Mayor Targets $480M for NYCHA Repairs in Brooklyn, Manhattan and Bronx

The $400 million in upgrades will be made possible through the HUD’s Rental Assistance Demonstration program, which converts apartments’ funding to the Section 8 program.

New York City Mayor Bill de Blasio (far left) announced the NYCHA repair programs at a press conference held at the Campos Plaza I-apartment complex on the Lower East Side.

NEW YORK CITY—Mayor Bill de Blasio announced on Monday that the administration is spending $400 million to renovate approximately 2,400 apartments in 21 public housing properties in Brooklyn and Manhattan and another $80 million for repairs on two public housing complexes in the Bronx.

The $400 million in upgrades at the Brooklyn and Manhattan properties will be made possible through the HUD’s Rental Assistance Demonstration program, which converts apartments’ funding to the Section 8 program. These homes will be permanently affordable and maintained by quality private property managers. The New York City Housing Authority will begin selecting development teams for the construction and management work this fall, with renovations on the first buildings beginning in 2019.

The 5,300 residents at these developments will retain all their rights as public housing residents, continue to be charged their current rent, and remain in their buildings during the renovations, which will include new kitchens and bathrooms; replacing windows, elevators, boilers and roofs; and improved common areas.

The mayor also announced at the press conference at Campos Plaza I, a 875-apartment complex on the Lower East Side, that NYCHA had selected MBD Community Housing Corporation, Camber Property Group, and L+M Development Partners to oversee more than $80 million in renovations for 700 NYCHA apartments with 1,000 residents at the Baychester and Murphy Houses in the Bronx. City officials stated that these complexes had no consistent funding stream since New York State divested them in 1998. Using a program similar to RAD, they are also being converted to NYCHA’s Section 8 program to raise funds, complete badly needed repairs, and efficiently oversee day-to-day operations. The renovations on these units will begin this fall and will be completed by 2023.

The development team will partner with BronxWorks to provide tailored social services to the residents. The development partner will begin making repairs as at the properties as early as 2019.

“All New Yorkers deserve to live in safe and decent housing, which is why we’ve been investing in NYCHA since the first day of my Administration to reverse the decades of neglect,” said Mayor Bill de Blasio. “The city is leveraging every tool available to deliver critically needed repairs without raising the rent. We will never stop fighting to improve the quality of life for NYCHA residents.”

“As we strive to preserve public and affordable housing for future generations, RAD is one of the clear paths forward to get residents the repairs they need while keeping them in their homes despite the federal government continuing to cut back its public housing support,” said NYCHA interim chair and CEO Stanley Brezenoff. “Through public-private partnerships, millions of dollars will be brought to these homes, improving resident quality of life and guaranteeing they stay affordable.”

The 21 NYCHA developments slated for repair under the $400-million initiative include: (Manhattan) 335 East 111th St., Manhattanville Rehab (Group 2), Manhattanville Rehab (Group 3), Park Avenue-East 122nd, 123rd streets, Public School 139 (Conversion), Samuel (MHOP) I, Samuel (MHOP) II, Samuel (MHOP) III, Washington Heights Rehab (Groups 1&2), Washington Heights Rehab Phase III, Washington Heights Rehab Phase IV (C), Washington Heights Rehab Phase IV (D), Fort Washington Avenue Rehab and Grampion.

The Brooklyn NYCH developments to see repairs under the program are: Armstrong I, Armstrong II, 572 Warren St., Berry St.-South 9th St., Marcy Avenue-Greene Ave. Site A, Marcy Avenue-Greene Ave. Site B and Weeksville Gardens. NYCHA also announced on Monday that it has tapped Pennrose to repair and upgrade an additional 624 units under NYCHA’s Permanent Affordable Commitment Together (PACT) program. In January, Pennrose, Hunt and Acacia Network were selected as one of three development partners selected to address more than $400 million in capital needs across NYCHA’s portfolio.

Known as collectively as “Bundle III,” the project now includes 1,315 family and senior affordable housing units across 60 buildings: Bushwick II (Groups A, B, C and D), Bushwick II CDA (Group E), Palmetto Gardens, and Hope Gardens. The project includes some of NYCHA’s most challenging buildings, which are primarily scattered-site developments with low-rise buildings spread across many different properties, Penrose officials state.

“On behalf of the development team, we want to thank NYCHA for their trust and support in selecting us as a partner in this incredible program,” says Timothy I. Henkel, principal and SVP  at Pennrose. “We’ve seen firsthand how quality communities can benefit from well-planned rehabilitation and capital improvements, and we look forward to improving the livability, accessibility, performance and overall durability of these units. It is our top priority to work closely with NYCHA and residents to ensure we’re meeting the needs of the local community and future generations, while causing as little disruption as possible.”

The program will involve the upgrade of heating systems, interiors and common spaces, and elevators for more than 4,000 residents. In addition, properties will receive extensive improvements to kitchens, bathrooms, building security and entry systems. All units will be rehabilitated according to Enterprise Green Communities standards to increase energy efficiency.