FOR IMMEDIATE RELEASE: February 13, 2020
NYCHA FINALIZES DEAL TO BRING $370 MILLION IN COMPREHENSIVE RENOVATIONS TO MORE THAN 6,300 BROOKLYN RESIDENTS
Brooklyn Preservation Developers, LLC and Williamsburg Housing Preservation, LLC will oversee construction upgrades, property management, and social services for nine NYCHA sites
NEW YORK – Today, NYCHA announced the closing of the seventh Permanent Affordability Commitment Together (PACT) transaction, which will provide more than $370 million in major repairs and renovations for 2,625 units throughout Brooklyn.
The development team is a joint venture between The Arker Companies, Omni New York LLC, Dabar Development Partners, and Bedford Stuyvesant Restoration Corporation. Williamsburg Housing Preservation, LLC and Brooklyn Preservation Developers, LLC were selected in early 2019 following a competitive public Request for Proposals.
“Today’s announcement marks another critical step towards fulfilling our pledge to ensure that all NYCHA residents are able to live in quality affordable housing,” said NYCHA Chair & CEO Greg Russ. “The funding and partnerships we’ve secured through this transaction will help us address a significant amount of capital need at our developments and position these campuses for success in the future.”
“We are proud to have worked closely with residents, elected officials, New York City Housing Development Corporation, United States Department of Housing and Urban Development, and the joint venture development team to recapitalize these developments and preserve this vital housing stock for the long-term,” added NYCHA Senior Vice President for Real Estate Jonathan Gouveia. “The closing is an important milestone for the Authority’s overall efforts towards preserving affordable housing and making NYCHA 2.0 a reality.”
The development teams will provide comprehensive upgrades to units and common areas, including vital improvements to elevators, security and heating systems, as well as other needs identified by resident association leaders in each development. The nine NYCHA sites are:
For all PACT transactions, the New York City Housing Development Corporation (HDC), New York City’s municipal Housing Finance Agency, will coordinate or provide loan financing funded by taxable or tax-exempt bonds issued through their Multi-Family Housing Bond Resolution (the “Open Resolution”) or the newly created Housing Impact Bond Resolution (the “Impact Resolution”), a bond resolution created solely to facilitate NYCHA transactions.
“HDC is proud to partner on this historic endeavor to bring comprehensive improvements to the homes and communities of more than 6,500 NYCHA residents,” said HDC President Eric Enderlin. “We are committed to continuing to bring innovative financing to make these improvements a reality for more New Yorkers through the PACT program.”
“We are using every resource to improve living conditions for NYCHA residents as fast as we can,” said New York City Deputy Mayor Vicki Been. “Today’s announcement was made possible through working closely with residents, NYCHA, the federal government, and our partners from the nonprofit and private sectors. It was truly a shared effort on behalf of our NYCHA families and we will not stop until we’ve renovated every apartment and building.”
Under PACT, these apartments will shift to project-based Section 8 funding and the buildings will be managed by the partners. However, NYCHA retains ownership of the buildings and the 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 residents.
As with previous PACT conversions, NYCHA has organized a series of meetings with residents to provide an overview of the program and directly answer questions. The selected partners also hosted resident meetings to incorporate their priorities and requests, so improvements will be tailored to each respective community. Other improvements, which will fully address physical needs for each development, include:
“We are proud and excited to get to work on these critical repairs and bring modern amenities to the thousands of residents in the Brooklyn PACT bundle,” said Arker Companies Principal Daniel Moritz. “The NYCHA PACT program puts the community first and sets a new standard for preserving affordable housing for New Yorkers. Our hope is that this new partnership will improve the quality of life for residents and open up even more opportunities for their families.”
“We are honored to serve with our partners in improving the quality of life for thousands of Brooklyn residents,” added Dawanna Williams, Managing Principal of Dabar Development Partners. “NYCHA’s PACT initiative demonstrates a solid commitment to major improvement of its developments, while preserving long-term affordability. We look forward to being stewards of this commitment by delivering modernized developments, resulting in more integrated and sustainable communities today and for years to come.”
"We are proud to celebrate a new milestone in the NYCHA PACT program with our partners and Brooklyn community," said Eugene Schneur, Managing Director of Omni New York LLC. "In the months ahead, we will reinvigorate, renew, and repair thousands of apartments for Brooklynites, giving residents and their families the affordable, modern housing they deserve, while investing in the future of these neighborhoods."
"For decades, Bedford Stuyvesant Restoration Corporation has spearheaded programs to ensure families in Brooklyn are prosperous and healthy," said Colvin Grannum, President & CEO, Bedford Stuyvesant Restoration Corporation. "We are thrilled to be a part of this NYCHA PACT project in order to strengthen and expand access to economic mobility services particularly job placement, financial coaching, and access to income supports, to thousands of New Yorkers and their families. NYCHA PACT presents a unique opportunity for us – one which helps fulfill our mission of disrupting and closing the racial wealth gap by promoting economic stability and upward mobility for thousands of households in our City."
All proposals were required to include social services partners to enhance the community. Bedford Stuyvesant Restoration Corporation, El Puente, ParCare, NAN Tech World and United Jewish Organizations of Williamsburg and North Brooklyn will supplement the developers’ efforts with on-the-ground community services.
Several resident association leaders also voiced their support for the closing of the transaction.
“We are very pleased with the selection of Omni New York LLC and the additional development partners to manage day-to-day operations and construction upgrades for Williams Plaza,” said Williams Plaza Resident Association President Joel Gross. “They will bring their wealth of experience in security to make our residents feel and be safe. All the residents are excited and eagerly awaiting the upgrades to the apartments and all the renovations to our buildings.”
“Congratulations to Omni New York LLC and the additional development partners for partnering with NYCHA,” said Vivian Legions, Berry South 9th Street Houses Resident Association President. We are looking forward to a long and transparent working relationship. We hope they have the best interest of the residents. Our Resident Association is willing and able to work with them as our partners in this venture as we have demonstrated throughout the RAD process.”
Launched in 2016, PACT is one of three main tools under NYCHA 2.0 to help drive much-needed funding 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 (RAD), Tenant Protection Voucher (TPV) funding and Part 200 disposition, all of which ensure long-term affordable housing. NYCHA 2.0 is expected to address nearly $24 billion in capital need over the next decade.
As of today’s announcement, NYCHA has converted 7,799 apartments through PACT since the initiative’s launch, securing long-term affordability and in keeping with Mayor Bill de Blasio’s commitment to improve the quality of life for 140,000 New Yorkers through the program.
For more information regarding upcoming PACT meetings, residents can call NYCHA at 212-306-4036 or email NYCHA2.email@example.com.
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.
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. HDC also serves as a key financing partner in the rehabilitation of our city’s public housing stock under the NYCHA Permanent Affordability Commitment Together (PACT) initiative. Since 2003, HDC has financed more than 184,000 housing units using over $24.2 billion in bonds and other debt obligations, and provided in excess of $3.095 billion in subsidy from corporate reserves and other available funds held by the corporation. 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 $1.6 billion. For additional information, visit: http://www.nychdc.com.