NYCHA & Partners Close on Financing for $433M PACT Project to Renovate 5 Brooklyn Developments

Publication: NYCHA Journal

On September 25, NYCHA closed on the financing for a $433.1 million Permanent Affordability Commitment Together (PACT) project that will bring comprehensive renovations for nearly 2,000 residents living in 14 residential buildings across the Bedford-Stuyvesant Rehab, Ocean Hill Apartments, Saratoga Village, and Stuyvesant Gardens I and II developments. The PACT program maintains residents’ rights and preserves affordable rents for all households. The buildings have now converted to Project-Based Section 8 through the federal Rental Assistance Demonstration (RAD) program, unlocking funding that will allow the PACT partner team – Kalel Companies and Dantes Partners – to address the capital needs of the developments and begin fully rehabilitating 927 apartments, as well as shared spaces, grounds, and building infrastructure, to improve residents’ quality of life. Kalel Companies and Dantes Partners are Minority-owned Business Enterprises (MBE).

Following the financial closing, Wavecrest Management will handle the day-to-day property management responsibilities at the developments. Bedford Stuyvesant Restoration Corporation (Restoration) – a 55-year-old nonprofit organization located in Central Brooklyn – will act as the lead social service coordinator as well as the community engagement partner alongside Resolutions & Strategies Group, another minority-owned firm. Additional details on the planned investments and improvements are outlined in the Community Plan, which was developed through a collaboration between the partner team, residents, and NYCHA, and is being distributed to every household at the start of construction.

“Congratulations to NYCHA and the residents of Bedford-Stuyvesant, Ocean Hill Apartments, Saratoga Village, and Stuyvesant Gardens on reaching this significant milestone,” said Deputy Mayor for Housing, Economic Development, and Workforce Adolfo Carrión, Jr. “After an extensive engagement process, the PACT program will deliver a package of capital investments that will enhance the lives of over 2,000 residents.”

“The PACT program is about raising the quality of life for NYCHA residents through comprehensive repairs while ensuring their homes are on stronger financial footing for the long term,” said Executive Director for Housing Leila Bozorg. “Today, 2,000 residents are one big step closer to having both of those benefits through their resident-selected PACT partners, made up of minority- and Black-owned businesses. I look forward to seeing these improvements take shape across all 14 buildings and congratulate all the teams involved for hitting this important milestone.”

“With this financial closing, we’re taking the next step toward preserving and enhancing the homes of more than 2,000 NYCHA residents at Ocean Hill, Saratoga Village, and Stuyvesant Gardens I and II,” said NYCHA Chief Executive Officer Lisa Bova-Hiatt. “The PACT program is providing comprehensive renovations and improving the quality of life for residents at NYCHA developments across the five boroughs, and we’re truly looking forward to doing the same for the families at each of these Brooklyn developments.”

“It is very exciting to reach this step in the PACT program for the Ocean Hill and Stuyvesant Gardens community,” said NYCHA Executive Vice President and Chief Real Estate Officer Jonathan Gouveia. “NYCHA residents and our PACT partners have created unique plans for each development to address capital needs and to provide all households with tailored social services and community programming. This is a great example of how the PACT program invests in more than just physical repairs, but in our communities.”

“I’m happy to be included in the PACT program and that new property management is taking over,” said Stuyvesant Gardens II Tenant Association President Joan Hobson. “I am looking forward to the repairs and improvements of the environment at Stuyvesant Gardens II.”

“I am looking forward to the change!” said Saratoga Village Tenant Association President Conrad Cox.

“We just want what’s best for the building, the residents, and to see this building reach its glory,” said Stuyvesant Gardens II Resident Leader Theodora Gladden.

Selected in coordination with resident leadership, the PACT partner team has worked closely with residents and NYCHA to design every aspect of the development’s renovation since 2023. After years of development and community-wide meetings, plans for the large-scale renovations have been finalized, and the team has closed on the necessary financing to begin construction, which is expected to take approximately three years.

Renovations at each development will include comprehensive improvements to all apartments, building interiors and systems, and public spaces. Facades and roofs will be repaired, new windows will be installed, and elevators will be overhauled. Heating and hot water systems will be modernized to improve efficiency and reliability. New recycling and laundry rooms will be created where feasible, and community centers, tenant association offices, and management offices will be upgraded. Landscaping upgrades will include renovated playgrounds and waterplay areas, a basketball court, restored walkways, and new LED lighting and security camera installations.

Kalel Companies is an MBE-certified real estate development firm specializing in the creation and preservation of affordable housing. To date, Kalel has led the redevelopment and preservation of over 4,000 affordable units totaling an estimated $1.3 billion in development costs, more than half of them through the PACT program. Kalel’s current pipeline spans 3,000 units and encompasses more than $1.7 billion in development activity for the City of New York. The firm’s mission goes beyond brick and mortar — Kalel cultivates its communities through integrated healthy living environments, meaningful amenities, and strategic social service partnerships to empower residents.

Dantes Partners, the development division of Dumas Collective, is a Black-owned real estate development firm whose expertise is in using creative financing to fulfill its mission to develop luxury affordable housing and community-focused real estate initiatives across the Mid-Atlantic region. To date, Dantes Partners has successfully financed and/or developed over 7,200 units, with combined total development costs exceeding $2.6 billion.

Wavecrest Management is a family-owned and operated management company — specializing in affordable housing — overseeing over 30,000 units in residential buildings of all sizes across New York City and Nassau and Westchester counties. With over 40 years of industry experience, Wavecrest Management is committed to preserving both the financial and physical viability of residential housing, and also ensuring residents have direct access to programs and services that increase community engagement and quality of life.

The PACT program transitions developments from traditional Section 9 assistance to Project-Based Section 8 and unlocks funding for resident-selected PACT partners to complete comprehensive repairs and to oversee daily property management of the campus. Overall, 146 NYCHA developments (representing over 39,000 apartments) are in pre-development, are under construction, or have completed construction through the program. This represents over $13 billion in capital repairs for the Authority. The Authority is working to include 62,000 apartments in the PACT program in order to bring the benefits of comprehensive apartment repairs and building upgrades, as well as enhanced property management and social services, to more than 142,000 residents.

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