NYCHA has revealed plans to significantly renovate and repair its aging portfolio of affordable housing properties in a deal valued at $271 million. Referred to as PACT, or Permanent Affordability Commitment Together, the consortium of public and private entities has committed to renovations on 16 individual buildings including 1,718 apartments throughout Manhattan.
“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 and 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.”
For all PACT transactions, the New York City Housing Development Corporation will oversee loan financing funded by taxable or tax-exempt bonds. The developments will also be included in the federal Rental Assistance Demonstration 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.
“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 Jonathan Gouveia, NYCHA executive vice president for Real Estate Development. “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.”
Working in collaboration with NYCHA, the development teams will provide comprehensive upgrades to both individual apartments and common areas, building envelope improvements, energy efficient retrofits, extensive mold and lead abatement repair work, and improved safety and security measures, including fire systems, building intercoms, and security camera systems. Work will also include the full remediation of vital building systems including elevators, security, and heating systems.
As of this week’s announcement, NYCHA has closed on the conversion of 9,517 apartments through PACT since the initiative’s launch in 2016. Listed alphabetically, the full list of affected buildings and associated units includes:
• 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
“Forging forward with PACT transactions is mission-critical to improving the quality of life for New York City’s public housing residents,” said Vicki Been, New York City Deputy Mayor for Housing and Economic Development. “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.”