NYCHA looks to net close to $50M annually leasing to private developers

4,330 new apartments to be built; developers will get 99-year favorable lease

Feb.February 06, 2013 12:00 PM

The New York City Housing Authority intends to raise roughly $50 million by leasing land in the middle of housing projects to developers who could build up to 3 million square feet of luxury high-rises, the New York Daily News reported.

NYCHA will offer developers 99-year leases on the land, with payments frozen for the first 35 years, according to internal documents obtained by the Daily News. The land will yield 4,330 apartments — 20 percent of them affordable — in eight developments in areas including the Upper East Side and Upper West Side, the Lower East Side and Lower Manhattan.

Some officials, such as City Councilwoman Margaret Chin, have voiced a concern that the 20 percent affordable quota is insufficient. Previous disputes about the affordability quota have delayed new developments, most recently at Dust Fetner’s condo development at 625 West 57th Street.

The luxury housing will be built on top of neighborhood amenities such as parking lots, community centers and playgrounds, according to officials familiar with the project who spoke to the Daily News. NYCHA — which faces an annual budget gap of $60 million — is expected to earn between $31 million and $46 million in annual lease payments, which will be invested in the upkeep of its worn-out buildings. [NYDN]Hiten Samtani

Related Articles

East Williamsburg’s Williamsburg Houses and the Harlem River Houses and (Credit: Wikipedia)

NYCHA inks $1.5B deal to privatize management of 5,900 units

NYCHA housing (Credit: Wikipedia)

Feds launch investigation into landlords’ lead levels

State Senator Julia Salazar and Assemblymember Harvey Epstein (Credit: Getty Images)

Pols take aim at private equity with plan to tax mezz debt

 NYCHA CEO Gregory Russ and NYCHA houses (Credit: Minneapolis Public Housing Authority and Getty Images)

NYCHA head: Agency now needs $40B in repairs

Fort Independence Houses at 3340 Bailey Ave in Knightsbridge Heights (Credit: Google Maps)

NYCHA employee allegedly shot boss at Bronx housing project

Stephen Levin, Brad Lander, 187 and 195 Hoyt Street (Credit: Google Maps, iStock)

Pols ponder NYCHA air rights sale for Gowanus

NYCHA Chair Gregory Russ and NYCHA houses in Brooklyn (Credit: Minneapolis Public Housing Authority and Getty Images)

NYCHA residents are suing for 10 years of rent overcharges

43-20 49th Avenue in Long Island City and Andrew Chung of Innovo Property Group (Credit: Google Maps)

Andrew Chung tees up Queens’ biggest deal of 2019