The document outlines a plan by NYCHA to generate revenue through leasing underutilized land to private developers. NYCHA would lease, not sell, parcels within 8 developments to build new mixed-income housing. Income from the leases would fund capital improvements at NYCHA properties over 99 years. The plan aims to address NYCHA's $13.4 billion capital needs backlog while preserving public housing. At Douglass Houses, 3 sites would be leased to generate an estimated $30-50 million annually for critical repairs.
4. A Roadmap for Preservation
Ensures that public housing remains available for
current and future generations of New Yorkers
4
5. Plan NYCHA Development
NYCHA worked hand in hand
by hosting dozens of meetings
with residents, electeds,
community partners and
employees
Thousands of residents
provided input into proposals
including:
o Looking at ways to use NYCHA’s
most valuable asset –our land- to
generate revenue
o Development of new mixed-use,
mixed-income housing to support
more families in need
5
6. A Roadmap for the Future
A Call to:
Preserve public
housing – buildings,
communities and
opportunities
Restore financial
stability
Transform the way we
do things
Improve services
6
7. Why Now?
NYCHA Is Struggling To Get Ahead
Severe government
funding shortages
Unmet capital needs
Structural operating
deficit
Regulatory burdens
hinder us from
controlling costs
Aging and decaying
buildings
7
8. Two Different Federal
Funding Streams
Capital: Operating:
► Covers roofs, bricks, ► Covers building
elevators and maintenance and
electrical, plumbing repairs, day to day
and heating systems operations and
► Requires long term
administration
planning ► Based on HUD funding
formula that short
► Calls for complex and
changes NYCHA
lengthy execution
8
9. Insufficient Capital Funds For
Rehabilitation Needs
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$0
-$100
In Millions of Dollars
-$200
-$300
-$400
-$500
-$600
-$700 Underfunded by
-$800 $876 Million
-$900
9
10. Loss Of Operating Dollars For
Maintenance, Repairs And Services
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
$0
Dollars in Millions
-$100
-$200
-$300
-$400
-$500
-$600 $ 750 Million
Deficit
-$700
-$800
10
11. $13.4 Billion Unmet Capital Need
NYCHA Wide for the Next 5 Years
Douglass Houses and
Addition have a total of
$192 Million need for
capital improvements.
Only $17.4 Million
worth of improvements
are planned over the
next 5 years
11
12. Plan NYCHA
Is Our Plan Of Action
To restore
financial stability
by looking for
other sources of
long-term
funding
opportunities
12
13. Proposed Plan will help Preserve Public
Housing for Current and Future Families
NYCHA would lease (not
sell) 14 parcels of land
located within 8
developments
Income generated will be
dedicated to building
improvements for public
housing
The developers will finance,
construct, and operate new
residential buildings.
13
14. Proposed Plan will help Preserve Public
Housing for Current and Future Families
Private developers will
pay NYCHA for the right
to build on leased land
that NYCHA owns (and
will continue to own)
Approximately 80% of
the apartments will be
market rate and 20% will
be permanently low
income 14
15. Setting the Record Straight
The Development Plan Will:
Not increase rent for NYCHA
residents due to the new
developments.
Not demolish public housing
apartments
Not displace NYCHA families
Not privatize – NYCHA will still be
the landlord
Not sell the land; NYCHA will own
the land under the new buildings.
Not result in job losses or increased
work requirements for NYCHA
personnel.
15
16. NYCHA’s Core Principles for Development
Location of new buildings along
street fronts to encourage
pedestrian traffic and campus
integration with the
neighborhood
Replacement of all parking
spaces for all current resident
legal permit holders at impacted
developments
Compactor yards relocated on
campus
16
17. NYCHA’s Core Principles for Development
Where space is available,
other impacted areas will
be relocated, replaced
and/or reconfigured (i.e.,
seating areas and gardens)
NYCHA will remain your
landlord and retain
ownership of the land
under the new buildings via
99-year ground leases
17
20. Development Opportunity at Douglass Houses
Manhattan Avenue Site
Site Area: 19,000 SF
New Construction: 340,000 SF (approx.)
West 100th Street Site
Site Area: 18,750 SF
New Construction: 220,000 SF (approx.)
West 104th Street Site
Site Area: 16,000 SF
New Construction: 175,000 SF (approx.)
Low Income units will be available to
households with incomes at or below
60% of Area Median Income (AMI)
Maximum Allowable Income
1 person $ 36,120
2 persons $ 41,280
3 persons $ 46,440
4 persons $ 51,540
20
22. Benefits NYCHA Wide
This initiative will generate between $30 Million
and $50 Million of funding on a yearly basis for
99 years (term of ground lease)
New funding streams will be used to improve the
quality of life of NYCHA residents by funding a
portion of critical capital improvements
This initiative will generate approximately 800
permanently low income housing units for low
income New Yorkers
NYCHA residents will be given a preference for
the low-income units
22
23. Benefits for Douglass Houses Residents
Preference for low income
apartments in the new
buildings
Affordability restrictions are
permanent
Alternative power for systems
during blackouts such as
hallway and stair lighting, heat
and hot water, elevators and
security
Construction and permanent
jobs opportunities for NYCHA
residents
Enhanced security features for
the entire development
23
Presenter – General Manager Cecil HouseIntroduction: Good Evening everyone and welcome. I ask that everyone place take a seat we are about to begin the meeting.My name is Cecil House and I am the General Manager for the New York City Housing Authority. Tonight’s meeting is a very important meeting about preserving public housing. This is a start of many more conversations to come.It is a pleasure to be here – we have NYCHA staff from various departments – Development, Communications, Capital Projects, Operations, REES. But before we begin the meeting I would like to inform you of the following [Ask Interpreters to come up to podium]: We have available interpreters in Spanish, Chinese and Russian. They are going to come up now and introduce themselves and explain that we have wireless interpretation equipment; that will enable you to hear the presentation simultaneously in Spanish, Chinese and Russian.We also have sign languages interpreters who will be signing during the presentationI would like to go over some Ground Rules:We are here to listenIf you would like to speak or ask a question – we ask that you complete a speaker slip [Hold up a sample of speaker slip] This is a meeting for residents so we are going to take questions from residents first and then move on to other questions if time permits.We ask that your comments are respectful and that you be considerate of others and allow them time to share their questionsIf you have any personal and/or specific need or issue related to your apartment – please raise your hand, NYCHA staff is here to assist you.
Presenter – General Manager Cecil HouseTonight’s meeting is a conversation about preserving, maintaining and protecting public housing for another 79 years. We want public housing to be here for future generations.This is a continuation of several years of conversation that we have had going back to 2006 when NYCHA embarked on the first Plan to Preserve Public Housing to find alternative ideas and ways to preserve public housing.[HOLD UP 2006 PPPH Booklet] In this plan we talked about many ways to generate revenue to maintain and preserve this vital resource called public housing
Presenter – General Manager Cecil HouseIn 2011 we introduced Plan NYCHA which was a collaborative effort again continuing the conversation. [HOLD Plan NYCHA Report up]
Presenter – General Manager Cecil HouseMany of you may have participated in the Plan NYCHA roundtables and community conversations across the city were more than a dozens of meetings that NYCHA held with residents, elected officials and other key stakeholders. –
Presenter – General Manager Cecil HouseEmphasis the points on the slide – WE are not doing anything else but preserving public housing for the future.Preserve – this NOT about demolishing, selling or privatizing public housingRestore – But in order to preserve public housing we need to restore financial stability. How do we transform the way we do things?Transforming – we can NO longer continue to do business the way we have been. We cannot have residents waiting for much needed repairs. We need to be much more efficient and better at what we do. Improve: When we transform and do better we provide better customer service.So we all share the same interest which is to preserve public housing. But the big challenge is achieving financial stability. All this preservation requires money and resources. Which NYCHA DOES NOT have right now.
Presenter – General Manager Cecil HouseImagine that this big ball represents the more than 400,000 residents and over 2,500 buildings that make up NYCHA. Or imagine that this ball represents Baruch Houses and the over 5,400 families that call this home.For a very long time we have not received the adequate amount of funding from the federal governmentRegulatory burdens such as having to pay prevailing wages to all of employees, contractors and vendors are costly to NYCHAAging buildings – Most of our buildings are more than 40 years old – Therefore they require more maintenance and repairs and we need to find a way to prevent the buildings from decaying any further.So we are pushing this big boulder up a hill.
Presenter – Presenter – General Manager Cecil House will ask staff from Capital Projects and Operations to explain Capital and Operation FundingSo this is very important I want to talk about the two sources of funding we receive.I am going to ask that members the Capital Projects Division and Operations come up to explain to all of you the difference between Capital and Operating Funding.Rebecca Finlan, Capital Projects DivisionLuis Ponce, Operations
Presenter – Capital ProjectsAfter Rebecca finishes – both Rebecca and Ponce are still standing with you.Just to make it clear we have been underfunded by $876 million that could have been used for fixing elevators, roofs, boilers
Presenter – OperationsJust to make it clear we have been underfunded by $750 million that could have been used for apartment repairs.
Presenter – Commissioner López will present this slide and then turn over presentation to EVP Fred Harris$6 Billion is the current unmet capital need$7.4 is the unmet capital need for the next 5 years for a total amount of $13.4 Billion
Presenter –Executive Vice President for Development, Fred Harris
Presenter –Executive Vice President for Development, Fred Harris
Presenter –Executive Vice President for Development, Fred Harris
Presenter –Executive Vice President for Development, Fred HarrisGo through the points again to emphasize what the project is NOT to dispel rumors!!
Presenter –Executive Vice President for Development, Fred Harris
Presenter –Executive Vice President for Development, Fred Harris
Presenter –Executive Vice President for Development, Fred Harris who will then turn it over to General Manager Cecil HousePlease note that the amount of money will be reinvested into Public Housing – in Douglass and across the city at other NYCHA developments.General Manager Cecil House will then introduce Presenter – Katherine Gray - Senior Portfolio Managerwho is the Team Leader for this project.
Presenter – EVP Fred Harris
Presenter – EVP Fred HarrisGM needs to reinforce what Fred just stated.
Remind residents that we have copies of the presentation on the way out and also please visit the NYCHA website for updates.This is the start of many more conversations.
General Manager and team will field questions from the audience