Related, Essence Get Court Nod for NYCHA Chelsea Redev

Demolition and redevelopment at the current site of Elliott-Chelsea and Fulton Houses will move forward after a state appellate court ruling lifted a pause on the Related Companies and Essence Development-led project.

The New York City Housing Authority, which partnered with private developers for the $2 billion overhaul of the sites in Chelsea, is prepared to begin re-engaging residents who remain in their units at the Fulton 11 and Chelsea Addition buildings with the goal of relocating them to make the buildings fully vacant for demolition and construction of new homes for the residents, according to an agency statement

“This is a meaningful milestone for the Fulton and Elliott-Chelsea redevelopment, which will deliver brand-new apartments for thousands of NYCHA tenants along with much-needed new housing for more New Yorkers,” Deputy Mayor for Housing and Planning Leila Bozorg said in a statement. “I’m happy that work can continue on this important project and look forward to working with residents, NYCHA, and local leaders to meet our housing goals.”

The planned redevelopment aims to preserve affordability using the Permanent Affordability Commitment Together program replacing all 2,056 existing NYCHA units with new apartments for those tenants.

The developers also plan to build retail and commercial space, along with 3,454 additional mixed-income apartments at the site, with 1,038 of those units set aside at affordable rates. The new developments, set for completion in approximately three years, will total up to 5,510 units, with up to 3,094 of those being permanently affordable.

The project also seeks to preserve permanently affordable rent and protections for existing NYCHA residents, but opponents of the plan sued to block the project entirely, arguing that senior residents would be displaced against their will and that private developers weren’t legally permitted to control city public housing property.

An appellate panel wasn’t swayed by the group’s arguments against the redevelopment and lifted the stay on demolition and new construction Thursday. An attorney representing opponents of the project didn’t immediately respond to a request for comment.

“The project and engagement process will now resume as we work to deliver the new units, improved amenities, and state-of-the-art community spaces that NYCHA residents deserve,” NYCHA Chief Executive Officer Lisa Bova-Hiatt said in a statement.

Related and Essence didn’t immediately respond to requests for comment.