NYCHA closed on $1.4B for housing rehab projects with private partners

Date: January 03, 2022

Publication: The Real Deal

With help from major developers, a handful of Brooklyn public housing complexes are getting a makeover.

NYCHA and the New York City Housing Development Corporation closed on the financing of three Permanent Affordability Commitment Together — or PACT — transactions to fund comprehensive renovations for 5,226 apartments across six NYCHA campuses, the agency announced last week.

The latest closings bring the total amount of capital funding generated to more than $3.1 billion for the renovations, enhanced property management and social services of more than 14,700 apartments.

Rehabilitation will begin early 2022 and finish sometime around 2024 and 2025.

The PACT program allows the agency to use the federal Rental Assistance Demonstration and convert units to Section 8 and finance facility renovations while preserving the campuses’ affordability and tenants’ rights.

Williamsburg Houses, Linden Houses, Penn-Wortman Houses, Fiorentino Plaza and Belmont-Sutter Area are among the campuses receiving upgrades. Renovations will include modernized building facades, elevators and security and heating systems, as well as changes to abate environmental hazards and invest in energy and sustainability-related improvements, among other resident needs.

MDG Design and Construction and Wavecrest Management are leading the project that will bring $490 million in comprehensive renovations to Williamsburg Houses’ 1,621 apartments and 20 residential buildings.

Douglaston Development, L+M Development Partners, Dantes Partners and SMJ Development have partnered with PACT for the work on Linden Houses and Penn-Wortman buildings, which will receive more than $430 million in comprehensive renovations for the 1,922 apartments and 22 residential buildings.

Levine Builders and L+M Builders Group will work on the rehabilitation work while C&C Apartment Management will manage the property and maintain upkeep of the buildings and grounds.

Hudson Companies, Property Resources Corporation and Duvernay + Brooks have partnered with PACT to work on Boulevard, Belmont-Sutter Area and Fiorentino Plaza Houses, which will receive more than $483 million in funding. Broadway Builders LLC and Melcara Corporation will perform the rehabilitation work, and property management will be provided by Property Resources Corporation and Lisa Management.

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