On Tuesday, May 19, the New York City Housing Authority released its “NextGeneration NYCHA” plan, which lays out Mayor de Blasio’s framework for achieving financial stability, diversifying funding, improving the efficiency of NYCHA’s operations, expanding and preserving the public and affordable housing stock and developing “best-in-class” resident services. Below we touch on the highlights of the plan, which are specific to development opportunities/opportunities to work with NYCHA.
NYCHA plans to provide underutilized land for the creation of 10,000 new affordable housing units, including a mix of uses to provide additional amenities. NYCHA will release requests for proposals for the first three developments by the end of June 2015. They will also explore opportunities to deliver building improvements and community amenities to individual developments, and significant financial return to NYCHA’s operating budget and capital needs, by targeting a limited number of underutilized, high-value sites for mixed-income development. Fifty percent of any new residential units would be dedicated to low-income families making no more than approximately $46,600 per year (60%AMI).
NYCHA has HUD approval to convert approximately 1,400 units at Ocean Bay Apartments - Bayside in Far Rockaway to project-based Section 8 through HUD’s Rental Assistance Demonstration (RAD) program. They will move forward with that redevelopment effort. In addition, subject to HUD approval, NYCHA will more aggressively pursue federal subsidy, including Section 8 for its 5,000 unsubsidized units. These units were built by the City and State but no longer receive operating or capital support. NYCHA currently obtains additional subsidy for approximately 100 to 300 units annually through the use of project-based Section 8 vouchers when there is turnover of a unit. Using existing programs, NYCHA will increase the rate of units receiving rent subsidy to ensure that all 5,000 units are subsidized by 2025.
Over 10 years, NYCHA could convert 6,380 public housing units in scattered-site developments, which are inefficient for NYCHA to manage, to project-based Section 8 through a combination of RAD and HUD Tenant Protection Vouchers. NYCHA inherited these five- to six- story walk-ups and low-rise elevator buildings in the 1970s and 1980s, during the City’s “in rem” crisis, and many are operated by third parties. Also, over 10 years, NYCHA could convert 8,313 public housing units in properties where the cost of rehabilitation exceeds the cost of new construction (“obsolete units”) to project-based Section 8 through a combination of RAD and HUD Tenant Protection Vouchers. These units are located within NYCHA’s traditional, high-rise “Tower in the Park” developments.