Monadnock, others to lead $500M renovation of Manhattan NYCHA properties

The partnership, as part of a program that converts NYCHA buildings to Section 8 housing, will see the installation of new kitchens, bathrooms and flooring

New York /
Jun.June 21, 2019 03:57 PM
Manhattanville (Credit: Wikipedia)

Manhattanville (Credit: Wikipedia)

The city’s public housing agency has selected a group of real estate firms to execute a $500 million renovation of 16 Manhattan buildings.

The effort, which the New York City Housing Authority said will affect almost 3,000 of its residents in 1,700 apartments, will involve the installation of new kitchens, bathrooms, flooring, replace heating systems and conduct a full elevator rehab in each of the selected buildings.

The joint venture involves six development firms and organizations that were selected as part of Permanent Affordability Commitment Together (PACT), a program that converts NYCHA buildings to Section 8 housing. Under Section 8, which is a program within the federal Department of Housing and Urban Development, property managers receive federal subsidies in exchange for renting out units to low-income tenants.

For the most recent transaction, valued at $516 million, the agency said it would partner with the Community Preservation Corporation, Community Development Trust, Monadnock Development LLC, Lemor Development Group, Kalel Holdings LLC and the Community League of the Heights.

Monadnock and Kalel were among the firms that worked on NYC Housing Preservation Development’s Hope of East Fifth renovation project in East Harlem, which consists of 39 buildings and 506 units.

Under PACT, the development teams manage the public housing buildings, while NYCHA will continue to own the buildings and land.

Last month, NYCHA announced another list of development firms and organizations that it would partner with to revamp 2,625 public housing units in Brooklyn at a total cost of $350 million. The agency has announced six other PACT transactions across the city.

The selected public housing facilities include 335 East 111th Street, Park Avenue East 122nd and 123rd Streets, Manhattanville, Public School 139, Frederick E Samuel’s I, II and III, Fort Washington Avenue Rehab, Grampion, Washington Heights Rehab, Wise Towers and 344 East 28th Street.

The much-needed upgrades come as the city agency attempts to reinvent itself under its “NYCHA 2.0” initiative. Earlier this year, a federal monitor was appointed to oversee the progress of the agency’s overhaul.

It said the PACT program is part of $24 billion in capital the agency needs over the next decade to improve the state of the city’s public housing. The state of the agency’s elevators was also brought to attention following a report by The Real Deal that documented incident rate five times greater than that of other elevators in the city.

However, the agency’s revamp is not without its hurdles. This week, the city drew criticism after appointing a new agency leader, Gregory Russ, who would be the highest paid ever with a $400,000 annual salary, while he split his time between Minnesota, where he currently lives, and New York.


Related Articles

arrow_forward_ios
Gregory Russ and Mayor Eric Adams (Getty)
Adams ousts NYCHA chief after arsenic scare
Adams ousts NYCHA chief after arsenic scare
314 Wilson Avenue in Bushwick, Pennrose Holdings' Mark Dambly (Pennrose Holdings, Hope Gardens)
Pennrose, Acacia land $117M Freddie Mac loan in Bushwick
Pennrose, Acacia land $117M Freddie Mac loan in Bushwick
From left: U.S. Assemblymember Thomas Suozzi, Governor of New York Kathy Hochul, and New York City Public Advocate Jumaane Williams (Getty Images, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Hochul challengers bang pro-tenant drum before primary election
Hochul challengers bang pro-tenant drum before primary election
Mayor Eric Adams and Kramer Levin's Valerie Campbell (iStock, Getty Images, Kramer Levin)
Mayor outlines sweeping rezoning plan
Mayor outlines sweeping rezoning plan
NYCHA Chair Greg Russ (NYCHA, iStock)
NYCHA sent thousands of false Section 8 termination notices
NYCHA sent thousands of false Section 8 termination notices
Eric Adams, mayor of New York City (Getty Images, iStock)
Adams pledges extra $5B in affordable housing funds
Adams pledges extra $5B in affordable housing funds
Gov. Kathy Hochul and Eliot Spitzer (Getty)
Watch: Eliot Spitzer’s advice for Kathy Hochul
Watch: Eliot Spitzer’s advice for Kathy Hochul
(Nelligan White Architects, Emporis, LoopNet, iStock/Photo Illustration by Steven Dilakian for The Real Deal)
Affordable housing tops outer-borough loans with $1.4B for NYCHA upgrades
Affordable housing tops outer-borough loans with $1.4B for NYCHA upgrades
arrow_forward_ios

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

Loading...