NYCHA’S LUXURY HOUSING DEVELOPMENT PLAN 8 SITES IN MANHATTAN Overview of NYCHA’s Plan • Lease NYCHA land to developers for 99 years to generate $30 - $50 million per year in income. • Develop over 4,000 units of 80/20 (80% luxury, 20% low income) housing on 8 sites in Manhattan. • 5 of the 8 sites are on the Lower East Side, totaling 2,026 apartments. • The sites include Smith Houses, Baruch Houses, Campos Plaza, La Guardia Houses, and Meltzer Tower. What NYCHA is Promising • The low income housing will be affordable to households at 60% of area median income. • Preference to NYCHA residents for new Low Income Housing. • Low income housing will be permanently affordable. • No current residents will be displaced. • New development will not result in rent increases for NYCHA residents. What NYCHA is Promising • NYCHA would remain the landlord of the new buildings. • All parking spaces lost to development will be replaced for current permit holders. • Gardens and seating areas will be replaced where space is available. • New buildings will be along street fronts to encourage pedestrian traffic. Why is NYCHA Doing This? • NYCHA has $13.4 billion in unmet capital improvement needs. • NYCHA has a $50 - $60 million annual deficit, and this plan aims to generate $30 to $50 million annually in revenue from the land leases. • NYCHA owns 179,000 apartments in 2,600 buildings in NYC, and houses 630,000 people, and they are facing federal budget cuts. Overview of the 5 Sites on the Lower East Side Smith Houses has 1,931 apartments near Catherine St. and South St. Smith Houses: 1,151 New Apartments Proposed Has a $227 million unmet capital improvement need over the next 5 years. 2 Proposed Development Sites: 1 at South Street and 1 at Robert Wagner Place. Total of 1,065,000 sq. ft. of new housing, which is more than Seward Park. Baruch Houses has 2,193 apartments at Houston St. near FDR Drive Baruch Houses: 405 New Apartments - NYCHA claims it has a $264 million unmet capital improvement need over the next 5 years. - Benefits claimed by NYCHA: Emergency power generation, temp and permanent jobs, enhanced security. LaGuardia Houses has 1,093 apartments at Madison & Rutgers St. LaGuardia: 276 New Apartments Has a $79 million unmet capital improvement need over the next 5 years. 1 Proposed Development Site at Madison St. (9,000 sq. ft.), and 1 site at Rutgers St. (7,500 sq. ft.). Benefits: Same for all the sites – Power generation, jobs, enhanced security. Meltzer Tower has 230 apartments at 1st St. between 1st Ave. & Ave. A • Meltzer Tower Park Meltzer Tower: 97 New Apartments Meltzer Tower: 97 New Units - Has a $10.5 million unmet capital improvement need over the next 5 years. - 1 Proposed Development Site at 1st St. near 1st Ave. (13,500 sq. ft.). - Elimination of a park. - Benefits claimed: Same for all the sites – Power generation, jobs, enhanced security. Campos Plaza I & II has 494 Apartments at 12th St. Btwn Ave. B & C Campos Plaza I & II: 97 New Apartments - Has a $27.2 million unmet capital improvement need over the next 5 years. - 1 Proposed Development Site fronting on 12th St. near Ave. B. (26,122 sq. ft.). - Benefits claimed by NYCHA: Redesigned smaller central plaza, emergency power generation, temp and permanent jobs, enhanced security. The Public Housing Law Section 18 Development Process is Subject to Section 18 of the Public Housing Law • Section 18 deals with “disposition of public housing” • NYCHA can “dispose” of – lease or sell – its land, if… • “It is determined to be in the best interests of residents because it will allow for building repairs, etc…” Section 18 (Continued) • It is within the goals of the public housing agency. • The land being “disposed” of is considered incidental to the housing - that selling/leasing it will not interfere with NYCHA’s ability to operate housing. Section 18 Process: - In order to lease the land, NYCHA must apply to HUD. - If HUD does not sign off on the disposition, NYCHA cannot proceed with the lease. - HUD may disapprove a request if the proposal was not developed in consultation with the residents who will be affected. Section 18 – The Timeline NYCHA - prepares development specs (Now) - releases RFP to developers (imminent) - reviews the responses from developers (this will take months) - submits a Section 18 disposition proposal to the NYCHA Board (To be determined - TBD) - NYCHA Board approval (TBD) Section 18 Timeline • NYCHA - Releases a draft of its Annual Plan (May) - Holds a public hearing on the plan (June) - Submits Final Annual Plan to HUD (October) - Submits Section 18 proposal to HUD (TBD) - HUD reviews and approves annual plan (December) - HUD decision on Section 18 proposal (December) Community Impacts: Decline in Quality of Life Loss of Open Space (Playgrounds, Parking, Etc…) Increased Police Presence, Loss of Political Representation Community Impacts: Strain on Infrastructure - Loss of street parking - Traffic congestion - Strain on aging sewer system - Strain on electrical grid - School Overcrowding Community Impacts: Socio-Economic Changes - Market rate housing changes character of the community - Escalating rents in surrounding area displaces tenants - Rising rents for local retailers, loss of affordable mom & pop stores, loss of retail diversity Smith Houses’ Position • “We do not want any new building or buildings built on Smith Houses property, but we do want repairs done which are well over due.” Alfred E. Smith Residents Association Plan of Action • Coalitions are mobilizing against the plan. • Good Old Lower East Side and the Urban Justice Center are opposed to the plan and are preparing to file a lawsuit. • Cooper Square Committee’s Board recommends that our members oppose the plan, and that we support the efforts of groups fighting the plan. What You Can Do • Support your friends and neighbors in the NYCHA buildings, and protect your own interests. This plan will affect EVERYONE! Luxury development will push up rents EVERYWHERE in our community, including yours whether you are rent stabilized or not.