NYCHA Now

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NYCHA Now
January-February 2017 

NYCHA Closes First RAD Agreement Bringing Repairs to 3,700 Residents

Jacqueline Broner
Ocean Bay (Bayside) Apartments Tenant Association President Lolita Miller

On December 30, 2016, NYCHA closed a groundbreaking agreement under the Permanent Affordability Commitment Together (PACT) program to bring significant financial resources and desperately needed renovations to the Ocean Bay (Bayside) Apartments in the Rockaways. PACT is New York City’s implementation of the federal government’s Rental Assistance Demonstration (RAD), which includes collaboration between NYCHA, residents, and community and housing advocates. The Ocean Bay PACT initiative is the first RAD agreement in New York City and will create a new public-private partnership to generate funding to keep families in their homes and improve residents’ quality of life. NYCHA will retain ownership of the property, ensuring the units stay permanently affordable and guaranteeing the developments can never be privatized.

Funding is on the way for repairs and renovations at Ocean Bay (Bayside) Apartments.
Funding is on the way for repairs and renovations at Ocean Bay (Bayside) Apartments.

On January 18, NYCHA was given the green light to proceed with renovations at Ocean Bay (Bayside) with the approval of more than $200 million in state-issued bonds to pay for necessary repairs to elevators and heating systems as well as new roofs and security systems. This marks an important milestone in NYCHA’s use of new funding sources, including public-private partnerships to create safe, clean, and connected communities as part of NextGeneration NYCHA, the Authority’s 10-year strategic plan.

After decades of federal and state disinvestment, NYCHA faces a severe financial crisis with $17 billion in unmet capital repair needs. This PACT agreement will provide $325 million for NYCHA to make needed repairs at Ocean Bay (Bayside) including extensive capital improvements.

“Families depend on NYCHA to make necessary repairs and protect public housing for future generations,” Chair & CEO Shola Olatoye said. “Through PACT, we will strengthen and preserve almost 1,400 permanently affordable housing units for future generations. This type of innovative partnership presents an opportunity to ensure the long-term affordability and future of our developments.”

“This closing represents one of the largest transactions under the U.S. Department of Housing and Urban Development’s RAD program,” said Executive Vice President for Real Estate Ni-cole Ferreira, who led NYCHA in the closing. Ms. Ferreira also played a leadership role in extensive community engagement to gain resident input and support for the program, which will generate $60 to $80 million annually toward NYCHA’s operating costs.

“Our team worked extremely hard on this transaction and I am proud of them,” she said.

This PACT agreement will provide $325 million for NYCHA to make needed repairs at Ocean Bay (Bayside).

“We need these changes,” said Ocean Bay (Bayside) Tenant Association President Lolita Miller, who participated in all of the roundtable discussions with NYCHA.

“I look forward to working with NYCHA as they improve thousands of properties throughout New York City, and will continue to work with my colleagues in the Senate to ensure that vital programs like RAD continue to be supported,” said U.S. Senator Kirsten Gillibrand.

A resident provides input and gets her questions answered at a RAD meeting held at Ocean Bay (Bayside) Apartments.
A resident provides input and gets her questions answered at a RAD meeting held at Ocean Bay (Bayside) Apartments.

“As a former resident of NYC public housing, I know first-hand how truly important RAD is for so many New Yorkers,” U.S. Representative Gregory Meeks said. “Through this public-private partnership, 1,400 units in Ocean Bay Apartments will be renovated, improving the living conditions of thousands of my constituents. I will continue to work with NYCHA and local officials to ensure RAD’s implementation makes public housing a viable option for New York families who’ve often felt squeezed by the City’s evolving economy.”

RAD is a federal program created under the Obama Administration in 2011. Under RAD, NYCHA and public housing authorities nationwide can protect long-term affordability of apartments that are in need of renovations and financial support. RAD enables public housing agencies to shift units funded by HUD’s Public Housing program (under Section 9) to a long-term contract under Section 8. By stabilizing federal funding under a long-term contract, RAD attracts new investment to public housing. It also ensures developments will be kept permanently affordable, residents retain their public housing rights and the public housing authority retains ownership interest in the property.