7Should the Next Mayor Support the New York City Housing Authority's

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7Should the Next Mayor Support the New York City Housing Authority's FURMAN CENTER MOELIS INSTITUTE FOR REAL ESTATE & URBAN POLICY FOR AFFORDABLE HOUSING POLICY NEW YORK 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 New York City 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 FURMAN CENTER MOELIS INSTITUTE FOR REAL ESTATE & URBAN POLICY FOR AFFORDABLE HOUSING POLICY WHY IT MATTERS million in federal operating assistance since NEWThe YO NewRK UNIVERSITYYork City Housing Authority’s NEW YORK UNIVERSITY SCHOOL OF LAW • WAGNER SCHOOL OF PUBLIC SERVICE SCHOOLof its OFstock.3 LAWAnd, • WAGNERNYCHA if new SCHOOL has revenue OF seen PUBLIC reductions SERVICEis not generated, of $700 (NYCHA) Public Housing Program includes NYCHA projects a $13 billion capital investment 178,911 apartments in 334 developments, 2002. 4 percent of New York City’s population1 and shortfall through 2017. 8.2which percent together of the house city’s renterapproximately households. five2 however, that threaten the long-term viability Plan NYCHA: A Roadmap for Preservation. The agency is facing dire financial shortfalls, 3 New York City Housing Authority. (2011, December). plan-nycha.pdf Retrieved from http://www.nyc.gov/html/nycha/downloads/pdf/ - 22). Five Year Capital Plan Calendar Years 2013-2017. 1 New York City Housing Authority. (2013). Develop 4 New York City Housing Authority. (2013, May - ment Data Book. Retrieved from http://www.nyc.gov/ html/nycha/downloads/pdf1/pdb2013.pdf Retrieved from http://www.nyc.gov/html/nycha/down loads/pdf/Five%20Year%20Capital%20Plan%202013- 2 New York City Housing and Vacancy Survey, 2011. 2017.pdf TABLE 1: Proposed NYCHA Infill Development Sites Proposed Proposed Com- Proposed Residential Estimated munity Facility NYCHA Proposed Site Area Floor Area Residential Floor Area NYCHA Development Neighborhood Site Name (sq. ft.) (sq. ft.) Units (sq. ft.) Campos Plaza 28,256 97 n.a. Lower East Side East 12th Street 90,000 16,716 Carver Houses East Harlem 262 Park Avenue Madison Avenue 242,000 500,000 22,109 LaGuardia Houses 276 n.a. 8,371 Madison Street 10,038 126,000 Lower East Side Rutgers Street 112,000 18,798 121,445 97 18,798 Meltzer Tower Lower East Side 3rdEast Ave 1st &Street 57,649 Washington Houses East Harlem 919 n.a. 18,953 500,000 East 99th St 350,000 East 99th St. 22,493 375* n.a. Baruch Houses Lower East Side East Houston St. 350,000 16,941 1,151 n.a. Chinatown 55,134 Two Bridges/ R.F. Wagner Place 339,000 Smith Houses South Street 17,784 700,000 794 n.a. Manhattan Avenue 340,000 Manhattan 21,164 Douglass Houses West 104th Street 16,107 175,000 Valley WestTOTAL 100th Street 330,513 220,000 3,971 518,798 *Unit count for Baruch Houses estimated by Furman Center based on average square footage of total units. Source: New York City Housing Authority. Lease Sites. Retrieved from http://www.nyc.gov/html/nycha/html/preserv- ing/leasing-land-sites.shtml (see Lease Land Proposals for listed developments) Furman Center for Real Estate and #NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR Urban Policy 2 FURMAN CENTER MOELIS INSTITUTE FOR THEREAL ESTATE BASICS & URBAN POLICY FORQUESTIONS AFFORDABLE HOUSING POLICY NEWNYCHA’s YORK assets UNIVERSITY consist of the largely residential NEW YORK UNIVERSITY SCHOOL OF LAW • WAGNER SCHOOL OF PUBLIC SERVICE SCHOOL& CONSIDERATIONS OF LAW • WAGNER SCHOOL OF PUBLIC SERVICE amount of “vacant” land (land without any NYCHA needs to close its operating and capital buildings)developments and on unused its land asdevelopment well as a significant rights. budget gaps, and has a limited number of In considering ways that NYCHA could raise options to do so. Notably, New York City is one revenue to meet its long-term projected of the few big cities that has not demolished capital improvement needs, its leadership has proposed leasing the land on 14 sites across Its leasing proposal would provide NYCHA a significant number of public housing units. private, mixed-income development. NYCHA address its capital needs. In addition, the eight NYCHA developments in Manhattan for aggregatesignificant supplyand much-needed of affordable housingcash flows would to units and a limited amount of retail and community-facilityestimates that approximately space could 4,000be built housing on the be permanently affordable to low-income increase because5 20 percent of new units will sites without zoning changes. The sites are not households. The proposal also will result in presently used for housing but do support a many new units of market-rate housing in variety of existing uses—primarily parking, desirable neighborhoods, and the increased recreational and open space, and a community supply will take pressure off market rents as center building. NYCHA estimates that ground well. leases for the sites, for a typical 99-year term, In addition, the proposal has the potential year. to improve the public housing near the new would generate $30-50 million in revenue per developments. NYCHA has committed to using the lease proceeds to bring the participating of the new housing units for low-income developments to a state of good repair before households,Although the the proposal plan has designates been questioned 20 percent by any proceeds can be used elsewhere in the 6 existing tenants and advocates who argue that NYCHA portfolio. NYCHA also plans to add the land should be used only for additional units new infrastructure and services to the existing of low-income housing. Others argue the land sites (e.g., lighting, security improvements, should not be developed at all, either because and resiliency features such as back-up 7 they fear that the amenities lost on the sites will power ); and the new developments could be not be adequately relocated elsewhere within designed to better integrate existing sites into these developments, or because they object to the streetscape. The new developments will the additional density that development will bring. Some stakeholders are concerned that Land Lease the developments will not provide sufficient Proposal to Preserve Public Housing. to residents of the public housing. 5 New York City Housing Authority. - benefits (such as employment opportunities) ing-land-proposal.shtml Retrieved from Table 1 presents details on the proposed http://www.nyc.gov/html/nycha/html/preserving/leas Land Lease Op- portunity to Preserve Public Housing Frequently Asked Questions.6 New York City Housing Authority. development sites. Five of the eight sites are Thelocated projects in the could Lower result East inSide a totaland theof 3,971other Retrieved from http://www.nyc.gov/html/ units.three are in Manhattan Valley and East Harlem. nycha/html/preserving/leasing-land-faqs.shtmlLand Lease Initiative Pre RFP Discussion Document. 7 New York City Housing Authority. land-lease-initiative-pre-rfp-discussion-document.pdf Retrieved from http://www.nyc.gov/html/nycha/downloads/pdf/ #NYChousing | 10 ISSUES FOR NYC’S NEXT MAYOR 3 FURMAN CENTER MOELIS INSTITUTE FOR increaseREAL ESTATE the &economic URBAN POLICY diversity of the blocks. FORan implicit AFFORDABLE tradeoff—creating HOUSING POLICY more affordable NEW YORK UNIVERSITY NEWhousing YO in theRK developments UNIVERSIT wouldY mean less SCHOOLNYCHA OF LAW • WAGNER residents, SCHOOL OFand PUBLIC NYCHA SERVICE has committed to SCHOOLrevenue OF LAW for • WAGNER NYCHA. SCHOOL OF PUBLIC SERVICE residentFurther, theyhiring could preferences bring additional when contracting jobs for with developers.8 The purchasing power of the new residents also may attract more economic a trend that will result in a wider private- activity and wider retail offerings near the sectorResidents encroachment also worry thatonto thisNYCHA is the land start that of public housing. might mean comparable increases in density and losses of open space at NYCHA properties On the other hand, some NYCHA residents and other critics have raised a number of concerns. residents, like other owners and renters Like all new construction, the proposed throughoutacross the city.the Butcity, others have noargue right that to NYCHAfreeze developments may take away some of the development of neighboring areas at the level it was when they moved in. to neighbors (the public housing residents andbenefits others), the absencesuch as openof development space and broughtparking Whether or not it moves forward with this for residents and employees. NYCHA plans proposal, there is little question that NYCHA to replace all parking for existing resident and the city must think creatively about how permit-holders, and will also replace other to address NYCHA’s long term capital needs lost amenities (like gardens or seating) where and preserve this critical source of affordable land is available.9 housing. The mayoral candidates should offer oppose new development because they fear that promises won’t But be existing kept, or residents that the often new want to make to NYCHA’s proposal, and explain howspecifics they about would what make changes, up the if any, revenues they would lost like many people around the city seeing new developmentamenities will go not up bearound to their them, liking. the residents Further, the candidates should be asked for details of the public housing fear inconvenience aboutthrough how any they proposed plan to limits. work Morewith NYCHAgenerally, to or detrimental public health effects from both decrease costs and increase revenues unwanted noise, vibration, and increased provide a capital budget adequate to maintain in some existing amenities, and change more andin order improve to reducethe aging its NYCHA operating stock. deficit and generally.traffic the construction may cause, disruptions units should be devoted to affordable housing (someSome object argue that that more all thanthe 20units percent should of thebe affordable, but that would result in no revenue for NYCHA, so it misses the point of the proposal).
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