FOR IMMEDIATE RELEASE: March 5, 2020
NYCHA RAISES MORE THAN $2.6 MILLION FOR CAPITAL REPAIRS THROUGH TRANSFERABLE DEVELOPMENT RIGHTS AGREEMENT AT HOBBS COURT
Transfer of 9,000 square feet of unused development rights and the use of existing parking lot spaces for neighboring property will support apartment renovations at Metro North Plaza
NEW YORK – The New York City Housing Authority (NYCHA) has finalized an agreement to transfer approximately 9,000 square feet of unused development and parking rights at Hobbs Court – a 259-unit affordable housing development on NYCHA-owned land in Upper Manhattan.
“This deal is a great example of how NYCHA is leveraging a range of underutilized assets to support needed repairs for our residents living in public housing,” said NYCHA Real Estate SVP Jonathan Gouveia “We look forward to working with Metro North Plaza residents in the months to come to shape a plan for utilizing the proceeds of this transaction.”
The Hobbs Court development – which includes a 196-parking space subterranean garage – was built on Federal Housing Administration-foreclosed property that was transferred to NYCHA control in the late 1980s. In 2009, NYCHA and New York City’s Housing Development Corporation (HDC) selected Phipps Housesthrough a competitive Request for Proposal process, to redevelop the existing 12 deteriorated walk-up buildings. NYCHA retained control of all associated excess development rights.
Because Hobbs Court is not a NYCHA public housing development, the proceeds from the transaction will be allocated to the nearest NYCHA public housing development, Metro North Plaza, located immediately south of the Hobbs Court Development at 307 East 101st Street. The transaction will generate approximately $2,664,000 for capital repairs to existing apartments at Metro North Plaza. NYCHA plans to engage with Metro North Plaza residents to discuss the use of proceeds after closing on the transaction and upon receipt of the proceeds. The transaction was approved by the NYCHA Board in January 2019.
The neighboring property owner is proposing to build an approximately 115,000 square foot mixed-use building with 185 apartments and 13,000 square feet of commercial space. The project will provide 30% affordable housing under the Affordable New York Housing Program and construction is anticipated to begin this year.
The New York City Housing Authority is the largest public housing authority in North America, housing nearly 400,000 residents. 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 developments 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.