NYCHA Closes $271 Million PACT Deal to Renovate 16 Sites
More Than 2,900 Manhattan Residents to Benefit
On November 30, NYCHA announced a Permanent Affordability Commitment Together (PACT) deal with PACT Renaissance Collaborative (PRC) to provide more than $271 million in major repairs and renovations for 1,718 NYCHA apartments throughout Manhattan. The money will be used to modernize apartments and buildings at each of the 16 selected sites, while also providing residents with access to employment opportunities affiliated with the repairs. The deal also calls for enhanced on-site programming for residents and the surrounding community.
PACT Renaissance Collaborative LLC will oversee the comprehensive upgrades to apartments and common areas, property management services, and on-site programs. PRC is a team of not-for-profit and for-profit partners that specialize in developing, maintaining, and revitalizing affordable housing. PRC will be responsible for the day-to-day management of the properties, which are home to more than 2,900 residents.
The milestone deal comes after a year and a half of ongoing community discussions with resident associations – as well as inspections of every apartment – and surveys that informed the social service plans that will supplement current community programming.
“Forging forward with PACT transactions is mission-critical to improving the quality of life for New York City’s public housing residents,” said New York City Deputy Mayor for Housing and Economic Development Vicki Been. “This partnership will inject needed capital and community resources to fund comprehensive repairs, while upholding the strong resident rights and protections that ensure all New Yorkers may continue to live and thrive in the neighborhoods they call home.”
“Moving forward with PACT transactions is a central part of our strategy to help ensure all NYCHA residents have quality housing and permanent rights and affordability,” said NYCHA Chair & CEO Greg Russ. “This closing will generate significant capital to address the infrastructure needs of these developments and serve to improve the quality of life for our residents in a meaningful way.”
“We are interested in working with partners who are capable of addressing long overdue renovations while sharing NYCHA’s commitment to protecting the resident rights that are a bedrock of the PACT program,” said NYCHA’s Executive Vice President for Real Estate Jonathan Gouveia. “The development team we’ve assembled succeeds on both measures, and we are excited to assist them as they begin the process of modernizing these homes on behalf of our residents.”
The vast majority of the renovations and repairs that are included in the scope of work originate from tenant and resident association leaders’ feedback during the planning stages of the initiative – in addition to the community needs assessment that was conducted after engaging with residents on the plan.
The 16 NYCHA sites are:
- 335 East 111th Street
- 344 East 28th Street
- Fort Washington Avenue Rehab
- Grampion
- Manhattanville Rehab (Group 2)
- Manhattanville Rehab (Group 3)
- Park Avenue-East 122nd, 123rd Street
- Public School 139 (Conversion)
- Samuel (MHOP) I
- Samuel (MHOP) II
- Samuel (MHOP) III
- Washington Heights Rehab (Groups 1&2)
- Washington Heights Rehab Phase III
- Washington Heights Rehab Phase IV (C)
- Washington Heights Rehab Phase IV (D)
- Wise Towers
For this transaction, the New York City Housing Development Corporation issued more than $359 million of tax-exempt and taxable bonds. Through PACT, developments will be included in the federal Rental Assistance Demonstration (RAD) and convert to a more stable, federally funded program called Project-Based Section 8. Once the properties convert to Project-Based Section 8, NYCHA will lease the land and buildings to the development partners, who will conduct repairs and serve as the property manager.
NYCHA will continue to own the land and buildings, administer the Section 8 subsidy and waitlist, and monitor conditions at the development. NYCHA will also ensure that the partners adhere to standards outlined in the RAD Roundtable Guiding Principles created with NYCHA residents and advocacy groups to preserve resident protections and guarantee permanent affordability.
As with previous PACT conversions, NYCHA organized a series of meetings with residents to provide an overview of the program and directly address their questions and concerns. The selected partners also hosted several resident meetings to incorporate their priorities and requests to better tailor improvements to each respective community.
Other improvements, which will address the physical needs for each development, include:
- Renovation of apartment interiors, including kitchens, bathrooms, windows, and flooring;
- Full rehabilitation of elevators and heating systems;
- Improved safety and security measures, including fire systems, building intercoms, and security camera systems in common areas; and
- Extensive mold and lead abatement repair work.
Under this agreement, several different community and job training resources targeted towards NYCHA residents will be created, as all PACT proposals are required to include social service partners and programming. For this element, Community League of the Heights (CLOTH) will supplement the developers’ efforts with on-site community services.
Launched in 2016, PACT is a key component, along with NYCHA’s Blueprint for Change, to help raise funds for public housing infrastructure citywide while safeguarding long-standing tenant rights and protections. PACT allows NYCHA to completely renovate developments using HUD Section 8 conversion programs, including the Rental Assistance Demonstration (RAD), Tenant Protection Voucher (TPV) funding, and Part 200 disposition, all of which ensure long-term affordable housing. These efforts are expected to address nearly $24 billion in capital need over the next decade.
So far, NYCHA has closed on the conversion of 9,517 apartments through PACT since the initiative’s launch, securing their long-term affordability. Mayor de Blasio has committed to improving the quality of life for a total of 140,000 New Yorkers through the program.
