NYCHA aims to raise $3B by selling land and air rights to developers

The New York City Housing Authority plans to sell air rights and open some land to private development in order to raise money for repairs.

NYCHA aims to raise $3 billion through the plan, the Wall Street Journal reported. It’s part of Mayor Bill de Blasio’s $24 billion plan to help the authority upgrade its 170,000 apartments. NYCHA will need an estimated $32 billion in repairs over the next five years, the report said.

Deputy Mayor Alicia Glen said the exact development sites and air-rights sales haven’t yet been chosen. NYCHA will move forward with one or two sites next year with mixed-income housing projects.

Last month, NYCHA announced it would bring in private developers to manage about a third of its apartments — a move that is projected to reap $12.8 billion. But the mayor emphasized that NYCHA is not being privatized. It will still maintain ownership over all its land and buildings.

Deteriorating conditions in the city’s public housing prompted a federal investigation into health and safety concerns. A report last month said NYCHA is considering splitting up into five agencies—one per borough—to try making its challenges more manageable. It is among several options being discussed as city officials and federal prosecutors try create a deal that will please a federal judge who has rejected their plans for reform so far. [WSJ] — Meenal Vamburkar