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

TRD New York /
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

arrow_forward_ios
City Council member Brad Lander and the Gowanus canal (Getty; City Council)

Gowanus rezoning community support hinges on NYCHA funding

Gowanus rezoning community support hinges on NYCHA funding
HUD's Lynne Patton and of Frederick Douglass Houses resident Claudia Perez (Getty; RNC)

NYCHA tenants say they were duped into RNC video appearance

NYCHA tenants say they were duped into RNC video appearance
NYCHA CEO Gregory Russ and NYCHA houses (Credit: Minneapolis Public Housing Authority, Spencer Platt/Getty Images)

NYCHA tenants with zero income pay zero rent

NYCHA tenants with zero income pay zero rent
New York City Deputy Mayor of Housing and Economic Development Vicki Been and New York state Sen. Brad Hoylman (Credit: Been via NYU; Hoylman by Roy Rochlin/Getty Images)

Chorus for moratorium on evictions grows louder in New York

Chorus for moratorium on evictions grows louder in New York
NYCHA wants to create “citywide clearinghouse” for its 80M sf of air rights

NYCHA wants to create “citywide clearinghouse” for its 80M sf of air rights

NYCHA wants to create “citywide clearinghouse” for its 80M sf of air rights
The Red Hook NYCHA Houses in Brooklyn (Credit: Jim.henderson via Wikipedia)

NYCHA hit with class action alleging “deplorable” conditions

NYCHA hit with class action alleging “deplorable” conditions
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 inks $1.5B deal to privatize management of 5,900 units
NYCHA housing (Credit: Wikipedia)

Feds launch investigation into landlords’ lead levels

Feds launch investigation into landlords’ lead levels
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...