FURMAN CENTER MOELIS INSTITUTE FOR REAL ESTATE & URBAN POLICY FOR AFFORDABLE HOUSING POLICY UNIVERSITY NEW YORK UNIVERSITY SCHOOL OF LAW • WAGNER SCHOOL OF PUBLIC SERVICE SCHOOL OF LAW • WAGNER SCHOOL OF PUBLIC SERVICE

7Should the next mayor support the Housing Authority’s plan to lease its undeveloped land for the construction of market-rate rental housing?

#NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR WWW.FURMANCENTER.ORG | @FURMANCENTERNYU 2 #NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR FURMAN NEW FOR REALESTATE&URBANPOLICY SCHOOL OFLAW•WAGNERPUBLICSERVIC Urban Policy ing/leasing-land-sites.shtml (seeLeaseLandProposals for listed developments) Furman Center for Real Estate and Source: NewYork Housing Authority. City LeaseSites. Retrieved from http://www.nyc.gov/html/nycha/html/preserv *Unit count for estimated by Furman Center basedonaverage square footage oftotal units. TABLE 1: 2 New York CityHousingandVacancy Survey, 2011. html/nycha/downloads/pdf1/pdb2013.pdf ment DataBook.Retrieved from http://www.nyc.gov/ 1 New York CityHousingAuthority. (2013).Develop however, thatthreaten thelong-term shortfalls, viability financial dire facing is agency The five8.2 percent renter of the city’s households. approximately house percentYork ofNew population City’s together which 178,911 apartments in334 developments, (NYCHA)Housing Program Public includes The NewYorkCity Housing Authority’s WHY ITMATTERS Douglass Houses Smith Houses Baruch Houses Washington Houses Meltzer Tower LaGuardia Houses Carver Houses Campos Plaza NYCHA Development YO RK UNIVERSITY Proposed NYCHA InfillDevelopment Sites CENTER Valley Chinatown Two Bridges/ Lower EastSide Lower EastSide Lower EastSide East Harlem Lower EastSide Neighborhood E TOTAL West 100thStreet West 104thStreet Manhattan Avenue R.F. Wagner Place East Houston St. East 99thSt. East 99thSt 3rd Ave & East 1stStreet Rutgers Street Madison Street East 12thStreet Site Name NYCHA Proposed 1 and - 2

MOELIS FOR AFFORDABLEHOUSINGPOLICY NEW SCHOOL OFLAW•WAGNERPUBLICSERVICE 2017.pdf loads/pdf/Five%20Year%20Capital%20Plan%202013- Retrieved from http://www.nyc.gov/html/nycha/down 22). 4 New York CityHousingAuthority. (2013,May plan-nycha.pdf from http://www.nyc.gov/html/nycha/downloads/pdf/ Plan NYCHA: ARoadmap for Preservation. 3 New York CityHousingAuthority. (2011,December). shortfall through 2017. NYCHA projectsinvestmentcapital $13 billion a 2002. in federalmillion operating assistance since of its stock. NYCHA has seen reductions of $700

Five Year Capital PlanCalendar Years 2013-2017. 330,513 3 Proposed Site Area And,ifnewrevenue is not generated, 21,164 16,107 17,784 55,134 16,941 22,493 18,953 57,649 18,798 10,038 22,109 16,716 28,256 (sq. ft.) 8,371 YO RK UNIVERSIT

INSTITUT Residential Floor Area 220,000 175,000 340,000 700,000 339,000 350,000 350,000 500,000 121,445 112,000 126,000 242,000 Proposed 90,000 (sq. ft.) 4

3,971 Residential Estimated 1,151 375* Units 794 919 276 262 97 97 E Y Retrieved 518,798 munity Facility munity Proposed Com Floor Area 500,000 18,798 (sq. ft.) n.a. n.a. n.a. n.a. n.a. n.a. -

- - 3 #NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR FURMAN NEW FOR REALESTATE&URBANPOLICY SCHOOL OFLAW•WAGNERPUBLICSERVIC units. The projects couldresulttotalin a of 3,971 three are in Manhattan Valley other and East Harlem. the and Side East Lower the in located are sites eight the of Five sites. development Table1 presents detailsontheproposed to residents ofthepublichousing. opportunities) employment as (such benefits sufficient provide not will developments the that concerned are stakeholders Some bring. developmentdensity that the additional will these developments, or because they objectto not beadequately relocated elsewhere within they fear theamenitieslostonsitesthat will should not bedevelopedeither at all, because of low-income housing.Others argue theland should beused onlythe land for additional units existing tenants andadvocates who argue that households, has beenquestioned bythe plan of the newhousing units for low-income percent 20 designates proposal the Although year. per revenue in million $30-50 generate would leases for thesites, for99-yeartypical a term, center building. NYCHA estimates groundthat recreationalcommunity and openspace,anda variety ofexistinguses—primarily parking, presently used for do housingsupport a but siteszoning changes.The sites without are not community-facilityon the be built space could limitedand a units of retail amount and housing 4,000 approximately that estimates private, mixed-income development. NYCHA for Manhattan in developments NYCHA eight proposed on 14sitesleasing theland across improvementcapital needs, its leadership has revenue to meetitslong-term projected In considering waysNYCHA that could raise buildings) andunuseddevelopmentrights. of “vacant”amount any(land without land developments on its land as well as a significant NYCHA’s assets consist of the largely residential THE BASICS YO RK UNIVERSITY CENTER E

MOELIS FOR AFFORDABLEHOUSINGPOLICY NEW SCHOOL OFLAW•WAGNERPUBLICSERVICE well. supplytakewill pressure offmarketrents as desirableneighborhoods, and theincreased many newunitsof market-rate housing in households. be permanently affordableto low-income will units new of percent 20 because increase aggregate supply ofaffordablehousing would to flows addressneeds. In addition, its capital the cash much-needed and significant proposalIts leasing would provide NYCHA units. housing public of number significant a of thefewhas notdemolished bigcitiesthat options to doso.Notably, NewYorkCity isone gaps,budget andhasalimited numberof NYCHA needs to closeitsoperatingand capital & CONSIDERATIONS QUESTIONS land-lease-initiative-pre-rfp-discussion-document.pdf http://www.nyc.gov/html/nycha/downloads/pdf/ Initiative Pre RFPDiscussionDocument. 7 New York CityHousingAuthority. nycha/html/preserving/leasing-land-faqs.shtml Questions. to Preserve PublicHousingFrequentlyportunity Asked 6 New York CityHousingAuthority. ing-land-proposal.shtml http://www.nyc.gov/html/nycha/html/preserving/leas Proposal to Preserve PublicHousing. 5 New York CityHousingAuthority. the streetscape.developments Thenew will designed to better integrate existingsites into power and resiliency features such as back-up sites (e.g.,lighting, security improvements, new infrastructure andservices to theexisting NYCHA portfolio. any proceeds canbeused elsewhere in the developments to astate of good repair before the lease proceeds to bringtheparticipating developments.NYCHA has committed to using to improvehousing nearthenew thepublic In addition, the proposal has the potential 7 ); andthenewdevelopments couldbe YO Retrieved from http://www.nyc.gov/html/ RK UNIVERSIT 5 Theproposalresultwill also in INSTITUT 6 NYCHA toalso plans add Retrieved from Land Lease Land LeaseOp Land Lease E Retrieved from Y - - 4 #NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR FURMAN NEW FOR REALESTATE&URBANPOLICY SCHOOL OFLAW•WAGNERPUBLICSERVIC 9 New York CityHousingAuthority. tive Pre RFPDiscussionDocument. 8 New York CityHousingAuthority. proposal).NYCHA’s proposal leasing presents for NYCHA,misses of the soit the point affordable,wouldthat but result in norevenue (some arguethe unitsshould be all that units should bedevoted to affordablehousing the of percent 20 than more that object Some generally. in someexisting amenities,andchangemore disruptions maycause, construction trafficthe unwanted noise, vibration, andincreased health effectsor detrimental public from housing of fearthe public inconvenience development go uparound them, theresidents like many people around thecityseeingnew Further, liking. their to be not will amenities promisesthat won’tthe new kept,be or that oppose new development becausethey fear is available.land (likeamenities lost gardenswhere orseating) also replacepermit-holders, will and other to replaceparking all for existing resident for residents andemployees. NYCHA plans and others), such asopen space andparking to neighborshousing residents (thepublic brought development of absence the benefits developments may take away some of the Likeconstruction, theproposednew all other criticshave raisednumber of concerns. a On theother hand, some NYCHA residents and public housing. activity andwider retail offerings near the new residents alsomay attract more economic with developers. resident hiringpreferences when contracting NYCHA residents, forand NYCHA hascommitted to jobs additional bring could they Further, increase theeconomicdiversity oftheblocks. YO RK UNIVERSITY CENTER furmancenter.org 8 9 The purchasing power of the But existing residents often residents existing But E Lease Sites. Land LeaseInitia -

MOELIS FOR AFFORDABLEHOUSINGPOLICY NEW SCHOOL OFLAW•WAGNERPUBLICSERVICE and preserve this critical source of affordable to address NYCHA’s longtermneeds capital and thecitymustthinkcreativelyhow about proposal, thereNYCHAquestion that is little movesit Whether ornot forwardthis with it was when they moved in. developmentof neighboring areasthe level at throughout thecity, have noright to freeze residents, like other owners andrenters NYCHA that argue others But city. the across and losses NYCHAof open spaceat properties mightcomparablemean increases indensity sector encroachmentonto NYCHAthat land of trenda resultwill that wider private-in a start the is this that worry also Residents revenue for NYCHA. housing inthedevelopments would meanless tradeoff—creatingimplicit an more affordable and improve theagingNYCHA stock. and deficit operating providebudget adequate a capital to maintain its reduce to order in both decrease costs and increase revenues howabout theyto plan work with NYCHA to the candidates should be asked for details generally, More limits. proposed any through how they would make up therevenues lost wantto make to NYCHA’s proposal, andexplain specifics about what changes, if any, they would housing. The mayoralcandidates shouldoffer YO RK UNIVERSIT INSTITUT E Y