Public housing is better off under private management: study

The study of six buildings was conducted at NYCHA's request

TRD New York TRD WEEKEND EDITION /
Jun.June 17, 2018 05:43 PM

(Credit: Nick Youngson)

Developers who managed six public housing buildings put residents’ fears to rest about how private management would treat them, according to a report to be released tomorrow.

The Wall Street Journal reviewed an advanced copy of the report, conducted by the Citizens Housing and Planning Council,  and noted that in 2016, 80 percent of tenants in the privately-managed buildings rated the quality of housing as good or excellent, compared to 35 percent who did the same for housing managed by the New York City Housing Authority.

In the private buildings, only 2,100 work orders were filed compared to over 12,000 in the NYCHA-managed housing, while tenant turnover was at 6 percent compared to 2 percent, respectively.

The six privately-managed buildings were bought in January 2014 by a partnership of developers that included BFC Partners, L+M Development Partners and K&R Preservation. Together, they bought a 50 percent stake and began managing the properties in January 2015–part of which entailed an upfront investment of $80 million to do initial repairs and updates. Tenants in the partnership’s six buildings got Section 8 rental subsidies.

NYCHA had requested the research for the report in 2015. The authority, which overseas 176,000 apartments in New York and needs an estimated $25 billion to repair its portfolio of housing stock, has met resistance when its officials have tried to advance investment from private companies.

Last week, records from the authority’s were seized as part of a criminal probe into the beleaguered authority’s building inspections. [WSJ]Erin Hudson


Related Articles

arrow_forward_ios
209 Dean Street and 315 Adelphi Street (Google Maps)

Sprawling Brooklyn townhouses drive week’s priciest deals

Sprawling Brooklyn townhouses drive week’s priciest deals
The number of single-family homes on the market hit historic lows in July, driving prices up (iStock)

US housing supply reaches nearly 40-year low

US housing supply reaches nearly 40-year low
Gov. Andrew Cuomo with Judge Lawrence Marks and Judge Daniele Chinea (Getty, Linkedin, iStock)

Flip-flop on eviction ban extension highlights state’s chaotic response

Flip-flop on eviction ban extension highlights state’s chaotic response
Nelson Rockefeller and 812 Fifth Avenue Photos via Getty; StreetEasy; Google Maps)

Fifth Ave co-op owned by Rockefeller family hits market

Fifth Ave co-op owned by Rockefeller family hits market
Joe Jonas and Sophie Turner with 199 Mott Street (Getty; Modlin Group)

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M
A million homeowners haven’t requested forbearance on their mortgages — and are now at risk for foreclosure and eviction. (iStock)

1M struggling homeowners didn’t request forbearance. Now what?

1M struggling homeowners didn’t request forbearance. Now what?
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Jennifer Lopez and Alex Rodriguez with their Malibu beach house (Getty; Courtesy Compass)

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M
arrow_forward_ios

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

Loading...