City taps private investors to renovate thousands of NYCHA units

Project expected to cost $400M

New York /
Jun.June 26, 2018 09:30 AM

Mayor Bill de Blasio (Credit: Pixabay)

Under an estimated $400 million project, thousands of city-owned apartments will be renovated by private investors through a federally administered program, Mayor Bill de Blasio announced Monday.

Nearly 2,400 apartments at 21 New York City Housing Authority developments will get new kitchens and bathrooms, the Wall Street Journal reported. The plan also includes new elevators, boilers and roofs, which are expected to complete by 2023.

The project will be funded by the Department of Housing and Urban Development’s Rental Assistance Demonstration program, which gives apartments to private companies for repairs and daily management, the report said.

The apartments will be converted to the Section 8 federal rent-subsidy program, which allows tenants to use federal vouchers to rent.

Under the deal, the city will maintain ownership of the land, a stake in the buildings, and have ultimate oversight on the management company. A private management company has yet to be chosen, but the city will begin meeting with residents at the developments this summer.

The announcement comes after the city agreed to spend more than $2 billion over a decade to settle a federal investigation into health and safety issues at the New York City Housing Authority. The city will spend an additional $1 billion over the first four years on top of what it’s already pledged to NYCHA — plus $200 million annually for each of the following years over the 10-year term, according to a previous report. [WSJ] — Meenal Vamburkar

 

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