NYCHA taps development team to perform $350M renovations, takeover managing properties

Projects are part of NYCHA's privatization effort

TRD New York /
May.May 16, 2019 04:35 PM
Vicki Been and Weeksville Gardens at 1625 Dean Street and Williams Plaza at 227 Division Avenue (Credit: Google Maps)

Vicki Been and Weeksville Gardens at 1625 Dean Street and Williams Plaza at 227 Division Avenue (Credit: Google Maps)

The New York City Housing Authority has tapped another development team to perform more than $350 million in repairs as part of a program that shifts public housing to private management.

On Thursday during an event held by the New York State Association for Affordable Housing, Deputy Mayor Vicki Been announced that NYCHA tapped Arker Companies, Omni Development, Dabar Development Partners and Bedford Stuyvesant Restoration Corp. to renovate 2,625 apartments across nine buildings in Brooklyn. The team will upgrade apartments and common areas at these properties and take over day-to-day management of the properties, Been said. Renovation work will include upgrades to the buildings’ elevators, security and heating systems.

The development team was selected as part of Permanent Affordability Commitment Together (PACT), a program that converts NYCHA buildings to Section 8 housing, which means the property managers receive federal subsidies in exchange for renting out units to low-income tenants. Under PACT, the development team will manage the nine buildings, but NYCHA will continue to own the buildings and land.

“The PACT program is a clear path forward for preserving affordable housing in New York City while also offering residents the quality of life they truly deserve,” Daniel Moritz, principal of the Arker Companies, said in a statement.

The joint venture will renovate 440 Berry Street, 572 Warren Street, 375 Lexington Avenue, 1625 Dean Street, 572 Warren Street, 114 Taylor Street, 227 Division Avenue, 534 Greene Avenue and 344 Clifton Place.

In November, Mayor Bill de Blasio announced that 62,000 NYCHA units would be converted to Section 8 Housing under PACT. According to NYCHA, PACT and other initiatives will cover $24 billion in the Authority’s capital needs over the next decade — or up to 75 percent of the total $31.8 billion required for repairs.

Today’s announcement marks the seventh such PACT deal inked by the city. It comes as De Blasio and the U.S. Department of Housing and Urban Development continue to search for a replacement CEO for NYCHA. In January, U.S. Housing Secretary Ben Carson appointed an independent monitor to oversee the scandal-ridden agency, following the settlement of a lawsuit that detailed vermin infestations, mold and decrepit living conditions for public housing residents.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Seth Schochet, Drew Goldsmith and 201 West 77th Street (Credit: Google Maps)

Large, low-key landlord snags UWS building for $100M+

305 East 46th Street (Credit: iStock)

Japanese firm lands $84M financing for Midtown East buy

Keller William's Ilan Bracha (left) and B+B Capital's  Haim Binstock with 575 Fifth Avenue (Credit: Getty Images, Google Maps)

Keller Williams NYC is on the sale block

Bhavana Chamoli and Michael Shah

Michael Shah’s ex arrested for assault, but DA holding off

Federal Realty Investment Trust CEO Donald C. Wood and Georgetowne Shopping Center (Credit: Google Maps)

Fairway-anchored Bergen Beach shopping center sells for $85M

arrow_forward_ios