For First Time, NYCHA Leverages Transfer of Assistance Tool to Create Housing Opportunities for Residents

On December 19, NYCHA closed on the Transfer of Development Rights (TDR) at Lebechi East, a planned affordable housing building at 1546 East New York Avenue on the site of a long-abandoned NYPD station house, in Brownsville, Brooklyn. This also marks the first time the Authority has leveraged Transfer of Assistance, a U.S. Department of Housing and Urban Development (HUD) Rental Assistance Demonstration (RAD) tool, to create new housing opportunities for existing NYCHA residents. The closing follows NYCHA Board approval of the transaction in March 2025, with the transfer of 38,000 square feet of development rights and 6,200 square feet of underutilized land adjacent to the Howard Houses campus to Xenolith Partners LLC and Family Services Network of New York, Inc., to facilitate the creation of new affordable housing. Once built, the 11-story, 95-unit building will offer affordable units to households earning between 30 to 60 percent Area Median Income (AMI) in addition to health services in a 5,000-square-foot community space. Sixty percent of the apartments will provide affordable, supportive housing services for individuals and families formerly experiencing homelessness. Additionally, through NYCHA’s first utilization of the flexible Transfer of Assistance resource, at least eight units will be set aside for existing NYCHA residents at Howard Houses. Eligible households will have the opportunity to apply for one of these units, and if selected, transfer directly into the new building through the Project-Based Section 8 program. Additionally, 11 units will be available for NYCHA residents citywide through HPD’s Housing Connect lottery.

“I’m thrilled to see NYCHA utilize innovative housing tools to deliver on the city’s affordable housing goals while providing more housing choices for NYCHA residents,” said Executive Director for Housing Leila Bozorg. “Thanks to NYCHA’s ingenuity, alongside agency partners at HPD and HCR, we are delivering deeply affordable housing to 95 households in our city. I congratulate them and Xenolith Partners and Family Services Network of New York on an exciting milestone.”

“Our renewed focus on leveraging NYCHA’s assets as the largest landowner in New York City also means ensuring that current NYCHA residents will benefit from the projects being brought to fruition,” said NYCHA Board Chair Jamie Rubin. “As we head into 2026, we are doubling down on this goal to promote public development and will deploy flexible tools such as Transfer of Assistance to strategically maximize housing opportunities.”

“At a time when affordable housing remains as important as ever, NYCHA is committed to using all available tools to increase housing opportunities for low-income New Yorkers and NYCHA residents,” said NYCHA Chief Executive Officer Lisa Bova-Hiatt. “Building on the success of programs like PACT and the Trust, tools such as the Transfer of Development Rights and Transfer of Assistance allow NYCHA to explore all avenues and leverage its assets to create vital new housing opportunities in New York City and return to our roots as a public developer.”

“At every development, in every project, in every conversation with residents, we look for the opportunity to reinvest, restore, and rebuild the physical and human aspects of our communities,” said Executive Vice President and Chief Real Estate Officer Jonathan Gouveia. “By using Transfer of Assistance at Howard Houses we are proving we can deliver brand new housing units for residents of Howard Houses.“

“This dynamic project is in keeping with HCR’s mission – to provide a stable, safe place for people to live while also bringing a long-vacant structure back to life,” said New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas. “HCR is proud to support 1546 East New York Avenue with more than $36 million in investment to create 95 homes for mixed-income households – with a special focus on helping those who have experienced homelessness. Thank you to NYCHA, Xenolith Partners LLC, Family Services Network of New York, Inc., as well as our state and local partners, for utilizing every tool available to make this project a reality.”

“From Betances in the Bronx to The Atrium in Brooklyn, HPD is always proud to partner with NYCHA to find ways to protect our public housing stock and create new affordable housing opportunities across all five boroughs,” said Acting New York City Department of Housing Preservation and Development Commissioner Ahmed Tigani. “This newest opportunity in Brownsville builds on that momentum, transforming an unused NYPD parking lot into supportive homes for 95 households earning between 30 and 60 percent of AMI, a project that addresses multiple facets of the housing crisis we work to confront every day. By leveraging tools like Transfer of Development Rights, we are reimagining underutilized sites, strengthening neighborhoods, and making our city more equitable, block by block and borough by borough. We look forward to continuing to champion this mission together and exploring new ways to create affordable housing opportunities for all New Yorkers.”

The TDR closing follows the release of a separate Request for Expressions of Interest (RFEI) in August 2025 to solicit partners for NYCHA’s new phase of public development work. Building on the success of programs like the Permanent Affordability Commitment Together (PACT) and the New York City Public Housing Preservation Trust, this new endeavor would pursue the potential for further public development and the creation of more low-income housing in all five boroughs, tapping into NYCHA’s resources as the largest landowner in New York City and its roots as a public developer of low-income housing. The RFEI was the first step in the Authority’s desire to leverage tools (including Restore Rebuild, formerly known as “Faircloth-to-RAD;” Transfer of Assistance; and project-based vouchers) to advance three distinct goals outlined in the RFEI: increase high-quality housing opportunities and access to neighborhood amenities; generate revenue for reinvestment in NYCHA communities; and expand low-income housing opportunities for New Yorkers. The RFEI invited members of the real estate community to propose privately owned sites and existing buildings where NYCHA can use its flexible tools to achieve these aims.

The Authority recognizes the valuable role it can play in helping to create more housing for low-income New Yorkers in New York City and is exploring the potential to expand its portfolio. This work returns NYCHA to its roots, when historically it served as a public developer in the mid-20th century. Following the closing and demolition of the existing building, construction is expected to begin in 2026. Closer to construction completion, NYCHA and the development team will engage both Howard Houses residents and existing NYCHA residents citywide on how to apply for the units set aside for them.