYCHA Chair and CEO Shola Olatoye.
“Through public-private partnerships, we’re able to improve residents quality of life almost overnight. This request for proposal moves NYCHA closer to raising badly needed funds for repairs while preserving permanent affordability and tenant protections.”
NYCHA recently received HUD approval to add an additional 1,700 apartments into the PACT program. This followed the first historic PACT closing, which brought $325 million to the Ocean Bay (Bayside) development in Far Rockaway, Queens. This RFP comes in the midst of an extensive community engagement process that began in Summer 2016 with borough-wide meetings. Following the HUD approval in January 2017, NYCHA distributed information to each household and held 11 resident meetings. The Authority plans to hold 13 more resident meetings prior to developer selection.
The developments in this PACT include some of NYCHA’s most challenging buildings. Without this program, the Authority would not be able to address these needs with the limited capital funding received and over $17 billion in capital needs throughout the portfolio. Proposed federal budget cuts to HUD for 2018 would drastically cut the Housing Authority’s funding, further harming NYCHA’s ability to make needed repairs and jeopardize the future of public housing.
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.
Through the RAD program, residents in these developments will see their buildings transformed and rehabbed with over $300 million to be invested back into these buildings. Chronic heat and gas outages will be addressed and renovations of interiors and common spaces, as well as elevator repairs, will be completed. Additionally, there will be improvements to building security including entry systems and additional security cameras.
Under the PACT program, NYCHA will shift the funding source supporting these buildings from Section 9 (public housing) to project-based Section 8. It will also create a true public-private partnership to repair and manage the buildings. While PACT modifies the type of funding for these units, tenants’ rights remain just as strong and NYCHA retains ownership of the land ensuring that these apartments will remain truly affordable for future generations of New Yorkers.
The 1,700 apartments included in this PACT are separated into three bundles, which will each be treated as distinct development projects. NYCHA invites private and non-profit developers to submit a proposal for one, two or all three bundles; each bundle requires a separate application. The first bundle consists of 648 apartments across six developments in the Bronx, the second bundle has 343 apartments from eight developments in the Bronx and the third bundle has 691 units from three developments in Brooklyn.
Interested parties can attend a pre-submission conference on Wednesday, May 31 at 11:00am at NYCHA’s central offices located at 90 Church Street, 5th Floor Ceremonial Room. NYCHA will also be hosting site visits of bundles one and two on June 5, starting at 9am. The Brooklyn bundle will be available for visits on June 6, starting at 10am. All proposals are due by 2pm on Friday, July 28. To view and respond to the RFP, developers should download the RFP and register for NYCHA’s iSupplier system.
The RFP is listed on the NYCHA Procurement Opportunities website
under Negotiation Number 65411 and the name “SMD_Rental Assistance Demonstration (RAD) Phase I Bronx and Brooklyn.”
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 328 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.