FOR IMMEDIATE RELEASE: November 30, 2020
NYCHA FINALIZES DEAL TO BRING $271 MILLION IN COMPREHENSIVE RENOVATIONS TO MORE THAN 2,900 MANHATTAN RESIDENTS
PACT Renaissance Collaborative LLC will oversee comprehensive upgrades to apartments and common areas, property management services, and on-site programs for 16 NYCHA sites
NEW YORK – Today, NYCHA announced the closing of a Permanent Affordability Commitment Together (PACT) transaction that will provide more than $271 million in major repairs and renovations for 1,718 apartments throughout Manhattan. These repairs will have a direct impact on resident quality of life by modernizing the apartments and buildings, giving residents access to employment opportunities affiliated with the repairs, and providing enhanced on-site programming for the residents and surrounding community.
The development team is a joint venture between Monadnock Development LLC, Community Preservation Corporation, Community Development Trust, Kalel Holdings, Lemor Development Group, and Community League of the Heights (CLOTH) – and was selected in mid-2019 following a competitive public Request for Proposals process.
“Forging forward with PACT transactions is mission-critical to improving the quality of life for New York City’s public housing residents," said New York City Deputy Mayor for Housing and Economic Development Vicki Been. “This partnership will inject needed capital and community resources to fund comprehensive repairs, while upholding the strong resident rights and protections that ensure all New Yorkers may continue to live and thrive in the neighborhoods they call home."
“Moving forward with PACT transactions is a central part of our strategy to help ensure all NYCHA residents have quality housing and permanent rights and affordability,” said NYCHA Chair & CEO Greg Russ. “This closing will generate significant capital to address the infrastructure needs of these developments and serve to improve the quality of life for our residents in a meaningful way.”
“We are interested in working with partners who are capable of addressing long overdue renovations while sharing NYCHA's commitment to protecting the resident rights that are a bedrock of the PACT program,” said NYCHA Executive Vice President for Real Estate Development Jonathan Gouveia. “The development team we’ve assembled succeeds on both measures, and we are excited to work with them as they begin the process of modernizing these homes on behalf of our residents.”
“HDC is proud to provide critical financing to make this transaction possible,” said HDC President Eric Enderlin. “Thanks to the commitment of the entire team at NYCHA and all of our partners, the everyday lives of thousands of Manhattan residents will be dramatically improved. I look forward to seeing these renovations come to fruition and to our continued partnership with NYCHA on the PACT plan.”
“NYCHA’s housing plays a critical role in the stability of the communities where they are located, as well as in the livelihoods of tens of thousands of our most vulnerable New Yorkers. The pandemic has only amplified its importance and the need to preserve this key resource of deeply affordable housing,” said Rafael E. Cestero, President & CEO, The Community Preservation Corporation (CPC). “We’re proud to invest in New York City at this pivotal moment, and to partner with NYCHA and the other members of PRC on an initiative that will improve the quality of life for the more than 2,900 people who call these developments home.”
“We’re excited to begin this partnership with the many residents who call these developments home,” said Kirk Goodrich, President of Monadnock Development – the initiative’s lead developer. “The team we’ve built is composed of individuals and firms that have devoted their careers to improving the quality of life for those we serve. We believe every New Yorker deserves a home that makes them comfortable, that they feel safe in, and that they are proud to live in – and that is the mission that will drive us in this effort. We’re grateful for the collaboration that has been central to this initiative since day-one and look forward to earning the trust of every resident by following through on our commitments.”
“We’re thrilled to support the modernization and restoration of 16 NYCHA developments and to have a role in an initiative that will better the lives of thousands of New Yorkers,” said Joseph Reilly, President and CEO, The Community Development Trust. “This milestone is critical to the future of New York City’s public housing system, and it is also one that was achieved under extraordinary circumstances. We’re excited for what the future brings for this collaborative.”
Several resident association leaders also voiced their support for the closing of the transaction.
“I have resided at P.S. 139 Conversion for 10 years, and served proudly in the capacity of Resident Association President for six years,” said Audrey Clemons, the Resident Association President at Public School 139 (Conversion). “The residents and myself are ecstatic that our building was selected to be a part of the PACT/RAD program. With the planned upgrades, it won’t feel like we’re living in a public school building anymore but in a new luxury building. The new security upgrades will also bring safety and peace of mind to our seniors and we won’t have to worry about outside intrusions. There are even plans for a newly designed backyard and garden area that’s specifically equipped for seniors. We feel great about what’s planned.”
The development teams will provide comprehensive upgrades to both individual apartments and common areas, including vital improvements to elevators and security and heating systems, as well as other needs identified by resident association leaders in each development.
The 16 NYCHA sites are:
335 East 111th Street - 66 apartments
344 East 28th Street - 225 apartments
Fort Washington Avenue Rehab – 226 apartments
Grampion - 35 apartments
Manhattanville Rehab (Group 2) - 46 apartments
Manhattanville Rehab (Group 3) - 51 apartments
Park Avenue-East 122nd, 123rd Street - 90 apartments
Public School 139 (Conversion) - 125 apartments
Samuel (MHOP) I – 53 apartments
Samuel (MHOP) II – 10 apartments
Samuel (MHOP) III – 10 apartments
Washington Heights Rehab (Groups 1&2) - 216 apartments
Washington Heights Rehab Phase III – 102 apartments
Washington Heights Rehab Phase IV (C) - 32 apartments
Washington Heights Rehab Phase IV (D) - 32 apartments
Wise Towers – 399 apartments
For all PACT transactions, the New York City Housing Development Corporation (HDC), which is New York City’s municipal Housing Finance Agency, will oversee 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.
Through PACT, developments will be included in the federal Rental Assistance Demonstration (RAD) and convert to a more stable, federally funded program called Project-Based Section 8. Once the properties convert to Project-Based Section 8, NYCHA will lease the land and buildings to the development partners, who will make repairs and serve as the property manager.
NYCHA will continue to own the land and buildings, administer the Section 8 subsidy and waitlist, and monitor conditions at the development. NYCHA will also ensure that the partners adhere to standards outlined in the RAD Roundtable Guiding Principles created with NYCHA residents and advocacy groups to preserve resident protections and guarantee permanent affordability.
As with previous PACT conversions, NYCHA organized a series of meetings with residents to provide an overview of the program and directly answer questions. The selected partners also hosted several resident meetings to incorporate their priorities and requests, so improvements will be tailored to each respective community.
Improvements, which will address the physical needs for each development, include:
· Renovation of apartment interiors, including kitchens, bathrooms, windows, and flooring;
· Full rehabilitation of elevators and heating systems;
· Improved safety and security measures, including fire systems, building intercoms, and security camera systems in common areas; and
· Extensive mold and lead abatement repair work.
Several community programs and job training resources, specifically targeted towards NYCHA residents, will be developed moving forward. For this facet, Community League of the Heights (CLOTH) will supplement the developers’ efforts with on-site community services.
Launched in 2016, PACT is a key tool working in tandem with NYCHA’s Blueprint for Change to help drive much-needed funding into public housing repairs 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. PACT is expected to address nearly $24 billion in capital need over the next decade.
As of today’s announcement, NYCHA has closed on the conversion of 9,517 apartments through PACT since the initiative’s launch, securing long-term affordability and keeping with Mayor Bill de Blasio’s commitment to improve the quality of life for a total of 140,000 New Yorkers through the program.
For more information about upcoming PACT meetings, residents can call NYCHA at 212-306-4036 or email NYCHA2.firstname.lastname@example.org.
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. 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.