FOR IMMEDIATE RELEASE: June 21, 2019
MORE THAN 2,900 NYCHA RESIDENTS ACROSS 16 MANHATTAN DEVELOPMENTS SLATED FOR COMPREHENSIVE REPAIRS AND RENOVATIONS
Improvements include new kitchens, bathrooms, flooring in apartments, as well as replacement of heating systems and full elevator rehab.
Joint venture PACT Renaissance Collaborative will oversee development, day-to-day management, and social services for residents.
NEW YORK – Today, the New York City Housing Authority (NYCHA) announced the selection of the development team that will fully address the physical needs at 16 Manhattan developments.
As part of NYCHA’s Permanent Affordability Commitment Together (PACT) program, more than 2,900 residents will benefit from comprehensive upgrades to 1,718 apartments and common areas. Those improvements include new kitchens, bathrooms, and flooring in each apartment, all of which will be renovated while residents remain in place. Vital enhancements to the buildings’ elevator, security, and heating systems will also be prioritized for each development, as well as other needs identified by residents via a collaborative process that will take place in the coming months.
“Our residents deserve critical repairs to their homes as soon as possible, and through PACT they will continue to be integral partners in shaping the future of their communities,” said NYCHA Interim Chair and CEO Kathryn Garcia. “The Authority will keep working with our partners to make sure our residents’ homes are safe, healthy, and affordable for future generations.”
“For 2,900 of the NYCHA residents in Manhattan who have been waiting years for repairs to their apartments, life is going to get better,” said Deputy Mayor for Housing and Economic Development Vicki Been. “This is a big step toward fulfilling the promises made in the NYCHA 2.0 plan to repair and rehab buildings and apartments, improve management, and provide more robust social services. The NYCHA 2.0 plan is delivering results for NYCHA residents.”
A joint venture of six qualified partners called the PACT Renaissance Collaborative —Community Preservation Corporation (CPC), The Community Development Trust (CDT), Monadnock Development LLC, Lemor Development Group, Kalel Holdings LLC, and the Community League of the Heights (CLOTH) — will together oversee the rehabilitation and management of the 16 Manhattan developments and coordinate enhanced social services delivery to residents. This joint venture also includes Community Development Financial Institutions (CDFIs) and M/WBE firms. The 16 developments are:
This will be the eighth PACT transaction to close, and will be the third transaction to directly involve the New York City Housing Development Corporation (HDC). Under PACT, these apartments will shift to project-based Section 8 funding, and the buildings will be managed by the development partners. NYCHA retains ownership of the buildings and land, and will ensure that the partners adhere to standards outlined by the Guiding Principles created by the NYC RAD Roundtable to guarantee permanent affordability, deliver high-quality property management, and maintain equivalent tenant rights and protections for all residents.
“HDC is proud to serve as a financing partner on the NYCHA PACT plan as we work to ensure some of our city’s most distressed developments receive the comprehensive improvements they need to remain a valuable resource to the community,” said HDC President Eric Enderlin. “I look forward to our ongoing collaboration with all our government and private partners to provide critical building repairs, social services, tenant protections, and lasting affordability that will benefit the residents of these properties for generations to come.”
“NYCHA’s housing is a critical, and irreplaceable piece of our city’s affordable housing stock that has long needed this kind of attention, long-term investment, and care,” said Rafael E. Cestero, President & CEO, The Community Preservation Corporation (CPC). “It’s our mission to ensure that these properties get the rehab they need, and that they are preserved as affordable for the thousands of tenants that call them home, and for future generations of NYCHA residents. I thank NYCHA, HDC, CDT, Monadnock Development, CLOTH, Kalel Holdings, and Lemor Development for their partnership.”
“CDT is honored and excited to partner with NYCHA to modernize these properties and improve the lives of the thousands of residents who live in these buildings,” said Michael Lear, Senior Vice President and Head of Acquisitions, The Community Development Trust. “Our partnership with CPC, Monadnock, Kalel, Lemor, and CLOTH combines long-term capital with highly qualified and longstanding NYC-based development and construction companies and social service providers. CDT and CPC combine to bring mission-oriented capital that will preserve this deeply needed affordable housing in New York City for the long run. We look forward to working with all of our public and private partners to put these properties on stable footing so that they will provide high quality affordable housing for the long term.”
“Monadnock is honored to be a part of the latest PACT collaboration with NYCHA. Every member of our team has the same mission and focus – to deliver dignified housing to residents as soon as possible. With this focus, we will advocate for the 2,900 residents in these buildings and work to deliver the results they deserve as New Yorkers,” said Nick Lembo, Managing Partner at Monadnock Development & Chairman at Monadnock Construction.
“We believe that the NYCHA PACT initiative is a win for NYCHA residents who will experience much needed in-unit and community-wide improvements to their homes,” said Harrison Rayford, Principal, Lemor Development Group. “We are honored to partner with NYCHA to make these much-needed building improvements come to fruition and to make this vital housing stock sustainable for years to come.”
“I’m thankful to be part of such a dynamic, diverse team, composed of non-profit and for-profit partners, and minority and women developers. We have been presented with a singular opportunity – to revitalize and preserve the homes of thousands of New York families, and we look forward to making quality affordable housing a reality for all,” said Pierre Downing, Principal, Kalel Holdings LLC.
“CLOTH is thrilled to be part of this talented and experienced development team,” said Yvonne Stennett, Executive Director of Community League of the Heights (CLOTH). “We look forward to bringing CLOTH’s more than six decades of experience in social services and housing development to bear on this transformative project to improve the quality of life for so many NYCHA residents. Together with our partners we plan to make NYCHA, its residents, and the City of New York proud to call this public housing an asset that serves the public good.”
“Residents and tenants deserve to live in homes that meet the modern standards of safety and utility. This commitment to make comprehensive repairs and improvements is a priority for my constituents and many NYCHA residents. I am pleased to see that NYCHA is ramping up its rehabilitation plan and moving in this direction. Ensuring the availability of resources to fully address the needs of NYCHA residents is a priority. We must continue to advocate on behalf of residents as well as for a strong and robust NYCHA,” said Congressman Adriano Espaillat.
“I have worked with the tenants at 335 East 111th Street for several years and have witnessed the substandard conditions they’ve been subjected to,” said City Council Member Diana Ayala. “The PACT program will allow these apartments to remain affordable in perpetuity while also infusing the building with much-needed capital dollars for major investments. I thank NYCHA and the PACT Renaissance Collaborative for working together to bring these families the dignified living conditions they deserve.”
“NYCHA capital repair needs in District 68 alone are estimated to cost $2.8 billion,” said Assembly Member Robert J. Rodriguez. “I’m excited to see these steps taken for the improvements NYCHA tenants have long awaited. It’s critical that tenants are fully included in a collaborative process, and I'm glad to see that their needs will be prioritized.”
“Lack of heat, inoperable elevators, and broken toilets don’t begin to scratch the surface of complaints residents of New York City Housing Authority lodge with the city every single day. The hardship for many residents is the amount of time they need to wait before repairs are actually examined, much less repaired. NYCHA has announced a public private partnership or joint venture called the PACT Collaborative with six development groups to help expedite the level of work needed to raise the standard of living our residents deserve. With an investment of $500 million, we can expect to see long awaited upgrades to heating system, elevators and pipes, as well as new kitchens and bathrooms. Ideas that were once just ideas are now coming to fruition and I look forward to seeing the new NYCHA,” said Assembly Member Inez Dickens.
As with every previous PACT conversion, NYCHA has organized a series of meetings with residents to provide an overview of the program and directly answer their questions. Moving forward, the PACT development partners will also host a series of meetings with residents to incorporate their priorities and requests into the project scope of work, so that improvements – on the capital, operational, and social service fronts – are tailored to each respective community.
All proposals were also required to include social services partners to enhance the community. Goddard Riverside Community Center, Riverstone Senior Life Services, Dominican Women’s Development Center, Urban Upbound (ERDA), and ARC XVI Ft. Washington will supplement the developers’ efforts with on-the-ground community services.
Launched in 2017, PACT is one of three main tools under NYCHA 2.0 to help drive much-needed money into public housing infrastructure citywide while safeguarding long-standing tenant rights and protections. PACT allows NYCHA to completely renovate developments using HUD Section 8 conversion programs, including the Rental Assistance Demonstration program (RAD), Tenant Protection Voucher (TPV) funding, and Part 200 disposition, all of which ensure long-term affordable housing.
Altogether, funding generated by these tools allows NYCHA to address nearly $24 billion in capital needs over the next decade, or up to 75 percent of the Authority’s $31.8 billion overall capital need. More information on NYCHA 2.0 initiatives can be found here and here.
For more information regarding upcoming PACT meetings, residents can call NYCHA at (212) 306-4036 or email PACT@nycha.nyc.gov.
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. Over 390,000 New Yorkers reside in NYCHA’s 316 public housing developments and PACT/RAD developments formerly managed by NYCHA around the five boroughs. Over 190,000 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.
About the New York City Housing Development Corporation (HDC)
The New York City Housing Development Corporation (HDC) is the nation’s largest municipal Housing Finance Agency and is charged with helping to finance the creation or preservation of affordable housing under Mayor Bill de Blasio’s Housing New York plan. Since 2003, HDC has financed more than 150,000 housing units using over $21.2 billion in bonds and other debt obligations and provided in excess of $1.9 billion in subsidy from corporate reserves. HDC ranks among the nation’s top issuers of mortgage revenue bonds for affordable multi-family housing on Thomson Reuter’s annual list of multi-family bond issuers. In each of the last five consecutive years, HDC’s annual bond issuance has surpassed $1 billion. For additional information, visit: http://www.nychdc.com.
About The Community Preservation Corporation (CPC)
Established in 1974, CPC is a nonprofit affordable housing and community revitalization finance company that believes housing is central to transforming underserved neighborhoods into thriving and vibrant communities. The company provides a full suite of capital products through its construction lending, permanent lending, and equity investing platforms. Since inception, CPC has leveraged approximately $10.5 billion in private and public investment to finance more than 193,000 units of multifamily housing. CPC’s work with its partners has helped revitalize countless neighborhoods and provided quality housing for families, senior citizens, and individuals with disabilities. Visit CPC at communityp.com, and on Facebook, Twitter, and LinkedIn.
About The Community Development Trust, LP (CDT)
The Community Development Trust (CDT) is a national lender and investor in affordable communities. Working with local, regional and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its 20 years, CDT has invested over $1.7 billion in debt and equity capital in properties in 44 states and regions — helping to preserve and create over 47,000 units of affordable housing. CDT is a private real estate investment trust (REIT), a certified Community Development Financial Institution (CDFI), an approved Fannie Mae affordable housing lender and a member of the Federal Home Loan Bank of New York (FHLBNY). As a CDFI and private REIT with a social impact mission, CDT operates as a double-bottom-line organization by utilizing creative financial solutions to provide debt and equity capital to underserved real estate markets, all while seeking attractive returns for shareholders.
About Monadnock Development LLC
Monadnock Development is a leader in developing new models of mixed-income and mixed-use housing in New York from permanently affordable middle-income cooperatives, to the city’s first micro-unit development, to taking on the city’s toughest rehab projects. Monadnock partners with many of New York’s most respected nonprofits to create dynamic buildings that improve neighborhoods with high-quality apartments, services, and sustainable design. Over the past eight years, Monadnock has developed over $2 billion in projects totaling over 6,000 units. For more information, please visit www.monadnockdevelopment.com.
About Lemor Development Group, LLC
Lemor Development Group is a (Harlem) (New York City)-based real estate owner and developer with a focus on the construction and preservation of affordable and workforce housing with active projects in New York City, New Jersey and Georgia. Lemor and its partners have over 40 years of combined real estate experience. Since its inception, Lemor has executed over $200 million in transactions and has established a robust pipeline of affordable and workforce housing projects. Lemor is committed to providing high-quality and sustainable housing that serves a wide range of families and individuals. To learn more, visit www.lemordev.com.
About Kalel Holdings LLC
Kalel Holdings LLC (KALEL) is a private real estate development firm specializing in the development and preservation of affordable multifamily housing throughout the New York metropolitan area. Utilizing various disciplines, the firm engages in the acquisition, financial engineering, improvement and asset management of commercial real estate. Formed in 2012, the company has spearheaded the redevelopment and preservation of over 1,100 units of multifamily housing, and maintains an ownership and economic interest in all properties that it develops. KALEL is NYC SBS certified Minority-Owned Business Enterprise.
About the Community League of the Heights (CLOTH)
Founded in 1952, CLOTH is a multi-service, community development organization dedicated to supporting and empowering the residents of Hamilton Heights, Washington Heights and Inwood. CLOTH’s holistic approach to community development provides a comprehensive framework of social and neighborhood services to stabilize and strengthen family life. Throughout its 67-year history, CLOTH has been dedicated to finding solutions to the problems of poverty and disinvestment that confront the neighborhoods. We work dynamically to address problems and needs as they arise, keeping pace with the changing needs and demographics of our residents. Visit us at www.cloth159.org.