$1.4 Billion in Major Repairs Coming for Nearly 10,000 NYCHA Brooklyn Residents
PACT partners will oversee comprehensive repairs, property management, and social services while NYCHA remains owner of the properties
On December 28, NYCHA and New York City Housing Development Corporation (HDC) closed on the financing of three Permanent Affordability Commitment Together (PACT) transactions to fund comprehensive renovations for 5,226 apartments across six NYCHA campuses in Brooklyn: Williamsburg Houses, Linden Houses, Penn-Wortman Houses, Boulevard Houses, Fiorentino Plaza, and Belmont-Sutter Area. Each closing will enable NYCHA’s PACT partners to begin comprehensive upgrades to apartments and common areas; modernize building facades, elevators, and security and heating systems; abate environmental hazards such as lead-based paint; invest in energy- and sustainability-related improvements across each campus; and address other needs identified by the residents at each development. The rehabilitations are scheduled to begin early next year and are anticipated to be completed between 2024 and 2025.
With these latest closings, the PACT program has now generated over $3.1 billion in capital funding for more than 14,700 apartments to facilitate comprehensive renovations, in addition to enhanced property management and social services, across New York City.
“NYCHA and its partners continue to mark important milestones in service of the families they serve through the PACT program,” said Deputy Mayor for Housing and Economic Development Vicki Been. “The funding and management resources that they have assembled under the program set the Authority on course to sustainably support the NYCHA residents of these developments well into the future. Kudos to the entire team on another successful closing.”
“The PACT program continues to be one of the Authority’s best tools for comprehensively improving NYCHA campuses with significant infrastructure repair needs,” said NYCHA Chair & CEO Greg Russ. “The collection of experienced partners that have been assembled to provide large-scale rehabilitation work, robust property management, and much-needed social services for these sites will enable NYCHA to maintain our commitment to creating stronger developments for thousands of additional public housing families.”
“Today’s announcement marks a tremendous victory for nearly 10,000 residents across six NYCHA campuses in Brooklyn,” said HDC President Eric Enderlin. “Thanks to the extensive collaboration of our partners and NYCHA residents, we are able to address the need for sweeping repairs, broadened social services, as well as guaranteed affordability and tenant protections through PACT. I’d like to congratulate NYCHA, our partners, and above all the residents and applaud them for their ongoing efforts to bring critical improvements to the City’s public housing stock.”
“The public-private partnerships represented in this latest round of PACT projects enable the Authority to raise the funds needed to make capital repairs and drive additional community resources to residents, all while maintaining public control of NYCHA buildings with the support of our tenant leadership,” said NYCHA’s Executive Vice President for Real Estate Development Jonathan Gouveia. “Today’s announcement marks a major milestone in our pledge to deliver desperately needed and long overdue repairs for 62,000 apartments in NYCHA’s portfolio.”
Williamsburg Houses will receive $490 million in comprehensive renovations to the 1,621 apartments and 20 residential buildings at the property. The PACT partners at Williamsburg are led by MDG Design and Construction and Wavecrest Management. MDG Design and Construction will perform the rehabilitation work. Wavecrest Management is now responsible for the day-to-day management and operation of the property. Social services are being provided by non-profit partners St. Nicks Alliance and Grand Street Settlement, which both have deep experience serving Williamsburg residents.
Linden Houses and Penn-Wortman will receive more than $430 million in comprehensive renovations for the 1,922 apartments and 22 residential buildings across the two properties. The PACT partners for Linden and Penn-Wortman Houses are led by Douglaston Development, L+M Development Partners, Dantes Partners, and SMJ Development. Rehabilitation work will be performed by Levine Builders and L&M Builders Group. Property management and upkeep of the buildings and grounds are being provided by C&C Apartment Management. On-site social services are being led by University Settlement, in addition to existing services from CAMBA and Millennium Club, which are both located at the Penn-Wortman Community Center.
Boulevard, Belmont-Sutter Area, and Fiorentino Plaza Houses will receive more than $483 million in comprehensive renovations for the 1,673 apartments and 29 residential buildings across the three properties. The PACT partners are led by Hudson Companies, Property Resources Corporation, and Duvernay + Brooks. Rehabilitation work will be performed by Broadway Builders LLC and Melcara Corporation. Property management is now being provided by Property Resources Corporation and Lisa Management, Inc. On-site social services are being provided by CAMBA.
“On behalf of the Williamsburg Houses residents, and the Board members, we are excited for the PACT program to come to Williamsburg Houses,” said Williamsburg Houses Resident Association President Lavonne McLamb. “Our residents are overdue for major improvements to our development. We are looking forward to the transformation to our apartments and being part of the revitalization of our community.”
“I’m pleased with how NYCHA, Boulevard Together, and the Resident Association has worked together to make the PACT conversion happen. The Boulevard Together team took special care and time with each resident, giving them one-on-one time, letting them have a chance to ask questions that are personal to their specific needs. They also worked with residents to add family members to their lease who had to return home due to the pandemic,” said Boulevard Resident Association President Clara Woods. “One of the biggest concerns some of our seniors at Boulevard has is right-sizing. But knowing that this process will happen at Boulevard, and that residents won’t be transferred out to another development, is reassuring to the seniors.”
Through PACT, NYCHA uses programs of the U.S. Department of Housing and Urban Development (HUD) to convert units to the Project-Based Section 8 program and finance comprehensive improvements to its public housing developments, while preserving long-term affordability and ensuring residents have the same basic rights as they possess in the public housing program. NYCHA’s PACT partners assume responsibility for comprehensive repairs and day-to-day operation of the PACT developments. NYCHA continues to own the land and buildings, administer the Section 8 subsidy, set rents (which continue to be capped at 30 percent of household income, in accordance with HUD requirements), manage the waitlist for filling any vacant apartments, and oversee the rehabilitation and conditions at the developments.
Today’s announcement is also a significant milestone for the last two developments in NYCHA’s “unfunded” portfolio. The “unfunded” properties were eight public housing developments, including Linden and Boulevard Houses, that were built and originally funded by New York State and New York City but had not received direct City, State, or federal funding since 2003, when they were added to NYCHA’s portfolio. The properties were ineligible for inclusion in HUD’s public housing and capital fund formulas, and NYCHA had to operate the properties by sharing the funds it received for its public housing developments. By including these developments in the PACT program, NYCHA and its partners are finally able to stabilize these properties by placing them on a secure and solid financial footing.
Since 2016, the PACT program has generated more than $3.1 billion in capital funding for comprehensive apartment renovations and building infrastructure improvements for more than 14,700 households. Approximately $579 million in renovations have already been completed, and $2.2 billion in major upgrades are underway or will begin early next year. An additional 20,400 households are part of active development projects in the process of resident engagement or pre-development. In sum, NYCHA has more than 35,000 apartments completed, in construction, or in a stage of resident engagement or pre-development.
More information on NYCHA’s PACT program can be found here. For more information about upcoming PACT meetings, residents can call NYCHA at (212) 306-4036 or email pact@nycha.nyc.gov.