search

The Real Deal Logo

Trending

WeWork announces deal to exit bankruptcy, avoid takeover by Adam NeumannWeWork announces deal to exit bankruptcy, avoid takeover by Adam Neumann99 Cents closures to open 3.8M sf of retail opportunities in SoCal 99 Cents closures to open 3.8M sf of retail opportunities in SoCal Explosion, fire at Related’s Casamar sales galleryExplosion, fire at Related’s Casamar sales galleryHearn, GEM face $275M Loop office foreclosureHearn, GEM face $275M Loop office foreclosure
Commercial
New York

Private housing could be coming to NYCHA’s Fulton Houses in Chelsea

City is considering demolishing 2 smaller buildings and replacing them with a larger one

Chelsea's Fulton Houses and Mayor Bill de Blasio (Credit: NYCHA Redux via Parsons the New School for Design and Getty Images)
Chelsea's Fulton Houses at 119 9th Avenue and Mayor Bill de Blasio (Credit: NYCHA Redux via Parsons the New School for Design and Getty Images)

Mayor Bill de Blasio’s administration is considering partnering with private developers to tear down and rebuild some New York City Housing Authority properties.

Officials want to take this approach at Chelsea’s Fulton Houses, as they believe the land there is valuable enough to net them a profit that would fund capital needs at the complex, where repairs are expected to cost $168 million over five years, according to Politico.

Under the plan, workers would demolish two smaller buildings at Fulton and replace them with a larger one. The city would construct two new buildings on a parking lot in the complex and relocate residents there.

Sign Up for the undefined Newsletter

The new larger building would be split between 70 percent market-rate units and 30 percent affordable ones.

The project is part of the federal Rental Assistance Demonstration program, which moves complexes into the Section 8 program. De Blasio said in November that the city plans to use this program to repair 62,000 NYCHA apartments over 10 years.

Local elected officials had mixed feelings about the plan. Council Speaker Corey Johnson has seemed open to the idea, but state Sen. Brad Hoylman told Politico he was “very concerned about the movement toward privatization in New York City’s public housing stock.”

“The success of this approach is really dependent on the continued strength of the housing market,” he said. “What happens if a developer goes belly up?” [Politico] – Eddie Small

Tags
Bill De BlasioDevelopmentNYCHA