Fulton-Elliott-Chels

To Implement a Community-Driven REQUEST FOR Preservation and Investment Strategy for PROPOSALS Fulton and Elliott-Chelsea Houses

EVENT DATE TIME

RFP Release April 23, 2021 12 pm

Pre-Submission Conference May 5, 2021 12 pm

Questions Due May 11, 2021 2 pm Answers Due May 18, 2021

Second Pre-Submission Conference May 19, 2021 12 pm

Questions Due- 2nd Round May 26, 2021 2 pm

Answers Due- 2nd Round June 3, 2021

Site Visit Week June 7, 2021 TBD

Potential Third Pre-Submission Conference TBD 12 pm Submissions Due August 11, 2021 2 pm

Interested? Want to learn more? For more information attend a Pre-Submission Conference on May 5th or 19th. Questions should be submitted via email to [email protected] by the deadlines listed above.

Bill de Blasio, Mayor Vicki Been, Deputy Mayor for Housing and Economic Development Gregory Russ, NYCHA Chair & CEO Vito Mustaciuolo, NYCHA General Manager

Table of Contents I. INTRODUCTION ...... 5 II. DEFINITIONS ...... 7 III. PROJECT SUMMARY ...... 12 A. PACT COMPONENT ...... 12 B. Other Strategies to Fund Repairs ...... 14 Design Guidelines ...... 15 Fulton Houses New Construction Opportunities ...... 16 Elliott-Chelsea New Construction Opportunities...... 16 Housing Affordability ...... 17 Section 18 Disposition ...... 18 Land Use Approvals ...... 18 IV. PROJECT REQUIREMENTS ...... 19 A. General Requirements ...... 19 B. PACT Social Services and Social Service-Related Requirements ...... 34 C. Energy, Health and Sustainability Requirements ...... 38 D. Ownership and Control ...... 42 E. Project Financing and Fee Requirements ...... 42 F. Project Labor and Employment Provisions ...... 50 G. Equal Opportunity ...... 52 V. PROCUREMENT PROCESS ...... 53 A. Procurement Structure ...... 53 B. Pre-Submission Conferences and Site Visits ...... 54 C. Questions ...... 54 D. Submission Due Date ...... 55 E. Development Information ...... 55 VI. APPLICANT SELECTION CRITERIA & PROCESS ...... 56 A. Review Process ...... 56 B. Threshold Requirements ...... 57 C. Technical Selection Criteria ...... 57 D. Competitive Selection Criteria ...... 60 E. Project Team Interviews ...... 62 2

F. Selection ...... 63 VII. SUBMISSION REQUIREMENTS ...... 64 A. Proposal Submission ...... 64 B. Contents of Proposal and Tabbing ...... 66 VIII. CONDITIONS, TERMS, AND LIMITATIONS ...... 74 IX. CONFLICTS OF INTEREST...... 78 X. CONFIDENTIALITY ...... 79 XI. INVESTIGATIONS AND TERMINATION ...... 80 XII. NEW YORK LAW...... 82 XIII. DISCLAIMER ...... 83

EXHIBIT LIST

Exhibit A: PACT Rehabilitation Scope of Work Exhibit B: Property Profiles1 and Existing Providers Exhibit C: Underwriting Guidelines and Rental Pro Forma Template Exhibit D: Insurance Requirements Guide Exhibit E: Guidelines for COVID-19 Reopening Exhibit F: PACT Waste Management Handover Guide Exhibit G: Applicant Forms Exhibit H: Resident Rights in the RAD Notice Exhibit I: NYC RAD Roundtable Guiding Principles Exhibit J: NYCHA Grievance Procedures Exhibit K: Enterprise Green Communities NYC Overlay – NYCHA Specific Requirements Exhibit L: Lead Procedures and Requirements Exhibit M: Mold Procedures and Requirements Exhibit N: Resident & Community Engagement Guidelines Exhibit O: Asset Management and Construction Reporting Requirements Exhibit P: Housing Retention Guidelines Exhibit Q: Section 3 Hiring Form Exhibit R: Management Questionnaire Exhibit S: Chelsea NYCHA Working Group Report

1 Drawings and other info provided are to be used solely for the purposes of responding to this RFP.

I. INTRODUCTION

The Chelsea NYCHA Working Group (“Working Group”) was established in October 2019 to research, evaluate, and recommend strategies to address the capital needs of the four Chelsea neighborhood NYCHA developments – Fulton, Chelsea, Chelsea Addition, and Elliott Houses (each a “Property”, collectively, the “Properties”) – which together comprise 2,073 apartments. The Working Group was made up of a group of residents, elected officials and staff, Community Board 4 members, NYCHA and Mayor’s office staff, and affordable housing and legal advocates.

The Working Group met almost weekly from the fall of 2019 until the start of the pandemic and restarted regular meetings in the fall of 2020. The Working Group’s Report was released in February 2021 and outlined recommendations within three categories:

1. Capital Finance – to address the full capital needs of the Properties; 2. Residents’ Rights and Protections – to safeguard and expand resident rights and protections for existing and future residents of the Chelsea NYCHA developments; and 3. Resident Engagement – to establish clear, consistent, and accountable resident engagement processes to be used throughout the renovation process and beyond.

This RFP is guided by the recommendations in the Working Group Report and was created in collaboration with residents from Fulton, Chelsea, Chelsea Addition, and Elliott Houses. Applicants are encouraged to read the Working Group Report closely and consider how their Proposals respond to each of the Working Group’s recommendations.2

The capital financing recommendations included in the Working Group’s Report included Permanent Affordability Commitment Together (“PACT”) and other revenue-generating strategies, including the new construction of mixed-income residential buildings. The report also recommended that: no demolition of existing residential buildings be part of any redevelopment scheme; the scale of residential development should balance maximizing revenue for capital renovations while respecting the NYCHA development and neighborhood context; and any residential development should provide a range of additional affordable units while minimizing market rate units.

2 The Working Group Report is included as Exhibit S and can also be found here: https://www1.nyc.gov/assets/nycha/downloads/pdf/Chelsea-NYCHA-WG-Report-Final.pdf

Some of the major residents’ rights and protections recommendations included: capping rents at no more than 30% of income or the contract rent, limiting non-rent fees and charges, creating a process for residents to review future proposed changes, and increasing legal protections for residents whose homes are converted through the PACT program.

Lastly, the report stressed the need for NYCHA residents to continue being consistently and meaningfully be engaged throughout the development process by NYCHA and the Designated Project Team, including during the drafting of the RFP and in the Applicant selection process. The Designated Project Team will be expected to craft and implement a robust and inclusive resident engagement strategy that builds on the success of the Working Group process.

NYCHA is seeking proposals (collectively, the “Proposals”, each, a “Proposal”) in response to this Request for Proposals (inclusive of all appendices attached hereto, this “RFP”) from Applicants to effectuate comprehensive repairs at all of the Properties. Applicants should form Project Teams consisting of at least one Developer, General Contractor, and Property Manager.

Per the Working Group’s PACT recommendation, Project Teams will be required to complete comprehensive tenant-in-place rehabilitation (and financing thereof), on-going property management, and conversion of the Properties from the public housing program under Section 9 of the U.S. Housing Act of 1937, as amended (the “The Housing Act”) to a voucher platform under Section 8 of the Act pursuant to RAD and Section 18 (the “PACT Component”). To further bolster the financial feasibility of the conversion to Section 8 and to create new housing, community programming, and commercial opportunities, Applicants may include newly constructed buildings and/or retail conversions in their Proposals at locations identified by the Working Group. In all cases, Applicants must submit a cohesive and integrated plan for each of the Properties and the Project as a whole.

II. DEFINITIONS

All terms, unless defined otherwise in this RFP, are as defined in the RAD Notice (linked in its Definition term below). Terms not defined elsewhere are defined as follows:

APPLICANT An individual, partnership, limited liability company, corporation, joint venture, or other entity that submits a Proposal in response to this RFP.

AREA MEDIAN INCOME (“AMI”) Area Median Income shall mean the median income levels as modified by household size for the New York metropolitan statistical area as determined by HUD (as defined below). For 2020, 100% of the AMI is $113,700 for a family of four, and $79,600 for an individual, in the New York City Metropolitan Statistical Area.

CONDITIONAL DESIGNATION LETTER The preliminary agreement NYCHA will execute with the Designated Project Team to govern the negotiation of the terms for the Project.

DEP New York City Department of Environmental Protection.

DESIGNATED PROJECT TEAM Applicant that has been designated to commence negotiations with NYCHA.

DEVELOPER The person(s), entity, or entities selected by NYCHA to commence negotiations regarding the Project offered through this RFP.

DHCR The New York State Department of Homes & Community Renewal.

DOB The New York City Department of Buildings.

DOI The New York City Department of Investigation.

GROUND LEASE A ground lease between NYCHA and the Developer or its affiliate with a term of 99 years.

HDC New York City Housing Development Corporation.

HFA New York State Housing Finance Agency.

HPD New York City Department of Housing Preservation and Development.

THE HOUSING ACT The United States Housing Act of 1937, as amended.

HUD United States Department of Housing and Urban Development

HUD OBSOLESCENCE REQUIREMENT FOR SECTION 18 In order to qualify, the cost estimate of addressing the immediate capital repair needs must be equal to or greater than 57.14% of the Total Development Cost (“TDC”) for non-elevator buildings, and/or equal to or greater than 62.5% of the TDC for elevator buildings (“Obsolescence”). More information about HUD’s TDC calculations, including procedures HUD uses for establishing TDC limits and procedures for the annual posting of TDC limits on HUD's webpages, can be found in PIH Notice 2011-38. See also PIH Notice 2021-07, HUD's TDC Limits Workbook and TDC costs limits from 2020.

HUD OBSOLESCENCE REPORT A HUD approved third-party report detailing the immediate (3-year) capital repair needs of a development’s existing components.

PACT COMPONENT The financing, tenant-in-place rehabilitation, property management, and social services delivery in relation to the conversion of Properties from administration pursuant to Section 9 of the Act to Section 8 of the Housing Act (as may be implemented through a combination of RAD and Section 18) comprising a single transaction.

PACT REHABILITATION SCOPE OF WORK The Applicant’s proposal to the Properties that must address the 20-year capital needs of the Properties as determined by the NYCHA PNA, which is detailed in Exhibit A, PACT Rehabilitation Scope of Work. NYCHA is currently performing further site due diligence to understand if campuses meet the federal obsolescence criteria, and therefore are eligible for conversion to Section 8 through the Section 18 process. NYCHA will also provide a RAD Capital

Needs Assessment (defined below) following the issuance of this RFP to supplement this analysis.

PILOT AGREEMENT The agreement between the City of New York (the “City”) and NYCHA for payment in lieu of taxes (“PILOT”) on the Properties.

PHYSICAL NEEDS ASSESSMENT (“PNA”) A technical report commissioned by NYCHA detailing the physical needs of a public housing development following a HUD-specified methodology. This report analyzes the annual physical needs over twenty (20) years; NYCHA focuses on the five (5) year and twenty (20) year physical needs to inform the appropriate rehabilitation scope of work for all PACT conversions. The 2017 NYCHA PNAs for the Properties are available at: https://www1.nyc.gov/assets/nycha/downloads/pdf/2017%20PNA_Development.pdf.

The 20-year physical needs for each Property as identified in the NYCHA PNA is the basis for the detailed PACT Rehabilitation Scope of Work items included as Exhibit A.

PRINCIPAL An individual, partnership, limited liability company, limited liability partnership, corporation, or other not-for-profit or for-profit entity that will act as the general partner, officer, manager, and/or managing member of the Applicant, or any entity, limited partner, shareholder, or other member that has at least a 10% ownership interest in the Applicant.

PROJECT The undertaking that is the subject of this Request for Proposals, involving a combination of PACT and new construction strategies and other development and financing strategies.

PROPERTIES NYCHA’s public housing developments comprising the Project for the purposes of this RFP.

RENTAL ASSISTANCE DEMONSTRATION (“RAD”) The HUD Rental Assistance Demonstration program authorized by the Consolidated and Further Continuing Appropriations Act of 2012 (Public Law 112-55) as amended and administered pursuant to the RAD Notice (as defined below), and such other notices and guidance issued by HUD in relation thereto, all as may be amended or superseded from time to time.

For Properties converting through RAD: Section 3.A.2.e(1) of the Section 18 Notice (as defined below) allows NYCHA to convert public housing units within a Property to Section 8 under RAD and Section 18 (“RAD/Section 18 Blend”) based on the hard construction costs by 9

meeting certain requirements (as outlined in Section 3.A.2.e.(1) of the Section 18 Notice), and apply for TPVs for the units converting under Section 18 pursuant to the RAD/Section 18 Blend. The HUD-published Housing Construction Costs (“HCC”) used to make these calculations can be found at: https://www.hud.gov/sites/dfiles/PIH/documents/TDCs_2020.pdf.

RAD CAPITAL NEEDS ASSESSMENT (“RAD CNA") As required under the RAD Notice, a HUD-approved consultant will conduct a detailed physical inspection of a property to determine critical repair needs, short- and long-term rehabilitation needs, market comparable improvements, energy efficiency, unmet physical accessibility requirements, and environmental concerns, including lead-based paint. Critical repairs are work that, in HUD’s determination, address imminent life, health, and safety threats to residents and must be completed to allow the affected units to be occupied.

RAD FAIR HOUSING AND RELOCATION NOTICE HUD Notice H 2016-17, PIH 2016-17 (HA), Rental Assistance Demonstration (RAD) Notice Regarding Fair Housing and Civil Rights Requirements and Relocation Requirements Applicable to RAD First Component – Public Housing Conversions, found at: http://www.radresource.net/sources/public/RAD%20Relocation%20Notice_11.10.16.pdf.

RAD NOTICE HUD Notice H-2019-09 PIH-2019-23 (HA), Rental Assistance Demonstration – Final Implementation, Revision 4, issued on September 5, 2019, as may further be amended, and found at: https://www.hud.gov/sites/dfiles/Housing/documents/H-2019-09-PIH-2019- 23_RAD_Notice%20Rev4_20190905.pdf.

SECTION 3 REQUIREMENTS Section 3 of the Housing and Urban Development Act of 1968 [12 U.S.C. 1701u and 24 CFR Part 75], represents HUD’s policy to ensure that employment and other economic opportunities generated by HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low- and very low-income persons. Employment preferences under Section 3 pursuant to RAD are targeted first to Public Housing residents and Section 8 residents.

SECTION 18 Section 18 of the United States Housing Act of 1937, as amended, allows for the demolition and disposition of public housing property, but this RFP only contemplates solely using the

Section 18 process for disposition and not for any residential demolition. HUD has promulgated regulations in 24 C.F.R. Part 970 detailing the administrative steps required for its approval of any demolition or disposition activity affecting covered public housing properties. The Section 18 regulations may be found at: https://www.ecfr.gov/cgi-bin/text- idx?SID=01c5fc8e16fca285a9c0fb1969d53404&mc=true&node=pt24.4.970&rgn=div5

Section 18 is also administered pursuant to additional HUD guidance including, but not limited to, the “Section 18 Notice” (PIH Notice 2021-07(HA), found at: https://www.hud.gov/sites/dfiles/OCHCO/documents/2021-07pihn.pdf).

UNIFORM LAND USE REVIEW PROCESS (“ULURP”) The process, set forth in the New York City Charter, prescribing the City’s land use review process, including public hearings and several levels of government approvals. Actions requiring ULURP include, among others, changes to the City Map, designation or change of zoning districts, and Special Permits within the Zoning Resolution of the City of New York effective as of December 15, 1961, as amended (the “Zoning Resolution”) requiring approval of the New York City Planning Commission (“CPC”). More information can be found at: https://www1.nyc.gov/assets/planning/download/pdf/applicants/applicant-portal/lur.pdf

III. PROJECT SUMMARY

The Working Group estimated that it would cost approximately $366 million to comprehensively renovate and repair the four Chelsea NYCHA developments. This estimate includes about $18 million to convert the aging steam-based heating system to decentralized generating plants in each building, making the community less prone to widespread outages.

To address the majority of this financial need, the Working Group recommended including the four developments in NYCHA’s PACT program. Through PACT, NYCHA enters into partnerships to make comprehensive improvements to its public housing developments while preserving long-term affordability and maintaining strong resident rights in line with public housing protections. PACT raises funding for repairs by converting developments to the Project-Based Section 8 program through a combination of HUD’s RAD program and disposition under Section 18. To date, NYCHA has leveraged these HUD tools to modernize approximately 9,517 units across 49 developments. NYCHA 2.0 established the goal of comprehensively rehabilitating approximately 62,000 public housing units through the PACT program by the end of 2028.

The Working Group recognized that PACT alone may not generate sufficient funding to comprehensively modernize the Fulton and Elliott-Chelsea developments, including replacement of the developments’ aging heating systems. Therefore, the Working Group examined additional opportunities to generate revenue for repairs. Following extensive discussion, the Working Group identified a number of locations across the four Properties that could accommodate the construction of new mixed-income housing, ground floor retail conversions, and/or the construction of new commercial or community spaces in order to raise additional revenue to fund repairs and investments.

A. PACT COMPONENT

NYCHA and HDC anticipate conversion of the Properties to Project-Based Section 8 in order to raise capital for repairs through a combination of HUD’s RAD and Section 18 programs. Applicants should refer to the universal Underwriting Guidelines that apply to the Project, as well as the Rental Pro Forma Template (Exhibit C) specifically tailored to the Project. Applicants should approach underwriting by first maximizing the potential proceeds available for repairs through the PACT strategy.

HDC will be the primary underwriter and lender for the PACT component. HDC will coordinate or provide senior, and in some cases, subordinate, construction and/or permanent loan financing funded by, but not limited to, taxable or (non-volume cap) tax-exempt bonds issued 12

through HDC’s Multi-Family Housing Bond Resolution (the Open Resolution) or the newly created Housing Impact Bond Resolution (the Impact Resolution), a bond resolution created solely to facilitate NYCHA transactions. NYCHA and HDC welcome creative financial structures, including but not limited to utilizing Historic Tax Credits, PILOT bonds, energy performance related financing, Opportunity Zone funding, as applicable, and 501c3 bonds. HDC will ultimately determine the financing structure after an Applicant is designated.

Below is more detailed information about each conversion mechanism under PACT:

• Rental Assistance Demonstration (RAD): RAD is an innovative HUD tool to preserve public housing and address capital needs. Under RAD, public housing authorities like NYCHA convert the funding source that supports a development from public housing subsidy (Section 9) to Section 8 subsidy, enabling NYCHA and its development partners to leverage private debt and equity to complete repairs. All tenants continue to pay no more than 30% of their income and have succession rights, commensurate with rights under the Section 9 subsidy program. More information about RAD is available at: https://www.hud.gov/rad/ • Section 18 and Tenant Protection Vouchers (TPVs”): NYCHA uses the Section 18 disposition process to similarly convert the funding source for a development from Section 9 public housing subsidy to project based voucher funding. Instead of traditional Section 8 vouchers, NYCHA applies for Tenant Protection Vouchers (“TPVs”) through Section 18. Contract rents are determined as in regular Section 8, the lesser of rent reasonableness, owner-requested rent or fair market value as determined by HUD. Residents still pay no more than 30% of their adjusted gross income, but the increased subsidy funding from HUD enables NYCHA and its development partners to leverage more private resources (debt and equity). These additional resources help NYCHA achieve more comprehensive repairs in the highest- need developments (i.e., those that meet HUD’s Obsolescence criteria). More information about Section 18 is available at: https://www.hud.gov/program_offices/public_indian_housing/centers/sac/demo_di spo

The PACT Component is expected to include the following Properties, with a combined total of 2,073 units:

Fulton and Elliott-Chelsea Units 5 Yr NYCHA PNA Chelsea Houses 425 $57,406,573 Chelsea Addition Houses 96 $17,850,059 Elliott Houses 608 $100,857,288 Fulton Houses 944 $168,216,926 Heating System Replacement and Other n/a $22,000,000 Estimated Costs Total 2,073 $366,330,846

In addition to addressing the PNA outlined above for each development, Applicants must replace the existing heating system with individual building heating systems, including new distribution piping to and throughout all apartments, as required. The Working Group estimated a replacement cost of approximately $18 million for these upgrades. With inflation and other costs included, the estimated total is approximately $366 million.

Please refer to Exhibit B for property profiles containing supplemental information for each Property.

B. Other Strategies to Fund Repairs

In addition to PACT, the Working Group carefully considered other opportunities to both raise capital and benefit the overall community. Ultimately, it recommended strategies including the construction of new, mixed-income housing; the creation of new community and commercial facilities; and/or the retrofitting of existing buildings for retail or commercial uses.

• Mixed Income Housing: The Working Group identified potential sites that could accommodate higher-density, mixed-income housing on the Fulton and Elliott- Chelsea Properties included in this RFP.

• Community Facility / New Commercial: Under current zoning, mid-block community facilities, like health clinics or schools, can be built as-of-right. As-of-right uses are preferred; retail or office uses would require a zoning change to be undertaken by the Applicant.

• Retrofit Retail: The Resident Associations pointed out that multiple ground-floor spaces within NYCHA developments are empty or underused. After touring the spaces, the Working Group proposed these spaces as an opportunity for retrofit retail space.

Applicants should regard these opportunities as a secondary source of financing to fund any gaps in the Project sources. While the Working Group identified multiple locations that might be appropriate for these strategies, Applicants are not required to propose new construction at any or all locations. Applicants are expected to consider how any new construction would contribute funding to the PACT Component, create a financially feasible development scenario(s), and create an enhanced built environment with additional amenities for NYCHA residents and their neighbors. The City, HDC, and HPD will not be providing subsidy towards the implementation of these strategies.

Design Guidelines

The Working Group identified a number of locations where new construction or retail retrofits would be appropriate, using the following guidelines or principles:

• New construction must not involve the demolition of existing residential buildings; • New construction must not replace recreational outdoor spaces areas like basketball courts or playgrounds, except for potentially one Fulton location 3 if it were to be redeveloped; • To protect light and views from existing apartments, new construction adjacent to a NYCHA building must have a 60-foot separation from existing NYCHA windows to windows at new construction sites; • There must be a 30-foot separation from existing NYCHA windows to new construction blank walls; • The height of new buildings must be kept between 22 and 24 stories for consistency with existing building heights; and • Parking for existing NYCHA permit holders must be retained and redistributed throughout the Properties.

3 The Working Group recommended that this open space, if developed, be replaced with an indoor community center.

Fulton Houses New Construction Opportunities

The Working Group identified sites A, B1, B2, C1, 1, 2, 3, D, E, F in the map below (Figure 2 from Working Group Report) for new construction development at Fulton Houses. Each site has been determined to be acceptable to the Working Group given the aforementioned footprint, massing, and height guidelines.

Elliott-Chelsea New Construction Opportunities

The Working Group identified Sites EC1, EC2, H, and I in the map below (Figure 4 from the Working Group Report) for new construction development on the Elliott-Chelsea NYCHA Property. Each site has been determined to be acceptable to the NYCHA tenants and the community given the aforementioned footprint, massing, and height guidelines.

Please refer to the Working Group Report, which is included as Exhibit S, for more detailed information regarding the opportunities and challenges associated with each potential location identified on the above maps.

Housing Affordability

Where the construction of new residential buildings is proposed, the Working Group recommends that 50% of all new apartments be affordable to households earning a range of incomes, including very low-, low-, moderate-, and middle-income families (see p. 32-33 in the Working Group Report for more detail on proposed income bands). To the extent feasible, Applicants should strive to achieve the Working Group’s affordability recommendations. However, at a minimum, any residential new construction must provide affordability levels that are equivalent to the Mandatory Inclusionary Housing (MIH) program requirements for Option 1 (25% of new apartments affordable to households earning up to 60% of Area Median income) or Option 2 (30% of new apartments affordable to households earning up to 80% of Area Median Income). Again, no public subsidies will be available to fund the new construction of affordable housing.

Section 18 Disposition

NYCHA would enter into a 99-year lease with the Designated Project Team for any new construction sites selected with HUD approval of such leasehold conveyance through a Section 18 process. Conveyance of a property interest requires HUD approval under Section 18. HUD has promulgated regulations at 24 C.F.R. Part 970 detailing the administrative steps required for its approval of any disposition activity affecting covered public housing property. The Section 18 regulations may be found at: https://www.hud.gov/program_offices/public_indian_housing/centers/sac/demo_dispo/ Public Land Use Approvals and Design

Land Use Approvals

If new construction is considered as part of an Applicant’s Proposal, it must comply with existing zoning regulations and the Working Group’s Design Guidelines described above.

However, Applicants have the option of submitting an additional, alternative scenario that still achieves the goal of providing comprehensive repairs to the four Properties and creating an enhanced built environment with additional amenities for NYCHA residents but deviates from existing zoning regulations and the design criteria described above.

Applicants who elect to submit an alternative scenario are encouraged to think creatively about design interventions that may not have been considered as part of the Working Group process. Alternative scenarios should clearly explain the benefit that they provide to NYCHA residents and must not contemplate the demolition of existing public housing. Applicants are encouraged to explore ideas from, but not limited to, the following sources:

• NYCHA Connected Communities Guidebook: https://www1.nyc.gov/assets/nycha/downloads/pdf/Connected-Communities- Guidebook.pdf • RPA and PRO Scalable Design Solutions for NYCHA: https://s3.us-east- 1.amazonaws.com/rpa-org/pdfs/Scalable-Design-Solutions-for-NYCHA.pdf • NYC Mayor’s Office of Criminal Justice Neighborhood Activation Study: http://criminaljustice.cityofnewyork.us/wp- content/uploads/2018/11/Neighborhood-Activation-Study_Studio- Gang_Public_Version.pdf

If an Applicant chooses to propose a development scheme that would require land use changes, then they must describe the necessary zoning relief and explain why this approach is necessary to achieve project goals and how it would impact the overall Project schedule 18

ULURP is not triggered by the disposition of NYCHA-owned land but may be required for other types of land use actions.

IV. PROJECT REQUIREMENTS A. General Requirements

1. Resident Rights and Protections: The Designated Project Team will be required to comply with and operate the Properties in accordance with:

a. NYCHA’s Section 8 PBV tenant protection regulations, as may be updated by NYCHA from time to time;

b. The RAD resident protections as described in the RAD Notice and listed in Exhibit H;

c. The New York City RAD Roundtable Guiding Principles as listed in Exhibit I;

d. NYCHA’s grievance procedures as listed in Exhibit J, as may be updated by NYCHA from time to time;

e. NYCHA’s housing retention guidelines as outlined in Exhibit P, as may be updated from time to time; and,

f. Any new updates that are approved by NYCHA and HUD with respect to the PACT program. NYCHA is committed to implementing the residents’ rights and protections that were recommended in the Working Group Report.

2. Fair Housing Requirements: The Designated Project Team will be required to comply with the RAD Notice, the RAD Fair Housing and Relocation Notice, all applicable Federal, State, and local laws, orders, and regulations prohibiting housing discrimination.

3. Minority and Women Business Enterprises and Nonprofit Organizations (“M/WBEs” and “Nonprofits”): NYCHA is committed to increasing opportunities for, and strengthening the capacity of, M/WBE and Nonprofit developers to participate in achieving the goals of the PACT program. NYCHA encourages responses from M/WBE and Nonprofit Developers that bring enhanced and tangible community development benefits to the proposed Project Team. In particular, M/WBEs and Nonprofit Developers that have a successful track record of tangible investments in the community where the Property is located will be reviewed favorably.

Applicants that include both an M/WBE Developer and a Nonprofit Developer, both of which have a Meaningful Role within the Project Team, will be reviewed favorably.

“Meaningful Role” within the Project Team is defined to include, but is not limited to, one or more of the following: (i) at least 30% overall equity ownership in the relevant project ownership entity(ies), (ii) material decision making authority and/or managing member status in the applicable joint venture, (iii) control and authorship of material Development work components, (iv) fair participation (in NYCHA’s and HDC’s reasonable judgment) in the waterfall distribution returns to equity, and (v) serving as lead developer on a minimum of 200 units of the Project. These units should be comparable to the whole of the relevant development in size, level of needed repairs and potential income.

The Designated Project Teams shall state in all solicitations or advertisements for bids for subcontractors, placed by or on behalf of the Designated Project Teams, that all qualified businesses will receive consideration for subcontracts without regard to the race, color, religion, military service, national origin, sex, age, disability, marital status, or sexual orientation of the owners, partners, management, or stockholders of a business. M/WBEs shall be given an equal opportunity by the Designated Project Teams to submit Proposals to such Designated Project Teams for consideration of subcontracting awards in connection with the Project.

Applicants should strive to work with subcontractors to achieve M/WBE hiring goals in line with other City housing programs, including but not limited to programs mandated by HDC and HPD.

4. Schedule: The Designated Project Team must achieve construction closing on the Project by the timeline established in the Conditional Designation Letter. The Designated Project Team will be responsible for the timely commencement and completion of the Project, will be held accountable to the schedules outlined in their Proposal and agreed upon with NYCHA, and will be required to submit ongoing construction status reports both during predevelopment and during the construction period.

The Designated Project Team will be responsible for arranging timely commencement and completion of the new construction sites; held accountable for the schedules outlined in the Proposal and agreed upon with NYCHA; and required to submit ongoing status reports regarding the new construction development, financing, marketing, leasing, and management.

Due to the PACT Component and the significant potential for new construction at the Properties, Applicants must plan a for phased redevelopment and clearly explain the schedule for each phase of the new construction sites in the Proposal.

PACT renovation should be substantially complete before the new construction project can begin. Applicants should propose a schedule that meets this goal.

5. Tenant-In-Place Rehabilitation: The Designated Project Team will be responsible for:

a. Exercising best efforts to inspect every unit of every Property in the Project prior to construction closing to inform the PACT Rehabilitation Scope of Work;

b. Developing the PACT Rehabilitation Scope of Work to be responsive to resident input and inspection results, and to fully address the NYCHA PNA, RAD CNA, and Obsolescence Report (as applicable) for each Property; and

c. Completing all rehabilitation work with tenants in place to minimize disruption to residents’ lives, to the extent feasible and safe.

The Designated Project Team will be required to submit a Tenant Protection Plan, as required by DOB and NYCHA, and to provide a Construction Site Logistics Plan, including detail on any temporary resident relocations to address pertinent health issues, especially those of senior residents, that may arise during construction. To the extent in- place rehabilitation cannot be accomplished, temporary resident relocation will be the responsibility of the Designated Project Team, including, without limitation, obtaining any necessary service providers to facilitate temporary relocation and covering all associated costs. Any temporary relocation will be within a reasonable proximity to the resident’s Property and will be subject to NYCHA’s approval and be in accordance with all applicable legal requirements.

NYCHA and HDC reserve the right to inspect all rehabilitation work and will require periodic reporting during the construction period, including but not limited to the reports outlined in Exhibit O.

6. Pre-Closing HQS Repair Work: Under current HUD guidance applicable to NYCHA, units converting through Section 18 cannot be added to a HAP Contract until they pass an inspection in accordance with HUD’s Housing Quality Standards (“HQS”). As such, the Designated Project Team will, in collaboration and cooperation with NYCHA, complete the following pre-closing work related to HQS for these units: a. Inspect units for HQS compliance.

b. Perform needed repair work in units that are out of HQS compliance in accordance with Davis Bacon and HUD prevailing wage requirements4.

The anticipated scope of work for the HQS repairs is not currently available, but Applicants should assume that the cost of this HQS repair work will be between approximately $3,000-$5,000 per dwelling unit.

7. Violations: The Designated Project Team will work with NYCHA to clear all existing health and safety violations on the Properties as found on City records or municipal searches prior to construction closing. Violations that do not relate to health and safety and which cannot be cleared prior to construction closing must be addressed in the Designated Project Team’s PACT Rehabilitation Scope of Work.

8. Property Management: The Designated Project Team must dedicate adequate property management staff to each Property in the Project, ensuring that service levels are not reduced in smaller buildings within the Project. The Designated Project Team will be responsible for operating and managing the Property in accordance with a Property Management Plan to be approved by NYCHA and HDC (the “Property Management Plan”), which shall contemplate but not be limited to:

a. The effective and efficient day-to-day operation of each Property in the Project;

b. Completing all applicable tasks or actions related to resident conversion from public housing to Section 8 that remain outstanding at construction closing;

c. Meeting obligations for building maintenance, financial liabilities, and income and rental guidelines as defined in federal, state, and municipal regulatory documents;

d. Ensuring that the distribution of superintendent units is in line with applicable code and provides adequate coverage for all units in each Property in the Project;

e. Managing the buildings to ensure continuous HQS compliance;

4 With the exception of any units on an existing HAP contract within an LLC I property.

f. Promptly responding to maintenance work order requests and resident complaints about the building’s physical condition;

g. Working with NYCHA’s Leased Housing Department (“LHD”) to lease all vacant apartments as they become available from a project-based site-based wait list;

h. Working with LHD to right-size families living in an inappropriate-sized apartment per the Section 8 PBV standards, but based on NYCHA’s public housing occupancy standards for existing residents in place at construction closing. All costs for this will be the responsibility of the Designated Project Team;

i. Recognizing and working with the legitimate resident organizations at each Property in the Project to address issues related to the Property, including the terms and conditions of residents’ tenancy (see sections beginning on pg. 132 of the RAD Notice for more information);

j. Including Tenant Participation Activity (“TPA”) funds in their maintenance and operation budget at $25 per occupied unit per year, which shall be provided to the legitimate resident organization at the Properties in the Project in accordance with the RAD Notice;

k. Maintaining detailed rent rolls, financial statements, and other required documents in accordance with NYCHA, HUD, HDC, , and/or as may otherwise be required by project financing;

l. Maintaining Section 8 and RAD compliance in accordance with NYCHA, HUD, or HDC, and/or as may otherwise be required by project financing;

m. To offer a pathway for tenants to bolster their credit through paying rent as described below; and,

n. Following all guidelines outlined by NYCHA in the grievance procedure and housing stability and retention guidelines. See Exhibits J and P for additional details.

For the new construction sites, the Designated Project Team is responsible for providing professional property management services, and having all standard asset management systems in-place to qualify income levels pursuant to funding requirements. Post- construction, the Designated Project Team will be responsible for submitting maintenance and operations costs and data to NYCHA, HPD, and HDC, upon request.

The Designated Project Team should describe how both the property management of the new construction sites and the PACT Component would operate within their Property Management Plan.

9. Resident Rent Arrears and Legal Cases: The Designated Project Teams will purchase one hundred percent of the NYCHA resident rent arrears at par from NYCHA at construction closing and assume all existing resident legal cases via substitution of counsel.

10. Existing Community Facilities: Any existing community center or other community facility space included in the Project must be renovated, maintained, and operated, as applicable, as part of the Project. The Designated Project Team will be responsible for the upfront capital repairs on the community facility spaces, bringing such spaces into code compliance and ensuring such spaces are accurately reflected on existing certificates of occupancy, which should be included in the PACT Rehabilitation Scope of Work.

Any existing community facility and/or non-profit leases will be assigned to the Designated Project Team at construction closing. If any community facilities are operating in a space at a Property in the Project under an expired lease or no lease, the Designated Project Team must enter into a lease with such operator on a lease template provided by NYCHA or HDC, the final terms of which are subject to NYCHA and HDC approval. After construction closing and for the duration of the Designated Project Team’s involvement in the Project, if there are new community facility operators and/or non-profits that receive public funding for operation at the Project, the Designated Project Team must offer them a lease on a lease template provided by NYCHA or HDC, the final terms of which are subject to NYCHA and HDC approval.

11. Resident & Community Engagement: The Designated Project Team will be expected to craft and implement a comprehensive Resident & Community Engagement Plan, including a plan for outreach to elected officials. The plan will be reviewed by NYCHA and finalized after designation, prior to beginning outreach. The Plan must detail an outreach and reporting structure that will provide residents and elected officials with regular, proactive, and transparent project updates from designation through to ongoing operations. The goal of the Resident & Community Engagement Plan is to ensure residents have ready access to information about the Project, are informed about Project updates, and are provided with ample opportunities to provide feedback on and shape Project plans, including the PACT Rehabilitation Scope of Work, property management approach, Social Services Plan (as defined herein), and other policies and investments. The Resident & Community Engagement Plan must also detail how the

Designated Project Team will engage with residents and resident leadership following conversion to the Section 8 program.

A preliminary Resident & Community Engagement Plan must be included as part of the Applicant’s submission (see RFP Section on Submission Requirements). NYCHA has developed a base set of engagement activities (see Exhibit N) that must be included in the Resident & Community Engagement Plan, but Applicants are encouraged to expand upon this guidance with creative strategies and tailor their approach to the needs of each Property. In addition, the Applicant must describe a plan for regular engagement and communication with residents and Tenant Association leadership following conversion, including, for example, meeting frequency and tactics for providing construction updates, soliciting tenant complaints, making repairs, and resolving lease or other issues.

The Designated Project Team will refine and finalize the Resident & Community Engagement Plan in coordination with NYCHA and resident leaders following designation. The Designated Project Team will also participate in required public forums, hearings, and briefings with NYCHA residents, the Community Board, elected officials, City Agencies, and other organizations, as needed. The Designated Project Team will continue to collaborate with NYCHA and resident leaders on implementing and updating this plan, if necessary, throughout the conversion process.

Applicants are encouraged to form partnerships and assemble a Project Team in order to supplement internal capacity. The Project Team will be required to craft and deliver professional, customer service-oriented, and culturally sensitive outreach and communications strategies.

Furthermore, the Working Group Report included a comprehensive set of recommendations related to resident engagement that should, to the greatest extent possible, be incorporated into the Project Team’s Resident & Community Engagement Plan. Lastly, per the Working Group Report, if a Nonprofit Developer is included as part of the Applicant Team, the Nonprofit Developer must play a meaningful role in resident engagement.

12. Resident Stability and Retention Plans: The Designated Project Team will be expected to create and implement a Resident Stability and Retention Plan that outlines their approach to pro-active communication and outreach that property managers will take to avoid unnecessary evictions. NYCHA’s Real Estate Development Department developed a set of resident retention guidelines to ensure proactive processes are in place to protect residents from displacement during the ongoing public health crisis due to 25

COVID-19. The guidelines were created for all PACT partners and are followed by property management staff at each PACT development. PACT partners are expected to work directly with residents to respond to their unique circumstances and offer resources based on their situation. Development partners should also utilize their on-site social service providers to conduct outreach and provide direct assistance. The retention guidelines were created in response to the COVID-19 public health crisis but will now be implemented at all PACT projects moving forward.

The guidelines are outlined in Exhibit E. Designated Project Teams will outline how they will adopt these steps into a standard operating procedure in coordination with NYCHA following designation. Once implemented Designated Project Teams will provide updates on their outreach and communication efforts through a Legal Proceeding report submitted to the REDD Asset Management team.

13. Environmental Review: The Designated Project Team will be responsible for preparing any and all environmental assessments and obtaining any and all environmental approvals necessary to achieve closing and for the Project’s completion. The Designated Project Team will accept the Properties as-is and will be responsible for implementing any remedial and mitigation measures identified in connection with the rehabilitation of the Properties as determined by HUD, NYCHA, HPD, HDC, or any applicable governmental authority having jurisdiction, and as a result of any environmental review. The Designated Project Team will assume the obligation to remediate any and all environmental contamination, indemnify NYCHA for any claims that may be made against it in the future, and release NYCHA from any claims that it may have in the future arising out of the condition of the Properties.

It is anticipated NYCHA will serve as the lead agency for the CEQR environmental review and HPD will serve as the Responsible Entity under 24 CFR Part 58 to certify compliance with NEPA regulations.

14. HUD Agreement: HUD and NYCHA entered into an agreement on January 31, 2019 (the “HUD Agreement”). The HUD Agreement establishes a framework by which NYCHA will continue to evaluate and make progress towards compliance with federal requirements, including amongst other things, compliance with lead-based paint abatement regulations. During the term of the HUD Agreement, an independent monitor will be in place with access to NYCHA information and personnel and will issue quarterly reports on NYCHA’s compliance with the HUD Agreement. A link to the HUD Agreement is below: https://www.hud.gov/sites/dfiles/PA/documents/HUD-NYCHA-Agreement013119.pdf

15. Lead-Based Paint and Lead Hazards: The Designated Project Team is required to comply with Lead-Based Paint Procedures for NYCHA’s PACT Projects (the “PACT Lead Procedures”) (see Exhibit L), as well as all applicable federal, state, and local laws concerning lead-based paint and lead hazards, including NYC Local Law 1 of 2004 as amended, NYC Local Law 31 of 2020 as may be amended and federal regulations per 24 CFR Part 35 and 40 CFR Part 745.

If a Project requires abatement of lead-based paint and lead hazards, Applicants must account for the cost of abatement in the PACT Rehabilitation Scope of Work and may not defer abatement or pay for abatement through replacement reserves. Prior to closing the financing of the Project, after selection of a Designated Project Team, NYCHA will provide the Designated Project Team with existing and ongoing lead-based paint test results and other related information, as available.

NYCHA may amend the PACT Lead Procedures and additional lead-based paint and lead hazard requirements may be imposed by NYCHA.

16. Mold and Leaks: The Designated Project Team is required to comply with the Mold and Moisture Control Procedures for NYCHA’s PACT Projects (the “PACT Mold Procedures”) (see Exhibit M). The PACT Mold Procedures are intended for consistency with NYCHA procedures and to align with the overarching goals of Baez v. NYCHA, No. 13 Civ. 8915, as the same may be amended or modified and the HUD Agreement. Among other things, the Designated Project Team must conduct comprehensive unit inspections as part of the pre-development process to identify mold and moisture issues, address underlying sources of mold and leaks as a part of the PACT Rehabilitation Scope, and prepare and operate Properties in accordance with an approved Mold Operations and Maintenance Plan (“Mold O&M Plan”).

Applicants must account for the cost of addressing underlying sources of mold and leaks in the PACT Rehabilitation Scope of Work and may not defer abatement or pay for abatement through replacement reserves. Prior to closing the financing of the Project, after selection of a Designated Project Team, NYCHA will provide the Designated Project Team with existing mold and leak work orders and other related information, as available. The Designated Project Team will be responsible for ensuring that all mold and leak work orders open at the time of conversion are addressed in a timely manner following the conversion.

NYCHA may amend the PACT Mold Procedures and additional mold and leak requirements may be imposed.

17. Historic Preservation: The Designated Project Team is responsible for any required mitigation of adverse impacts or adverse effects to Historic and Cultural Resources that are determined to be eligible, or are listed, on the National Register of Historic Places as such terms are further explained in The National Historic Preservation Act codified at 54 U.S.C. §§ 100101 et. al. and 36 CFR Part 800, and the New York State Historic Preservation Act of 1980 as codified at New York State Parks, Recreation and Historic Preservation Law Article 14, if applicable. Any substantial changes to cultural or historic resources require consultation with the State Historic Preservation Office (“SHPO”) of the New York State Office of Parks, Recreation and Historic Preservation in accordance with the New York State Historic Preservation Act of 1980 (See Section 14.09 of the New York State Parks, Recreation and Historic Preservation Law) in order to explore potential measures that would avoid, minimize or mitigate any adverse impacts or adverse effects to cultural and historic resources as guided by the Secretary of the Interior’s Standards for Rehabilitation.

Furthermore, NYCHA and SHPO have entered into a Programmatic Agreement (“PA”) that can be found here: https://www1.nyc.gov/assets/hpd/downloads/pdfs/services/nycha-section-106- programmatic-agreement.pdf

Here, the Properties were not identified in the PA as National Register Listed or Eligible, and no Historic Artwork at the Properties was identified.

18. Design and Construction: The Designated Project Team will be responsible for obtaining any and all building and/or construction permits or approvals necessary to achieve closing and complete the Project.

Final documents that NYCHA needs to review for other phases will be outlined in the Conditional Designation Letter covering all components of the Project.

The Designated Project Team is responsible for submitting final construction documents to NYCHA, which shall conform to previous review comments and approvals made by NYCHA.

Proposals must conform to the NYCHA Design Guidelines for the Rehabilitation of NYCHA Residential Buildings, the NYCHA Connected Communities Guidebook, the NYCHA Climate Mitigation Road Map, Active Design Guidelines, the Zoning Resolution, the New York City Construction Codes, and all other applicable laws and regulations.

• The NYCHA Design Guidelines for the Rehabilitation of NYCHA Buildings can be found here: https://www1.nyc.gov/assets/nycha/downloads/pdf/nycha- design-guidelines.pdf • The NYCHA Connected Communities Guidebook can be found here: https://www1.nyc.gov/assets/nycha/downloads/pdf/Connected-Communities- Guidebook.pdf • The NYCHA Climate Mitigation Road Map can be found here: https://www1.nyc.gov/assets/nycha/downloads/pdf/NYCHA-LL97- Whitepaper.pdf • The Active Design Guidelines can be found here: https://centerforactivedesign.org/dl/guidelines.pdf

The Designated Project Team will be required to provide all design documentation listed throughout this RFP and relevant exhibits.

19. Accessibility: All Proposals must comply with the accessibility requirements of all applicable laws including, without limitation, to the New York City Building Code, the Fair Housing Act, the Americans with Disabilities Act (“ADA”), Section 504 of the Rehabilitation Act of 1973, and NYCHA’s Voluntary Compliance Agreement with HUD concerning accessibility. 20. Guarantees: The Designated Project Team will be responsible for all financial guarantees and non-recourse carve outs necessary to complete the Project, including, without limitation, those required by HDC, or any other lenders or financing partners. In addition, the Designated Project Team will be responsible for providing to NYCHA and HDC an environmental indemnification with other applicable guarantees.

21. Completion of Conversion Process: The Designated Project Team must achieve the RAD and Section 18 milestones in a timely manner as follows:

a. Lead required resident engagement;

b. Complete all required studies, reports, surveys, and evaluations necessary (including environmental review) for both receipt of the RAD Conversion Commitment and the Section 18 disposition approval from HUD as applicable and to secure financing;

c. For the units converting under RAD, develop a RAD Financing Plan that addresses the 20-year capital needs of all Properties in the Project converting through RAD and takes advantage of economies of scale both during rehabilitation and ongoing operations; 29

d. For the units converting under Section 18, perform pre-HQS inspections and complete any required repairs to satisfy HQS; and

e. Satisfying all HUD conditions and conditions in this RFP for a timely construction closing in accordance with the schedules outlined in the Designated Project Team’s Proposal.

22. Asset Management and Construction Reporting Requirements: The Designated Project Team will be responsible for providing NYCHA with asset management data and construction period reporting, including but not limited to the reports detailed in the Asset Management and Construction Reporting Requirements (Exhibit O).

23. Credit Building: The Property Management entity for the Designated Project Team will be required to operate a credit building program. This program must provide tenants the opportunity to opt in, such that they can build their credit through timely payment of their rent if they so desire. It must be provided in partnership with a credit reporting entity that only includes positive rental payments, made within the month after the payment is due, in its reporting. Further, the Designated Project Team should plan to incorporate financial literacy services and outreach efforts to educate tenants about the program as part of the scope of services offered or coordinated by its chosen provider of social services, such as as youth programs and adult education, and/or community amenities (“Social Service Provider”). Financial literacy services and outreach efforts must be done in partnership with an entity that has a proven track record and/or direct accreditation in financial literacy services related to credit building and financial empowerment. The Designated Project Team will be expected to work with Social Service Providers to develop detailed plans to implement the foregoing requirements.

24. Broadband: The Designated Project Team is responsible for providing high-quality internet service and installing the underlying infrastructure for the Properties, in line with the NYC Internet Master Plan (January 2020) found here: https://tech.cityofnewyork.us/wp-content/uploads/2020/01/NYC_IMP_1.7.20_FINAL- 2.pdf

The cost for internet service must be included in the budgeted, ongoing Maintenance and Operation expenses.

• Infrastructure: The infrastructure should consist of a wired connection point in each dwelling unit through which each resident can have secured access through a unique profile, with a preferred system capacity of 200 Megabits per second

(Mbps) upload and download speed, per unit. Service should be provided in common areas and shared spaces providing mobile use throughout the building. The network infrastructure must be robust and designed with flexibility to meet current and future demands on the system.

• Level of Service: A level of service of at least 100 Mbps per unit should be fully subsidized for Residents through the property operating budget. Residents should be given the option to enhance their individual level of service at their own cost up to and beyond 200 Mbps.

25. Security: The Designated Project Team should create a robust security plan that prioritizes the health and safety of NYCHA residents. Operating and management budgets should include a line for security related items (as identified in the Underwriting Template) based on the Designated Project Team’s assessment of how much it will require to provide a security plan accomplishing the following goals: a. Adequate guard coverage; b. Upgrades to the CCTV infrastructure, where applicable; c. A mechanism to alert FDNY of any emergency calls from elevator cabs; d. A communication protocol, or ‘tip hotline’ for resident outreach, and a means to communicate these concerns directly to the appropriate authority; e. Support for ‘resident watch’ efforts, inclusive of funds to support light equipment / resources for volunteers; f. Means for data collection; and g. Funding to reimburse NYCHA for the utilization of the existing equipment during the interim conversion period.

This information should be detailed as part of the Property Management Plan, in which a schedule should detail the planned transition from NYCHA security (personnel and equipment utilization) to the new system.

26. COVID-19 Health and Safety: For all pre-development work and construction work requiring site access and/or resident interaction, the Designated Project Team must comply with all COVID-19 related health and safety measures detailed in the NYCHA memorandum provided in Exhibit E: Guidelines for PACT COVID-19 Construction Reopening.

27. Affordability Requirements: The Properties must be operated as affordable housing restricted to households earning 60% of AMI and below, and/or as otherwise outlined in the HDC Regulatory Agreement. Affordability requirements will be memorialized in 31

certain recordable documents that will encumber the Properties, including an HDC Regulatory Agreement, a NYCHA regulatory agreement, a RAD Use Agreement for units converting to project-based voucher assistance under RAD (including units converting under Section 18 in a RAD/Section 18 blend as evidenced by a rider to the RAD Use Agreement), and a Declaration of Restrictive Covenants and Use Agreement for units converting to project-based voucher assistance under Section 18 alone (not part of a RAD/Section 18 Blend).

Where the construction of new residential buildings is proposed, the Working Group recommends that 50% of all new apartments be affordable to households earning a range of incomes, including very low-, low-, moderate-, and middle-income families (see p. 32-33 in the Working Group Report for more detail on proposed income bands). To the extent feasible, Applicants should strive to achieve the Working Group’s affordability recommendations. However, at a minimum, any residential new construction must provide affordability levels that are equivalent to the Mandatory Inclusionary Housing (MIH) program requirements for Options 1 or 2. Again, no public subsidies will be available to fund the new construction of affordable housing.

Initial rents for any new affordable housing units will be established in accordance with a regulatory agreement. Prior to initial occupancy, all new affordable units must be entered into the New York State Rent Stabilization system at rents specified in the regulatory agreement. Units must remain in the system for the duration of the Project or as required by law, but in no case less than the duration of the Ground Lease.

28. Marketing, Sales, or Leasing of New Affordable Housing Units: Marketing and rent-up of any dwelling units, commercial, if applicable, and community facility spaces, if applicable, is the sole responsibility of the Designated Project Team. In carrying out these functions, the Designated Project Team must comply with HPD and HDC marketing requirements for any affordable housing created as required at the time of marketing and NYCHA preferences, which are designed to ensure that the availability of the rental units are disseminated as widely and fairly as possible. The current HPD and HDC Marketing Guidelines are available at https://www1.nyc.gov/site/hpd/services-and- information/marketing.page and http://www.nychdc.com/pages/Marketing- Guidelines.html, respectively.

The marketing requirements will be memorialized in the transaction documents as applicable. The marketing of the units will be monitored by HDC/HPD/NYCHA staff to ensure compliance with these requirements.

The Project will be subject to the following tenant preferences for the new affordable dwelling units:

• NYCHA Preference: At the time of lease-up, current NYCHA public housing and Section 8 Housing households and households on the waitlist for public housing and Section 8 Housing will have preference for 25% of the affordable units. • Other Preferences: HPD, HDC and NYCHA may require additional preferences for the affordable units at the time of lease-up.

29. Establishment and Administration of Wait List: NYCHA will maintain a site-based waitlist of Section 8 applicants for units as they become vacant upon and after conversion. The site-based wait list will be created and managed in accordance with NYCHA’s Section 8 Administrative Plan.

30. Mandatory Insurance Coverage: The Designated Project Team must adhere to all requirements included in NYCHA’s Insurance Requirements Guide attached hereto as Exhibit D. An insurance quote should be reflected in the Applicant’s financial proposal. Designated Project Team must also satisfy all HDC and other lender insurance requirements.

31. Development Rights/Carve-Outs: NYCHA will retain all existing, ongoing, and future development rights at the Properties not required for existing improvements at the Properties or the new construction sites. These include, but are not limited to, development rights created in the future pursuant to any rezoning of any portion of the Properties or created under the transaction or by the addition of parcels to the zoning lot as further set forth in the Lease or other Project documents, all of which rights will remain vested in NYCHA and the use of which is in NYCHA’s sole and absolute discretion. The Applicants or the Designated Project Team will have no approval rights over NYCHA’s use of such development rights. NYCHA will inform Applicants if it elects to sell any development rights prior to closing this Project.

In addition, NYCHA reserves the right to carve out from the Properties certain unimproved or non-residential parcels of land that it may use for future development. The area to be leased to Designated Project Team will generally consist of the entirety of the Properties, but NYCHA will reserve the right through Project documents to recapture parcels in the future at its sole and absolute discretion that: 1) do not compromise the functioning of the Properties as Section 8 housing, 2) do not affect compliance of the Properties as relates to the Zoning Resolution, NYC Building Codes, Multiple Dwelling Law, or otherwise address proposed non-compliances, 3) do not adversely affect the 33

property finances by reducing the debt services coverage ratio to below financing requirements due to lost revenue from parking or otherwise, 4) compensate the PACT Component for the depreciated value of improvements made to the parcels through the PACT program and throughout the duration of the lease, and 5) do not impact the new construction sites.

The Designated Project Team will not have a right of first refusal on any future development outside of the new construction sites at the Properties, though NYCHA, at its sole and absolute discretion, could determine that it is beneficial for the Designated Project Team to be involved in future development. Parcels will be recaptured at no cost to NYCHA other than for coverage of reasonable legal costs and depreciated value of improvements as previously described. The Designated Project Team and its lenders agree to cooperate fully with NYCHA on the recaptures. Prior to conducting predevelopment work, including ordering appraisals and surveys, the Designated Project Team will confirm the anticipated dimensions of the recaptured area.

B. PACT Social Services and Social Service-Related Requirements

NYCHA seeks to improve residents’ quality of life not only through extensive physical rehabilitation of the Properties and streamlined property management services, but also through access to social services and resources - such as youth programs and adult education, and/or community amenities - both at the Properties and through resident referrals to off-site organizations and services. Upon designation, Designated Projects Teams will work directly with NYCHA’s Portfolio Planning team to identify and select a social service coordinator along with other social service providers for their site. Specifically, NYCHA will work with Designated Project Teams to: (A) Select a Service Coordinator (defined below) to oversee the creation of the Needs Assessment and Social Services Plan; (B) Help identify any Existing Providers (defined below) actively serving that community; and, (C) Identify any additional Pre-Qualified Social Service Provider(s) to be added to the Designated Project Team upon issuing a Conditional Designation Letter, or shortly afterwards. Within 60 days of designation, NYCHA will require the Designated Project Team to share their initial approach and timeline for creating the Social Services Plan (the “Social Services Plan”). The final Social Services Plan should not be submitted until a Social Service 34

Coordinator has been added to the Designated Project Team and Project Teams have conducted a Needs Assessment at the Property to determine service and programming needs but must be submitted prior to the HUD RAD submission or Section 18 application. The Social Services Plan should outline how Designated Project teams plan to: 1. Assess service, resource, and programming needs at each development. The Service Coordinator should assist in this initial needs assessment before finalizing the Social Services Plan, 2. Provide relevant services to residents across all necessary providers and programs through a Service Coordination model, 3. Preserve the services offered by Existing Provider(s) for the duration of the Existing Contract(s), 4. Facilitate access to new social services or community amenities and programming, 5. Propose a budget for the proposed services and programming, and 6. Propose goals and metrics that the social service coordinator can report back to NYCHA on a quarterly basis. More information on the contents of the Social Service Plan is describe below: 1. Needs Assessments: Designated Project teams should develop a Needs Assessment to collect resident feedback on service provision via surveys, community meetings, meetings with the TA board and other information-gathering tools. Designated Project Teams should utilize the Service Coordinator to conduct the Needs Assessment prior to finalizing their Social Services Plan. The information collected in the needs assessment should inform the final Social Services Plan and selection of all Social Service Providers. Needs Assessments should aim to collect information on household demographics as well as other programming and services provided in the neighborhood surrounding the Property.

2. Service Coordination Role: NYCHA residents currently have access to workforce training, job opportunities, and social service referrals for vulnerable populations as public housing residents. These are services that NYCHA provides through a service coordination model for public housing residents.

The Designated Project Teams should designate a new Service Coordinator (“Service Coordinator”) to fulfill the services originally provided by NYCHA at the Property. The Service Coordinator will work collaboratively with NYCHA and the Designated Project Team to develop a service coordination model, outlined in the Social Services Plan, that connects residents to services that are available to Section 8 households and any other services or programming identified by residents. The Service Coordinator should

outline how they will conduct referrals for the Family Self-Sufficiency program within the Social Service Plan, how staff will use NYCHA’s OpportunityConnect portal, and successor systems, to refer tenants to vetted providers that have formal partnerships with NYCHA. Please note: this excludes social service referrals directly to NYCHA for intervention in tenancy, lease enforcement, or related matters. This function should be incorporated within the scope of the property management and social service provider team. NYCHA expects that property management and the social service provider will work together to conduct pro-active outreach around tenancy issues, as outlined in Exhibit N.

The Service Coordinator should have an on-site presence at the Property and should outline in the Social Services Plan their hours of operation and how they plan to be accessible and available to residents at the Property. The Service Coordinator will be responsible for reporting back to NYCHA and the entire Designated Project Team metrics on all services provided to residents at the Property under their umbrella (either by the service coordinator directly or through other providers who work with residents on-site).

3. Preserving Services with Existing Providers: In some cases, there are currently on-site social services providers (“Existing Providers”) at the Properties. Some Existing Providers receive funding through one or more awarded contracts following a competitive procurement process (“Existing Service Contracts”) with New York City Agencies or entities (for example, New York City Health and Hospitals, the New York City Department of Youth and Community Development, the New York City Department of Education, or the New York City Department for the Aging, each a “City Agency”, collectively, “City Agencies”), each with contract terms that include specific performance and insurance requirements. Listed in Exhibit B are the Properties with Existing Providers and Existing Service Contract, including the name of the provider and City Agency funder, if applicable. To the extent that there are Existing Providers at the Properties, the Designated Project Teams must work with the Existing Providers and their City Agency funders, if applicable, to ensure that services are not negatively impacted or otherwise interrupted for the duration of the Existing Service Contracts, including any renewal or extension of the contract term. Each Existing Provider will remain in place for the duration of the Existing Service Contract unless the City Agency funder determines that the Existing Provider is not meeting service requirements under the Existing Service Contract or any future renewal contract. In such event, the City Agency funder has the right to assign a new social services provider to the affected Property to 36

assume the Existing Provider’s obligations and rights under the Existing Contract, or any future renewal contract. The Designated Project Team will be expected to execute leases with Existing Providers that reflect the agreed upon and understood terms. If the Designated Project Teams and NYCHA select Existing Providers to join the Project Team as the Service Coordinator, the Existing Providers must be engaged to deliver new services in addition to the scope of their Existing Service Contracts. These services will be resident-informed, as described above, and will be negotiated directly with Designated Project Teams and NYCHA. NYCHA may also have agreements with third party providers or City Agencies to provide programmatic and/or maintenance support to gardens, farms, public art, parks, and other amenities located at the Property. The Designated Project Teams should assume or acknowledge these agreements for the remainder of the term and ensure services are not negatively impacted. Continuations can be renegotiated directly with the third-party partner or City Agency thereafter by the Designated Project Teams. The Designated Project Team and the Social Service Coordinator must participate in hand-off meetings between NYCHA and partner City Agencies and third- party providers with services at the Properties to ensure continuity. 4. New Services: In addition to preserving the services offered by NYCHA partners at the development and the Existing Provider(s) for the duration of the Existing Contract(s), the Designated Project Teams will facilitate access to other social services or community amenities based on resident feedback. This will be coordinated through the Service Coordinator role. The Designated Project Teams will survey residents prior to construction closing to identify priority service preferences and delivery gaps. The Designated Project Teams may consider new programs to replace expired Existing Services based on resident feedback. The Designated Project Teams will then develop and, upon construction closing, execute programs via its Social Services Plan to provide a selection of the identified services to residents.

5. Proposed Budget: Although the Social Service Coordinator will be added to Designated Project Teams, Applicants must submit a general budget and funding proposal to support the ensuing Social Services Plan as part of this RFP. As detailed herein, and built into Exhibit C: Underwriting Guidelines and Rental Pro Forma Template, Applicants should assume a base case underwriting of (1) a one time, up front Social Service Reserve of $300 per unit as part of the conversion budget and (2) an additional $300 per unit in annual costs to fund social services on an ongoing basis.

6. Reporting Requirements: The final Social Services Plan shall include detailed metrics pertaining to the utilization or participation goals and service outcomes outlined in the Social Services Plan. These metrics will be reported to NYCHA on a quarterly basis and will include a combination of quantifiable and qualitative updates. The Service Coordinator should assume the responsibility of submitting these reports and collect information from all providers at the property.

C. Energy, Health and Sustainability Requirements

1. Heating Systems Replacement: A reliable heating system has been a major concern for Elliott-Chelsea and Fulton residents. The heating systems at these Properties have been plagued for decades with breakdowns that have resulted in some buildings going without heat for extended periods of time during the winter. The current heating system is a central system with underground piping between multiple buildings on each Property. Pipes run from a direct connection off the street to the Con Edison steam service. If there is a break in an underground distribution line, multiple buildings lose heat. In connection with this Project, the Designated Project Team must replace the existing heating system with individual building heating systems, including new distribution piping to and throughout all apartments, as required.

2. Sustainability Program: NYCHA is committed to advancing environmental justice in its communities by ensuring that investments in public housing create energy efficient, sustainable, and resilient buildings. NYCHA provides the flexibility for the Designated Project Team to meet the requirements and obtain certification through the New York City Overlay to the Enterprise Green Communities Criteria. PACT-specific requirements within the standard are described in Exhibit K. A draft criteria checklist must be submitted to NYCHA in the RFP response. Before certification begins, a draft final criteria checklist must be submitted to NYCHA for approval.

The Working Group Report included a comprehensive set of recommendations related to flood resiliency (see p. 38 in the Working Group Report for more detail) that should, to the greatest extent possible, be incorporated into the Project.

3. Local Law 97 (LL97) of 2019: LL97 introduced a schedule for owners of large and medium-sized buildings to significantly reduce their greenhouse gas emissions (“GHG”). Buildings owned or operated by NYCHA are exempt from the general reduction schedule and associated financial penalties. However, the law requires NYCHA to make efforts to

reduce GHG emissions by 40% by 2030 and 80% by 2050, from a 2005 baseline. Accordingly, the Designated Project Team must submit a document outlining that the PACT Rehabilitation Scope of Work will achieve the building emissions intensity limit for occupancy group R-2 for calendar years 2030 – 2034. Emissions intensity goals and GHG emissions coefficients for the 2030 – 2034 compliance period are outlined in tables below.

Year LL97 Limits for R2 (tCO2e/ksf) 2024 – 2029 6.75 2030 - 2034 4.07 2035 - 2050 1.40

Fuel Type GHG Emissions Coefficient for 2030 - 2034 Electricity .000115585 tCO2e/kwh Natural Gas .005317 tCO2e/therm District Steam .000092221 tCO2e/kg #2 fuel oil .002718723 tCO2e/liter #4 fuel oil .002913742 tCO2e/liter Biofuel .000001720 tCO2e/liter

4. Electrification Analysis and Long-Term Emissions Reduction Plan: The Designated Project Team must submit a document analyzing the feasibility of replacing fossil fuel- powered systems such as space heating, water heating, cooking, and laundry with electrified technologies. The analysis must also include a long-term emissions reduction plan that demonstrates an 80% reduction in GHG emissions by 2050. The Designated Project Team must provide a feasibility analysis of installing the components outlined below. The analysis should include, at a minimum:

a. Draft scope of work that includes electrification of heat and hot water generation using high-efficiency heat pumps; cooking using induction or electric stoves and provision of air conditioning to each apartment, as well as solar photovoltaics; b. Description and capacity of proposed systems being analyzed; c. Estimated installation costs; d. Costs and estimated annual maintenance and operating costs; e. Description of major obstacles to implementation; and

f. Conversion from central steam heating plants, such as conversion to hot water distribution with distributed boiler plants and conversion to air source heat pumps for heating and cooling.

If applicable, any existing leases for third party-owned solar installations will be transferred to the Designated Project Team at construction closing. The Designated Project Team may buy out the lease according to the terms of the lease where applicable.

5. Local Law 84 (LL84) of 2009: LL84 Benchmarking Law requires buildings over 25,000 square feet to annually report their overall energy use to the City using the Energy Star Portfolio Manager tool (“Portfolio Manager”). Accordingly, for each applicable Property, the Designated Project Team shall input and upload all electric, gas, and water utility information into the specified development account in Portfolio Manager by April 1st of each year. Access to the building specific accounts in Portfolio Manager will be granted by NYCHA to the Designated Project Team for this reporting. The Designated Project Team shall be responsible for verifying existing building information as well as updating and maintaining accurate information in the Energy Star Portfolio Manager tool, including but not limited to square footage, building characteristics and utility meter information.

Any building(s) within the Designated Project Team’s portfolio which receives a score of below 50 or show 3 consecutive years of declining energy performance shall require an ASHRAE Level 2 energy audit to be submitted to NYCHA within 6 months of the LL84 submission date.

6. Local Laws 92 (LL92) and 94 (LL94) of 2019: LL92 and LL94 of 2019 laws require sustainable roofing systems for new construction, and when existing roofs are expanded or replaced for all buildings. A sustainable roofing system is defined as a solar photovoltaic power generation system, a green roof, or a combination of both. Buildings with occupancy or initial occupancy restricted based upon the income of the occupant or the prospective occupant as a condition is exempt, which includes all NYCHA properties. The law requires HPD to study the potential impact of compliance with LL92 and LL94 on affordable and public housing and create particularized recommendation for cost-effective pathways for compliance and whether the exemption provided should be continued to maintain affordability.

7. Sub-metering: To promote energy conversation and better understand the breakdown in consumption of common area and tenant energy consumption, the Designated Project Team will be responsible for sub-metering all Properties that are currently master- 40

metered. All installed sub-meters should be on a “shadow-meter” basis without billing the tenant.

8. Green infrastructure: The Designated Project Team will be required to meet certain requirements for non-interference with any pre-existing green infrastructure (“GI”) installed by the DEP. The Designated Project Team will also be required to provide access and otherwise cooperate with any green infrastructure projects that are planned, designed, or in construction at the time of construction closing. NYCHA and DEP will disclose the location of existing and planned green infrastructure projects. Post-closing, the Designated Project Team will, to the extent required, be responsible for maintaining green infrastructure on-site in alignment with the DEP's Standard Designs and Guidelines for Green Infrastructure Practices.

9. Waste management infrastructure: The Designated Project Team will be required to submit a waste management plan and PACT Transition – Waste Management Handover Guide, as outlined in Exhibit F, that comply with the following requirements: a. If a Property currently does not receive curbside trash removal from the Department of Sanitation (“DSNY”), the Property may not convert to curbside removal; b. If a Property hosts exterior waste equipment used by other developments, the Designated Project Team must continue to provide access to the shared equipment; c. If a Property uses shared exterior equipment at a development retained by NYCHA, the Designated Project Team must install and maintain its own exterior equipment; and d. Any open 30-yard containers utilized for bulk collection will be converted to an on-site auger compactor with DSNY collection.

10. Reducing Construction and Demolition Waste: In line with OneNYC’s goal of sending zero waste to landfills by 2030, NYCHA aims to reduce the amount of construction and demolition (“C&D”) waste that is disposed in landfills and incineration facilities through material recovery, reuse, and recycling. Building on mandatory requirements for Enterprise Green Communities Criteria item 6.10 Construction Waste Management, the Designated Project Team will be required to select Option 1 and submit a C&D waste management plan for new construction and rehabilitation work at the Properties that establishes project-specific waste estimates, waste diversion goals, waste prevention measures, reuse inventory, communication plan, contamination prevention measures, and a recycling facility list.

11. Smoke-Free Housing: The Designated Project Team must adopt a smoke-free policy consistent with NYCHA’s Smoke-Free Policy. For more information, please visit https://www1.nyc.gov/site/nycha/residents/smoke-free.page.

D. Ownership and Control

NYCHA will convey the Properties to the Designated Project Team through a long-term ninety- nine (99) year lease agreement for the land and buildings and other improvements on the Properties (the “Lease”). As Landlord, NYCHA will reserve under the lease the right to remove the Designated Project Team as manager, as well as the right to approve any changes in the Project team. NYCHA will also require the Designated Project Team to enter into additional agreement(s) to memorialize resident rights, guarantee long-term affordability, and to satisfy any additional NYCHA, HDC and/or HUD requirements.

E. Project Financing and Fee Requirements

HDC will be the primary underwriter and lender for the PACT Component of the Project. For other strategies, including new construction, HDC financing is an option but not required.

Financing for the Project must incorporate the items below:

1. Underwriting Guidelines and Template, Exhibit C: The underwriting guidelines and underwriting templates are included as Exhibit C. All Proposal submissions must reflect the guidelines, interest rate, amortization, rental assumptions, unit mixes, and the disposition methods outlined in Exhibit C unless otherwise instructed. NYCHA and HDC may require revisions to the underwriting assumptions from time to time.

2. Blended RAD-Section 18 Disposition: Applicants must prepare and submit two (2) financing scenarios assuming a blended “RAD-Section 18 Disposition”:

1. Scenario A: Chelsea Houses converts under 60%/40% blend assumption with 60% of the units converting via RAD and 40% of units converting via Section 18. Fulton, Chelsea Addition and Elliott Houses meet HUD’s Obsolescence requirement for Section 18 and convert under 100% via Section 18.

Scenario A: RAD-Section 18 Blend % RAD % Section 18 (TPV) Chelsea Houses 60% 40% Fulton 0% 100% Chelsea Addition 0% 100% Elliott Houses 0% 100% 42

2. Scenario B: Chelsea and Elliott Houses convert under 60%/40% blend assumption with 60% of the units converting via RAD and 40% of units converting via Section 18. Fulton and Chelsea Addition meet HUD’s Obsolescence requirement for Section 18 and convert under 100% of units converting via Section 18.5

Scenario B: RAD-Section 18 Blend % RAD % Section 18 (TPV) Chelsea Houses 60% 40% Fulton 0% 100% Chelsea Addition 0% 100% Elliott Houses 60% 40%

NYCHA reserves the right to ask Applicants to underwrite additional scenarios prior to designation.

3. Proposed Financing Structure: Proposals must include balanced sources and uses. To the extent sources proposed are not fully committed at the time of submission, the Applicant must accept the risk for securing and/or providing replacement funds if needed. The priority for all cash flow distributions should be first and foremost to meet the capital needs of the Project, while minimizing the need for City subsidy.

4. No Competitive Financing Sources: Applicants must include a financing plan that does not rely on any so-called “competitive” financing sources from Federal, State or City government, including but not limited to DHCR or HPD 9% Low Income Housing Tax Credits or any other competitive or discretionary programs offered by the HFA, HDC or HCR. Applicants should follow all instructions within the Exhibit C. All financial proposals should be presented within the structure of the Underwriting Template.

5. Payment and Performance Bond or Letter of Credit: General Contractors must provide a 100% Payment and Performance Bond or 10% Letter of Credit, acceptable to HUD, HDC,

5 Section 18 rents are underwritten based on the traditional project-based Section 8 formula, up to the payment standard of 110% of Fair Market Rent (as determined by HUD), subject to rent reasonableness.

and other lender approval. This must cover the entirety of the final PACT Rehabilitation Scope of Work, made by a credit worthy entity satisfactory to NYCHA and HDC.

6. LLC I Disposition: The Chelsea development is in NYCHA’s “LLC I” portfolio. It will be necessary to buy-out the existing interest of the tax credit investors in the Property simultaneously with the Project closing. The purchase price for such buy-out, an amount to be determined, will be included in the transaction costs for the conversion.

7. PACT Rent Levels

a. The RAD contract rents must be underwritten based on the applicable 2020 RAD rents as found in Exhibit C and provided in the Underwriting Templates. Note that these rents, released by HUD in 2021 have been adjusted by the appropriate Operating Cost Adjustment Factor (the “OCAF”) and should apply through December 2021. NYCHA may provide revised rental assumptions at any time during the RFP selection process and after Applicants have been designated.

b. The Section 18 contract rents can be underwritten up to 110% of FMR less applicable utility allowances, subject to rent reasonableness. Please find the applicable reasonable rent levels in the Underwriting Templates in Exhibit C.

c. “Over-Income” Households: Since the Project is a combination of RAD and Section 18 conversions, the RAD Notice extends certain RAD Resident Protections to the households converting under Section 18, including that current households cannot be excluded from occupancy at the Properties undergoing conversion based on any rescreening, income eligibility, or income targeting. Current public housing residents in the converting Properties will not be rescreened for admission to the Section 8 program. For example, a unit with a household that was over-income at time of conversion would continue to be treated as an assisted unit and such unit will be placed on the applicable Section 8 PBV HAP Contract and such over-income household will have the right to remain in an assisted unit at the converting Properties and pay no more than 30% of adjusted gross income as rent.

d. Additional HUD Requirements: HUD may require, and NYCHA may pursue, a recalculation of rent levels to meet HUD requirements and maintain the financial strength and long-term stability of each Property.

8. Developer Fee:

a. Applicants should assume that NYCHA receives 50% of the developer fee, if applicable, and preference will be given to Applicants that maximize the ongoing annual cash flow return to NYCHA.

b. If no City subsidy is required to finance the Project, the developer fee will be limited to 10% of final proposal project costs, excluding acquisition, developer fee, and reserves, conforming to the requirements of the RAD Notice. Other costs related to tasks that the Designated Project Team will perform, such as construction management, financial consultation, and other services, shall not exceed an additional 2% of project costs, excluding acquisition, developer fee, and reserves, for total maximum fees of 12% of project costs. The structure and timing of release of the developer fee will be subject to lender approval.

9. Equity:

a. Applicant and/or third-party “Preservation” equity may be required. Any third party providing equity to the Applicant(“Third-Party Equity Partner”) will exclusively be allowed to participate in the ownership structure as a non- controlling/non-managing member. Third-Party Equity Partner(s) must only be involved in the Project to the extent such involvement directly relates to its role as a non-controlling/non-managing member. If an Applicant is considering the inclusion of a Third-Party Equity Partner, such Third-Party Equity Partner must be identified as a member of the Project Team, and Applicant’s Proposal must include information demonstrating the Third-Party Equity Partner’s role in the partnership, a structure chart and a summary of the equity terms, including the proposed investment period and return requirements. Proposals will be viewed favorably in which the investment period of the Third-Party Equity Partner is maximized. In cases where third party equity is generated through a federal, state, or local tax credit program, such equity must have a minimum investment period that complies with the applicable tax credit program requirements.

b. Applicants should describe their ability and willingness to contribute equity into the Project. Proposed equity contributions from the Applicant that are maximized will be reviewed favorably. Proposed equity contributions should be greater than 5% of the total development cost less existing debt, developer fee and reserves. In addition, NYCHA may be willing to reduce the amount of cash flow in order to maximize equity contributions from the Applicant.

c. If a Designated Project Team’s Developer(s) is or includes a for-profit entity(ies), proposals will be viewed favorably in which their equity contribution is maximized.

10. Lease Payments: Applicants should propose an upfront lease payment to NYCHA.

11. Acquisition Cost: The Acquisition Cost should represent the capitalized net operating income from the first year of stabilized operations (NOI), less the lesser of (1) the Developer Hard Costs, or (2) the HUD Housing Construction Costs (HCC). Assume a 5.25% cap rate.

HUD HCC here: https://www.hud.gov/sites/dfiles/PIH/documents/TDCs_2020.pdf

12. Upfront Acquisition Payment: If funds are available, an upfront acquisition payment to NYCHA should be provided. Proposals with favorable upfront acquisition payments to NYCHA will be viewed favorably. If projects contemplate City subsidy an Upfront Acquisition Payment will not be permitted.

13. Seller Note: To the extent funds are not available to fully compensate NYCHA for the Acquisition Cost, a Seller Note should be structured from NYCHA to the Developer. This should be sized as the Acquisition Cost, less the upfront acquisition payment, any applicable Debt, and any applicable Arrears payments. The term of the lessor note shall match the term of the permanent loan.

14. NYCHA Fees and Costs:

a. Annual Administrative Fee: The greater of $100,000 or $100 per dwelling unit shall be provided to NYCHA for certain property management services to cover the costs of compliance, asset management, and accounting, subject to annual 2% escalations.

b. Utility Management Fee: All utilities, excluding electricity, will be transferred to Owner’s account at closing.

NYCHA will continue to hold the electricity account for the Project. The Developer will be responsible for the following:

1. A fee to NYCHA of $30 per unit per year, with a 3% annual increase in the 1st quarter of each calendar year starting after the first full year of operations. This fee is to compensate NYCHA for its role as the electricity administrator and is to be paid in quarterly increments (the “Utility Management Fee”); 46

2. A quarterly payment covering all electricity costs incurred that quarter to be paid to NYCHA (the “Utility Payment”); 3. A reserve (the “Utility Management Reserve”) that should be initially sized off of (1) a half year (two quarter) average of the trailing year’s electricity costs plus (2) two quarters of Utility Management Fees, which is to be funded in full at closing. Quarterly, the Utility Management Reserve will be drawn down by NYCHA and replenished by the Utility Payments and Utility Management Fee.

To maintain NYCHA’s rates, these bills must be paid promptly on a quarterly basis.

c. Section 8 Transition Fee: Applicants must propose a one-time Section 8 Transition Fee of at least $100 per public housing unit to cover the programmatic expenses associated with the transition of these units to Section 8, including on-site property management transition, back office conversion tasks, and HQS inspections.

d. Predevelopment Costs: NYCHA must be repaid for any and all predevelopment expenses, including, but not limited to, fees for retaining outside legal counsel, environmental consultants, obsolescence reports, any required repairs, resident technical assistance or services, and appraisers.

e. Existing Debt and Bonds: NYCHA must be repaid for all outstanding balances on expended and capitalized bond proceeds and debt as detailed in Exhibit C.

15. NYCHA Purchase Option: NYCHA will require that NYCHA have a purchase option on the Designated Project Team’s leasehold interest in the Properties and any member‘s equity interest in the Project Team entity. NYCHA will provide the terms of the purchase option. For the avoidance of doubt, such purchase option will be in addition to NYCHA’s right to remove any or all members of the Designated Project Team at any time due to failure to comply with the terms of the agreements or meet the standards for performance required thereunder.

16. Residential Property Taxes: Regarding the PACT Component, tax benefits will be available through a negotiated PILOT agreement between NYCHA and the City. Applicants should assume that $0 in PILOT payments are due as long as the Properties serve households (exclusive of existing residents in place at closing) with incomes at or below 80% of AMI, subject to any PILOT payments that may be imposed for community facility or commercial tenants. Commercial units will be subject to standard applicable real estate taxes.

Regarding any new construction, the Designated Project Team will be responsible for entering into a PILOT Agreement with the City of New York to establish a synthetic tax structure through which all applicable residential and commercial taxes will be due. The Designated Project Team may request to reflect any relevant tax-advantaged structures into the PILOT for which they would be eligible, including the Affordable New York program.

17. Taxes and Fees: The Designated Project Team will be solely responsible for paying all transfer and recordation taxes and fees associated with Project financing, leasing, or other conveyance of the Properties or any required federal, state, or municipal approvals. The Designated Project Team is responsible for payment of all predevelopment cost(s) and meeting any other terms and conditions as required by HUD, NYCHA, other lenders, and/or investors.

18. Future Refinancing: NYCHA and HDC approval is required for any refinancing or restructuring of permanent debt.

19. Capital Needs: At a minimum, Applicants must propose a rehabilitation scope of work that covers the 20-year capital needs of the Properties as determined by the NYCHA PNA, further detailed within Exhibit A: PACT Rehabilitation Scope of Work Template, and the third-party RAD Capital Needs Assessment (“RCNA”), as approved by NYCHA and HDC. Applicants may be required to complete additional forms for NYCHA and HDC review and approval prior to selection to ensure that PACT Rehabilitation Scopes of Work meet both the 20-year capital need as defined by the RCNA, HUD Obsolescence Report, as well as to demonstrate that the 20-year NYCHA PNA is addressed. Designated Project Team will be required to complete additional forms and templates to be provided by NYCHA prior to financial closing.

20. Developer Return Requirements: NYCHA understands that sources and uses will shift between the time of Proposals and construction closing. To help ensure consistency, Applicants must state their minimum return requirements, including cash developer fee and cash flow split over time. Applicants must specify their return requirements in the Proposal as it relates to equity contributed.

21. Tenant Participation Activities (“TPA”) Funding: Per the RAD Notice, Applicants must account for an annual resident participation fee of $25 per occupied unit in their management and operations budget. In some cases, NYCHA may have unused TPA funds that it will transfer to the Designated Project Team at construction closing.

22. Resident Advisors: At least $150,000 shall be made available to residents upon designation for technical assistance and other services needed to ensure residents can meaningfully participate in planning and engagement processes associated with the Project. The Designated Project Team will work with NYCHA and resident leadership to develop a budget and scope of work for these funds, but Applicants are encouraged to include strategies for effectively using these funds as part of their Resident & Community Engagement Plan. The Designated Project Team will be responsible for overseeing and tracking the use of funds, as well as contracting with outside organizations, where needed, and making payments directly. Eligible activities may include hiring community- based organizations to support outreach and education efforts; planning, architecture, or urban design firms to vet project proposals; financial consultants to assess redevelopment potential; tenant organizers or advocates to support tenant organizing and leadership development and training; and/or attorneys to provide legal advice.

23. Tenant Legal Assistance: The Designated Project Team will be responsible for providing residents with free legal services in connection with the Project in order ensure a smooth transition to the Section 8 program, including legal consultation on the new Section 8 leases residents will be required to sign prior to closing. NYCHA will coordinate with the Designated Project Team to select a legal services provider, but the Designated Project Team will be responsible for entering into a contract (and funding) outlining the provision of services from the legal services provider, in consultation with tenant association leadership. The Designated Project Team will be responsible for all coordination and communication with the legal services provider, including, but not limited to, scheduling Lease Addition days (so residents can add household members, pets and/or appliances to their household prior to conversion), lease clinics and/or hotlines, and any other legal services requested or developed in coordination with tenant association leadership.

24. Social Service Provision Budget: See subsection B above for detail on the required Social Service Reserve and annual funding requirements, which are also detailed within the Underwriting Template.

25. New Construction Financing: For any proposed new construction, please follow all instructions within the underwriting template. All proposed debt financing must include a letter of intent from a financial institution capable of providing the financing proposed, at the determination of NYCHA and HDC.

Please specifically note that any and all debt financing proposed must conform to the following parameters: (1) a debt service coverage ratio no lower than 1.15x and (2) a 49

maximum loan to value ratio of 85%, or lender requirements. To guide any proposals that plan to utilize HDC financing and/or are looking for a residential maintenance and operation standard acceptable to NYCHA and HDC, please reference the HDC New Construction Expense Standards here: https://www.nychdc.com/sites/default/files/2021- 02/HDC%20New%20Construction%20Expense%20Standards.pdf

F. Project Labor and Employment Provisions

1. Davis-Bacon prevailing wage requirements: The Davis-Bacon prevailing wage requirements (prevailing wages, the Contract Work Hours and Safety Standards Act, and other related regulations, rules, and requirements) will apply to the work that qualifies as “Development” as set forth in the RAD Notice. Per Section 1.4.A.14 of the RAD Notice, “‘Development,’ as applied to work subject to Davis-Bacon requirements on Section 8 projects, encompasses work that constitutes remodeling that alters the nature or type of housing units in a PBV or PBRA project, reconstruction, or a substantial improvement in the quality or kind of original equipment and materials, and is initiated within 18 months of the Housing Assistance Payment (“HAP”) Contract.” The only exception to this requirement relates to work on units within properties within the LLC I portfolio, in this case Chelsea, where there is an existing HAP contract from a previous conversion to Section 8 (NYCHA‘s Mixed-Finance transaction).

Further, it is the responsibility of the Designated Project Team to comply with necessary prevailing wage requirements should construction and permanent financing sources require it. Every contract for the construction of housing (rehabilitation or new) that contains 12 or more units assisted with Federal funding such as HOME funds, or contains 9 or more units assisted with project-based Section 8 vouchers will be required to comply with Davis-Bacon and the Contract Work Hours and Safety Standards Acts.

The only exception to this requirement relates to work on units within properties within the LLC I portfolio, in this case Chelsea, where there is an existing HAP contract from a previous conversion to Section 8 (NYCHA‘s Mixed-Finance transaction).

2. Wage standard for building service employees: NYCHA has adopted the wage standard of 80% of prevailing wage, including supplemental benefits, for building service employees on PACT projects post-closing. As such, initial compensation and benefits shall be set at 80% of the prevailing wage schedule for building service workers per the City of New York Office of the Comptroller (the “Prevailing Wage Schedule”) at the time of closing and shall be adjusted in future years according to contract renewal negotiations,

which adjustments shall use as a floor 80% of the Prevailing Wage Schedule in effect at the time of such adjustments.

3. Labor relations: Proposals from applicants that demonstrate experience in harmonious and successful labor relations and/or a lack of negative labor issues, including in operation/property management, will be reviewed favorably.

4. Section 3 of the Housing and Urban Development Act of 1968 (“Section 3”): Section 3 of the Housing and Urban Development Act of 1968 12 U.S.C. 1701u and 24 CFR Part 75 represents HUD’s policy to ensure that employment and other economic opportunities generated by HUD financial assistance shall, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns that provide economic opportunities to low- and very low-income persons. Employment preferences under Section 3 are targeted to low- and very low-income (a) residents of public housing or Section 8 assisted housing (RAD requirement), (b) workers within the service area or the neighborhood of the project, and (c) YouthBuild participants, or workers employed by a Section 3 business concern. Section 3 applies to the Work as identified in the RAD scope of work. Section 3 business concern must meet one of the following criteria in the last 6 months: (i) It is at least 51 percent owned by low- or very low-income persons; (ii) Over 75 percent of the labor hours performed for the business are performed by low- or very low-income persons; or (iii) It is a business at least 51 percent owned by current public housing residents or residents who currently live in Section 8-assisted housing.

Proposals from Applicants with a demonstrated record of, and/or especially thoughtful plans for, providing robust Section 3 opportunities will be viewed favorably.

Section 3 guidance is subject to change at any point in time at the discretion of HUD and/or NYCHA. Additional information about Section 3 can be found here: https://www.hud.gov/section3

5. Resident Economic Opportunities: Pursuant to NYCHA’s goal of generating economic opportunities for its residents, Applicants must submit a plan for providing training and employment to NYCHA residents during construction and the long-term operation of the Properties. Exhibit Q ‘Section 3 Hiring Form’ should be completed and submitted with your proposal. The Designated Project Teams shall collaborate with NYCHA’s Resident Economic Empowerment and Sustainability Department (“REES”) to finalize an agreed upon training and hiring plan (the “Hiring Plan”) that is consistent with applicable HUD

hiring policies and NYCHA policies, as stated herein. REES provides training opportunities and manages partnerships with external workforce development and vocational training providers that can serve as a referral source. REES referrals can be included as one source of recruiting qualified NYCHA residents for employment.

The Designated Project Teams shall include a provision in its subcontractor bids that requires training and employment opportunities for qualified NYCHA residents consistent with this paragraph. Proposals with a comprehensive training plan and higher numbers of new hires of NYCHA residents and low-income individuals at higher wages will be viewed favorably. 6. Compliance: Designated Project Team will be responsible for compliance with all labor and employment provisions. During the construction period the Designated Project Team will report all recruitment and hiring activities, compliance with Davis Bacon, and compliance with Section 3 to NYCHA, on forms reasonably acceptable to NYCHA, on a monthly basis. Following the construction completion, the Designated Project Team will continue to report all recruitment and hiring activities and compliance with Section 3 to NYCHA on a monthly basis.

7. NYCHA Staff Redeployment: The Designated Project Team must ensure that NYCHA property management staff assigned to the Properties prior to conversion are provided the opportunity to apply for positions with the new property management company and given a right of first refusal for new positions for which they are qualified. Any staff members who do not elect to remain at the Properties after conversion may be, if desired, redeployed to other NYCHA public housing developments at construction closing.

G. Equal Opportunity

Agreements resulting from this RFP may be subject to the provisions of Executive Order 50, as amended, and it’s implementing regulations. If applicable, a representative from each entity in the Designated Project Team will be required to attend a class administered by HPD outlining the requirements of Executive Order 50 and to submit Equal Opportunity forms provided by HPD verifying their compliance with its provisions.

V. PROCUREMENT PROCESS

A. Procurement Structure

All Project Teams submitting a Proposal must consist of Developer(s), Property Manager(s), and General Contractor(s) (collectively, the “Project Team”) and must submit the Proposal as an Applicant who will obtain financing for the Project in compliance with this RFP and other NYCHA specifications, the Applicant’s Proposal, and the Project’s financing requirements. NYCHA and HDC acknowledge that the Project Team will also consist of other professional, technical, and construction entities (e.g., equity investor, architect, engineer, community planning professional, and legal counsel). Project Teams may consist of one entity per category (e.g., Developer, Property Manager, and General Contractor), or joint ventures in any category.

Applicants will be selected based on their ability to undertake the required capital repairs and on-going operations of the Properties in the PACT Component, and requirements at the new construction site(s), while committing to support robust social services. Applicants will be expected to effectively engage residents in planning for these investments, as detailed above.

To address NYCHA’s high and unique capital needs at its Properties, NYCHA reserves the right to change any part of a Project and Project Team as it deems appropriate. For example (but without limitation), NYCHA can cancel solicitations, remove members of a Project Team, and add new members to a Project Team, as well as remove or add properties or new construction sites to the Project. After designation, NYCHA will work with the Designated Project Team to identify an appropriate Social Service Provider or multiple providers to be added to the Designated Project Team who will be responsible for providing robust social services to residents. Applicants therefore should not include a Social Service Provider in their Project Team but must abide by the Underwriting Guidelines in Exhibit F in terms of budgeting for the provision of social services.

As a reminder, Applicants that include both an M/WBE Developer and a Nonprofit Developer, both of which have a Meaningful Role within the Project Team, will be reviewed favorably.

Following a competitive review of the Competitive Selection Criteria (as defined and described in Section VI), an Applicant will be designated to commence negotiations with NYCHA.

B. Pre-Submission Conferences and Site Visits

Two Pre-Submission Conferences will be held virtually on May 5, 2021 at 12:00 P.M. and May 19 at 12:00 P.M. To RVSP for the Pre-Submission Conferences, please email [email protected] with the subject header, “Pre-Submission [insert preferred date] Conference RSVP.” In the email, please state your name, company, phone number, email address, and number of attendees.

The pre-submission conferences will be a reiteration of the information included in this RFP and attendees will have a chance to ask questions.

NYCHA is assessing the correct way in the current environment to provide further site information, and may make the Properties available for either virtual or in-person site visits the week of June 7 , 2021 (exact days tbd). Further details on this will be provided in future updates. All persons wishing to conduct interior building inspections must do so at their own risk and only if explicitly approved by NYCHA. Applicants are not to contact NYCHA Property Management staff to obtain additional information about the Property or to schedule their own inspections without the expressed consent of NYCHA’s Real Estate Development Department. Any and all inspections that do occur, as approved by NYCHA, must take all necessary precautions to prioritize the health and safety of NYCHA residents from COVID-19. Any additional questions Applicants have regarding a specific Property should be submitted to [email protected]

In the event of site access, prior to entering the Properties, all persons must sign a release of liability form that NYCHA staff will provide at the Properties during the scheduled site visit times. By signing the requisite release of liability, the inspecting person agrees to release NYCHA of liability for any harm and/or damage occurring during, or because of, the inspection of any or all the Properties, and agrees to hold NYCHA harmless for such harm and/or damage.

C. Questions

Please submit, via e-mail, written questions to NYCHA’s RFP Coordinator at [email protected] by no later than 2:00 p.m. on May 11, 2021 after the 1st Conference or no later than 2:00 p.m. on May 26 after the 2nd Conference. Questions submitted in writing must include the firm name and the name, title, address, telephone number, and e-mail address of the individual to whom responses to the Applicant’s questions should be given. See suggested format below:

Firm Name Contact and Address Telephone Question Question Title and Email Topic

If you have multiple questions, please add additional rows for the additional questions to clearly outline the question topic. All questions and answers will be provided to all firms that received a copy of this RFP.

Responses to the first round of questions will be distributed no later than May 18, 2021. Responses to the second round will be distributed no later than June 3, 2021. Responses will be published in iSupplier and every vendor that is registered with iSupplier will get a notice that the sourcing event in iSupplier has been amended and that they should log in to view the updates. Responses may also be posted to the PACT Procurement website after the final round of questions.

D. Submission Due Date

All Proposal(s) must be submitted electronically per the provided instructions no later than 2:00 p.m. on August 11, 2021 (the “Deadline Date”).

No Proposals will be accepted after 2:00 PM on the Deadline Date unless the Deadline Date is extended by NYCHA for all Applicants. NYCHA reserves the right to reject any or all Proposals received in response to this RFP.

E. Development Information

NYCHA may provide supplemental materials and data to Applicants to facilitate the development of Proposals. RFP Exhibits and any additional information will be accessed through NYCHA’s Procurement Portal, iSupplier, unless otherwise instructed through a notice to Applicants. NYCHA may elect to utilize an alternative method of distributing Project information to Applicants.

VI. APPLICANT SELECTION CRITERIA & PROCESS

A. Review Process

Per the Chelsea NYCHA Working Group recommendations, NYCHA and HDC will involve resident leaders in the evaluation and selection of Project Teams who submit Proposals in response to this RFP. Resident leaders will form a Resident Review Committee who will be trained and given access to all Proposal materials (with the exception of personally identifiable information and personal asset/financial statements, which will be redacted). Residents who participate on the Resident Review Committee will also sign a Confidentiality and Conflict of Interest Agreement.

As part of the review process, NYCHA and HDC will first evaluate all Proposals according to the threshold requirements below (“Threshold Requirements”), considering the information provided in the Proposal, references, and any other information about the Applicant’s past performance available to NYCHA. Proposals that are not complete or do not conform to the requirements of this RFP will be deemed non-responsive and eliminated from further consideration, unless NYCHA permits the Applicant to correct the omission (see subsection B below).

Proposals that meet Threshold Requirements will then be vetted by NYCHA and HDC according a series of technical criteria (“Technical Selection Criteria”) described below. NYCHA and HDC will advance multiple finalist Proposals for consideration by the Resident Review Committee, NYCHA, and HDC according to a series of competitive criteria (“Competitive Selection Criteria”). During this stage of the review process, resident leaders, NYCHA, and HDC will evaluate Proposals according to the extent to which they respond to Working Group recommendations, the strength of the Property Management and Resident & Community Engagement Plans, design quality related to all preservation and new construction activities, financial feasibility, and the Hiring Plan.

Only the finalist Proposals that NYCHA and HDC advance to the Resident Review Committee and that meet all Threshold Requirements will be comprehensively evaluated, rated, and ranked according to the Technical and Competitive Selection Criteria outlined below. NYCHA and HDC may request additional information, interviews, presentations, or site visits in their sole discretion. The Designated Project Team will be chosen from among the Proposals that best conform to the criteria detailed herein. NYCHA may disapprove the inclusion of any member of an Applicant’s Project Team and/or require the Designated Project Team to substitute other individuals or firms. It is an intention of this RFP to provide opportunity to a

broad and diverse selection of Developers, General Contractors, and Property Managers. As part of the review process, NYCHA will evaluate the extent to which the designation of the Project Team would expand the number and variety of Developers, General Contractors, and Property Managers with direct experience delivering rehabilitation projects. To this end, Project Teams that do not include Developers, Property Managers, or General Contractors selected on PACT projects closely preceding the issuance of this RFP will be viewed favorably.

More detailed information about how resident leaders will be included in the review process can be found on page 64 and Exhibit J in the Working Group report.

B. Threshold Requirements

Completeness of Proposal: The Proposal must contain all documentation required under “Submission Requirements” below. All of the required forms must be fully completed, and application requirements met at the time of submission. Upon review, however, NYCHA, at its discretion, may notify an Applicant that additional information or clarification is necessary and ask the Applicant to submit such information in a timely manner as determined by NYCHA.

If an Applicant is given an opportunity to cure a deficiency in meeting one or more of the Threshold Requirements listed above, but does not respond to NYCHA’s request for such cure, or if the Applicant’s response does not sufficiently address the deficiency(ies), the Applicant’s Proposal will not be reviewed under the Technical and Competitive Selection Criteria.

C. Technical Selection Criteria

Proposals that satisfy the Threshold Requirements above will be evaluated, rated, and ranked according to the Technical Selection Criteria described below. In evaluating Proposals under these criteria, the combined experience and resources of all Principals of the Applicant and proposed Project Team will be considered. Applicants that include both an M/WBE Developer and a Nonprofit Developer, both of which have a Meaningful Role within the Project Team, will be reviewed favorably. The Technical Selection Criteria are as follows:

Development Experience and Capacity (Weight: 10%)

Factors to be considered include, but are not limited to, the following:

• Applicants must demonstrate adequate financial resources to undertake the Project as described in their Proposal. NYCHA will evaluate the Applicant’s assets, and bank or other lender references, to determine the Applicant’s capacity meet NYCHA’s, HDC’s, and other lender’s equity and guaranty requirements, absorb any cost 57

overruns, and commence and complete rehabilitation of the entire Project in a timely manner; • Quality of construction and design in projects completed or currently under construction by the Project Team and/or its Principals; • Extent of the Project Team’s experience, in terms of number, size, type, and complexity of rehabilitation projects within the last five (5) years; • Extent of the Project Team’s experience with high-performance and deep energy retrofit projects, or rehabilitation that entails a whole-building analysis and a construction wbeprocess that aims at achieving on-site energy use reduction by 50% or more compared to the baseline energy use (calculated using utility bills analysis), specifically with multifamily buildings – including passive house, Net Zero, and HVAC system conversions with tenants in-place; • Extent of the Applicant’s experience, in terms of number, size, type, and complexity of projects newly constructed within the last seven (7) years; • Extent of the Applicant’s experience managing market rate and affordable residential rental space within the last seven (7) years; • Successful and timely completion of tenant-in-place rehabilitation projects of similar size, type, and complexity; • Successful and timely completion of new construction projects of similar size, type, and complexity; • Experience with securing similar project financing; • Experience with developing and/or preserving affordable housing projects in partnership with public agencies; • Experience with engaging resident, community, and municipal stakeholders. • Applicants are encouraged to form partnerships and assemble teams in order to supplement internal capacity; • Experience with similar large-scale affordable, RAD, or Section 8 developments; • Inclusion of a Nonprofit Developer, with a Meaningful Role, within the Project Team; • Inclusion of an M/WBE entity, with a Meaningful Role, within the Project Team; • Experience in harmonious and successful labor relations and lack of negative labor issues; • Current workload (including active projects in predevelopment with NYCHA), staff capacity, and other pending project obligations and their potential impact on the ability of the Project Team to complete the Project within the prescribed timeframe; and • Proven track record of delivering high quality projects on time and within budget.

Property Management Experience (Weight: 10%)

Factors to be considered include, but are not limited to, the following:

• Experience managing tenant-in-place rehabilitation, including experience with temporary resident relocation; • Experience managing similarly sized affordable housing properties, including mixed income housing and Section 8 PBV projects; • Experience managing public housing, mixed-finance public housing, and/or RAD projects, including demonstrated compliance with applicable regulations not limited to the New York City Housing Maintenance Code, HQS, and those related to HOME and LIHTC compliance; • Experience in processing income recertifications for Section 8 HUD Multifamily developments; • Experience in harmonious and successful labor relations and lack of negative labor issues; • Experience managing and providing social services; • Experience managing community facility spaces; • Experience managing commercial spaces; • Experience managing affordable housing in New York City and/or relevant comparable markets; and, • Experience in harmonious and successful labor relations and lack of negative labor issues.

Financial Proposal (Weight: 15%)

Factors to be considered include, but are not limited to, the following:

• Meeting all capital needs of the Project; • Minimizing reliance on City and other public subsidies; • Adherence to the terms outlined in the PACT Underwriting Guidelines and RFP requirements, including assumed 50% split of Developer Fee and ongoing Cash Flow; • Reasonableness of estimated rehabilitation and operating costs, including the construction costs of the PACT Rehabilitation Scope of Work; • Reasonableness of estimated development and operating costs, including the design, financing, construction, and operation of the proposed new construction; • Cost containment, efficiency, and risk of financing; • Proposed equity contributions; • Proposed contribution from other strategies; and,

• Return to NYCHA, including proposed lease payments and fees.

Quality of Proposed Rehabilitation (Weight: 15%)

Factors to be considered include, but are not limited to, the following:

• Satisfactory demonstration that the PACT Rehabilitation Scope of Work fully addresses the 20-year capital needs of the Properties, meets the sustainability requirements as proposed herein, and demonstrates a commitment to perform work on every residential unit in a safe and timely manner; • The extent to which the PACT Rehabilitation Scope of Work includes additional improvements to the Properties beyond meeting the required 20-year capital needs, such as heating system replacement, improved safety and security improvements, site improvements, and additional residential amenities; and, • The extent to which such PACT Rehabilitation Scope of Work is feasible, expeditious, and cost efficient.

D. Competitive Selection Criteria

The resident review process will be spearheaded by a Resident Review Committee. The Resident Review Committee will be formed by resident leadership from Fulton and Elliott- Chelsea Houses to assess finalist Proposals evaluated by NYCHA and HDC according to the Threshold Requirements and Technical Selection Criteria. All members of the Resident Review Committee will be required to sign a Confidentiality and Conflict of Interest Agreement in order to participate.

NYCHA, HDC, and the Resident Review Committee will score proposals together in the following competitive areas:

Property Management Plan (Weight: 15%)

Factors to be considered include, but are not limited to, the following:

• Strength and quality of the proposed Property Management Plan, including for both the PACT Component and any new construction sites; • Quality of proposed tenant transition planning, including rightsizing, HQS compliance, and security; • Quality of proposed resident protection plan for the proposed tenant-in-place rehab, including tenant grievances; • Quality of proposed security plan;

• Quality of proposed retention and stability plan; • Experience providing high quality and resident-responsive property management; • Commitment to routinely working with residents to review property management processes and metrics and feedback from residents; and, • Strength and quality of the responses to the Management Questionnaire and overall approach to resident-centered, customer-service oriented property management.

Resident Engagement & Community Plan (Weight: 15%)

Factors to be considered include, but are not limited to, the following:

• Strength and quality of the proposed Resident & Community Engagement Plan, including demonstrated experience with community planning and tenant outreach and engagement; • Familiarity with NYCHA tenant issues and concerns regarding PACT; • The extent to which the proposed Resident & Community Engagement Plan incorporates the recommendations from the Working Group Report (please note that both the Resident Rights + Protections and Resident Engagement Subcommittees of the Working Group made recommendations related to resident engagement); • The extent to which the proposed Resident & Community Engagement Plan incorporates best practices and creative ideas to ensure a multi-faceted, broad, and inclusive strategy; and, • The extent to which the proposed Resident & Community Engagement Plan considers alternative forms of engagement and processes and protocols to ensure the health and safety of NYCHA residents, NYCHA staff, and Designated Project Team staff (i.e., with the goal of minimizing exposure to COVID-19).

Design and Program (Weight: 10%)

Factors to be considered include, but are not limited to, the following:

• The PACT Rehabilitation Scope and new construction proposals should identify how they achieve design-related principles and recommendations in the Working Group Report; • The PACT Rehabilitation Scope and new construction proposals should identify and propose site improvements that adhere to the principles and spirit of the NYCHA Connected Communities Guidebook; • The PACT Rehabilitation Scope of Work and new construction proposals should identify improvements to both community facility and commercial spaces, as applicable; 61

• The level of detail provided on the proposed finishes and treatments, any proposed modifications to circulation and lobbies, improved amenities, and the quality of building materials proposed; • The extent to which any proposed new construction incorporates the recommendations from the Working Group around housing affordability and program; • New construction will be evaluated on quality of building design, building size and scale, elevations, interior layouts, building materials, amenities, active design, quality of construction, innovative use of materials and construction technology, sustainability, and potential long-term viability within reasonable cost parameters; and, • New construction will also be evaluated on the quality and scope of proposed site improvements. Site planning, building arrangements, extent to which designs demonstrate creativity and insight in their solution to site conditions, relationship to the surrounding NYCHA development, and streetscape treatment will be considered. New street trees, lighting, and other streetscape features should be provided around the proposed new construction sites; the design should integrate the new buildings with the existing NYCHA development and surrounding community; existing trees should be preserved when possible. Safety and security as it relates to site planning will also be considered.

Hiring Plan (Weight: 10%)

Factors to be considered include, but are not limited to, the following:

• Hiring plans will be evaluated on the strength and quality of the proposed hiring plan and feasibility of the goals and implementation procedures within the plan; • Applicants should demonstrate understanding of the Section 3 program and program requirements; • Applicants should demonstrate experience with training and hiring NYCHA and local low-income residents under Section 3 and otherwise; • Applicants should demonstrate a willingness to partner with REES; and, • The extent to which the proposed Hiring Plan considers other economic opportunities for NYCHA residents.

E. Project Team Interviews

NYCHA, HDC, and members of the Resident Review Committee together will conduct interviews with finalist Project Teams (“Project Team Interview”).

F. Selection

Selection of an Applicant under this RFP means only that NYCHA will commence negotiations with such Applicant regarding the Proposal for the Project. This RFP does not represent an obligation or agreement on the part of NYCHA.

1. Conditional Designation Letter: Upon such selection, NYCHA will send written notification (“Conditional Designation Letter” or “Letter”) to the Designated Project Team regarding the commencement of negotiations.

NYCHA reserves the right to negotiate with one or more Applicants (including simultaneously), to modify the scope of the Proposal, and to terminate negotiations with or without cause after the issuance of such Conditional Designation Letter.

2. Predevelopment Timetable: The Conditional Designation Letter will include a development schedule setting out the major milestones and timeframes necessary to start construction (“Development Schedule”). Failure of the Designated Project Team to follow the Development Schedule may result in the termination of negotiations and the selection of another Applicant to be the Designated Project Team. The Designated Project Team will be expected to commence predevelopment work upon execution of the Conditional Designation Letter, which will further detail the specific milestones.

3. Disclosure: The Designated Project Team must disclose all previous participation in NYCHA and City-assisted projects. All entities of the Designated Project Team and Principals thereof will each be required to submit completed Entity and Individual Disclosure Statements, forms of which will be forwarded by NYCHA and/or HDC to the Designated Project Team. NYCHA and/or HDC, who will be handling this component of the PACT process, will provide copies of these forms upon request to any Applicant.

4. Proposal Versions: Because Residents will be participating in the review process, Applicants are asked to submit two proposal versions: (1) a full proposal as detailed within the RFP and (2) a redacted proposal that has redacted key personal / financial information for your members that we can share with a broader review panel.

VII. SUBMISSION REQUIREMENTS

A. Proposal Submission

Applicants must submit all forms and supporting documentation as described below in order for their Proposal(s) to be considered by NYCHA. The Developer entity (or Developer entities if a joint venture with more than one managing member has been formed) on the Project Team will be considered the Lead Applicant and will be the primary point of contact between the Applicant and NYCHA. NYCHA will utilize the Lead Applicant contact information to communicate additional submission instructions to the Applicant. All submissions become the property of NYCHA.

At this time ONLY ELECTRONIC BIDS/PROPOSALS submitted via iSupplier will be accepted and considered. Applicant MUST electronically upload a single .pdf containing ALL components of its Proposal package, which may not exceed 4G, into iSupplier. Due to health and safety concerns related to COVID-19, NYCHA will not be accepting physical submissions. If this poses a challenge for your organization, NYCHA will work with the Applicant on an appropriate alternative.

Instructions for registering for iSupplier can be found at: http://www1.nyc.gov/site/nycha/business/isupplier-vendor-registration.page. After Applicant registers for iSupplier, it typically takes 24 to 72 hours for Applicant’s iSupplier profile to be approved.

It is Applicant’s sole responsibility to leave ample time to complete iSupplier registration and submit its Proposal through iSupplier before the Proposal Submission Deadline. NYCHA is not responsible for delays caused by technical difficulty or caused by any other occurrence. The submission of attachments containing embedded documents or proprietary file extensions is prohibited.

If a joint venture is submitting a Proposal, the Proposal must be signed by a principal or officer of each member of the joint venture, and a detailed description of the form of the joint venture must be included. NYCHA shall have the right to request any documents or instruments including, but not limited to, corporate resolutions, incumbency certificates, or other forms of verification for purposes of confirming that the signatory thereon is duly authorized to execute such Proposal on behalf of the Applicant, and the Applicant shall promptly furnish such documents or instruments to NYCHA if so requested.

An electronic version of the Applicant’s complete Proposal must be UPLOADED TO iSUPPLIER by no later than 2:00 p.m. on August 11, the Proposal Submission Deadline. In the event of technical difficulties an applicant may submit their PDF proposal via email to [email protected] by no later than the Proposal Submission Deadline.

The Proposal should be submitted in a single PDF document combining all contents of the Proposal in the order described below. Portions of the Proposal such as the PACT Rehabilitation Scope of Work and rental pro forma should be included in the single PDF file as well as submitted as a standalone Excel file to facilitate review. The Proposals must contain a cover page showing the following information:

• Project name: “Request for Proposals to Implement a Community-Driven Preservation and Investment Strategy for Fulton and Elliott-Chelsea Houses,” • Name of each entity in the Project Team, • Contact information for the Lead Applicant, and • Date of submission.

Each Proposal must be tabbed as indicated below.

As part of its Proposal, the Applicant must complete and submit the following forms under the appropriate tab per the list below. These forms can be found in Exhibit G. In light of the electronic-only release of this RFP, submissions may be signed by electronic signature, which shall have the same force and effect as an original signature:

Exhibit G

• Form 1: Applicant’s Letter • Form 2: Applicant Description

Please note that an Applicant’s private equity partners who have at least a 10% ownership interest in the Applicant are required to submit the same documentation as the Applicant, as applicable.

In order to ensure the protection of sensitive personal information, please submit two versions of the Proposals: (1) a full Proposal as detailed within the RFP and (2) a full Proposal that has personally identifiable information and sensitive personal financial information redacted. Redacted information should primarily include:

• Personal addresses, • Personal finances or identifiers (e.g., Social Security Numbers), and • Entity-level financial information. 65

All other components of the Proposal should remain unchanged. The redacted version of the proposal will be shared with the Resident Review Committee.

As Proposals are advanced to the Resident Review Committee and scored according to the Competitive Selection Criteria, Applicants will be asked to provide hardcopy redacted versions of their submissions omitting key personal / financial information in a traditional binder format for each resident member of the Resident Review Committee (approximately 10-12 people). Applicants will be given five (5) business days to provide these binders to NYCHA for distribution to the Resident Review Committee.

B. Contents of Proposal and Tabbing

TAB A – Narrative Overview (Maximum 15 pages)

The Applicant must provide a narrative that describes their Proposal. The Applicant’s narrative must summarize the rehabilitation, new construction, and property management plans for the Properties, and how these plans will comply with the requirements of this RFP. In doing so, the Applicant must demonstrate its understanding of the requirements hereunder and its commitment to complete and operate the Project in accordance with the requirements of this RFP.

In addition to a full description of the Applicant’s Proposal, the narrative must include an overview of asset rehabilitation and new construction that details:

a. budgeting and schedule for the PACT Rehabilitation Scope of Work; b. budgeting, design, and schedule for proposed new construction development; c. training and hiring plans for NYCHA residents; and, d. proposed budget/funding for social services plan, to be devised after designation.

Applicants are encouraged to include any information that would be helpful to NYCHA, HDC, and the Resident Review Committee in the review process, such as projects that the Applicant has developed in the vicinity of the Properties or clarification of information provided in the NYCHA forms included in the Proposal. This narrative must include an anticipated date for executing final Project documents at a construction closing.

TAB B – Applicant Description (Maximum 10 pages)

The Applicant must complete and include Exhibit G in Tab B. If the Applicant is a joint venture, the Principals of each entity that comprises the joint venture must be identified, and a Principal of each entity must sign Exhibit G, Form 2.

The Applicant must identify all firms included on the Project Team and their roles. The Applicant must provide a staffing plan indicating which Principals and staff members would have primary responsibilities for implementing the Project and their roles in the day-to-day management of the Project. For each team member, the Applicant must provide the lead contact person, title, telephone number, email address, and physical address of the office from which services will be provided. The Applicant must provide brief profiles of the team members’ Principals, supporting associates, and staff to be primarily assigned to the Project. This information must specify each team member’s role, existing workload, and previous experience with similar projects, but should be as brief as possible. The description provided herein should demonstrate the extent to which a Project Team member has a Meaningful Role on the Project Team, to the extent applicable.

Applicant’s Project Team must consist of at least one Developer, one Property Management Company, and one General Contractor, although Applicants may include multiple entities for each category in their Project Team. Please provide any additional details about proposed joint ventures such as percentage ownership, or any other pertinent information about the proposed Project Team, in the provided text box on the web-form.

The Applicant must include a chart or diagram explaining the intended form and structure of, and proposed partnership or joint venture for, the Project Team, including Principals. The structure and percentages of ownership and investment must be included.

TAB C – PACT Rehabilitation Proposal

The Applicant must submit its PACT Rehabilitation Scope of Work. The PACT Rehabilitation Scope of Work must include a narrative describing the proposed rehabilitation scope in addition to completing the relevant tabs in the PACT Rehabilitation Scope of Work Template provided as Exhibit A, which consists of an itemized breakdown of work to be completed at the Properties. Applicants must complete the PACT Rehabilitation Scope of Work Template in the format provided per the Instructions Tab in Exhibit A. The PACT Rehabilitation Scope must address all items identified in Exhibit A, as well as the replacement of the district steam heating system with individual building heating systems, as described more fully in the Project Requirements. Applicants may propose changes to the quantities and work types identified in Exhibit A and must provide a justification and explanation for any proposed changes per the Instructions Tab in Exhibit A. Upon receipt and instruction from NYCHA, Applicants will be required to ensure that the totality of work to be performed at the Property as identified in the RCNA and Obsolescence Report is entered into their Exhibit A submission per the Instructions Tab as Additional Scope Items. The Applicant must provide an explanation for the source of its construction cost estimates in their narrative proposal. Applicants should include

a copy of the PACT Rehabilitation Scope of Work Template in the combined PDF as well as submit a standalone Excel file as part of their submission.

Additionally, the Proposal shall include a narrative as to the feasibility of the PACT Rehabilitation Scope of Work and how it will improve the lives of residents. Specifically, the narrative must address the factors identified in “Technical Selection Criteria” with respect to the quality of the Applicant’s PACT Rehabilitation Scope of Work and must include a predevelopment and construction schedule covering all project milestones. The PACT Rehabilitation Scope of Work should contemplate any historic preservation and known lead- abatement work that may be required. The PACT Rehabilitation Scope of Work must clearly state how the Applicant will address issues related to building elevators, mold, pests, and heating systems through rehabilitation and ongoing maintenance. Additionally, Applicants must ensure that the proposed rehabilitation scope meets or exceeds the 60% HCC requirements in the RAD underwriting scenario or at least 62.5%, for elevator buildings, or 57.14%, for walk up buildings, of the HUD-published Total Development Cost (“HUD TDC”) threshold in any Section 18 underwriting scenario.

At a minimum, Proposals must address the following scope sections and subsections in the narrative and provide corresponding values in the PACT Rehabilitation Scope of Work Template. Pending team designation, these narrative sections and correlated scope items will be periodically updated to reflect project compliance. Scope narrative sections shall include:

00_Overview 01_Sites & Grounds—i. Amenities (Exterior: i.e. Playgrounds, Gardens, Outdoor athletic facilities); ii. Landscape & Hardscape; iii. Irrigation, Drainage, & Stormwater 02_Apartments—i. Kitchens; ii. Bathrooms; iii. Living Space; iv. Bedrooms 03_Buildings—i. Facades; ii. Roofs; ii. Structural 04_Common Space (Interior)—i. Community facilities (Existing and proposed); ii. Amenities (Laundry, etc.); iii. Entrance, Lobbies, Circulation; iv. FF&E; v. Commercial space (Where applicable) 05_Systems—i. Heating & Cooling ; ii. Domestic Hot Water; iii. Electrical; iv. Plumbing; vi. Ventilation; vii. Elevators 06_Health & Safety—i. Lead abatement; ii. Mold remediation; iii. Asbestos abatement; iv. Hazardous Materials (Site); v. Integrated pest management; vi. Waste management 07_Energy & Sustainability—i. Sustainability Overview; ii. Envelope; iii. Systems; iv. Electrification; v. On-Site Generation ; vi. Local Law Compliance (LL:97,94/92,87,84,33); v. Certification; vii. Submetering; viii. Benchmarking 08_Accessibility—i. Code compliance; ii. Universal Design Guidelines; iii. Aging-in-place

TAB D – New Construction Proposal

If Applicants are including a new construction scenario, Applicants must provide a narrative describing, among other things, how the extent and amount of any proposed new construction raises enough revenue to meet the financing gap from PACT, critical issues and problem-solving techniques, primary design objectives intended to meet the standard of design and construction described throughout this RFP and the Working Group Report, and specific high performance and sustainable design features. This description must identify:

• A rationale for the design strategies chosen for any new construction that includes circulation (private and public), new building configuration and lot coverage, heights, orientation and relationship to surroundings, primary building materials, major architectural features, and sustainable design elements; • A description of predevelopment and construction schedule covering all project milestones and relationship to the major milestones of the PACT Component; • Type, location, and total new construction square footage (gross and saleable or rentable, including basement(s), if applicable), as well as total square footage breakdown for each use; • Type, number, and characteristics of the residential units, including unit distribution, number of bedrooms, approximate square footages, and amenities; • Detailed description of construction methods, foundation type(s), and building systems for all new buildings; and • Description and location of all mandatory infrastructure and other public improvements, including public and private open spaces, landscaping, and parking. Description of how any new construction complies with all zoning and other legal requirements.

Applicants must also provide a Design Team Experience Description that shows examples of residential, commercial, or community facility projects of similar scale and scope and qualifications detailing applicable residential and mixed-use development experience.

Further, Applicants must include an Architectural Submission on paper size of 11” by 17” or smaller. All plans must be prepared by a Registered Architect or Professional Engineer and must be easily reproducible. The following must be included:

• Zoning / Unit Distribution: Provide a zoning map for the area including the new construction sites, a detailed zoning computation and analysis to 69

demonstrate compliance with existing zoning, and Building Code information indicating occupancy group and construction classification. The computation should also include apartment count and distribution, and community facility space. If zoning compliance is not met by the proposal, please explain and provide any proposed land use actions needed to execute the new construction. • Development Site Plan: Provide a clearly legible site plan indicating all components of the new construction and other development within one block of the proposed new construction sites. It must include walkways, sidewalks, parking, driveways, building access points, tree locations, plant materials, fences, gates, lighting, easements, and encroachments, with dimensions. • Typical and Atypical Floor Plans: It is not required that design and architectural documents submitted include full apartment layouts for the floor plans. Submissions, however, must show blocked out units and clearly indicate all dimensions and total square footages. Community spaces (laundry room, play room, etc.) should be indicated in the floor plans. Unit plans must be 1/8”=1’0”. Unit and bedroom dimensions should be computed to the inside of finished surfaces of walls, excluding columns, pipe chases, kitchens, kitchenettes, entryways, and closets. Basic furniture lay-out should be illustrated for each apartment type. Plans should include a North arrow, actual scale and graphic scale. • Community Facility Plan: Provide a ground-floor plan depicting community facility areas and clearly indicate dimensions, square footage, structural columns, ceiling heights, storage space, utility outlets, and bathrooms. Clearly indicate access points, storage space, and bathrooms. • Parking Plan: If applicable, provide plans depicting parking areas and clearly indicating dimensions, square footage, structural columns, access points, and ceiling heights. • Elevations: Provide all elevations of the buildings at the same scale as the plans. Finishes, construction materials, ceiling heights, and floor elevations (level) must be shown and labeled on drawings. Perspective drawings/renderings are optional; however, they must not replace required elevations. Color renderings and/or elevations are appreciated but not required. • Provide any other architectural drawings such as axonometric, street frontage elevations, perspective or sectional drawings or computer generated modeling, if they provide a better understanding of the development concept or relationship to adjacent NYCHA development.

As a reminder, any new construction considered as part of an Applicant’s Proposal must comply with existing zoning regulations and the Working Group’s Design Guidelines described above. However, Applicants have the option of submitting an additional, alternative scenario that still achieves the goal of providing comprehensive repairs to the four Properties and creating an enhanced built environment with additional amenities for NYCHA residents but deviates from existing zoning regulations and the design criteria described above. If an alternative scenario is submitted, please clearly label and provide an Alternative Scenario Design Narrative and Architectural Submission after the primary scenario materials within this tab.

TAB E – Development Experience, Management Experience, and Current Workload (Maximum 10 Pages)

NYCHA will rely on materials submitted to assess an Applicant’s residential development and management experience. Entities part of the proposed Project Team that will have completed additional affordable housing development projects or added units to their management during the application process may submit supplemental material.

Current Workload

Each Principal of the Developer, General Contractor, and Property Management Company of the proposed Project Team must list all projects in which s/he/they is involved that will coincide with the timing of the construction closing on and rehabilitation and operation of the Project.

The Applicant may also submit any additional information related to the Proposal that the Applicant wishes to include but that has not been specifically requested in this RFP. This section of the Proposal may include articles, pre-printed brochures, and other material not specifically prepared for the Proposal in response to this RFP, but that the Applicant believes will help NYCHA, HDC, and the Resident Review Committee evaluate the Applicant’s qualifications and Proposal. All materials must be in a format that can be included under Tab D. Applicants must also disclose all previous participation in NYCHA and City-assisted projects. This information should be included as an exhibit in an Appendix.

TAB F – Property Management Plan (Maximum 10 pages)

Applicants must include responses to the Management Questionnaire (Exhibit R) and must submit a written narrative that outlines Applicants’ Property Management Plan by explaining their approach to property management, demonstrating compliance with this RFP, addressing goals of Working Group Report, and providing more details on:

• The structure and overlap between property management of the existing NYCHA Properties and any new mixed-income buildings; • The specific methods that will be used to address elevator outages, mold, lead paint abatement, pest management, and heating outages; • Property management strategies to reduce and control operating costs; • Strategies to communicate to residents about transition plans; • Project-Based Section 8 compliance plans; • Retention and stability plans; and • Safety and security procedures.

TAB G – Resident & Community Engagement Plan (Maximum 10 Pages)

Applicants must prepare a comprehensive Resident & Community Engagement Plan that describes an approach, timeline, and strategies for communicating and engaging with residents and tenant association leadership both during the predevelopment process and following conversion. The Plan should also include a description of any staff, budget, or other resources that will be dedicated to support resident engagement efforts.

Resident engagement and participation is expected to shape project plans, including the PACT Rehabilitation Scope of Work, property management approach, Social Services Plan, new construction development, and other investments. See Exhibit N for further guidance on engaging with residents during the predevelopment period. Applicants are expected to expand upon this guidance with creative strategies and tailor their approach to the needs of each development.

In addition, Applicants must describe a plan for regular engagement and communication with residents and tenant association leadership following conversion, including, for example, meeting frequency and tactics for soliciting tenant complaints and resolving issues.

Applicants are encouraged to form partnerships and assemble teams in order to supplement internal capacity. The Designated Project Teams will be required to craft and deliver professional, customer service-oriented, and culturally sensitive outreach and communications strategies.

TAB H – Financial Proposal

Applicants must include a rental pro forma (in the provided format in Exhibit C) and submit a detailed written financing narrative, which demonstrates compliance with this RFP and explains the proposed funding sources and overall approach.

TAB I – Assets and Financial Statements

NYCHA will utilize materials submitted as part of this RFP to assess an Applicant’s ability to undertake the Project as described in their Proposal.

VIII. CONDITIONS, TERMS, AND LIMITATIONS

This RFP is subject to the specific conditions, terms, and limitations stated below:

1. Proposals submitted shall be deemed to incorporate all of the terms and conditions contained in this RFP. Applicants will be deemed to have consented to such terms by submitting a Proposal in response to this RFP.

2. The Properties will be leased in “as-is” condition and NYCHA requires the Designated Project Team to assume the obligation to remediate any environmental contamination, cure any violations, correct any certificates of occupancy, indemnify NYCHA for any claims that may be made against them in the future, and release NYCHA from any claims that the Designated Project Team or their affiliates may have in the future arising out of the condition of the Properties. NYCHA, or any of its respective officers, agents, and employees, make no representation whatsoever as to the physical condition of the Properties or their suitability for any specific use. All due diligence is the responsibility of the Applicants and Applicants are urged to satisfy themselves with respect to the condition of the Properties, the information contained herein, and all limitations or other arrangements affecting the Properties. NYCHA will not be responsible for any injury or damage arising out of or occurring during any visit to the Properties.

3. The proposed Project shall conform to, and be subject to, the provisions of the Zoning Resolution, the New York City Building Code, and all other applicable laws, regulations, and ordinances of all Federal, State, and City authorities having jurisdiction, as the same may be amended from time to time.

4. Valid permits and approvals, as required by City, State, and Federal agencies, shall be obtained by the Designated Project Team prior to commencing work.

5. The commencement of negotiations with an Applicant will depend on satisfaction of the documentation and review requirements described in this RFP and will be subject to review by NYCHA. The continuation of negotiations with an Applicant may depend on the Applicant’s provision of additional documentation as required by NYCHA.

6. NYCHA will lease the Properties pursuant to approval from HUD, and all documentation, including, but not limited to, the Lease, shall be in form and substance satisfactory to NYCHA, HDC, HUD, and HPD (if applicable). 74

7. An Applicant submitting a Proposal in response to this RFP may be rejected if it or, if the Applicant is a business entity, any of its Principals is determined, in NYCHA’s sole discretion, to be within a category of persons or entities with whom or which the City, HDC, or NYCHA will not generally do business. The Applicant and all officers and Principals thereof will be required to complete a background questionnaire and shall be subject to sponsor review and investigation by HDC, DOI, and HPD (if applicable). Any designation may be revoked in NYCHA’s sole discretion in the event any derogatory information is revealed by such investigation.

8. No commission for brokerage or any other fee or compensation shall be due or payable by NYCHA, and the submission of a Proposal will constitute the Applicant’s undertaking to indemnify and hold NYCHA harmless from and against any such claim for any such fee or compensation based upon, arising out of, or in connection with any action taken by the Applicant, the selection of the Applicant's submission and invitation to the Applicant to respond to this RFP, or the conditional selection of an Applicant pursuant to this RFP.

9. The Applicant will not engage in any scheme or practice that seeks to solicit, pay, or receive as payment, or to deliver to anyone, any sum or thing of value (including, without limitation, the performance of any service) that may constitute or be construed as a bribe, kick-back, or other inducement that in any manner may prejudice NYCHA's interests or compromise the duty owed by anyone to NYCHA.

10. NYCHA is not obligated to pay, nor shall NYCHA in fact pay, any costs or losses incurred by any Applicant at any time, including any costs incurred by the Applicant in connection with the Applicant’s response to this RFP.

11. The Designated Project Team, and in the event that the Designated Project Team is a joint venture, each member of that joint venture, jointly and severally, shall forever defend, indemnify, and hold harmless NYCHA and its directors, members, principals, officers, agents, representatives, affiliates, and employees from and against any and all obligations, liabilities, claims, demands, penalties, fines, settlements, damages, costs, expenses, and judgments of whatever kind or nature, known or unknown, contingent or otherwise arising from the Project, including, without limitation, personal or bodily injury (including death) of or to any person or persons, including, without limitation, from or related to the presence, release, storage, transportation, or disposal of hazardous materials, or any damage to property of any nature.

12. No member of, or delegate to, the Congress of the United States or the New York State or City government, or resident commissioner, shall be permitted by the Applicant to share in any part of the Project or in any benefit that may arise from the Project.

13. NYCHA, HUD or any other federal, state or local agency providing funds to NYCHA, the New York City Comptroller, DOI, and/or the Comptroller General of the United States shall have the right to perform an audit of the Designated Project Team’s finances and the books and records related to its performance under the Project, including, without limitation, the financial arrangement with anyone that the Designated Project Team may delegate to discharge any part of its obligations with respect to the Project.

14. The selection of an Applicant will mean only that NYCHA may commence negotiations with that Applicant regarding its Proposal for the Project. NYCHA will send the Conditional Designation Letter to the Designated Project Team. The Designated Project Team must begin predevelopment work upon execution of the Conditional Designation Letter. The Designated Project Team will be expected to start construction on the day specified in the Development Schedule contained in the Conditional Designation Letter. However, the Designated Project Team must commence construction no later than the sooner of thirty (30) days after construction closing or twelve (12) months from the date of the Conditional Designation Letter. NYCHA may terminate further negotiations with the Designated Project Team if it fails to meet such deadlines, and if such termination occurs, the Designated Project Team has no claims against NYCHA for any damages or rights of enforcement.

15. NYCHA is under no legal obligation to lease the Properties. NYCHA may use the Proposals submitted pursuant to this RFP as a basis for negotiations with Applicants as NYCHA deems appropriate. NYCHA may reject at any time any or all Proposals; may amend, modify or withdraw this RFP in whole or in part; may negotiate with one or more Applicants; and/or may negotiate and lease the Properties on terms other than those set forth herein (including to parties other than those responding to this RFP). NYCHA may also, at any time, waive compliance with, or change any other terms and conditions of, this RFP; entertain modifications or additions to selected Proposals; or withdraw or add individual Properties or parcels from or to this RFP if in NYCHA’s judgment it is in the best interests of NYCHA to do so.

16. Selection of an Applicant's Proposal will not create any rights on the Applicant's part, including, without limitation, rights of enforcement, equity, or reimbursement, such 76

rights only being created after the approvals of HUD and NYCHA, and the Lease and all related documents (the “NYCHA Documents”) are fully approved and executed. Until such approvals and execution of the NYCHA Documents, NYCHA may terminate negotiations with the Designated Project Team at any time without incurring any obligations to the Designated Project Team.

17. In the event of any variance between the terms of this RFP and the NYCHA Documents, the terms of the NYCHA Documents will govern.

18. All determinations as to the completeness or compliance of any Proposals, or as to the eligibility or qualifications of any Applicant, will be within the sole discretion of NYCHA.

19. All Proposals and other materials submitted to NYCHA in response to this RFP may be disclosed in accordance with the standards specified in the Freedom of Information Law, Article 6 of the Public Officers Law (“FOIL”). The Applicant submitting a Proposal must designate those portions of the Proposal that it believes are exempt from FOIL. This characterization shall not be determinative but will be considered by NYCHA when evaluating the applicability of any exemptions in response to a FOIL request.

IX. CONFLICTS OF INTEREST

Current or former employees of the City of New York may respond to this RFP only in accordance with the section(s) of Chapter 68 of the New York City Charter governing conflicts of interest affecting City personnel. Section 2604(b)(7) of the City Charter contains specific prohibitions that exclude enumerated groups of employees from participating in the sales process. In addition, current NYCHA employees may not respond to this RFP.

Persons in the employ of the City considering the submission of a Proposal in response to this RFP are advised that opinions regarding the propriety of their participation in the Project may be requested from the New York City Conflicts of Interest Board. This body is empowered, under Section 2602 of the City Charter, to issue advisory opinions on conflict of interest questions and other matters of ethical consideration. It is not necessary, however, that such an opinion be obtained prior to responding to this RFP.

Former employees of the City of New York or NYCHA are also advised that the City Charter imposes certain restrictions on post-employment business relationships with the City. Such individuals should consult the specific provisions on this issue contained in the City Charter.

If, after award, the Designated Project Team discovers an organizational conflict of interest with respect to the NYCHA Documents or the Project, the Designated Project Team shall make an immediate and full disclosure in writing to NYCHA, which shall include a description of the action that the Applicant has taken or intends to take to eliminate or neutralize the conflict. NYCHA may, however, terminate negotiations with the Designated Project Team if it would be in the best interest of NYCHA to do so.

X. CONFIDENTIALITY

Certain information that NYCHA may furnish in connection with this RFP may be labeled as confidential and must be treated as proprietary information of NYCHA by each recipient of this RFP. By the Applicant’s receipt of this RFP, the Applicant agrees not to (a) disclose any part or all of such confidential information furnished to the Applicant pursuant to this RFP to any party, including, without limitation, any law firm or any corporate or government office, except to the extent essential to the preparation of the Proposal, and to secure from any party to whom a disclosure is made under this provision a confidentiality agreement, executed prior to any such disclosure, in which the recipient agrees to keep confidential and to not disclose any such confidential information to any other party (a “Confidentiality Agreement”), and (b) use such information for any purpose other than to prepare a response to this RFP. Such Confidentiality Agreement must name NYCHA as an intended third-party beneficiary with the right to enforce all remedies in an event of any such breach or unauthorized disclosures.

The Applicant must clearly designate in its Proposal those portions of the Proporsal, if any, that the Applicant believes are trade secrets or are maintained for the regulation of commercial enterprise that, if disclosed, would cause substanital injury to the competitive position of the Applicant. To the extent the law permits (i.e. Section 89 of the New York State Public Officers Law), NYCHA will use reasonable efforts to hold the designated portions of the Proposal in confidence but such characterizations are not determinative when NYCHA is evaluating the applicability of any exemptions in response to a FOIL request.

NYCHA reserves the right to share any or all components of the Applicant’s response to this RFP (including, without limitation, for training purposes) with NYCHA residents.

XI. INVESTIGATIONS AND TERMINATION

All Applicants agree and the Designated Project Team agrees to fully and faithfully cooperate with any investigation, audit or any inquiry by any governmental authority or agency that is empowered directly or by designation to compel the attendance of witnesses and to examine witnesses under oath, or conducted by the Inspector General of NYCHA with respect to the Project, submitted Proposal, NYCHA Documents, or person dealing with NYCHA that is the subject of the investigation, audit or inquiry.

1. If any person who has been advised that his or her statement, and any information from such statement, will not be used against him or her in any subsequent criminal proceeding refuses to testify before a grand jury or other governmental agency or authority empowered directly or by designation to compel the attendance of witnesses and to examine witnesses under oath concerning the award of or performance under any transaction, agreement, contract, lease or license entered into with NYCHA, the City, the State, or any political subdivision or public authority thereof, or the Port Authority of New York and New Jersey, or any local development corporation within the City, or any public benefit corporation organized under the laws of the State of New York, or

2. If any person refuses to testify for a reason other than the assertion of his or her privilege against self-incrimination in an investigation, audit or inquiry conducted by a City or State governmental agency or authority empowered directly or by designation to compel the attendance of witnesses and to take testimony under oath, or by the Inspector General of NYCHA, and is seeking testimony concerning the award of, or performance under, any transaction, agreement, contract, lease or license entered into with NYCHA, the City, the State, or any political subdivision thereof or any local development corporation within the City, then:

NYCHA has the right to terminate or cancel the NYCHA Documents or withdraw any conditional designation or reject any Proposal that the refusal(s) to testify concerns or to take other appropriate action, without NYCHA incurring any penalty or damages on account of such cancellation or termination.

In addition, NYCHA, may in its sole discretion terminate the NYCHA Documents or withdraw any conditional designation or reject any Proposal in the event the Applicant or Designated Project Team fails to promptly report in writing to the Commissioner of DOI any solicitation of money, goods, requests for future employment, or other benefit or thing of value, by or on

behalf of any employee of NYCHA or other person, firm, corporation or entity for any purpose that may be related to the procurement under this RFP, or affecting the performance of the Project to be done pursuant to this RFP.

XII. NEW YORK LAW

The NYCHA Documents shall in all respects be governed and construed in accordance with the laws of the State of New York. Any and all proceedings relating to the NYCHA Documents must be maintained in the state courts sitting in the City and County of New York, which courts have exclusive jurisdiction for such purpose; provided, however, that if any such action or proceeding arises under the Constitution, laws or treaties of the United States of America, or if there is a diversity of citizenship between the parties thereto, or any other causes establishing federal jurisdiction, so that it is to or may be brought in the United States District Court, it shall be brought in the United States District Court having jurisdiction in the City and County of New York.

XIII. DISCLAIMER

NYCHA does not make and specifically negates and disclaims any representations, warranties, promises, covenants, contracts or guarantees of any kind or character whatsoever, whether express or implied, oral or written, past, present or future, of, as to, concerning or with respect to the Properties including, without limitation, the following: (a) the value of the Properties; (b) the income to be derived from the Properties; (c) the nature, quality or condition of the Properties, including, without limitation, the manner, quality, state of repair or lack of repair of the Properties and the water, soil and geology thereof and any drainage from or onto the Properties; (d) the conformity of the Properties to any plans or specifications therefor; (e) the compliance of or by the Properties or their operation with any legal requirements including, without limitation, the Americans with Disabilities Act; any zoning rules, regulations, plans or resolutions; any applicable federal, state or local landmark designations; any loft board control, rent control, rent stabilization and/or any other rent regulation or requirements; and any rules and regulations promulgated under or in connection with any of the foregoing; (f) the habitability, merchantability or fitness for a particular purpose of the Properties; (g) the current or future real estate tax liability, assessment or valuation of the Properties; (h) the availability or unavailability or withdrawal or revocation of any benefits or incentives conferred by any federal, state or municipal authorities; (i) the fact that all or a portion of the Properties may be located on or near a flood plain or an earthquake fault line; (j) any other matter with respect to the Properties; or (k) the accuracy of any exhibit or information provided relating to the Properties.

Exhibit A: PACT Rehabilitation Scope of Work1

1 Due to file size and format, please find Exhibit A distributed separately.

Exhibit B: Property Profiles and Existing Providers2

2 Drawings and other info provided are to be used solely for the purposes of responding to this RFP. Fulton and Elliott-Chelsea Property Profiles & Existing Providers Exhibit B Fulton and Elliott-Chelsea Property Profile Project Name: Fulton and Elliott-Chelsea Developments: Chelsea, Chelsea Addition, Elliott, Fulton Borough: Manhattan

Chelsea Chelsea Addition Elliott Fulton

Year Built 1964 1968 1947 1965

# of Buildings Residential 2 1 4 11 Non-Residential - - - 1

TOTAL 2 1 4 12

Building Heights 21 14 11 to 12 6 to 25

Block 724, Lot 1 Block 714, Lot 31 Block 715, Lot 10 BBL Block 723 , Lot 15 Block 724, Lot 10 Block 723, Lot 1 Block 716, Lot 17 Block 717, Lot 19 Block 724, Lot 15

# of Units 425 96 608 944

# of Residents Section 8 179 - - - Public Housing 737 115 1,322 2,077

TOTAL 916 115 1,322 2,077

5-Year PNA $57,406,573 $17,850,059 $100,857,288 $168,216,926

20-Year PNA $93,040,730 $27,542,126 $139,585,988 $233,037,006

Bedrooms 0BR 23 - 21 72 1BR 140 96 47 288 2BR 120 - 357 288 3BR 99 - 163 192 4BR 40 - 19 97 5BR 3 - 1 7

TOTAL 425 96 608 944 Fulton and Elliott-Chelsea Property Profile Project Name: Fulton and Elliott-Chelsea Developments: Chelsea, Chelsea Addition, Elliott, Fulton Borough: Manhattan

Chelsea Chelsea Addition Elliott Fulton

# of Elevators 8 2 8 25

# of Boilers* 2 0 3 0

Waste Management Domestic Waste 2 compactors Bring waste to Chelsea Bring waste to Chelsea 2 compactors Bulk Waste Chelsea Chelsea Chelsea Fulton

Heating Systems Not paid by residents Not paid by residents Not paid by residents Not paid by residents

Electricity Bill Not paid by residents Not paid by residents Not paid by residents Not paid by residents

* As of March 2021. Fulton and Elliott-Chelsea Property Profile Project Name: Fulton and Elliott-Chelsea Developments: Chelsea, Chelsea Addition, Elliott, Fulton Borough: Manhattan

Community Space City Development Usage Status Sponsor SQFT Site Address Agency

Chelsea Case Management- Senior Occupied Hudson Guild 575 428 West 26th Street -

Chelsea Addition NORC / Child Care / Occupied Hudson Guild 65,688 441 West 26th Street - Health Clinic / COMPASS

Elliott Child Care Occupied Hudson Guild 11,531 459 West 26th Street -

Elliot Not Suitable for Occupancy Vacant - 5,325 447 West 25th Street -

Fulton Senior Center Occupied Hudson Guild 9,736 119 9th Avenue -

Fulton Computer Lab Occupied Hudson Guild 1,320 418 West 17th Street - METRO NORTH PLAZA

Fulton and Elliott-Chelsea Property Profile EAST 102ND STREET

Developments: Chelsea & Chelsea Addition WEST 28TH STREET Borough: ManhattanCHELSEA & BOROUGH: MANHATTAN 310 CHELSEA 2 NYCHA DevelopmentADDITION 10TH AVENUE NYCHA Building Residential Addresses 1 436 Management Office 307 NYC Parks 1 WEST 27 ST DRIVE

0 130180

Feet BOROUGH: MANHATTAN CHELSEA ADDITION

EAST 101ST STREET NYCHA Development 3 NYCHA Building Residential Addresses

Management Office 345

NYC Parks W ES STATE OF NEW JERSEY T 26 TH S 1ST AVENUE TR EE 0 180 428 T Chelsea Feet Elliott Addition

Prepared by: Performance Tracking & Elliott Analytics Department (December 2020) 1 Elliott 420 425 Chelsea

WEST 25TH STREET CHELSEA 2

STATE OF NEW JERSEY

9TH AVENUE

A 415 Fulton C Prepared by: Performance TrackingE & Analytics Department (December 2020) Fulton and Elliott-Chelsea Property Profile CHELSEA & CHELSEA ADDITION Developments: Chelsea & Chelsea Addition Borough:BOROUGH: Manhattan MANHATTAN TDS #: 134/176 MANAGED BY: CHELSEA

CHELSEA

BUILDING# STAIRHALL# ADDRESS ZIP CODE RESIDENTIAL BLOCK LOT BIN AMP# HZ FACILITY

1 009 425 WEST 25TH STREET 10001 YES 723 15 1083581 NY005021340 4 HPT SHOP/ STOREROOM

1 009 431 WEST 25TH STREET 10001 723 15 1083581 NY005021340 4 BOILER

1 012 428 WEST 26TH STREET 10001 YES 723 15 1083581 NY005021340 4 COMMUNITY OPERATIONS OFFICE SPACE/ TWO STOREROOMS

1 012 430 WEST 26TH STREET 10001 723 15 1083581 NY005021340 4 DEVELOPMENT MANAGEMENT OFFICE

2 010 420 WEST 26TH STREET 10001 YES 723 15 1083580 NY005021340 4

2 013 415 WEST 25TH STREET 10001 YES 723 15 1083580 NY005021340 4

CHELSEA ADDITION

BUILDING# STAIRHALL# ADDRESS ZIP CODE RESIDENTIAL BLOCK LOT BIN AMP# HZ FACILITY

1 011 436 WEST 27TH DRIVE 10001 YES 724 10 1012827 NY005011340 3

1 011 441 WEST 26TH STREET 10001 724 10 1012827 NY005011340 3 COMMUNITY CENTER/ MENTAL HEALTH CLINIC/ NORC/ DAY CARE CENTER

Notes: • RESIDENTIAL indicates a residential mailing address. • AMP# = Asset Management Project number • BIN = Building Identification Number • HZ = Hurricane Zone

NOTES: RESIDENTIAL indicates a residential mailing address. AMP# = Asset Management Project number BIN = Building Identification Number HZ = Hurricane Zone METRO NORTH PLAZA

Fulton and Elliott-Chelsea Property Profile EAST 102ND STREET

Development: Elliott WEST 27TH STREET WEST 28TH STREET Borough: Manhattan ELLIOTT BOROUGH: MANHATTAN 310 2 NYCHA Development NYCHA Building Residential Addresses 1 Management Office 307 NYC Parks WEST 27 ST DRIVE

10TH AVENUE 0 130175 288 1 Feet 450 BOROUGH: MANHATTAN 1 EAST 101ST STREET NYCHA Development 3 NYCHA Building Residential Addresses 426 Management Office 345 NYC Parks 4 STATE OF NEW JERSEY

WEST 26TH STREET 1ST AVENUE 427 0 175 2 466 Chelsea Feet 264 Elliott Addition

Prepared by: Performance Tracking & Elliott Analytics Department (December 2020) Elliott 446 3 Chelsea 443

WEST 25TH STREET

STATE OF NEW JERSEY

A Fulton C E Prepared by: Performance Tracking & Analytics Department (December 2020) Fulton and Elliott-Chelsea Property Profile ELLIOTT Development: Elliott Borough:BOROUGH: Manhattan MANHATTAN TDS #: 015 MANAGED BY: CHELSEA

BUILDING# STAIRHALL# ADDRESS ZIP CODE RESIDENTIAL BLOCK LOT BIN AMP# HZ FACILITY

1 001 288 10TH AVENUE 10001 YES 724 1 1083582 NY005011340 3 STOVE STOREROOM/ CARPENTER STOREROOM

1 002 450 WEST 27TH DRIVE 10001 YES 724 1 1083582 NY005011340 3

1 002 455 WEST 26TH STREET 10001 724 1 1083582 NY005011340 3

1 002 459 WEST 26TH STREET 10001 724 1 1083583 NY005011340 3 DAY CARE CENTER

2 003 466 WEST 26TH STREET 10001 YES 723 1 1083578 NY005011340 3 JANITORIAL STOREROOM

2 004 264 10TH AVENUE 10001 YES 723 1 1083578 NY005011340 3 STOREROOM/ CARPENTER STOREROOM

2 004 457 WEST 25TH STREET 10001 723 1 1083578 NY005011340 3 JAD BAG STOREROOM

3 005 446 WEST 26TH STREET 10001 YES 723 1 1083579 NY005011340 3

3 006 443 WEST 25TH STREET 10001 YES 723 1 1083579 NY005011340 3 LAUNDRY ROOM

3 006 447 WEST 25TH STREET 10001 723 1 1083579 NY005011340 3 COMMUNITY OPERATIONS SPACE (VACANT)

4 007 427 WEST 26TH STREET 10001 YES 724 15 1012828 NY005011340 3 BOILER/ REFRIGERATOR STOREROOM

4 008 426 WEST 27TH DRIVE 10001 YES 724 15 1012828 NY005011340 3 CARPENTERS STOREROOM

Notes: • RESIDENTIAL indicates a residential mailing address. • AMP# = Asset Management Project number • BIN = Building Identification Number • HZ = Hurricane Zone

NOTES: RESIDENTIAL indicates a residential mailing address. AMP# = Asset Management Project number BIN = Building Identification Number HZ = Hurricane Zone METRO NORTH PLAZA

Fulton and Elliott-Chelsea Property Profile EAST 102ND STREET

Developments: Fulton WEST 20TH STREET Borough: Manhattan FULTON BOROUGH: MANHATTAN 310 2 NYCHA Development NYCHA Building WEST 19TH STREET Residential Addresses 1 11 Management Office 307 NYC Parks 401

420 0 130210 412 9 Feet 10 BOROUGH: MANHATTAN WEST 18TH STREET NYCHA Development EAST 101ST STREET 3 NYCHA Building 12 8 Residential Addresses Management Office 401 5 345 NYC Parks 6

STATE OF NEW JERSEY 434 427 419 1ST AVENUE 0 210

4 WEST 17TH STREET 121 Chelsea Feet 7 9TH AVENUE Elliott Addition

Prepared by: Performance Tracking & Elliott Analytics Department (December 2020) Elliott 418 412 Chelsea 2 3

WEST STATE OF NEW JERSEY 16TH STREET

1 A Fulton C 401 Prepared by: Performance TrackingE & Analytics Department (December 2020) Fulton and Elliott-Chelsea Property Profile FULTON Developments: Fulton Borough:BOROUGH: Manhattan MANHATTAN TDS #: 136 MANAGED BY: FULTON

BUILDING# STAIRHALL# ADDRESS ZIP CODE RESIDENTIAL BLOCK LOT BIN AMP# HZ FACILITY

1 001 401 WEST 16TH STREET 10011 YES 714 31 1078408 NY005001360 2

1 001 413 WEST 16TH STREET 10011 714 31 1078408 NY005001360 2

2 002 418 WEST 17TH STREET 10011 YES 714 31 1078411 NY005001360 2

2 002 420 WEST 17TH STREET 10011 714 31 1078411 NY005001360 2 COMPUTER LAB

2 002 422 WEST 17TH STREET 10011 714 31 1078411 NY005001360 2

3 003 400 WEST 17TH STREET 10011 714 31 1078409 NY005001360 2

3 003 412 WEST 17TH STREET 10011 YES 714 31 1078409 NY005001360 2

4 004 430 WEST 17TH STREET 10011 714 31 1078410 NY005001360 2

4 004 434 WEST 17TH STREET 10011 YES 714 31 1078410 NY005001360 2

5 005 427 WEST 17TH STREET 10011 YES 715 10 1078420 NY005001360 2

5 005 431 WEST 17TH STREET 10011 715 10 1078420 NY005001360 2

6 006 419 WEST 17TH STREET 10011 YES 715 10 1078419 NY005001360 2

6 006 420 WEST 18TH STREET 10011 715 10 1078419 NY005001360 2 TWO STOREROOMS

6 006 421 WEST 17TH STREET 10011 715 10 1078419 NY005001360 2 DEVELOPMENT MANAGEMENT OFFICE

7 007 117 9TH AVENUE 10011 715 10 1078418 NY005001360 2

7 007 119 9TH AVENUE 10011 715 10 1078418 NY005001360 2 SENIOR CENTER

7 007 121 9TH AVENUE 10011 YES 715 10 1078418 NY005001360 2

8 008 401 WEST 18TH STREET 10011 YES 716 17 1078443 NY005001360 2

8 008 411 WEST 18TH STREET 10011 716 17 1078443 NY005001360 2

9 009 420 WEST 19TH STREET 10011 YES 716 17 1078445 NY005001360 2

9 009 422 WEST 19TH STREET 10011 716 17 1078445 NY005001360 2

10 010 400 WEST 19TH STREET 10011 716 17 1078444 NY005001360 2

10 010 412 WEST 19TH STREET 10011 YES 716 17 1078444 NY005001360 2

11 011 401 WEST 19TH STREET 10011 YES 717 19 1012576 NY005001360 2

11 011 419 WEST 19TH STREET 10011 717 19 1012576 NY005001360 2

12 012 432GAR WEST 18TH STREET 10011 715 10 1087110 NY005001360 2 GARAGE

Notes: • RESIDENTIAL indicates a residential mailing address. • AMP# = Asset Management Project number • BIN = Building Identification Number • HZ = Hurricane Zone

NOTES: RESIDENTIAL indicates a residential mailing address. AMP# = Asset Management Project number BIN = Building Identification Number HZ = Hurricane Zone Exhibit C: Underwriting Guidelines and Rental Pro Forma Template3

3 Due to file size, please find the Underwriting Template portion of this exhibit distributed as a separate file. NYCHA & HDC Underwriting Guidelines for PACT Program

Project Cost Acquisition Cost Acquisition Cost should represent the capitalized net operating Limits income from the first year of stabilized operations (NOI), less the lesser of (1) the Developer Hard Costs, or (2) the HUD Housing Construction Costs (HCC). HUD HCC here: https://www.hud.gov/sites/dfiles/PIH/documents/TDCs_2020.pdf Assume a 5.25% cap rate.

Upfront Acquisition Payment Upfront Cash Acquisition Payment to NYCHA should be maximized. If projects contemplate City subsidy an Upfront Acquisition Payment will not be permitted.

Development Costs 20-Year rCNA to be addressed for RAD and Unfunded Developments. 60% of HUD’s published Hard Construction Cost (“HCC”) limit to be budgeted for Section 18 units.

Construction Contingency Minimum hard cost contingency of 10%.

Soft Cost Contingency Minimum soft cost contingency of 5%.

Overhead and Profit Contractor overhead, profit and general conditions will be limited to a maximum of 14% of hard costs.

Reserves Operating Reserve For underwriting purposes, respondents should assume the following: Three months of operating expenses, replacement reserves, and debt service; subject to lender review at full underwriting

Replacement Reserves A replacement reserve sized at a minimum of $300 per unit per year paid from cash flow is required. RAD conversion will require that the 20-year RCNA is addressed through a combination of: 1) upfront rehab; 2) initial deposit to replacement reserve; and 3) ongoing deposits to replacement reserve; and therefore, annual deposits may need to exceed the minimum amount.

Financing For evaluation purposes, respondents should assume a straight-to-perm loan structure. The final Structure financing structure will be determined by HDC and will include but is not limited to straight-to-perm, construction that converts to perm, or HUD Multifamily Accelerated Processing (MAP) financing.

Financing Sources Seller Note The Seller Note should represent the Acquisition Cost, less the Upfront Acquisition Payment, any applicable Debt, and any applicable Arrears payments. Term should match the term of the permanent loan.

Equity: Please refer to the RFP. Minimum equity contribution equal to 5% of total project costs, larger equity contributions will be viewed favorably.

Interim Income Respondents may assume interim income equal to up to 75% of the NOI during construction as a source

Permanent Loan Amortization 40 years

Term 30 years NYCHA & HDC Underwriting Guidelines for PACT Program

Underwriting Rate Assume a 5.0% underwriting rate (inclusive of servicing and mortgage insurance), subject to market at time of financing. Final interest rates will be determined closer to the closing date

Debt Coverage 1.15x

Loan-to-Cost 90%

Loan-to-Value 85%

Vacancy 5% residential; 10% commercial/community space

Operating Expenses $9,800 per unit per year. This should not include annual expenses required for Social Services or Broadband related expenses.

Income/Expense Trending 2% / 3%

HDC Commitment Fee 0.75%

HDC Cost of Issuance 1.25% of the first mortgage amount

NYS Bond Issuance Charge $1,000,000 or less 0.168% $1,000,001 to $5,000,000 0.336% $5,000,001 to $10,000,000 0.504% $10,000,001 to $20,000,000 0.672% More than $20,000,000 0.84%

Bond Deposit Will be required and determined after designation

General Contractor 100% Payment & Performance Bonds or 10% Letter of Credit Other Requirements

Exhibit D: Insurance Requirements Guide

Development Partners - Insurance Requirements Guidelines

Table of Contents

Purpose and Scope Page 2 Requirements for all Insurance Page 3 Requirements for Property / Builder’s Risk Insurance Page 4 Requirements for Liability & Other Insurance Page 5 Insurance Premium Benchmarking Page 6 Sample Certificates of Insurance Page 7

Exhibits: Property Underwriting (To Be Provided Upon Award) Liability Loss Summary (To Be Provided Upon Award)

1 of 6 NYCHA Development Partners – Insurance Requirement Guidelines

PURPOSE & SCOPE:

The purpose of these guidelines is to summarize anticipated terms and conditions of NYCHA’s insurance requirements for the prospective Ground Lessee/Beneficial Owner (hereafter, “Development Partner”). These guidelines may be utilized to benchmark - on a preliminary basis - the cost of insurance during construction and operational phases of the Development(s).

Final insurance requirements - and all terms and conditions thereto - are contingent on the final project scope contained in the Operating Agreement, Ground Lease, and other agreements applicable to the Development. NYCHA Risk Management will review these requirements with the Real Estate Development Department and Law Department as well as with the Development Partner and may amend these requirements once the project scope and related agreements are finalized prior to closing.

NYCHA’s insurance requirements are communicated via contractual agreement with the Development Partner. While it will be the Development Partner’s sole responsibility to see that these requirements are met, it is understood that certain requirements may be met by other parties, such as a developer, general contractor, property manager or other parties as appropriate, acting on behalf of the Development Partner and subject to related contractual agreements. For avoidance of doubt, it is the intent of NYCHA that all insurable risk pursuant to the Development(s) and all operations thereof be transferred to the Development Partner on a primary basis, and that any NYCHA legal entity engaged in the Development is insured from insurable risks in a manner consistent with the indemnification provisions of the contractual agreements applicable to the Development. The Development Partner will acknowledge that any other insurance NYCHA obtains or maintains with respect to these developments shall be contingent and excess to the insurance required below and shall be structured to inure to NYCHA’s sole benefit.

NYCHA may further require that the Development Partner enforces minimum insurance requirements on contractors and other parties providing goods and services to the Development. These requirements will be included in the final contractual agreements.

These guidelines and the final requirements are exclusive of any other statutory or contractual insurance requirements which may be imposed by any other party on the Development Partner pursuant to the Development.

IMPORTANT NOTE: In cases where a) “RAD” or “PACT” conversion is not effective on date of closing and/or b) a Development continues to include, or may include Public Housing Units, HUD insurance requirements – which are more substantial than those provided below – would apply. While these scenarios are not generally anticipated, waivers from these requirements may need to be requested by the Tenant and Development Partners.

2 of 6 NYCHA Development Partners – Insurance Requirement Guidelines

REQUIREMENTS FOR ALL INSURANCE: The following requirements pertain to ALL insurance policies obtained and maintained with respect to the Development, unless otherwise noted below:

Insurers – All insurance shall be underwritten by an insurance company that is licensed - or otherwise legally permitted - to transact business in the state of New York and has an AM Best's policyholder rating of A- or greater and a financial size category of VII or greater. Insurance may alternately be underwritten by a Lloyd’s of London syndicate or Surplus Lines Insurers authorized to underwrite business in New York.

Blanket Insurance Policies – Development Partner may elect to include the Development in a blanket insurance program with other assets owned or managed by the Development Partner. NYCHA’s approval of such policies shall not be unreasonably withheld provided Development Partner acknowledges NYCHA’s interest in, and right to review and approve the sharing of limits, concentration of risk, premium allocation and other policy/program terms and conditions.

Alternative Risk Financing & High Retention/Deductible Programs – Self-Insurance, Captive Insurance, participation in Insurance Purchasing Groups or insurance with retentions/deductibles excess of $100,000 must be approved by NYCHA. Approval of Alternative Risk Financing will not be unreasonably withheld, provided that the financial resources and responsibility to pay claims in a manner consistent with the insurance required below is lawful, demonstrable and credible. Development Partner is responsible for all deductibles and retentions.

Waiver of Subrogation - All policies must include a Waiver of Subrogation in favor of each NYCHA entity engaged in the transaction wherever commercially available.

Primary/Non-Contributory - All policies must apply on a primary basis to any similar insurance carried by any NYCHA entity and not seek contribution from the same wherever commercially available.

Additional Insured - All liability policies must include each NYCHA entity engaged in the transaction as an Additional Insured or provide equivalent protection to each NYCHA entity wherever commercially available.

Severability of Interests - All policies must include the provision commonly known as Severability of Interests, or Separation of Insureds wherever commercially available.

Loss Payee (ISAOA ATIMA) - To the extent NYCHA retains an ownership interest or other financial interest in the assets or revenue of the Development, then each NYCHA entity, it’s successors or assigns (ISOA) must be named as Loss Payee on all First-Party Property and Builder’s Risk policies, inclusive of proceeds from Business Interruption, Rental Income and Delay in Completion coverage, as their interest may appear (ATIMA). NYCHA’s status as loss payee and its insurable interest in proceeds from any such policy may not be superseded by any other entity (e.g., an outside financer) unless approved in writing by NYCHA.

Notice of Cancellation - All policies must include provisions providing NYCHA with 30 days’ notice of cancellation, except 10 days for non-payment of premium.

3 of 6 NYCHA Development Partners – Insurance Requirement Guidelines

REQUIREMENTS FOR PROPERTY & BUILDER’S RISK INSURANCE: The scope of work and development phase will determine which policy form will be appropriate. All physical property including without limitation, existing structures, infrastructure, furniture, fixtures and equipment, contents, and any improvements and betterments conveyed via contract or thereafter constructed must be insured as follows:

100% Replacement Cost Valuation / No Coinsurance – Total Insured Value (TIV) as credibly substantiated by Tenant and approved by NYCHA on a semi-annual basis upon policy renewal or inception. For cost estimate and closing, the TIV currently appraised by NYCHA shall be provided with respect to existing structures and contents, however time element values must be calculated by Development Partner, with calculation disclosed to NYCHA. Per Occurrence Loss Limits which are less than the cumulative TIV must be substantiated and approved by NYCHA Risk Management.

All Risk Policy Form - including:

• Equipment Breakdown / Boiler & Machinery Insurance equal to the TIV or Per Occurrence limit selected per the above.

• Earthquake, Windstorm, and Flood Insurance limits commensurate with a credible analysis of Probable Maximum Loss (PML) as substantiated by Tenant and approved by NYCHA, but no less than the lesser of TIV or $25,000,000 per occurrence as respects Windstorm, and the lesser of TIV or $5,000,000 per occurrence and in the annual aggregate separately as respects Earthquake and Flood.

• Ordinance or Law Coverage – Coverage must be provided for the costs associated with enforcement of any ordinance or law regulating any physical property (building, structure, machinery or equipment), to:

o Demolish any physically damaged and undamaged portion; o Cover the increased cost for repair or rebuilding of the physically damaged and undamaged portions, whether or not demolition is required.

• Time Element limits (i.e. Business Interruption or Rental Income) equal to no less than 24 months of projected net income derived from the leased premises on an Actual Loss Sustained (ALS) basis.

New Structures and Property in the Course of Construction All buildings and other structures which are newly constructed pursuant to the ground lease must – during the Course of Construction – be insured on a Completed Value basis, including coverage for soft costs, delay-in-completion and other standard terms & conditions.

4 of 6 NYCHA Development Partners – Insurance Requirement Guidelines

REQUIREMENTS FOR LIABILITY AND OTHER INSURANCE: Through the duration of the lease, during both construction and operational phases, the Development Partner must cause to be obtained and maintained liability and other insurance with respect to the Development and any operations thereof. Required limits may be achieved by a combination of primary and excess insurance provided that all terms and conditions are met.

General Liability - $25,000,000 per occurrence and in the aggregate for bodily injury, personal injury and property damage to third parties. If limit is achieved using primary and excess policies under a “master” insurance program that insures other properties, the primary aggregate limit must be issued on a per- project or per-location basis.

Automobile Liability - $5,000,000 combined single limit per accident, including owned, hired, leased and non-owned vehicles operating on or from the Development or in the course of operations related thereto.

Workers’ Compensation / Employer’s Liability – Workers’ Compensation and Employer’s Liability Insurance as required by New York State Law.

Environmental / Pollution Legal Liability – Up to $10,000,000 per claim and in the aggregate covering all pollution conditions for which it is Development Partner’s duty to indemnify NYCHA entities pursuant to contract. Limit shall be determined prior to closing based on pre-development environmental surveys.

Executive Risk Liability - $5,000,000 per claim and in the aggregate covering the wrongful acts of the Development Partner entity, it’s Members, Directors and Officers (as applicable), and indemnifying the same – on a non-rescindable basis - as required by Operating Agreement. Employment Practices Liability with third party coverage extension, Crime and Fiduciary Liability must also be included at no less than $1,000,000 per claim.

Network Security & Privacy Liability Insurance - $1M per claim and in the aggregate covering statutory and civil liability arising out of a breach of confidential, private or sensitive data in the care, custody and control of the Development Partner.

5 of 6 NYCHA Development Partners – Insurance Requirement Guidelines

INSURANCE PREMIUM BENCHMARKING: To assist Development Partners, NYCHA has requested that its own insurance professionals provide the below benchmarks for basic insurance pricing during the operational (non-construction) phase of the project. Please note that the benchmarks provided below are for preliminary guidance only and NYCHA makes no guarantee that Development Partner will be able to achieve the pricing cited below.

Insurance pricing is influenced by the state of the insurance marketplace at the time of placement, as well as by the historical loss performance of the purchaser and prior owner, among other factors. The party which will procure insurance with respect to the Development must carefully review the above requirements and provide underwriting information to their insurance professional in order to obtain more accurate estimates – and actual quotes - of insurance costs.

PROPERTY INSURANCE The anticipated range of rates for the Property Insurance required above is between $0.07 and $0.25 per $100 of TIV. The lower end of the range may be achievable for property schedules that are largely Masonry Non-Combustible construction, have no prior losses, no high hazard flood exposure, and assuming a deductible of at least $50,000 to $100,000. Schedules that include considerable Joisted Masonry and/or Frame construction, properties situated in high hazard flood zones and properties with significant loss history may experience the higher end of the range.

GENERAL LIABILITY / EXCESS LIABILITY INSURANCE The table below provides low/high range estimates by borough for Primary General Liability and $25,000,000 Excess Liability per “door” assuming a $25,000 per occurrence deductible. Notable influencers on liability rates include the historical loss experience of the Development itself and the incoming management team, the scope of construction/renovation, whether tenants will remain in place during that time, and local crime statistics and legal environment for that borough.

Borough Low Range Estimate per Door High Range Estimate per Door Queens $629 $1,200 Bronx $740 $1,410 Brooklyn $680 $1,297 Staten Island $555 $1,059 Manhattan $629 $1,200

Please Note:

The costs of the other required insurance policies (such as Workers Compensation or Auto Liability) are not benchmarked above due to variables related to actual Development Partner operations and strategy. Development Partners will need to estimate the costs for these types of policies based on their operating assumptions (e.g. payroll, use of vehicles, etc.).

6 of 6 NYCHA Development Partners – Insurance Requirement Guidelines

DATE (MM/DD/YYYY) EVIDENCE OF COMMERCIAL PROPERTY INSURANCE 6/27/2018 THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST. PRODUCER NAME, PHONE COMPANY NAME AND ADDRESS NAIC NO: CONTACT PERSON AND ADDRESS (A/C, No, Ext): 203-658-0511 29424 Edgewood Partners Insurance Center Hartford Casualty Ins. Co. 3 Landmark Square, 4th Floor Hartford Plaza Stamford CT 06901-2515 Hartford CT 06115

FAX E-MAIL IF MULTIPLE COMPANIES, COMPLETE SEPARATE FORM FOR EACH (A/C, No): ADDRESS: [email protected] CODE: SUB CODE: POLICY TYPE AGENCY CUSTOMER ID #: NAMED INSURED AND ADDRESS LOAN NUMBER POLICY NUMBER ABC COMPANY 263 Tresser Blvd PROP12345 Stamford, CT 06901 EFFECTIVE DATE EXPIRATION DATE CONTINUED UNTIL 04/01/2018 04/01/2019 TERMINATED IF CHECKED ADDITIONAL NAMED INSURED(S) THIS REPLACES PRIOR EVIDENCE DATED:

PROPERTY INFORMATION (ACORD 101 may be attached if more space is required) X BUILDING OR X BUSINESS PERSONAL PROPERTY LOCATION / DESCRIPTION

THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. COVERAGE INFORMATION PERILS INSURED BASIC BROAD SPECIAL X All Risk COMMERCIAL PROPERTY COVERAGE AMOUNT OF INSURANCE: $ 25,000,000 DED: YES NO N/A X BUSINESS INCOME X RENTAL VALUE X If YES, LIMIT: X Actual Loss Sustained; # of months: 24 BLANKET COVERAGE X If YES, indicate value(s) reported on property identified above: $ TERRORISM COVERAGE X Attach Disclosure Notice / DEC IS THERE A TERRORISM-SPECIFIC EXCLUSION? X IS DOMESTIC TERRORISM EXCLUDED? X LIMITED FUNGUS COVERAGE X If YES, LIMIT: DED: FUNGUS EXCLUSION (If "YES", specify organization's form used) X REPLACEMENT COST X AGREED VALUE X COINSURANCE X If YES, % EQUIPMENT BREAKDOWN (If Applicable) X If YES, LIMIT: DED: ORDINANCE OR LAW - Coverage for loss to undamaged portion of bldg X If YES, LIMIT: DED: - Demolition Costs X If YES, LIMIT: DED: - Incr. Cost of Construction X If YES, LIMIT:$10,000,000 DED: EARTH MOVEMENT (If Applicable) X If YES, LIMIT:$5,000,000 DED: FLOOD (If Applicable) X If YES, LIMIT:$5,000,000 DED: WIND / HAIL INCL X YES NO Subject to Different Provisions: X If YES, LIMIT:$25,000,000 DED: NAMED STORM INCL X YES NO Subject to Different Provisions: X If YES, LIMIT: DED: PERMISSION TO WAIVE SUBROGATION IN FAVOR OF MORTGAGE HOLDER PRIOR TO LOSS X CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. ADDITIONAL INTEREST CONTRACT OF SALE LENDER'S LOSS PAYABLE X LOSS PAYEE LENDER SERVICING AGENT NAME AND ADDRESS MORTGAGEE

NAME AND ADDRESS

New York City Housing Authority ISAOA ATIMA c/o Risk Management Department 90 Church Street, 6th Floor AUTHORIZED REPRESENTATIVE New York NY 10007-2919

ADDITIONAL REMARKS SCHEDULE Page 1 of 1

AGENCY NAMED INSURED Edgewood Partners Insurance Center ABC COMPANY 263 Tresser Blvd POLICY NUMBER Stamford, CT 06901

CARRIER NAIC CODE

EFFECTIVE DATE: ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 28 FORM TITLE: EVIDENCE OF COMMERCIAL PROPERTY INSURANCE REMARKS NYCHA is named as Loss Payee as required by written contract currently in force. All policies include a provision which endeavors to provide NYCHA with 30 days notice of cancellation, except 10 days for non-payment of premium.

ACORD 101 (2008/01) © 2008 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD DATE (MM/DD/YYYY) CERTIFICATE OF LIABILITY INSURANCE 4/26/2018 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: Rusty Briante Edgewood Partners Insurance Center PHONE FAX (A/C, No, Ext): 203-658-0511 (A/C, No): 3 Landmark Square, 4th Floor E-MAIL Stamford CT 06901-2515 ADDRESS: [email protected] INSURER(S) AFFORDING COVERAGE NAIC #

INSURER A : American Insurance Company 21857 SAMPLE INSURED INSURER B : Allied Insurance Company 19100 ABC COMPANY 263 Tressor Blvd INSURER C : Allied World Assurance Company (U.S.) 19489 Stamford CT 06901 INSURER D : Zurich American Insurance Co 16535 INSURER E : Westchester Fire Insurance Co. 21121

INSURER F : XL Insurance America Inc. 24554 COVERAGES CERTIFICATE NUMBER: 1900307025 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ADDL SUBR POLICY EFF POLICY EXP LTR TYPE OF INSURANCE INSD WVD POLICY NUMBER (MM/DD/YYYY) (MM/DD/YYYY) LIMITS A X COMMERCIAL GENERAL LIABILITY Y Y GL12345 4/1/2018 4/1/2019 EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED CLAIMS-MADEX OCCUR PREMISES (Ea occurrence) $ 500,000 MED EXP (Any one person) $ 250,000 PERSONAL & ADV INJURY $

GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 PRO- X POLICY JECT LOC PRODUCTS - COMP/OP AGG $ OTHER: $ B AUTOMOBILE LIABILITY AU12345 4/1/2018 4/1/2019 COMBINED SINGLE LIMIT 5,000,000 (Ea accident) $ X ANY AUTO BODILY INJURY (Per person) $ OWNED SCHEDULED BODILY INJURY (Per accident) $ AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $ AUTOS ONLY AUTOS ONLY (Per accident) $ F UMBRELLA LIAB UMB12345 4/1/2018 4/1/2019 X OCCUR EACH OCCURRENCE $ 25,000,000 EXCESS LIAB CLAIMS-MADE AGGREGATE $

DED RETENTION $ $ C WORKERS COMPENSATION WC12345 4/1/2018 4/1/2019 PER OTH- X STATUTE ER AND EMPLOYERS' LIABILITY Y / N ANYPROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N / A (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $ If yes, describe under DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ D Directors & Officers/Management Liability D&O12345 4/1/2018 4/1/2019 Limit: $5M/Per Claim $5M/Aggregate E Pollution Legal Liability POLL12345 4/1/2018 4/1/2019 Limit: $10M/Per Claim $10M/Aggregate

DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) NYCHA is an Additional Insured as required by written contract currently in force. Waiver of Subrogation applies to General Liability, Automobile and Workers' Compensation policies only to the extent of such obligation under written contract executed prior to loss. The General Liability and Automobile policies apply on a Primary and Non-Contributory basis, where required by written contract. The General Liability and Automobile policies include a Separation of Insureds provision. See Attached... CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN New York City Housing Authority ISAOA ATIMA ACCORDANCE WITH THE POLICY PROVISIONS. c/o Risk Management Department 90 Church Street, 6th Floor AUTHORIZED REPRESENTATIVE New York NY 10007-2919

ADDITIONAL REMARKS SCHEDULE Page 1 of 1

AGENCY NAMED INSURED Edgewood Partners Insurance Center ABC COMPANY 263 Tressor Blvd POLICY NUMBER Stamford CT 06901

CARRIER NAIC CODE

EFFECTIVE DATE: ADDITIONAL REMARKS THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25 FORM TITLE: CERTIFICATE OF LIABILITY INSURANCE

All policies include a provision which endeavors to provide NYCHA with 30 days notice of cancellation, except 10 days for non-payment of premium.

NEW YORK CITY HOUSING AUTHORITY

250 BROADWAY  NEW YORK, NY 10007

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

NYCHA PACT PARTNERS COVID‐19 SAFETY GUIDELINES FOR REOPENING CONSTRUCTION AND PRE‐DEVELOPMENT ACTIVITIES JULY 7, 2020

INTRODUCTION

The New York City Housing Authority’s Real Estate Development Department (“NYCHA REDD”) has developed these guidelines to inform and standardize procedures for the “reopening” of construction and pre‐development activities (“PACT work”) being undertaken through NYCHA’s Permanent Affordability Commitment Together (“PACT”) Program by PACT developers, their contractors, and their consultants (the “PACT Partners”). The guidelines are meant to build upon requirements and guidelines issued by federal, state and local governments and are subject to change. The guidelines pertain to all personnel (“personnel”) and visitors (“site visitors”) related to the PACT work as well as residents (“residents”) residing in units where PACT work is underway. The guidelines shall remain in effect for the duration of the public health emergency.

PACT Partners will affirm they have reviewed, understand, and will implement the industry guidelines under COVID‐19 issued by New York State, New York City and NYCHA, including but not limited to Reopening New York: Construction Guidelines for Employers and Employees.

COVID‐19 REOPENING SAFETY PLAN

In accordance with New York State guidance, PACT Partners shall develop a COVID‐19 Reopening Safety Plan (“RSP”). A safety plan template is available on the New York State website. Per the plan template:

“Each business or entity, including those that have been designated as essential under NY State Empire State Development's Essential Business Guidance, must develop a written Safety Plan outlining how its workplace will prevent the spread of COVID‐19. A business may fill out this template to fulfill the requirement, or may develop its own Safety Plan. This plan does not need to be submitted to a state agency for approval but must be retained on the premises of the business and must made available to the New York State Department of Health or local health or safety authorities in the event of an inspection.”

COVID‐19 Reopening Safety Plans should be provided to NYCHA for review and, in addition to federal, state or local requirements, shall include:

PAGE 1 of 7

NEW YORK CITY HOUSING AUTHORITY

250 BROADWAY  NEW YORK, NY 10007

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

 A communication plan for personnel, site visitors, and residents with applicable instructions; relevant trainings; means to provide and update information; and method for personnel, site visitors, and residents to provide feedback and safety complaints;  A COVID‐19 Accountability Supervisor whose responsibilities include continuous compliance with all aspects of the RSP, including: o Documentation of the communication and training plan for personnel, site visitors, and residents; o Review and recordkeeping of daily screening assessments for all personnel, site visitors, and residents living in apartments where PACT work is underway, including documentation of precautions taken for suspected and positive cases; o Oversight of all social distancing measures, hygiene practices, and cleaning and disinfection practices; o Daily recordkeeping of personnel and site visitors who accessed the worksite and the households who used the hospitality suites in case contract tracing is required; o Documentation of all cleaning and disinfection logs; o Notification of positive COVID‐19 test results of personnel to the New York State Department of Health (“NYS DOH”), and the NYC Department of Health and Mental Hygiene (“NYC DOHMH”) while maintaining confidentiality2 as required by federal and state law and regulations; 2 o Cooperation with NYC DOHMH to assist with contact tracing; o Clear policy and procedure for discontinuing work if personnel or residents do not comply with the requirements of the plan; o Collection of affirmation notices from households per the guidelines listed herein; o Weekly reporting to NYCHA REDD; and o Cooperation with NYCHA’s periodic safety checks of active work sites.  Qualified personnel to administer compliance with the COVID‐19 RSP; o The COVID‐19 Accountability Supervisor will at a minimum hold an OSHA‐30 certificate within the past two years. o All personnel performing compliance and resident communication activities shall be trained and familiar with CDC, DOH, and OSHA protocols regarding COVID‐19. o All personnel performing screening shall be trained in how to conduct visual inspection and health assessment interviews.  Provisions of personal protective equipment (“PPE”) such as a face mask, gloves, and eye protection for any personnel performing in‐person screening activities;1 and  Posted signage throughout the site to remind personnel to adhere to proper hygiene; social distancing rules; appropriate use of PPE, and cleaning and disinfecting protocols.1

SCREENING

PAGE 2 of 7

NEW YORK CITY HOUSING AUTHORITY

250 BROADWAY  NEW YORK, NY 10007

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

All personnel, site visitors, and residents shall be provided with information about how to complete the mandatory screening assessments, including the Center for Disease Control and Prevention (“CDC”) guidance on symptoms of COVID‐19. Screening guidelines are as follows:

 Before personnel or other site visitorsi enter the job site each day, they shall complete a health screening that asks the following questions:1 1. Have you been in close or proximate contact in the past 14 days with anyone who has tested positive for COVID‐19 or who has or had symptoms of COVID‐19? 2. Have you tested positive for COVID‐19 in the past 14 days? 3. Have you had any symptoms of COVID‐19 in the past 14 days?  Personnel and site visitors who have responded in the affirmative to any of the questions in the screening assessment shall only be permitted entrance to the worksite by following the required precautions outlined by New York State’s Interim Guidance for Public and Private Employees Returning to Work Following COVID‐19 Infection or Exposure.1  Daily temperature checks for personnel and site visitors may also be conducted per Equal Employment Opportunity Commission or DOH guidelines.  Residents of occupied units shall complete a health screening each day that PACT work takes place within their unit. The screening may be completed by one member of the household on behalf of the other members of the household. Work shall be rescheduled if the household responds in the affirmative to any of the following questions: 1. Have you or any member of your household been in close or proximate contact in the past 14 days with anyone who has tested positive for COVID‐19 or who has or had symptoms of COVID‐19? 2. Have you or any member of your household tested positive for COVID‐19 in the past 14 days? 3. Have you or any member of your household had any symptoms of COVID‐19 in the past 14 days?  Screening shall be performed remotely (e.g. call, text, or mobile app), to the extent possible.1  Keeping records of health data (e.g. temperature checks) for personnel, residents, or site visitors is prohibited.1, 2

PROTECTIVE GEAR

Guidelines for personnel entering the worksite are as follows:

 All personnel and site visitors must be appropriately trained or informed of the proper use, storage, and maintenance of any required PPE (e.g respirators, face coverings, gloves, eye protection, etc). i Individuals delivering packages and materials to the worksite may be excluded from the screening assessment if they are conducting a drop off delivery and have no contact with personnel.

PAGE 3 of 7

NEW YORK CITY HOUSING AUTHORITY

250 BROADWAY  NEW YORK, NY 10007

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

 All personnel and site visitors entering the job site must wear an acceptable face covering.  Acceptable face coverings include but are not limited to cloth and surgical masks, unless the nature of the work requires stricter PPE (e.g. N95 respirator, face shield).1  Personnel and site visitors shall only remove face coverings in designated areas for the purposes of eating and hydration. o Designated areas shall be open and well‐ventilated whenever possible. o If the same areas are used for meetings, musters, or group breaks, social distancing and face coverings are required.  Personnel shall wear protective eye wear when working in occupied units.

CLEANING AND HYGIENE

All personnel and site visitors will adhere to hygiene and sanitation requirements from the CDC, NYS DOH, and NYC DOHMH. Surface disinfectant products must meet the U.S. Environmental Protection Agency’s (EPA) criteria for use against SARS‐CoV‐2 and be published on their List N. Hand sanitizer provisions shall contain at least 60% ethanol or 70% isopropanol per the CDC’s recommendations. Guidelines for PACT Partners include:

 Prohibit personnel and site visitors from using residential bathrooms in occupied units and/or hospitality suites. Provide alternate toilet facilities (i.e. portable toilets and/or staff restrooms) for personnel and site visitors, if applicable.  Provide and maintain hand hygiene stations for personnel1 and residents accessing the hospitality areas. 1 o Handwashing stations shall include soap, water, and paper towels; and o For areas where handwashing stations are not feasible or accessible, provide touchless hand sanitizer stations1 or individual bottles of hand sanitizer.  Maintain cleaning and disinfection logs on site that document date, time, and scope of cleaning.1 o Refer to the NYS DOH’s Interim Guidance for Cleaning and Disinfection of Public and Private Facilities for COVID‐19;1 o Conduct daily cleaning and disinfection of construction site offices and hospitality units, as applicable; and o Conduct more frequent cleaning and disinfection of high‐traffic areas (e.g. handwashing stations, portable toilets, building entrances, and elevators) and commonly shared tools, machinery, materials, and vehicles.1  Have a plan for cleaning and disinfection in the event of a suspected or confirmed positive case.1

PHYSICAL DISTANCING

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NEW YORK CITY HOUSING AUTHORITY

250 BROADWAY  NEW YORK, NY 10007

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

PACT Partners will implement practices to encourage social distancing among personnel including:

 Personnel shall remain six feet from one another unless safety or core function of the work activity requires a shorter distance.1  Occupancy in tightly confined spaces (e.g. elevators and hoists) shall remain under 50% of maximum capacity.1  Site supervisors shall create additional space for workers and reduce congregation1 by: o Limiting in‐person presence to only personnel necessary for the current task(s); o Staggering arrival and departure times; o Using social distancing markers to denote 6 ft. of spacing in congregation areas (e.g. elevators, clock in/out stations, health screening stations); and o Using tele‐ or video‐conferencing whenever possible;  In‐person meetings shall be held in open, well‐ventilated spaces with appropriate social distancing among participants.1  PACT Partners will require that adequate space is reserved for employees to eat their lunch and hydrate while observing social distancing. They will also implement the following for personnel and site visitors: o Prohibit consumption of food and beverages within units; 1 o Prohibit sharing of food and beverages (e.g. buffet‐style meals); and o Encourage employees to bring their own lunch and water bottle from home.  Pick‐up and delivery areas shall limit contact to the extent possible. o Institute precautions such as asking drivers to remain in the vehicle and having personnel use their own pens when signing for packages.

OTHER SAFE WORK PRACTICES

PACT Partners will implement the following engineering controls to remove or limit the hazardous condition(s).

 Post signage within each elevator cab and at each landing stating "50% Capacity Allowed / Maximum XX Persons,” per the occupancy specifications of the elevator.3  Discourage personnel from touching of shared objects by limiting the sharing of tools, machinery, materials, and vehicles.1 o Encourage personnel to use cleaning and/or disinfecting supplies before and after use of shared and frequently touched objects and surfaces.1 o When in contact with shared objects or frequently touched surfaces, personnel shall wear gloves (trade‐appropriate or medical); or sanitize or wash hands before and after contact. 1  Increase ventilation with outdoor air to the greatest extent possible, while maintaining safety protocols.1

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NEW YORK CITY HOUSING AUTHORITY

250 BROADWAY  NEW YORK, NY 10007

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

o Ensure ventilation systems operate properly and provide acceptable indoor air quality for the current occupancy level; o Limit obstructions to ventilation system (e.g. clean vents blades); and o Open windows during the day or utilize mechanical ventilation to improve fresh air circulation unless conditions would create other hazards or issues to work.

RESIDENT NOTIFICATION & SAFETY REQUIREMENTS

PACT Partners will implement the following safety practices with the cooperation of households living in apartments where PACT work is underway. If any member of a household is unable or unwilling to abide by the requirements listed below, work within that unit shall not proceed. That includes cases where a resident cannot wear a face covering because they have a disability and no reasonable accommodation (i.e. access to a private hospitality suite) can be made.

 Provision of a Reopening Safety Plan to each household, translated in the appropriate language;  Collection of affirmation notices before work can begin within any occupied unit; o A household member of legal age must sign a notice stating that the COVID‐19 RSP has been reviewed and understood by all members of the household. o The affirmation notice shall clearly state that no health data will be recorded. o Affirmation notices only need to be signed and completed once per unit.  Provision of appropriate face coverings to any resident of a unit where PACT work is taking place if the resident does not already have access to a face covering;  Requirement that all personnel and site visitors will remain six feet away from residents;  When PACT work is taking place within an occupied unit, residents of the unit shall have access to hospitality areas on the site premises. o Private hospitality suites will be made available for households that include seniors and immuno‐compromised individuals. o Suites will receive disinfectant treatments at initial and final occupancy of a household. Suites shall contain handwashing o In cases where construction work is taking place within a bathroom of an occupied residence, portable facilities will be reserved for households during the workday. Portable facilities will receive frequent disinfectant treatment throughout the day. o If a household requests access to a hospitality suite, work should be scheduled to accommodate that request.  In cases where residents elect to remain within the unit during any PACT work, personnel will implement the following to protect personnel and residents: o Use of social distancing markers (e.g. floor tape) to delineate areas reserved for personnel;

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NEW YORK CITY HOUSING AUTHORITY

250 BROADWAY  NEW YORK, NY 10007

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

o Installation of physical partitions (e.g. vinyl strip curtains, plastic sheeting, or plexiglass), in accordance with OSHA guidelines, where they do not impair heating, cooling, ventilation, or egress.  Residents who elect to remain in the unit shall agree to: o Complete the daily health screening with the COVID‐19 Accountability Supervisor, or other designated PACT personnel; and o Wear appropriate face covering throughout the workday; and o Observe social distancing requirements with personnel, including observance of areas reserved for personnel and site visitors.

PAGE 7 of 7

Exhibit F: PACT Waste Management Handover Guide

PACT Transition – Waste Management Handover Guide

Contents: 1. Purpose 2. Deliverables 3. Background Information a. Site Information b. DSNY Information 4. PACT Transition worksheet a. Trash b. Bulk c. Recycling Service 5. Individualized Waste Management Plan: a. Daily waste volumes/building b. Equipment c. Staffing plan d. Resident engagement plan e. Other waste streams f. Map of waste movement 6. Resources a. Partial list of private carters for bulk service b. List of recycling program resources c. Links to resources to support recycling in multi-family buildings d. DSNY Approved Specifications for Auger Compactors e. Waste Calculator Screenshot

1. Purpose: Review the Waste Management Handover guide for each site that is part of NYCHA’s PACT program to ensure a seamless transition in waste services from NYCHA management to private management. 2. Deliverables: Submit draft of individualized waste management plan for discussion during in- person meeting

3. Background Information:

Site Information

Development: «Development»

Borough: «Borough»

DSNY Information

DSNY Point of Contact Collections DSNY District: «Garage #» Name: «DSNY_Name» Telephone #: «Telephone_DSNY» Email: «Email_DSNY» DSNY Point of Contact Recycling Name: «DSNY_Name» Telephone #: «Telephone_DSNY» Email: «Email_DSNY» Trash Collection Days Trash Collection Days: «Trash_Collection»

Recycling Collection Days Recycling Collection Days: «Recycling_Collection»

4. PACT Transfer Planning Worksheet:

Trash

Existing DSNY curbside trash collection Y/N

Existing compactor yard Y/N

# of exterior compactors [#]

If hosting shared infrastructure, name(s) of «Superintendent_Name» NYCHA Development(s) and contacts Superintendent Telephone #: «Telephone_Super» Email: «Email_Super» If no exterior compactor exists, describe [describe] or N/A plans to install new waste yard (auger exterior compactor). See New Waste Yard below. Bulk

# of 30-yard containers currently placed in [#] bulk waste area.

Date of termination for NYCHA IESI services [date]

New bulk waste service provider. For DSNY DSNY or Private Carter name or N/A pick-up, existing bulk crusher or new auger exterior compactor must be used.

Date of start of new service [date]

New Waste Yard

If there is no space, describe alternate [describe] collection strategy approved by DSNY Site preparation for new auger exterior [describe] or N/A compactor(s)

# of auger exterior compactor(s) [#]

Date of installation [date]

5. Individualized Waste Management Plan: a. Daily waste volumes/building: Use NYCHA waste calculator to determine waste volumes generated by each building by waste type. See screenshot in Resources 5.f. b. List the assumptions about waste separation used to fill out the calculator.

Resident Behavior % Captured Notes Trash (placed in the chute) MGP Paper Cardboard Organics Textiles E-waste

c. Use volumes from the calculator to complete the table below. Add categories for other waste streams as needed.

Secondary Collection Areas Resident drop off areas for collection by staff of materials not placed in trash chutes Category Volume per Weight per # of Locations Container type(s) # of Containers or Collection location (cy) location (tons) Storage area (sf) frequency

Trash

Paper and small cardboard

Metal/Glass/Plastic (MGP)

Bulk

Waste Yard Storage Collection by DSNY or other haulers Category Volume per Weight per # of Locations Container type(s) # of Containers or Collection location (cy) location (tons) Storage area (sf) frequency

Trash

Paper and small cardboard storage

Metal/Glass/Plastic (MGP) Storage

Cardboard storage (if separate from paper) Organics drop off and storage*

Textile drop off and storage* e-Waste drop off and storage*

Note*: Currently, storage not described in the waste calculator (Version 1.0). Please describe proposed approach. See resources for information (Section 6).

d. Equipment: Describe equipment used to move waste and recycling through the Development, e.g. moving sausage bags from interior compactors to pick-up location, recycling from resident drop-off locations, and bulk materials.

Vehicle type Purpose Quantity Storage location

e. Staffing plan Indicate how staffing will be used to containerize waste based on container types, vehicle, staffing levels in full-time equivalents and shifts. f. Resident engagement plan Describe plan to communicate with residents about waste and recycling. You may use examples from previous/existing developments. g. Other waste streams: i. Bulk material: Describe strategy and locations for resident drop off and staff storage. ii. Electronic and textile waste: Identify strategy and locations for resident drop off and staff storage. See handout for resources. iii. Organics: Describe how residents will have the opportunity to separate organics. Options include: on-site food waste pre-treatment or composting, nearby community drop off locations, DSNY brown bin program (check DSNY for applicability), and or in-sink food disposers (if development meets DEP criteria). h. Waste Management Map: Locate resident drop off locations for all waste streams, modes of transport (vehicles, carts, etc.), secondary storage and DSNY pick up locations on a site plan drawing.

6. Resources:

a. Partial list of private carters and phone numbers:

ACTION ENVIRONMENTAL SERVICES 973 623 7600 IESI DBA WASTE CONNECTIONS 718 665 0770 AMRO CARTING CORPORATION 718 542 3236 FILCO CARTING CORPORATION 718 456 5000 TULLY ENVIRONMENTAL 718 406 8999

b. DSNY recycling programs and NYCHA piloted programs:

• Textile Recycling: Enroll to receive free DSNY-coordinated textile recycling service: https://www1.nyc.gov/assets/dsny/site/services/donate-goods/refashionnyc-overview • E-waste Recycling: Enroll to receive free DSNY-coordinated e-waste recycling service: https://www1.nyc.gov/assets/dsny/site/services/electronics/overview-electronics-ecycle • Organics Collection: Enroll to receive free DSNY organics (food waste) collection service: https://www1.nyc.gov/assets/dsny/site/contact/organics-collection-application • Mattresses Recycling: DSNY does not coordinate free mattress recycling, however NYCHA completed a successful pilot for mattress collection by a private carter. In addition to the recycling benefit, NYCHA building managers found that collecting mattresses increases capacity in bulk containers and reduces clutter in bulk storage areas. Vendor used during the pilot: https://renewablerecycling.com/mattress-pick-up-service-for-recycling-long-island-new- york/ • Cardboard balers: NYCHA completed a pilot installing cardboard balers to reduce the volume and clutter associated with separating cardboard for recycling. For information about cardboard balers and bale sizes approved by DSNY see Downtown Alliance Recycling Guide below. • In-sink food disposers: NYCHA is piloting in-sink food disposers in coordination with DEP to reduce food waste in trash. For information about in-sink disposers see Zero Waste Design Guidelines below. For information about NYCHA’s pilot see NYCHA 2.0 Waste Management Plan.

c. Online Resources to support recycling in multi-family buildings

• Zero Waste Design Guidelines for New York City produced by Center for Architecture. Guidelines include best practice strategies, case studies and resources for planning for reducing waste and improving waste management operations in multi-family buildings, link to PDF download: https://www.zerowastedesign.org/

• Guide for resident engagement on reuse and recycling in multi-family buildings in New York City produced by the Manhattan Solid Waste Advisory Board (MSWAB), link to PDF download: http://www.manhattanswab.org/residential-recycling-reuse-guides • Guide including information about cardboard balers appropriate for DSNY collection prepared by the Downtown Alliance, link to PDF download: https://www.downtownny.com/reducing-waste-in-lower-manhattan • NYCHA 2.0 Waste Management Plan https://www1.nyc.gov/assets/nycha/downloads/pdf/n20-waste-management- plan.pdf

d. DSNY-Approved Auger Specifications (See below)

SAMPLE NYCHA AUGER EXTERIOR COMPACTOR SPECIFICATIONS AS APPROVED BY DSNY

PART 1 GENERAL 1.01 SECTION INCLUDES A. All General Requirements, materials and products for Auger Exterior Compactors. 1.02 REFERENCE STANDARDS A. ANSI Z245.2 - American National Standard for Stationary Compactors -- Safety Requirements for Installation, Maintenance, and Operation; 2008. B. UL 4 - Armored Cable; Current Edition, Including All Revisions. 1.03 SUBMITTALS A. See Section 01 33 00 – Submittal Procedures, for submittal procedures. B. Product Data: Provide manufacturer’s specifications and descriptive literature, installation instructions, and maintenance information. C. Shop Drawings: Indicate plans for each unit or groups of units, elevations with model number, overall dimensions; construction, and anchorage details. D. All Auger Exterior Compactors supplied must also be provided with the following SUBMISSIONS: Shop drawings; Demonstration class; and Instructions: 1. Shop drawing of control panel assembly and wiring diagram 2. Shop drawing of power pack assembly and electrical system 3. Comprehensive electrical wiring diagram, including internal panel and all field wiring from the source of supply to external equipment 4. Laminated instructions showing operation of the Auger Exterior Compactor, bilingual, in both English and Spanish. 5. A minimum 1hour demonstration for employees, including complete instructions for proper operation and maintenance. 6. Periodic maintenance and lubrication chart 7. Complete set of all mechanical and electrical drawings and schematics in accordance with JIC standards. 8. Troubleshooting guide containing a list of symptoms, probable cause, and remedy for each malfunction 9. Complete parts list, with manufacturer’s item number, part number, manufacturer’s description, and quantity required for each system. 10. Shop drawing of Container with the lift pocket dimension conforming to New York City Department of Sanitation and NYCHA standard dimensions, with the loading fork centered in the pocket dimensions. 11. All instructions and maintenance schedules shall be delivered to the Development Superintendent. 1.04 GENERAL A. Auger Exterior Compactor shall be installed as per the manufacturer's recommendations and specifications. B. All equipment provided shall be standard models having been reviewed and rated by National Solid Waste Management Institute/WASTEC and proven to perform in a superior manner. Equipment must conform to the ANSI Z245.2 Compactor Safety Standard and to all other applicable ANSI and OSHA safety standards. C. All electrical work performed under this Section shall be under the supervision of an individual who has a Master Electrician's License issued by the City of New York pursuant to title B of

Chapter 30 of the Administrative Code. The contractor shall prepare, file and submit all electrical work with the Electrical Inspection Unit of the NYC Department of Buildings. The contractor shall obtain the necessary permits, approvals and certificates of compliance issued by the Agency and deliver such to the Authority prior to submitting any request for payment for such work. An inspection of all electrical work shall be properly filed by the Contractor with the DoB Electrical Inspection Unit and Certificates of Inspection shall be supplied to the Authority when the work is completed. D. All material and labor required to install the electrical system as indicated on the Drawings and as specified herein, complete and ready for operation, shall be in complete accordance with and approved by the New York City DoB Electrical Inspection Unit. E. All equipment and all wiring shall be installed in strict accordance with all laws and with the rules, regulations and requirements of the municipal and other public agencies having jurisdiction and with those of the National Board of Fire Underwriters. Any items or requirements herein, which conflict with such rules, regulations and requirements, shall be referred to the Authority for decision. F. Any discrepancies between the specifications and Contract Drawings shall be discussed with the Authority before bidding. G. The Contractor shall notify the Project Superintendent at least 72 hours prior to the intended commencement of work. H. Drawings are generally diagrammatic and indicate the work to be installed. The Contractor shall harmonize the work of the several trades so that all work may be installed in the most direct and workmanlike manner and so that interference between piping; ducts, plumbing system, architectural, landscape and structural features will be avoided. In case of interference, the Landscape Architect will decide which work is to be relocated regardless of which was first installed. I. Where Drawings and Specifications conflict with the Law or Codes, the Law shall be followed, but where Drawings and Specifications are over and above the requirements of the Law, the Drawings and Specifications shall be followed. J. Unless otherwise specified, all equipment and materials furnished and installed under this Contract shall be new and of the latest model or design. K. All equipment requiring insulation in order to obviate danger to life or property shall be thoroughly insulated by the Contractor at his expense. Wires, conductors and other movable equipment shall be placed in such locations and in such a manner as will prevent unauthorized persons from handling or tampering with them. Ladders, guards, etc. shall not be left unattended in the work area. L. The Contractor shall carefully investigate the structural and finish conditions affecting all his work and arrange all his work accordingly to furnish such fittings, panel boards, etc. as may be required to meet such conditions. M. All items shall include everything necessary for a complete and functioning installation. N. Contractors are to sign the contractor's log upon arrival at the project, notify the project supervisors of the scope and location of work planned for the day, and before leaving, advise them of any condition which might adversely affect the tenants. 1.05 DELIVERABLES A. The items listed below shall be supplied, packaged labeled and delivered by the contractor to Ray Levan, Waste Management, NYCHA Technical Services Department. 1. One extra logic card for each unit supplied. 1.06 WARRANTY A. A warranty for the Auger Exterior Compactor, covering parts and labor, shall be provided for one year, from the date of acceptance.

PART 2 PRODUCTS 2.01 HEAVY-DUTY INDUSTRIAL AUGER EXTERIOR COMPACTOR A. Physical Characteristics: 1. Rated Capacity: Standard Hopper Rated for 8 Cu. Yd. 2. Charge Opening: 80" x 75" 3. Horse Power: 40 HP 4. Auger RPM: 7.5 RPM 5. Machine Base Weight: 16,200 lbs. 6. Base Machine Dimensions: 121-1/4" x 99-1/8" x 104" 7. Power Requirements: 208V, 3phase, 4 wire, 200 amps 8. Machine Construction: Full Box Channel Frame Construction, 1-1/4" Thick Back Wall, with 2-1/2" Thick Stabilization Ring (48" Diameter), with Eight (8) 1-1/4" Vertical Gussets, Auger Floor 3/8" Thick; Cross Under Structure 4" Tube Steel 9. Large Bolt-On Footpads for Weight Distribution B. Auger Specifications 1. Shaft: Single Piece, Solid Steel Alloy, Precision CNC Machined, Tapered Steel Shaft Design. The Auger shall be 98” in length, with a 8” solid steel shaft. 2. Flights: Proprietary Forward Rake Cast Alloy Steel with 2-1/2" Thick Lip & Integrated 5" Thick Compaction Flight 3. Flight Leading Edge & Push Flight Hard Faced to 57-62 Rc and Ground to Smooth Finish Integrated Bearing Shield Housing provides protections for bearings and seals C. Patented Bearing Support System (Patent No. US 9815636) 1. Two (2) High Load Capacity Solid-Lube Spherical Roller Bearings 2. Bearing Seal System: Steel Labyrinth Grease Pack System with Triple Lip Seals 3. Full Box Frame Bearing Support Precision Line Bored After Weldment Complete D. Auger Drive Specifications 1. Machine Drive: Electromechanical, High Shock, Cycloidal Drive, Electromechanical continuous duty cycloid reducer, 500% shock loading, integrated 40 HP, TEFC electric motor 2. Drive Compartment: Totally Sealed floor pan 3. Chain: Ultimate Rating 9,000 lb. capacity, 140,000 lb. ultimate strength, Pre-baked lubricated chain 4. PLC Controlled Auto Lubrication System for Chain (Proprietary) 4 Liters 5. PLC Controlled Auto Lubrication System for Bearing and Grease Purge through Seal Protection System (Proprietary) 4 Liters E. Electrical Controls 1. Control Panel: Type 4 IEC, UL Listed Construction 2. PLC Controls: Allen Bradley PLC - a. Bin Near Full Indicator b. Bin Full Indicator, Key Lock Start c. Reverse Switch, Mushroom Stop Switch d. Adjustable Run Time, IEC Push Buttons ("START", "RESET", "REVERSE", and "E STOP) e. Key Lock Switch ("ON & OFF) Indicator Lights f. 24V Control Transformer g. Positive Push Button Control h. Anti-Jam Auto-Reverse F. Paint 1. PREP: Remove all scale with Shot Blast and finish sand all surfaces

2. FINISH: Standard Epoxy Based Primer & Polyurethane Finish Coat 3. STANDARD COLOR: Meeting NYC DoS Specification G. Accessories 1. Standard Enclosed Island Guide, Wheel Stops 2.02 CONTAINER SPECIFICATIONS A. XHD Roll off containers w/ 40 CY capacity Supplier of Auger Exterior Compactor unit shall be one of the following three model numbers and manufacturers: A. Komar Industries, Inc., 4425 Marketing Place, Groveport, Ohio 43125, Tel: (614)-836-2366. www.komarindustries.com Model No. EM-40-G B. Sani-Tech, Tel: 800-467-7336, www.sanitech.net Model No.. ST4060/40 C. Marathon, P.O. Box 1798, Vernon, Alabama, 35592, Tel: 800-269-7237, www.marathonequipment.com Model No. AST-440 D. or an equal product. E. Items included in the above named models shall include: 1. Weather cover on the deck-mounted power unit 2. A lockable box on the remote control pendent-with a hasp to accept a NYCHA-provided lock 3. Container shall be painted as per NYC DOS Specifications and must have the Development name stenciled on both upper, vertical sides of the Container in eight (8) inch letters. Development name and numbers shall be field painted with White Paint. 4. Low oil level indicator with auto shut off safety switch F. New York City Housing Authority Requirements 1. CONTAINER DUMPER: An integral electrically-powered, dumping mechanism shall be provided to facilitate the mechanical loading of refuse into the charging hopper of the Auger Exterior Compactor. A hopper extension (3-sided) shall be provided integral with the Auger Exterior Compactor to prevent spillage of the refuse during the loading operation. The lifting arms and dumping mechanism shall be integral with the Auger Exterior Compactor. A dumper cart shall be provided. 2. Remote Control Station: Provide a remote control station and adequate cable wiring and piping required to permit operator to energize Auger Exterior Compactor from within sight of loading point. 3. Control Panel: Components shall be housed in a NEMA 3R electrical enclosure mounted together with a motor starter and control power transformer. The control panel shall perform all the necessary control functions of the Auger Exterior Compactor according to factory programmed operation logic. The control panel shall be configured to include a UL-listed, FCC Class/A approved, solid-state microprocessor based programmable logic control card (PLC). NOTE: Contractor shall clearly label the location of the power source, with regard to building address, so the circuit can be identified and shut off before any service is performed. 4. A key operated switch shall be provided to prevent unauthorized use of the Auger Exterior Compactor. The key switch shall be designed so that the key can only be removed in the OFF position. 5. Dumper Cart: A dumper cart shall be included with the Auger Exterior Compactor unit, of the size as shown on the detail drawing and have a capacity of 2 cubic yards. It shall be fabricated with one side measuring 6 inches for easy loading of garbage. It shall not have any container lids. Metal component specifications are as follows; Cart side-10 gauge steel; Pocket-7gauge steel; Cart floor-7 gauge steel; Crossmember-C3 channel, 3.5#; Gusset-7 gauge steel.

6. Power unit shall be mounted on the side of the Auger Exterior Compactor unit and shall be provided with a steel “Weather Guard” to protect it from the weather. 7. Manufacturer shall comply with all requirements. Acceptance of Auger Exterior Compactor is subject to inspection by NYC Department of Sanitation official and NYCHA Compliance Officer upon delivery to jobsite. Contractor shall provide 7-day advance notification regarding delivery date. If the supplied unit does not conform to all requirements, as determined solely by the NYCHA Compliance Officer, the Auger Exterior Compactor shall be removed by the manufacturer and replaced with a conforming unit at no extra cost to NYCHA. 8. Container shall be painted as per NEW YORK CITY DEPARTMENT OF SANITATION SPECIFICATION FOR THE PURCHASE OF ROLL-ON ROLL-OFF SELF-COMPACTING CONTAINER, D.S. 224, REVISED JANUARY 11, 2005 and must have the Development name stenciled on both upper, vertical sides of the detachable container in eight (8) inch letters. Development name shall be painted with White Paint. 2.03 POWER UNIT A. The power unit shall be a 40 horse power unit common with Auger Exterior Compactor with a push button for the dumper cart mechanism only. The Power Unit shall also be equipped with a safety switch, which is capable of disabling the power unit in an emergency. 2.04 DISCONNECT SWITCH AND POWER OUTLET A. A licensed Electrical Contractor shall provide a disconnect switch for the 208v, 3-phase power as well as the duplex outlet (115v, 3 prong, grounded female). Contractor shall position and install conduit for electrical connections before the concrete pavement is poured. The electrical “stub-up” shall be placed as per manufacturer’s specifications and instructions. B. Three-phase electrical supply power (208v, 3 phase, 4 wire, 200 amps) shall be run to the unit via suitable electrical conduit and wiring to provide adequate power for the electrical power unit. All wiring to be in accordance with all applicable codes. Electrical power shall be routed via fused disconnect switch terminated at the motor starter panel of the electric power unit. C. Single-phase electrical supply power 115 volt, 60 Hz, 15 AMP terminating in a 3-prong, grounded female outlet suitable for outdoor use shall be provided to the unit. 2.05 FORMED STEEL PLATE WEAR STRIP A. The formed steel plate wear strips and guides shall be of sizes, materials and installation methods indicated by the Manufacturer’s specifications and drawings. All four wheels of the Auger Exterior Compactor shall rest firmly on the wear strips. 2.06 ELECTRICAL CONNECTIONS A. WIRE AND CABLES 1. Furnish and install all wire and cable to conform to the latest requirements of the "Electrical Code of the City of New York", "Insulated Power Cable Engineer Association" and "Underwriters Laboratories". All wire and cable shall be copper and conform to the following: a. All branch circuits and feeders shall be THWN copper. b. The minimum wire size for all new branch circuits shall be as per the National Electric Codes. c. Underground wire shall be type THWN, approved for use in conduits, designed for a wet corrosive atmosphere, and sized as indicated on Contract Drawings or in the Specifications. d. Wherever new conductors or extensions to existing conductors are required (whether inside or outside the building), they shall be furnished and installed by the Contractor. e. Splices in conductors shall be soldered and taped, or approved solderless connectors shall be used.

f. The work shall include the cleaning out of conduits and pull boxes, removal of all dirt, water, etc., making all splices or connections at which new conductors terminate. g. Where wire insulation types, as specified, are not available, the Contractor shall furnish other approved types, provided the NYC Electrical Code allowances for conduit fill are not exceeded. There shall be no additional cost to the Authority for this substitution. h. Unless otherwise specified, all wire shall be solid. B. CONDUIT 1. The Contractor shall furnish and install conduits as required. If sizes are not indicated or mentioned, conduits shall be sized to accommodate the required quantity and gauge wire for the specific application and as per New York City Electrical Code. All conduits, underground and on/within the building shall be no less than 2” nominal size. C. Underground Conduit 1. All conduits installed underground shall be no less than 2" nominal size. Conduits shall be adequately sized to accept the required wire size and quantity. The work shall include all necessary excavation, foundations, drilling, back filling and restoration of disturbed areas to their original condition. 2. Conduit shall be laid in a uniform manner, properly spaced and graded without traps so that all condensation will drain into the nearest box. 3. All conduits for underground installation shall be installed in trenches not less than 24" below final grade. 4. During construction, proper support and protection shall be provided to prevent injury to conduit and all ends shall be closed to prevent water and foreign matter from entering the conduit system. 5. Conduit end shall extend above concrete foundation at least 2" but not more than 8" and be grouted. 6. All conduits for installation underground or in concrete shall be standard weight, butt- welded, rigid steel, heavy wall. The entire interior surfaces of conduit and fittings shall be epoxy coated. Conduit and fittings shall be hot- dipped galvanized with hot-dipped threads. 7. All conduits for installations underground or in concrete shall be 40 MIL (0.404) PVC coated rigid galvanized. The conduit shall be joined with screw couplings. The joints shall be made up so that ends butt together. Conduit shall be free from blisters, cracks, or injurious defects and shall be reamed at each end. All bends are to be free from kinks and be of such curvature as to permit the drawing in of cable without injury. Conduit shall have standard pipe taper threads, clean-cut, straight and true. The threads shall be protected during transit and installation and shall be of sufficient length to permit the proper coupling connection. Long running threads will not be permitted on any part of the work. When necessary, the Contractor shall use three piece (Erickson) coupling or approved equal. PVC coated conduit system is manufactured by Robroy Industries - Plastic Bond, Perma-Cote rigid steel conduit, and Ocal 2 rigid steel conduit by Occidental Coating Co. is considered acceptable. Conduit shall comply with Federal Specification WW-C581, latest revision. 8. Three-piece couplings, when used, shall be covered with four layers of lapped plastic electrical tape which shall extend over the coupling for a distance of one pipe diameter or 2", whichever is less, and each layer including the final one, shall be completely coated with an air dry vinyl chloride touch-up compound. D. Conduit for Installation on Building Exterior (as required) 1. The Conduit and fittings shall be as specified in the paragraph for "PVC coated rigid galvanized conduit"

2. Conduit shall be installed on the surface of the masonry ceilings or walls and fastened thereto with one hole, steel straps, expansion shield anchors 10-24 round head machine screws or 3/16" toggle bolts or other means approved by the Authority. 3. Conduit shall be installed parallel or perpendicular to adjacent walls. Vertical runs shall be plumbed. All bends are to be of equal radius throughout and be free of kinks and flattening. Offsets and saddles shall not exceed 7". Conduit shall be bent to conform to the surface upon which it is fastened. Fastening supports shall not be used to spring conduit to contour of surfaces. 4. Ninety-degree bends around external corners are not to be used. They shall be made with the use of malleable iron threaded type conduit bodies, type LB or approved equal. E. Conduit Installation within Building Structure 1. Conduit shall be installed on the surface of the masonry ceilings or walls and fastened thereto with one hole, steel straps, expansion shield anchors 10-24 round head machine screws or 3/16" toggle bolts or other means approved by the Authority. 2. Conduit shall be installed parallel or perpendicular to adjacent walls. Vertical runs shall be plumbed. All bends are to be of equal radius throughout and be free of kinks and flattening. Offsets and saddles shall not exceed 7". Conduit shall be bent to conform to the surface upon which it is fastened. Fastening supports shall not be used to spring conduit to contour of surfaces. 3. Offsets shall be used where conduit enters outlet, junction boxes, or distribution panels and shall be fastened thereto with malleable iron lock nuts and bushings. 4. Ninety-degree bends around external corners are not to be used. They shall be made with the use of malleable iron threaded type conduit bodies, type LB or approved equal. 5. Adjustable extension boxes or collars shall be used to extend existing flush mounted junction or outlet boxes. 6. All conduit and accessories installed inside buildings, unless otherwise noted, shall be galvanized heavy wall rigid steel or IMC in the tank rooms, pump rooms, boiler rooms, public spaces and corridors, and EMT in the remaining spaces. F. FUSES AND GROUNDING 1. All fuses and grounding shall be in accordance with the New York City DoB Electrical Inspection Unit. 2. A decal shall be affixed to the power unit enclosure that states the location of fuses and the building from which power source is obtained. 2.07 MATERIALS A. All materials supplied under this contract shall be new, of the latest model and design. In addition, all electrical components shall be UL listed and approved for use in New York City by the DoB Electrical Inspection Unit. The Contractor shall supply the Auger Exterior Compactor Unit as shown on the Drawings. Each Unit shall include the following: 1. Auger Unit, including detachable Roll-Off Container with rear door. 2. Dumper Cart 3. Side Dumper unit 4. Power Unit, mounted on the Auger Unit, with Safety Switch 5. Formed Steel Plate Wear Strips (sets) 6. Warranty 7. Electrical Connections

PART 3 EXECUTION 3.01 INSTALLATION A. The Contractor shall furnish and install all components necessary for the Auger Exterior Compactor to be fully operational.

B. Prior to the delivery of the Auger Exterior Compactor, all walls, fences, curbs, gates, and locks called for in the area shall be installed and operational. This is to ensure the safety and security of the Auger Exterior Compactor and its area. C. The Contractor shall furnish and install all necessary wiring, conduit, etc. to ensure that the new Auger Exterior Compactor unit is operational. The Contractor shall be responsible to assure that the installations are in compliance with the City of New York Building Department Codes. D. The supplier shall be responsible for conducting a demonstration that will educate project staff of the proper use of the Auger Exterior Compactor. The demonstration shall be a minimum of one hour in duration, and shall enable all development staff to practice the operation of the system. This demonstration shall be performed after the unit is installed and fully operational. E. Contractor shall ascertain the location of all electrical cables, all conduits, all utility lines, oil tanks and supply lines, so that proper precaution may be taken not to disturb or damage any subsurface improvements. In the event any are uncovered, the Contractor shall promptly notify the Authority who shall arrange to relocate the equipment. Failure to follow this procedure places upon the Contractor the responsibility of making, at his own expense, all the requisite repairs to damaged utility lines resulting from work hereunder. F. All plantings in the way of excavations shall be removed and replaced by development personnel. The Contractor shall notify the development superintendent one (1) week in advance of excavation work. G. The Contractor shall provide all necessary labor and equipment to excavate trenches for underground conduits. Excavation below required depth shall be refilled with sand or gravel and firmly compacted. Electrical conduit shall be installed two (2) feet below grade. H. Width of all trenches shall be sufficient to properly install the conduits. Trenches dug near trees shall be no closer to tree than six (6') feet away plus one (1') foot for every one (1") inch of tree caliper. Caliper measurement shall be made twelve (12") above grade. I. Where conduits are laid under the locations of walkways, driveways, hard surface areas or street improvements, backfill shall be thoroughly compacted - tamping in layers not more than 4" in thickness. J. Sidewalks, walls, and pavement shall be restored with material equal to that of the adjacent sidewalks, walls, or pavement. This work shall be restored as soon as practicable. Should the walkway to be restored be of cement, concrete composition, or other type, made up in flag or slab fashion, the Contractor shall be required to restore said flag or slab in whole. K. Openings in foundation walls shall be grouted and/or filled with concrete to the full depth of the wall. All openings shall be made watertight by parging on the outside with mastic.

e. Waste Calculator Screenshot (developer to fill in blue fields) Estimated Waste Storage Area Requirement: Jackson

Waste collected development-wide in 30 cy compactors, not including bulk (from DSNY NYCHA) tons/week 14.25 tons/day 2.035 # apartment units 868 # building stair halls 7

Waste generation and sorting/day Trash Chute/day Secondary Collection/day Actual Tons Actual CY Chute Gallons in # of 40lb bags/stair Capture Gallons/ # Full 64 Waste Generated (tons) CY lbs Capture rate Captured Captured capture rate chute Sausage bags hall Rate Gallons stairhall Gallon Bin Trash 0.535 11.268 1070.64 100% 1.68 19.629 100% 3964.54 47 6.7 0.0% 0.000 0.000 0 MGP 0.387 6.969 773.47 54% 0.21 3.763 NA NA NA 100% 760.074 108.582 12 Cardboard 0.142 3.800 284.96 50% 0.07 1.900 NA NA NA 100% 383.747 54.821 6 Paper 0.142 0.882 284.96 50% 0.07 0.441 NA NA NA 100% 89.066 12.724 2 Organics 0.651 2.814 1302.68 0% 0.00 0.000 NA NA NA 0% 0.000 0.000 0 Ewaste 0.014 0.081 28.50 0% 0.00 0.000 NA NA NA 0% 0.000 0.000 0 Textiles 0.163 2.171 325.67 0% 0.00 0.000 NA NA NA 0% 0.000 0.000 0 Total 2.035 25.733 4070.88 47 20

Exhibit G: Applicant Forms

Form 1: Applicant’s Letter

New York City Housing Authority Procurement Department 90 Church St, 6th floor New York, New York 10007 Attn: Fulton and Elliott-Chelsea RFP [email protected] Re: Request for Proposals to Implement a Community-Driven Preservation and Investment Strategy for Fulton and Elliott-Chelsea Houses - PIN# 321888

To Whom It May Concern: This letter is submitted in connection with the Applicant’s Proposal (“Proposal”) submitted in response to the Request for Proposals (“RFP”) issued by the New York City Housing Authority (“NYCHA”) for the Sites in the Fulton and Elliott-Chelsea RFP (“Fulton and Elliott-Chelsea RFP”). All terms not otherwise defined herein will have the same meaning as set forth in the RFP. I am authorized to submit this letter for the Applicant.

I have received, read, and understand the provisions of the RFP. I understand that selection of an Applicant under the RFP will mean only that NYCHA will commence negotiations with such Applicant regarding the Project, including, but not limited to disposition of the Properties and the development of the Project described in the RFP.

I recognize that all negotiations with NYCHA will be subject to the following terms and conditions:

1. The commencement of negotiations will not represent any obligation or agreement on the part of NYCHA, which may only be incurred or entered into by a ground lease and development agreement pursuant to which the Properties will be leased to the Selected Applicant that have been (i) approved as to form by NYCHA’s Law Department; (ii) approved by the NYCHA Board and the U.S. Department of Housing and Urban Development (“HUD”); and (iii) duly executed by the Selected Applicant and NYCHA. A Conditional Designation Letter will be sent to the Selected Applicant, but will only indicate NYCHA’s intention to commence negotiations, which may ultimately lead to the execution of such agreements.

2. The Applicant will not have permission to enter upon the Properties, which permission will only be granted, if at all, in the form of a license agreement duly executed by the Applicant and NYCHA. The execution of any such license agreement, if it occurs, will only indicate that NYCHA has granted permission for the Applicant to enter onto the Properties for the limited purposes stated in the scope of work set forth therein, and will not indicate that NYCHA reached any other agreement with the Applicant regarding the Properties or the Project.

3. The following requirements must be satisfied prior to the disposition of the Properties: a. The Selected Applicant, any other potential lessee of the Properties, and their respective Principals must successfully undergo a background check concerning their suitability to do business with NYCHA. b. The Properties will not be leased to any person or entity which, or to any entity with a Principal who: (i) has not fulfilled development responsibilities undertaken in connection with the City of New York (“City”), NYCHA, or other governmental entities, (ii) is in default on any obligations to NYCHA or the City, (iii) is a former owner of the Properties, or (iv) had real property foreclosed by the City in tax or lien enforcement proceedings. c. The price and other terms for the disposition of the Properties and the tax exemption(s) to be provided, if any, will be consistent with applicable NYCHA and City policies. d. The Selected Applicant must execute legal documents in form and substance acceptable to NYCHA, and in form approved by NYCHA’s Law Department.

4. During negotiations, the Applicant must diligently, competently, and expeditiously comply with all requirements communicated to the Applicant by NYCHA.

5. The design of the Project must comply with any applicable NYCHA development requirements and guidelines.

6. The Applicant will be solely responsible for ensuring that the proposed Project and associated design and financing of the same shall be physically viable and economically feasible.

7. NYCHA may terminate negotiations with the Applicant at any time with or without cause. If negotiations are terminated by NYCHA, whether with or without cause, such termination will not give rise to any claim by the Applicant or its affiliates or contractors against NYCHA for damages, including, without limitation, for lost profits.

8. NYCHA is not obligated to pay, nor will it in fact pay, any costs or losses incurred by the Applicant at any time, including, but not limited to, the cost of: (i) any prior actions by the Applicant in order to respond to any selection process, or (ii) any future actions by the Applicant in connection with the negotiations, including, but not limited to, actions to comply with requirements of NYCHA or any applicable laws.

Very truly yours,

______Signature

______Title

______Applicant Form 2: Applicant Description Project

Team Information and Questionnaire

Name of Applicant:

All Applicants must complete this Form.

CONTACT INFORMATION:

Name of Contact Person:

E-mail:

Mailing Address:

Telephone No:

APPLICANT ENTITY:

1. Type of organization (i.e. partnership, corporation, limited liability company, joint venture):

2. Provide the following information about all principals of the applicant. For corporations, provide the names of the officers and any shareholders owning 10% or more; for partnerships, provide the names of all general partners. For joint ventures, provide the information separately for each entity that comprises the joint venture. Also, state the role(s)* that each principal would play in the development of the sites, using the categories specified below.

NAME OF ENTITY # 1:

Percent Interest in Proposed Project:

PRINCIPALS: % Name/Position/Title Home Address Role* Interest in Entity NAME OF ENTITY # 2:

Percent Interest in Proposed Project:

PRINCIPALS: % Name/Position/Title Home Address Role* Interest in Entity

NAME OF ENTITY # 3:

Percent Interest in Proposed Project:

PRINCIPALS: % Name/Position/Title Home Address Role* Interest in Entity

*Role Categories: D = Developer; GC = General Contractor; PM = Property Manager; O = Other (please specify).

Use additional sheets as necessary PROJECT TEAM:

1. Provide the names, addresses, e-mail addresses, and telephone of members of the Project Team to the extent that these have been decided; if unknown, enter “N/A”.

Developer: Architect:

General Contractor: Other:

Property Management Company: Other:

Other: Other:

Is there an identity of interest between any principals of the Developer and any other entities that make up the Project Team? Yes [ ] No [ ]

If yes, please explain.

2. Has any principal identified above, or any organization in which the principal is or was a general partner, corporate officer, or owned more than 10% of the shares of the corporation, been the subject of any of the following:

(a) Conviction of, or charges currently pending for, arson, fraud, bribery, or grand larceny any felony or crime of dishonesty? Yes [ ] No [ ]

(b) Noncompliance with fair housing or anti-discrimination laws, any applicable codes or ordinances, labor laws, or construction laws? Yes [ ] No [ ] (c) Had an ownership or management interest in real property that was the subject of a tax lien sale, was or is the subject of tax, mortgage, or lien foreclosure or enforcement proceedings, or is currently in tax or mortgage arrears? Yes [ ] No [ ]

(d) Had an ownership or management interest in a property with respect to which HPD commenced an action in the Housing Part of the Civil Court, or with respect to which an administrator was appointed pursuant to Article 7-A of the Real Property Actions and Proceedings Law? Yes [ ] No [ ]

(e) Denial of a certification of no harassment or any administrative or judicial finding of harassment? Yes [ ] No [ ]

(f) Default or poor performance rating under any agreement with, or suspension or debarment by, any governmental entity? Yes [ ] No [ ]

(g) In the last seven years, filed a bankruptcy petition or been the subject of involuntary bankruptcy proceedings? Yes [ ] No [ ]

(h) In the last five years, failed to file any required tax returns, or failed to pay any applicable Federal, State of New York, or City taxes or other charges? Yes [ ] No [ ]

(i) Had any negative findings from the City’s Department of Investigation? Yes [ ] No [ ]

If the answer to any question is yes, provide the following information about each instance: name of principal(s); name(s) of organization(s) or corporation(s); principal’s status in the organization or corporation (e.g. officer), the date of the action, and current status and disposition.

Use additional sheets as necessary CERTIFICATION

[This certification must be signed by one of the principals listed above; if the applicant is a joint venture, it must be signed by a principal of each entity that comprises the joint venture.]

I certify that the information set forth in this application and all attachments and supporting documentation is true and correct. I understand that the City of New York and NYCHA will rely on the information in or attached to this document and that this document is submitted to induce the City of New York and NYCHA to select this proposal for development of a site.

I understand that this statement is part of a continuing application and that until such time that the subject project is finally and unconditionally approved by the City of New York and NYCHA, I will report any changes in or additions to the information herein, and will furnish such further documentation or information as may be requested by the City of New York, NYCHA or any agency thereof.

I understand that if I receive preliminary designation to develop this site, I must submit all additional disclosure forms required.

Name of Organization Signature

Date Print or Type Name and Title

Name of Organization Signature

Date Print or Type Name and Title

Name of Organization Signature

Date Print or Type Name and Title Use additional sheets as necessary Form 3: Assets Statement

[Assets Statement must describe financial status within the last twelve months and must be dated and signed.]

Principal or Individual whose assets are described below:

1. Personal Information

Name:

Business Name:

Business Phone:

Residence Address: City: State: Zip Code:

Business Address: City: State: Zip Code:

Position (Title):

Years of Service:

Salary: Bonus/Commission:

Other Income: Source of Other Income:

Are you a defendant in any lawsuits or legal action that may impact your financial standing? If so, please describe:

Do you have any contingent liabilities? If so, please describe: 2. Statement of Financial Condition

Dollars (omit Dollars (omit Assets Liabilities cents) cents) Cash On Hand and in Notes Payable to Banks Banks Secured

Notes Receivable Notes Payable to Banks Unsecured

Mortgages Owned Notes Payable to Others Secured Notes Payable to Others Unsecured

Marketable Securities Debt Balances in Owned Margin See Schedule A Accounts with Brokers Real Estate Owned Mortgages on Real Estate

Cash Value of Life Loans Against Life Insurance Insurance

Other Assets* (Itemize) Other Liabilities (Itemize) Total Assets Total Liabilities

Net Worth

* Any interest in a closely held business must be documented by providing a current balance sheet for that business and stating the percent of interest held by the applicant. Schedule A: Marketable Securities Owned

List separately and check (X) next to those pledged as collateral.

Dollars Marketable Securities Owned Collateral? (Omit Cents) 3. Signature Page

You, the undersigned hereby represent the above to be a true and accurate Statement signed as of the date herein.

Name of Principal:

Signature of Individual:

Print Name and Title of Individual:

Date:

2 of 3 Form 4A: Residential Development Experience (Preservation/Affordable Housing)

Name of Applicant:

List below all preservation affordable residential properties developed within the five (5) year period preceding the deadline for submission of proposals in response to this RFP. Use additional pages as needed. If possible, please submit this form as an Excel workbook.

Project Address Start Date Completion Total Constructio Permanent Gov't Property

(d)

Name Date Developmen n Lender (f) Lender (f) Program Manager t Cost (e) (g) Units

( c ) c (

Status

(b) # (a)

Buildings

Role Type Category # Total Current

TOTAL (a) ROLE: Indicate the role or roles you played in the development of each property listed. If developed as part of a joint venture, indicate such by adding JV to the respective role (e.g., D/JV). D=Developer; B=Builder; GC= General Contractor; CM=Construction Manager; F=Provided Financing; O=Other (specify) (b) TYPE: Project Type: RH=Rental Housing; CH=Coop/Condo Housing; SF=Single Family Housing; O=Office; R=Retail; CF=Community Facility; M=Mixed Use (c) CATEGORY: NC=New Construction; SR=Substantial Rehab; MR=Moderate Rehab (d) STATUS: Indicate if project is Pre=Pre-development; UC=Under Construction; Com=Completed (e) GOVERNMENT PROGRAM: Provide the name of the program. (f) CONSTRUCTION/PERMANENT LENDER: Provide the name of the institution. (g) MANAGEMENT: Indicate if you manage the project directly or use a property manager. Provide the name of the property manager used, if any. Indicate N/A if you no longer own the project. Form 4B: Residential Development Experience (New Construction/Affordable)

Name of Applicant:

List below all new construction affordable residential properties developed within the five (5) year period preceding the deadline for submission of proposals in response to this RFP. Use additional pages as needed. If possible, please submit this form as an Excel workbook.

Project Address Start Date Completion Total Constructio Permanent Gov't Property

(d)

Name Date Developmen n Lender (f) Lender (f) Program Manager t Cost (e) (g) Units

( c ) c (

Status

(b) # (a)

Buildings

Role Type Category # Total Current

TOTAL (a) ROLE: Indicate the role or roles you played in the development of each property listed. If developed as part of a joint venture, indicate such by adding JV to the respective role (e.g., D/JV). D=Developer; B=Builder; GC= General Contractor; CM=Construction Manager; F=Provided Financing; O=Other (specify) (b) TYPE: Project Type: RH=Rental Housing; CH=Coop/Condo Housing; SF=Single Family Housing; O=Office; R=Retail; CF=Community Facility; M=Mixed Use (c) CATEGORY: NC=New Construction; SR=Substantial Rehab; MR=Moderate Rehab (d) STATUS: Indicate if project is Pre=Pre-development; UC=Under Construction; Com=Completed (e) GOVERNMENT PROGRAM: Provide the name of the program. (f) CONSTRUCTION/PERMANENT LENDER: Provide the name of the institution. (g) MANAGEMENT: Indicate if you manage the project directly or use a property manager. Provide the name of the property manager used, if any. Indicate N/A if you no longer own the project. Form 4C: Residential Development Experience (Preservation/Market Rate Housing)

Name of Applicant:

List below preservation residential properties, excluding affordable housing, developed within the five (5) year period preceding the deadline for submission of proposals in response to this RFP. Use additional pages as needed. If possible, please submit this form as an Excel workbook.

Project Address Start Date Completion Total Constructio Permanent Gov't Property

(d)

Name Date Developmen n Lender (f) Lender (f) Program Manager t Cost (e) (g) Units

( c ) c (

Status

(b) # (a)

Buildings

Role Type Category # Total Current

TOTAL (a) ROLE: Indicate the role or roles you played in the development of each property listed. If developed as part of a joint venture, indicate such by adding JV to the respective role (e.g., D/JV). D=Developer; B=Builder; GC= General Contractor; CM=Construction Manager; F=Provided Financing; O=Other (specify) (b) TYPE: Project Type: RH=Rental Housing; CH=Coop/Condo Housing; SF=Single Family Housing; O=Office; R=Retail; CF=Community Facility; M=Mixed Use (c) CATEGORY: NC=New Construction; SR=Substantial Rehab; MR=Moderate Rehab (d) STATUS: Indicate if project is Pre=Pre-development; UC=Under Construction; Com=Completed (e) GOVERNMENT PROGRAM: Provide the name of the program. (f) CONSTRUCTION/PERMANENT LENDER: Provide the name of the institution. (g) MANAGEMENT: Indicate if you manage the project directly or use a property manager. Provide the name of the property manager used, if any. Indicate N/A if you no longer own the project. Form 4D: Residential Development Experience (New Construction/Market Rate Housing)

Name of Applicant:

List below residential properties, excluding affordable housing, developed within the five (5) year period preceding the deadline for submission of proposals in response to this RFP. Use additional pages as needed. If possible, please submit this form as an Excel workbook.

Project Address Start Date Completion Total Constructio Permanent Gov't Property

(d)

Name Date Developmen n Lender (f) Lender (f) Program Manager t Cost (e) (g) Units

( c ) c (

Status

(b) # (a)

Buildings

Role Type Category # Total Current

TOTAL (a) ROLE: Indicate the role or roles you played in the development of each property listed. If developed as part of a joint venture, indicate such by adding JV to the respective role (e.g., D/JV). D=Developer; B=Builder; GC= General Contractor; CM=Construction Manager; F=Provided Financing; O=Other (specify) (b) TYPE: Project Type: RH=Rental Housing; CH=Coop/Condo Housing; SF=Single Family Housing; O=Office; R=Retail; CF=Community Facility; M=Mixed Use (c) CATEGORY: NC=New Construction; SR=Substantial Rehab; MR=Moderate Rehab (d) STATUS: Indicate if project is Pre=Pre-development; UC=Under Construction; Com=Completed (e) GOVERNMENT PROGRAM: Provide the name of the program. (f) CONSTRUCTION/PERMANENT LENDER: Provide the name of the institution. (g) MANAGEMENT: Indicate if you manage the project directly or use a property manager. Provide the name of the property manager used, if any. Indicate N/A if you no longer own the project. Form 5A: Residential Management Experience (Preservation/Affordable Housing)

Name of Applicant:

Management Entity:

List below all preservation affordable properties managed currently or within the five (5) year period preceding the deadline for submission of proposals in response to this RFP. Use additional pages as needed. Property Address: Housing Type (i.e. 1 - 4 Number Dates of Management Section LIHTC? Public Owner 8? Hsg Builiding Number, Street family homes; of DU's From To (Y/N) (Y/N) Units ("Self", or provide name multifamily City, State, Zip rental; coop; (Y/N) and phone number): condominium)

TOTAL Form 5B: Residential Management Experience (New Construction/Affordable Housing)

Name of Applicant:

Management Entity:

List below all preservation properties, excluding affordable housing, managed within the five (5) year period preceding the deadline for submission of proposals in response to this RFP. Use additional pages as needed. Property Address: Housing Type (i.e. 1 - 4 Number Dates of Management Section LIHTC? Public Owner 8? Hsg Building Number, Street family homes; of DU's From To (Y/N) (Y/N) Units ("Self", or provide name multifamily City, State, Zip rental; coop; (Y/N) and phone number): condominium)

TOTAL Form 5C: Residential Management Experience (Preservation/Market Rate Housing)

Name of Applicant:

Management Entity:

List below all new construction affordable properties managed currently or within the five (5) year period preceding the deadline for submission of proposals in response to this RFP. Use additional pages as needed. Property Address: Housing Type (i.e. 1 - 4 Number Dates of Management Section LIHTC? Public Owner 8? Hsg Building Number, Street family homes; of DU's From To (Y/N) (Y/N) Units ("Self", or provide name multifamily City, State, Zip rental; coop; (Y/N) and phone number): condominium)

TOTAL Form 5D: Residential Management Experience (New Construction/Market Rate Housing)

Name of Applicant:

Management Entity:

List below all new construction properties, excluding affordable housing, managed within the five (5) year period preceding the deadline for submission of proposals in response to this RFP. Use additional pages as needed. Property Address: Housing Type (i.e. 1 - 4 Number Dates of Management Section LIHTC? Public Owner 8? Hsg Builiding Number, Street family homes; of DU's From To (Y/N) (Y/N) Units ("Self", or provide name multifamily City, State, Zip rental; coop; (Y/N) and phone number): condominium)

TOTAL Form 5E: Management Experience Questionnaire

Name of Applicant:

Management Entity:

1. Across your portfolio, what is the typical ratio of property managers to number of units? Describe if staffing plans differ based on the funding source (e.g. LIHTC or HOME).

2. Describe the management and maintenance staffing plan envisioned for this project. If you have one, please submit a sample or project-specific Management Plan.

3. What property management certifications and licenses are held by your staff? (For example: RAM or IREM certification, tax credit certification, commercial real estate broker’s license, etc.)

4. Please describe any LIHTC and/or HOME compliance coursework management staff has completed.

5. Has any property managed by the manager or owned by the owner ever had a recapture of LIHTC? If so, please explain in detail. Please include instances where you may have purchased or taken over management of a property with open compliance issues.

6. Have IRS Forms 8823s been issued for your properties, reporting noncompliance that was uncorrected at the time of issuance? If so, how many have been issued? Please include instances where you may have purchased or taken over management of a property with open compliance issues.

7. Do any properties managed by the manager or owned by an affiliate of the owner have open HOME compliance issues? If so, please explain in detail. Please include instances where you may have purchased or taken over management of a property with open compliance issues.

8. Do any properties managed by the manager or owned by an affiliate of the owner have open Class C NYC Housing Maintenance Code violations or open NYC DOB violations? If so, please explain in detail. Please include instances where you may have purchased or taken over management of a property with open violations.

9. Has the management company or any of its principals been disbarred by HUD or any other government agencies?

10. What is the vacancy rate across your portfolio as of the date of this submission? Please explain. 11. What are delinquent rents as a percentage of total rent roll across your portfolio of owned/managed properties? Please submit data showing arrears at 30, 60, and 90+ days arrearages.

12. Please submit a sample Monthly Management Report from the last year for an affordable housing property of your choosing. Form 6

NEW YORK CITY HOUSING AUTHORITY 250 BROADWAY  NEW YORK, NY 10007

TEL: (212) 306-3000  http://nyc.gov/nycha

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

APPLICANT DESCRIPTION

All respondents to the Fulton and Elliot-Chelsea RFP must complete this form and provide additional documentation as required in the form. Name of Applicant: ______

Name of Contact Person: ______

Address: ______

Telephone No: ______Email Address: ______Is the Applicant a certified Minority-owned or Woman-owned Business Enterprise (M/WBE)? (for informational purposes only) Yes [ ] No [ ] (Provide Proof of Certification). ______

COMPOSITION OF APPLICANT ORGANIZATIONS: 1. Type of organization (i.e. partnership, corporation, limited liability company): ______

2. For corporations, provide the names of the officers and any shareholders owning 10% or more.

NAME OF ENTITY: ______Percent Interest in Proposed Project: _____

PRINCIPALS: Name/Position/Title Home Address Role* % Interest in Entity

*Role: D = Developer; PM = Property Management Company; GC = General Contractor; SSP = Social Service Provider

3. Has any principal identified above, or any organization in which the principal is or was a general partner, corporate officer, or owned more than 10% of the shares of the corporation, been the subject of any of the following:

(1) Arson conviction or pending case? Yes [ ] No [ ] (2) Harassment complaint filed by the New York State Division of Rent Control or the New York State Division of Housing and Community Renewal? Yes [ ] No [ ] (3) Had an ownership or management interest in a property that was taken in rem by the City or assigned by a judge of Landlord and Tenant Court to a 7A Administrator or receiver? Yes [ ] No [ ] NEW YORK CITY HOUSING AUTHORITY 250 BROADWAY  NEW YORK, NY 10007

TEL: (212) 306-3000  http://nyc.gov/nycha

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

(4) NYCHA or City mortgage foreclosure or currently more than 90 days in arrears on any NYCHA or City loan? Yes [ ] No [ ] (5) Default on any contract obligation or agreement of any kind or nature entered into with NYCHA or the City of New York or one of its agencies? Yes [ ] No [ ]

(6) In the past 5 years, failed to qualify as a responsible bidder, or refused to enter into a contract after an award has been made, privately or with any government agency? Yes [ ] No [ ] (7) In the last 7 years, filed a bankruptcy petition or been the subject of involuntary bankruptcy proceedings. Yes [ ] No [ ] (8) In the last 5 years, failed to file any required tax returns, or failed to pay any applicable Federal, State of New York, or City taxes or other charges? Yes [ ] No [ ] (9) Been convicted of fraud, bribery, or grand larceny? Yes [ ] No [ ]

If the answer to any question is yes, provide the following information about each instance: name of principal(s); principal’s status in the organization or corporation (e.g. officer), the date of the action, and current status. CERTIFICATION

[This certification must be signed by one of the principals listed above.]

I certify that the information set forth in this application and all attachments and supporting documentation is true and correct. I understand that NYCHA will rely on the information in or attached to this document.

I understand that this statement is part of a continuing application and that until such time that the application is approved, I will report any changes in or additions to the information herein, and will furnish such further documentation or information as may be requested by NYCHA, the City of New York, or any agency thereof.

______Name of Organization Signature

______Date Print or Type Name and Title

______SUPPLEMENTAL QUESTIONS FOR ALL APPLICANTS

Answer the following questions. Use additional sheets as necessary. The definitions of terms contained in the Entity and Individual Disclosure Statement applies to these questions.

1. Has the Applicant, any of its employees, or any Related Entity, or any of their respective Principals or Officers, ever been the subject of, or questioned relating to, an investigation by any Government Agency, including, but not limited to, Federal, State, and Municipal Authorities? If yes, provide details.

2. Has the Applicant, any of its employees, or any Related Entity, or any of their respective Principals or Officers, ever been subpoenaed by any Governmental Agency? If yes, provide details.

3. Has the Applicant, any of its employees, or any related Entity, or any of their respective Principals or Officers, ever paid any money, gratuity, or conferred any other benefit, for any purpose, on any public official or any City employee? If yes, provide details.

4. Have there ever been any notifications or findings against the Applicant or any of its contractors/subcontractors of underpayments relating to prevailing wage violations? If yes, provide details.

5. Has the Applicant, any of its employees, or any Related Entity, or any of their respective Principals or Officers, ever been the subject of a monitorship or certification on any public contract or imposed by any government agency, authority or instrumentality? If yes, provide details.

6. Has the Applicant or its principals received any information, or have any reason to believe, that the Applicant, its Principals, or any of its employees, have been associated, or suspected of being associated, with organized crime? If yes, provide details. CERTIFICATION

[This certification must be signed by one of the principals listed above; if the applicant is a joint venture, it must be signed by a principal of each entity that comprises the joint venture.]

I certify that the information set forth in this application and all attachments and supporting documentation is true and correct. I understand that the City of New York will rely on the information in or attached to this document and that this document is submitted to induce the City of New York to select this proposal for development of a site.

I understand that this statement is part of a continuing application and that until such time that the subject project is finally and unconditionally approved by the City of New York, I will report any changes in or additions to the information herein, and will furnish such further documentation or information as may be requested by the City of New York or any agency thereof.

I understand that if I receive preliminary designation to develop this site, I must submit all additional disclosure forms required.

Name of Organization Signature

Date Print or Type Name and Title

Name of Organization Signature

Date Print or Type Name and Title

Name of Organization Signature

Date Print or Type Name and Title

Use additional sheets as necessary

Exhibit H: Resident Rights in the RAD Notice Exhibit H Resident Protections from RAD Notice

1. Choice Mobility: NYCHA will provide a Choice-Mobility option to residents of the Properties at any time after their first year of occupancy in accordance with section 1.6(D)(8) of the RAD Notice.

2. No Re-screening of Tenants upon Conversion: Pursuant to the RAD statute, at conversion, current households are not subject to rescreening, income eligibility, or income targeting provisions. Consequently, current households will be grandfathered for conditions that occurred prior to conversion, but will be subject to any ongoing eligibility requirements for actions that occur after conversion. For example, a unit with a household that was over-income at the time of conversion would continue to be treated as an assisted unit. Once that remaining household moves out, the unit must be leased to an eligible family.

3. Right to Return: Any residents that may need to be temporarily relocated to facilitate rehabilitation or construction will have a right to return to an assisted unit at the development once rehabilitation or construction is completed.

4. Renewal of Lease: Under RAD, the Project Owner must renew all leases upon lease expiration, unless good cause exists for not renewing. This provision must be incorporated into the tenant lease or tenancy addendum, as appropriate.

5. Phase-in of Tenant Rent Increases: NYCHA will create a policy to phase-in, over a period of 5 years, any increases in tenant rent that occur as a result of the RAD conversion.

6. Public Housing Family Self Sufficiency (PH-FSS) and ROSS-SC: NYCHA does not have PH-FSS participants, but residents may be able to enter into the Housing Choice Voucher (HCV) FSS program after conversion. Current ROSS-SC grantees will be able to finish out their current ROSS-SC grants once their housing is converted under RAD.

7. Resident Participation and Funding: In accordance with Attachment 1B.2 of the Notice, residents of the Properties will have the right to establish and operate a resident organization for the purpose of addressing issues related to their living environment and be eligible for resident participation funding. The Project Owner must provide $25 per occupied unit annually for resident participation, of which at least $15 per occupied unit shall be provided to a legitimate tenant organization at the covered property. These funds must be used for resident education, organizing around tenancy issues, and training activities.

8. Termination Notification: The Project Owner must provide adequate written notice of termination of the lease in accordance with section 1.6(D)(6) of the RAD Notice.

9. Grievance Process: Residents have a right to an informal hearing with NYCHA to dispute any decision related to the individual circumstances of a participant family as per 24 CFR § 982.555(a). Residents have a right to an informal hearing with the Project Owner to dispute any decision or action related the resident lease 10. Accessibility Requirements: Federal accessibility requirements will apply to the Project. The law governing the Project includes Section 504 of the Rehabilitation Act of 1973 (“Section 504”), the Fair Housing Act (“FHAct”), and the Americans with Disabilities Act (“ADA”). Although the requirements of each of these laws are somewhat different, NYCHA and the Project Owner must comply with each law that applies. Section 504 and the ADA also apply to alterations and substantial rehabilitation as defined in 24 CFR 8.22 and 8.23 and to existing, unaltered facilities (24 CFR 8.24). See also 28 CFR 35.151(b) and 28 CFR 36.

11. Under-Occupied Unit: Under 24 CFR 983.260, if a family is in an under-occupied unit at the time of conversion, the family may remain in this unit until an appropriate-sized unit becomes available in the Covered Project. When an appropriate sized unit becomes available, the family living in the under-occupied unit must move to the appropriate-sized unit within a reasonable period of time, as determined by NYCHA.

12. Earned Income Disregard (EID): Tenants who are employed and are currently receiving the EID exclusion at the time of conversion will continue to receive the EID after conversion, in accordance with regulations at 24 CFR § 5.617. Upon the expiration of the EID for such families, the rent adjustment shall not be subject to rent phase-in, as described in Section 1.6(C)(3) of the RAD Notice; instead, the rent will automatically rise to the appropriate rent level based upon tenant income at that time.

13. Jobs Plus: Jobs Plus grantees awarded FY14 and future funds that convert the Jobs Plus target projects(s) under RAD will be able to finish out their Jobs Plus period of performance at that site unless significant relocation and/or change in building occupancy is planned. If either is planned at the Jobs Plus target project(s), HUD may allow for a modification of the Jobs Plus work plan or may, at the Secretary’s discretion, choose to end the Jobs Plus program at that project.

14. When Total Tenant Payment Exceeds Gross Rent: Unlike normal PBV rules, RAD requires that the units for families whose Total Tenant Payment (“TTP”) has risen to a level that is equal to or greater than the contract rent plus any utility allowance be placed on and/or remain under the HAP contract when TTP equals or exceeds the Gross Rent. In such cases, the resident is considered a participant under the program and all of the family obligations and protections under RAD and PBV apply to the resident. Following conversion, 24 CFR 983.53(d) applies, and any new families referred to the RAD PBV project must be initially eligible for a HAP payment at the time of admission to the program. Further, a PHA must remove a unit from the contract when no assistance has been paid for 180 days. If units are removed from the HAP contract because a new admission’s TTP comes to equal or exceed the gross rent for the unit and if the Project is fully assisted, the Project Owner must reinstate the unit after the family has vacated the property.

15. Language: When providing resident notification and meetings, the Selected Applicant must use effective communication for persons with hearing, visual, and other communication-related disabilities consistent with Section 504 of the Rehabilitation Act of 1973 and, as applicable, the Americans with Disabilities Act of 1990. Effective communication includes, but is not limited to, providing written materials in appropriate alternative formats (e.g., Braille, large type), as needed, and providing sign language interpreters and assistive listening devices at resident meetings, as needed (24 CFR 8.6). Additionally, the Selected Applicant must provide meaningful access to its programs and activities for persons who have a limited ability to read, speak, or understand English. The Selected Applicant must provide language assistance to residents of the Properties who are Limited English Proficient (LEP) to ensure that they have meaningful access to RAD resident notifications and meetings. Such language assistance may include, but is not limited to, providing written translation of notices regarding the plans for the project and relocation and oral interpretation at resident meetings. For guidance on providing language assistance to persons with LEP, please see Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against National Origin Discrimination Affecting Limited English Proficient Persons (72 FR 2732).

16. Fair Housing Requirements: RAD transactions are governed by the same civil rights authorities that govern HUD-assisted activities generally (see 24 CFR 5.105). The Fair Housing Act prohibits discrimination in housing (see 42 U.S.C. §§ 3601, et seq., and HUD regulations in 24 CFR part 100) and requires all federal executive departments and agencies to “administer their programs and activities relating to housing and urban development . . . in a manner affirmatively to further” fair housing (42 U.S.C. § 3608(d) and (e)). In addition, all federally assisted activities are subject to Title VI of the Civil Rights Act of 1964 forbidding discrimination on the basis of race, color, and national origin (see 42 U.S.C. §§ 4000d, et. seq., and HUD regulations in 24 CFR part 1), and Section 504 of the Rehabilitation Act of 1973, which forbids discrimination on the basis of disability and requires that federally assisted programs make each activity “when viewed in its entirety” readily accessible to persons with disabilities and make reasonable accommodation to the needs of persons with disabilities (see 29 U.S.C. §§ 701, et seq., and HUD regulations in 24 CFR part 8), as well as Titles II and III of the Americans with Disabilities Act, Executive Order 11063, and HUD regulations in 24 CFR part 107. Thus, as with the administration of all HUD programs and all HUD-assisted activities, fair housing and civil rights issues must be considered in the administration of RAD transactions. This includes actions and policies that may have a discriminatory effect on the basis of race, color, sex, national origin, religion, disability, or familial status (see 24 CFR part 1 and part 100 subpart G) or that may impede, obstruct, prevent, or undermine efforts to affirmatively further fair housing.

17. Waiting List: NYCHA has established a site-based waiting list in accordance with 24 CFR § 903.7(b)(2)(ii)-(iv) to ensure that applicants on NYCHA's public housing waiting list have been offered placement on the Covered Project’s initial waiting list. The applicants shall have priority on the site-based wait list in accordance with the date and time of their application to the original waiting list. All vacancies in the Covered Project must be filled by applicants on the site-based waiting list in accordance with 24 CFR § 983.251(c).

Exhibit I: NYC RAD Roundtable Guiding Principles

PRINCIPLES FOR THE RENTAL ASSISTANCE DEMONSTRATION: SUPPLEMENTAL RESIDENT RIGHTS AND PROTECTIONS UNDER RAD CONVERSION

Prepared by the New York City (NYC) Rental Assistance Demonstration (RAD) Roundtable on Resident Rights and Protections

The RAD Principles are intended as supplemental to rights and protections already provided by federal and state statute, U.S. Department of Housing and Urban Development (HUD) regulations, and HUD notices. The HUD notice related to resident protections is included as an appendix.

These Guiding Principles were developed by the RAD Roundtable in partnership with the New York City Housing Authority (NYCHA) in order to ensure that the rights of tenants are protected as NYCHA preserves properties through RAD. The RAD Roundtable included participants who are residents of NYCHA public housing and who represent community-based organizations, including:

Bernadette McNear, President, Ralph J. Rangel Houses Tenant Association, Manhattan Lolita Miller, Treasurer, Ocean Bay (Bayside) Tenant Association, Queens Ann Cotton Morris, President, Woodside Houses Tenant Association, Queens, and Chair, NYCHA City- Wide Council of Presidents (CCOP) Charlene Nimmons, Resident, Wyckoff Gardens, Brooklyn, and Founder & Executive Director of Public Housing Communities, Inc. Diana Blackwell, President, Fred Samuels Houses Tenant Association, Manhattan Community Service Society Community Voices Heard Enterprise Community Partners, Inc. FUREE Good Ole Lower East Side Local Initiative Support Corporation New York Housing Conference The Legal Aid Society Urban Upbound

The RAD Principles have been endorsed by Roundtable participants: Bernadette McNear, President, Ralph J. Rangel Houses Tenant Association, Manhattan, Lolita Miller, Treasurer, Ocean Bay (Bayside) Tenant Association, Queens, Charlene Nimmons, Resident, Wyckoff Gardens, Brooklyn, and Founder & Executive Director of Public Housing Communities, Inc., Diana Blackwell, President, Fred Samuels Houses Tenant Association, Manhattan, Community Service Society, Enterprise Community Partners, Inc., FUREE, Good Ole Lower East Side, Local Initiative Support Corporation, New York Housing Conference, The Legal Aid Society, and Urban Upbound

1 June 13, 2016

PRINCIPLES FOR THE RENTAL ASSISTANCE DEMONSTRATION

Residents:  Notice of RAD Candidacy Residents and Resident Associations (RAs) will have notice that their development is under NYCHA consideration for RAD conversion. NYCHA will begin outreach and education with residents while HUD considers NYCHA applications to ensure residents have the opportunity to learn about RAD in advance of HUD approval of developments.  Resident Education A RAD handbook shall be distributed to all affected residents, providing comprehensive information about RAD conversion, including how RAD will differ from public housing and the potential impacts for residents and the community.  Right to Organize Residents have the right to form a resident organization (RO) to represent all residents in the development, which the developer/property manager (PM) must recognize. If there is a RA (964- compliant and NYCHA-certified) that exists prior to RAD conversion, the RA will be recognized as the RO after conversion. If only part of the development with an RA will convert, the RA will continue to exist and the converted portion may form an RO. If no RA exists, NYCHA shall encourage the residents to form one prior to RAD conversion. If, upon conversion, there is no RO, the PM should encourage residents to form one and support them in doing so.  Resident Participation Funding The RO will decide on how to use the RO portion of Resident Participation Funds, within the uses permitted under RAD including discretion over engaging community organizations for technical assistance and education. If the RA exists, funding should be allocated prior to conversion and transferred to the RO after conversion. If only part of a development is converting, the amount of funding to be transferred to a new RO will be prorated based on the number of units.  Communications Among ROs In order to promote communication among ROs once a number of RAD conversions take place, NYCHA will provide ROs with contact information for other RAD property managers to enable organizations to communicate.  Grievances and Lease Terminations NYCHA will develop a set of procedures for resident grievances and lease termination proceedings that will take effect upon conversion. The procedures will be uniform for each converted development and must be implemented by each PM. The PM must provide ongoing orientation to the procedures for residents.  Succession Rights Households of a unit prior to conversion shall continue to have the same succession rights after conversion as NYCHA public housing residents. Persons who become residents of a unit after conversion shall have succession rights according to Section 8 rules.  Resident Businesses Residents may engage in legal profit-making activities, including the operation of a home-based business, in their dwelling unit, provided that such activities are incidental to the primary use of the dwelling unit as a residence

RAD Developer/Property Manager (PM):  RO Recognition and Meetings The PM must recognize a legitimate RO as the residents’ representative. The PM must invite the RO to all resident engagements. The PM must meet regularly with ROs to discuss emerging property-wide issues, particularly during the construction/rehabilitation process. The PM and RA/RO should agree on

2 June 13, 2016

the frequency of these meetings. If there is no RA to become an RO after conversion, the PM should support residents in forming one.  Right to Stay: Keeping Current Residents The PM shall not rescreen current households upon conversion for the purpose of maintaining tenancy including for income eligibility, income targeting provisions, criminal background, or credit history. Pets registered with NYCHA prior to conversion must also be allowed to stay.  Keeping Residents Informed The PM must provide clear and accessible information to residents (in accord with HUD RAD guidance) regarding income recertification, eligible uses of Resident Participation Funds, rehabilitation and unit work schedules, and other PM expectations of residents. The PM should also create a system for responding to resident concerns or complaints and communicate how that process will work to residents.  Language Access The PM will provide language assistance to residents who are Limited English Proficient (LEP) to ensure that they have meaningful access to RAD resident notifications and meetings, per RAD guidelines and HUD regulations.  Plan for Resident Services The PM must provide a plan for assessing and responding to resident social service needs, including employment training and job opportunities. The PM must maintain community centers and the provision of services when the community center is part of the converting development. PM must consult with residents and the RO about their preferences in the choice of service providers and activities.  Training and Employment Opportunities The PM must provide training and employment opportunities to residents both during and after construction and collaborate with NYCHA to finalize a plan. The PM must ensure that employees at the development are able to apply for positions with the new property management company.  Rehabilitation Needs The PM should keep a record of rehabilitation needs, concerns about the structure and quality of buildings, which are raised by residents in the engagement process.  Coordinated Income Reviews In order not to subject households to multiple income reviews—such as for HUD recertification and the Low Income Housing Tax Credit (LIHTC)—the PM and NYCHA must work to combine them into a single process where feasible.  Temporary Relocation If any relocation is necessary, NYCHA and the PM must provide residents with the written relocation plans and inform them of their right to return and protections from relocation costs.  Procedures for Handling Grievances and Lease Terminations NYCHA will develop a set of procedures for resident grievances and lease termination proceedings that will take effect upon conversion. The procedures will be uniform for each converted development and must be implemented by each PM. The PM must provide ongoing orientation to the procedures for residents.  Language Access The PM will provide language assistance to residents of the project who are Limited English Proficient (LEP) to ensure that they have meaningful access to RAD resident notifications and meetings, per RAD guidelines.  Enforcement of Principles NYCHA will implement these principles, including all items related to resident protections, services, and ongoing tenancy rights into appropriate transactional documents in consultation with the RAD Roundtable members. Tenant rights as described in these principles will be appropriately delineated in a required rider to resident leases with the PM. These rights will be part of the lease by incorporation.

3 June 13, 2016

NYCHA:  Notice of RAD Candidacy NYCHA will provide residents and RAs with notice that a development is under consideration for RAD conversion. NYCHA will begin outreach and education with residents while HUD considers NYCHA applications to ensure residents have the opportunity to learn about RAD in advance of HUD approval of developments.  Recognition of the RA Role If there is an RA prior to RAD conversion, NYCHA must involve the RA in all resident engagements. If no RA exists, prior to RAD conversion, NYCHA shall encourage the residents to form one prior to conversion.  Resident Participation Funding RA funding should be allocated prior to conversion and transferred to the RO after conversion. If only part of a development is converting, the amount of funding to be transferred to a new RO will be prorated based on the number of units.  Communications Among ROs In order to promote communication among ROs once a number of RAD conversions take place, NYCHA will provide ROs with contact information for other RAD property managers to enable organizations to communicate.  Training and Employment Opportunities NYCHA will collaborate with the PM on a plan to provide training and employment opportunities to residents, both during and after construction.  Coordinated Income Reviews In order not to subject households to multiple income reviews—such as for HUD recertification and the Low Income Housing Tax Credit (LIHTC)—the PM and NYCHA must work to combine them into a single process where feasible.  Rehabilitation Needs NYCHA should keep a record of rehabilitation needs, concerns about the structure and quality of buildings, which are raised by residents in the engagement process or in the unit-by-unit Physical Needs Assessment.  Temporary Relocation If any relocation is necessary, NYCHA and the PM must provide residents with the written relocation plan and inform them of their right to return and protections from relocation costs.  Waiting List Responsibility NYCHA will administer site-based Section 8 Voucher waiting lists, which will be used to fill all vacancies in RAD-converted developments. NYCHA will notify applicants on the public housing waiting list about how to be placed on the Section 8 waiting list in accordance with HUD guidelines.  Pet Policy NYCHA will recommend that all PMs adopt NYCHA’s pet policy as a minimum standard. Residents with pets registered with NYCHA prior to conversion will be allowed to stay.  Resident Selection Criteria NYCHA will require PMs to comply with a resident selection plan provided by NYCHA to ensure that all PMs in RAD-converted developments use standard resident selection criteria, pertaining to criminal background checks and rent payment and credit history.  Processing Applications Pre-Conversion NYCHA will process requests for adding household members to a lease and interim re-certifications by an established deadline related to the anticipated date of conversion. NYCHA will approve requests that are eligible according to NYCHA’s policy. NYCHA will announce the date in advance to RAs and residents. NYCHA will process requests for transfers in accordance with its established policies at the time.

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 Post-Conversion Development-Wide Problems NYCHA will provide a contact person, with whom ROs can register development-wide, systemic problems that may emerge.  Language Access NYCHA will provide language assistance to residents who are Limited English Proficient (LEP) to ensure that they have meaningful access to RAD resident notifications and meetings, per RAD guidelines.  Security Deposits NYCHA will transfer the security deposits paid by residents for their public housing unit to the PM upon conversion.  Utility Payments Utility allowances will be provided to residents where applicable in accordance with Section 8 program rules.  Enforcement of Principles NYCHA will implement these principles, including all items related to resident protections, services, and ongoing tenancy rights into appropriate transactional documents in consultation with the RAD Roundtable members. Tenant rights as described in these principles will be appropriately delineated in a required rider to resident leases with the PM. These rights will be part of the lease by incorporation.

5 June 13, 2016

Exhibit J: NYCHA Grievance Procedures

Grievance Procedure Process − PACT Property Managers

The following grievance procedure outlines the steps PACT property managers must take to inform residents of the right to a grievance, and the steps the property manager must take to properly follow the procedure. The right to a grievance procedure is a protection provided to all residents at PACT developments as set forth in the RAD Guiding Principles (Exhibit N) and the Resident Rights in the RAD Notice (Exhibit M). The grievance procedure ensures a fair process for all parties involved in the dispute.

The PACT property manager shall give notice to tenants of their rights to a grievance. The PACT property manager must give a copy of the grievance procedure to each tenant and the Resident Organization. A tenant need not utilize this grievance procedure if they do not wish to. The tenant is free to raise the same issues in court, even if they do not prevail at the informal hearing at their management office.

This Grievance Procedure governs individual grievances based on the lease between the tenant and PACT property manager including, without limitation, challenging transfer requests within the development, challenging denials to physical modifications of the building and/or rental unit as part of an accommodation for a disability; challenging the imposition of charges for maintenance and repairs, and any dispute that the Tenant may have with respect to an Owner action in accordance with the Tenant’s Lease or PACT and RAD rules and regulations. Transfer requests requiring approval from NYCHA’s Leased Housing Department, policy questions, class grievances, inter-tenant conflicts, personal injury claims, damage claims and commercial tenants are excluded from this grievance procedure. Concerns relating to the tenant’s subsidy will be construed to supersede or modify tenants’ rights to request a hearing from their Section 8 Voucher Administrator under 24 CFR § 982.555.handled by NYCHA’s Leased Housing Division as subsidy administrator.

A tenant may present the grievance, either orally or in writing to the management office of the PACT property manager so that the issue may be discussed informally and resolved without a hearing.

The management office shall prepare a written summary of the pre-hearing conference within a reasonable time, including the names of the participants, date of meeting, a summary of the grievance, nature of the disposition and the reasons for the disposition. The notice must also state that if the tenant does not agree with the disposition, the tenant may request an informal hearing on the disposition and state the deadline for the tenant to request an informal hearing. The written summary shall be given to the tenant and one copy retained in the tenant’s file at the management office.

If the tenant is not satisfied with the disposition, they may make a written request within the time allotted for an informal hearing to appeal such disposition.

For NYCHA’s public housing grievance procedure process, NYCHA uses an impartial attorney to make a decision regarding the dispute. We also require PACT property managers to adopt a similar approach using an objective party for the informal hearing. Prior to the informal hearing, the tenant must be given the opportunity to examine any documents that are directly relevant to the hearing. The tenant must be allowed to copy any such document at the tenant’s expense. If the PACT property manager does not make the document available for examination on request of the tenant, the PACT property manager may not rely on the document at the hearing. The tenant will be given an opportunity to present documents and other evidence and question property management staff involved in the claim. The PACT property manager will be permitted the opportunity to refute or rebut the evidence presented by the tenant. Evidence may be considered without regard to admissibility under the rules of evidence applicable to judicial proceedings but should be relevant to the matter at hand.

The person who conducts the hearing must issue a written decision based solely and exclusively on the facts presented at the hearing, stating briefly the reasons for the decision. Factual determinations relating to the individual circumstances of the tenant shall be based on a preponderance of the evidence presented at the hearing. Copies of the decision will be mailed to the tenant and their representative and one copy retained in the tenant’s file at the management office.

All PACT property managers are required to submit a legal report on a periodic basis to NYCHA utilizing NYCHA’s legal template. NYCHA requires that the PACT property manager report information from all grievance procedure hearings. The following information about all grievance procedures will need to be included in the report: description of grievance, date of request for pre-hearing conference, outcome of pre-hearing conference, date of request for an informal hearing, and the outcome of the informal hearing.

Exhibit K: Enterprise Green Communities New York City Overlay NYCHA Specific Requirements

2020 Enterprise Green Communities Criteria Checklist: NYC Overlay April 6, 2020 PACT Specific Requirements

1. INTEGRATIVE DESIGN

OX YES O NO O MAYBE M 1.1 Integrative Design – Project Priorities Survey Complete the Project Priorities Survey, which can be found in the Appendix.

NYC OVERLAY: In addition to the above, all projects are REQUIRED to replace section 5, Climate and Environmental Resilience, of the Project Priorities Survey with the “Exposure Screening Tool” on pages 31-32 of the NYC Climate Resiliency Design Guidelines v3.0 (or most current version of the PACT Specific: CRDG). Use that Exposure Screening Tool to determine whether your property has a low, medium, or high exposure rating for Heat, Precipitation, and Sea Level Rise. Projects are encouraged, but not Required required to perform the Next Steps outlined in the tool. Projects are encouraged to analyze and select design strategies and criteria that mitigate risk from pertinent climate hazards with the methodology, datasets and assumptions established within the most current version of the CRDG. NYC Climate Resiliency Design Guidelines: www1.nyc.gov/assets/orr/pdf/NYC_Climate_Resiliency_Design_Guidelines_v3-0.pdf

OX YES O NO O MAYBE M / 1-2 1.2 Integrative Design – Charrettes & Coordination Meetings Develop an integrative design process that moves the outputs of the Project Priorities Survey into action through a series of collaborative meetings. Prioritize multi-benefit strategies. Assign responsibility within your design and development teams for accountability. PACT Specific: Required NYC OVERLAY: Points are available for consulting with the NYC Accelerator during pre-development or schematic design: (1) point for consultation and (2) points for incorporating actionable strategies determined in the consultation.

NYC Accelerator: https://retrofitaccelerator.cityofnewyork.us/

XO YES O NO O MAYBE M 1.3 Integrative Design – Documentation Include Enterprise Green Communities Criteria information in your contract documents and construction specifications (Division 1 Section 01 81 13 Sustainable Design Requirements) as PACT Specific: necessary for the construction team to understand the requirements and how they will be verified. Required Ensure, and indicate, that the drawings and specifications have been generated to be compliant and meet certification goals.

XO YES O NO O MAYBE M 1.4 Integrative Design—Construction Management Create, implement, and document your contractor/subcontractor education plan to ensure that all persons working on-site fully understand their role in achieving the project objectives. Include a summary of the Project PACT Specific: Priorities Survey (Criterion 1.1), the sustainability goals, and anticipated roles of each party in regards to the Required performance expected of the project. Attach and reference this training plan to Division 1 Section 01 81 13 Sustainable Design Requirements. Include timeline estimates for performance testing and verification schedules in the overall construction schedule. As relevant, review requirements for Criterion 8.1, 8.2, and 8.3, and begin populating these documents with relevant information from design and construction.

O YES O NO O MAYBE 12 or 15 1.5 Design for Health and Well-Being: Health Action Plan Follow Steps 1-6 (12 points and 3 extra points for Step 7) of the Health Action Plan framework per the full criterion. This includes: 1) Commit to embedding health into the project lifecycle 2) Partner with a project health professional 3) Collect and analyze community health data 4) Engage with community stakeholders to prioritize health data and strategies 5) Identify strategies to address those health issues 6) Create an implementation plan 7) Create a monitoring plan.

NYC OVERLAY: For projects following this optional criterion, see NYC Community Health Profiles (www1.nyc.gov/site/doh/data/data-publications/profiles.page) for neighborhood-specific health data during Step 3, Data Collection.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 1 O YES O NO O MAYBE 10 1.6 Resilient Communities: Multi-Hazard / Vulnerability Assessment Conduct a four-part assessment (social, physical, functional, strategy) to identify critical risk factors of your property and implement at least two sets of strategies to enable the project to adapt to, and mitigate, climate related or seismic risks. See full criterion for more guidance.

NYC OVERLAY: Projects that score a medium- or high- risk exposure rating in Heat, Precipitation, or Sea Level Rise from the Project Priorities Survey (Criterion 1.1) through the CRDG Exposure Screening Tool are highly encouraged to comply with this criterion. Refer to the Design Strategies Checklist (Appendix 4 in CRDG version 3.0) to inform strategies. www1.nyc.gov/assets/orr/pdf/NYC_Climate_Resiliency_Design_Guidelines_v3-0.pdf

OX YES O NO O MAYBE 8 1.7 Resilient Communities: Strengthening Cultural Resilience Integrate community and resident participation in the development processes so that the built environment honors cultural identities, resident voices, and community histories. PACT Specific: Option 1: Complete a Cultural Resilience Assessment 8 points OR

Option 2: Convene a Cultural Advisory Group

2. LOCATION + NEIGHBORHOOD FABRIC

XO YES O NO O MAYBE M 2.1 Sensitive Site Protection All projects must: 1. Protect floodplain functions (e.g., storage, habitat, water quality) by limiting new development within the 100-year floodplain of all types of watercourses. 2. Conserve and protect aquatic ecosystems including wetlands and deepwater habitats that PACT Specific: provide critical ecosystem functions for fish, other wildlife, and people. Required 3. Protect ecosystem function by avoiding the development of areas that contain habitat for plant and animal species identified as threatened or endangered. 4. Conserve the most productive agricultural soils by protecting prime farmland, unique farmland, and farmland of statewide or local importance. If your site contains any of these ecologically sensitive features, follow the specific Requirements under that subheading.

XO YES O NO O MAYBE M 2.2 Connections to Existing Development and Infrastructure (Mandatory for New Construction projects that do not qualify as Rural / Tribal / Small Town) Locate the project on a site with access to existing roads, water, sewers and other infrastructure and PACT Specific: within or contiguous to (having at least 25% of the perimeter bordering) existing development. Connect Required the project to the existing pedestrian network. For sites over 5 acres, provide connections to the adjacent street network at least every 800 feet. Tie all planned bike paths to existing bike paths.

NYC OVERLAY: All projects are required to meet this criterion but no documentation is required; assumed as-of-right for NYC properties.

O YES O NO O MAYBE M 2.3 Compact Development (Mandatory for New Construction) At a minimum, build to the residential density (dwelling units/acre) of the census block group where the project is located. In Rural/Tribal/Small Town locations that do not have zoning requirements: Build to a minimum net density of 5 units per acre for single-family houses; 10 units per acre for multifamily buildings, single and two-story; and 15 units per acre for multifamily buildings greater than two-stories.

NYC OVERLAY: All projects are required to meet this criterion but no documentation is required; assumed as-of-right for NYC properties.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 2 O YES O NO O MAYBE 5 or 7 2.4 Compact Development Exceed the residential density (dwelling units / acre) of the census block group in which your project is located. Exceed by 2x for [5 points]; exceed by 3x for [7 points]. In rural / tribal / small towns that do not have zoning requirements, build to a minimum net density of 7.5 units per acre for single-family houses; 12 units per acre for multifamily buildings, single and two-story; and 20 units per acre for multifamily buildings greater than two stories. [5 points]

O YES O NO O MAYBE M 2.5 Proximity to Services (Mandatory for New Construction) Locate the project within a 0.5-mile walk distance of at least four, or a 1-mile walk distance of at least seven, of the listed services. For projects that qualify as Rural/Tribal/Small Town, locate the project within 5 miles of at least four of the listed services.

NYC OVERLAY: All projects are required to meet this criterion but no documentation is required; assumed as-of-right for NYC properties.

O YES O NO O MAYBE M 2.6 Preservation of and Access to Open Space for Rural/Tribal/Small Towns (Mandatory for New Construction Rural / Tribal / Small Towns) Option 1: Locate the project within a 0.25-mile walk distance of dedicated public open space that is a minimum of 0.75 acres; at least 80% of which un-paved. OR Option 2: Set aside a minimum of 10% (minimum of 0.25 acres) of the total project acreage as open and accessible to all residents; at least 80% of which un-paved.

O YES O NO O MAYBE 6 max 2.7 Preservation of and Access to Open Space Option 1: Locate the project within a 0.25-mile walk distance of dedicated open space that is a minimum of 0.75 acres; at least 80% of which un-paved. OR Set aside a percentage of permanent open space for use by all residents; at least 80% of which un-paved. 20% [4 points]; 35% [4 points]; 45% + written statement of preservation/conservation policy [6 points].

O YES O NO O MAYBE M / 2,6,8 2.8 Access to Transit (Mandatory for New Construction projects that do not quality as Rural/Tribal/Small Towns; Optional for all other project types) New Construction, not Rural/Tribal/Small Towns Mandatory: Locate projects within a 0.5-mile walk distance of transit services (bus, rail and/or ferry), constituting at least 45 or more transit rides per weekday, with some type of weekend service. Optional, 2 points: Locate the project along dedicated bike trails or lanes (Class I, II, or IV) that lead to high-quality transit services (100 trips per day) within 3 miles. Rehabilitation, not Rural/Tribal/Small Towns Optional, 2,6, or 8 points: Locate projects within a 0.5-mile walk distance of public transit services (bus, rail and/or ferry), constituting at least 45 or more transit rides per weekday, with some type of weekend service. (6 points) Locate the project along dedicated bike trails or lanes (Class I, II, or IV) that lead to high-quality transit services (100 trips per day) within 3 miles. [2 points]. New Construction and Rehabilitation, Rural/Tribal/Small Towns Optional, 6 points: Locate the project within 0.5 mile walk distance of public transit services with at least 45 rides per weekday and some weekend service, OR, Install at least two charging stations for electric vehicles, OR, Locate the project within 5 miles of one of the following transit options: 1) vehicle share program; 2) dial-a-ride program; 3) employer vanpool; 4) park-and-ride; or 5) public–private regional transportation.

NYC OVERLAY: All projects are required to meet the component of this criterion regarding distance between project and transit services, but no documentation is required; assumed as-of-right for NYC properties. Points are still available for projects that demonstrate that they also qualify for the bike lanes component of the criterion.

And, points are available for New Construction or Rehabilitation projects that demonstrate that they have received approval for a reduction in parking minimums for the project.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 3 O YES O NO O MAYBE 2–8 2.9 Improving Connectivity to the Community Improve access to community amenities through at least one of the options incentivizing biking mobility or improving access to transit.

O YES O NO O MAYBE 5 max 2.10 Passive Solar Heating / Cooling Design and build with passive solar design, orientation and shading that meet the guidelines specified.

NYC OVERLAY: New Construction projects may also achieve points for this criterion through the window shading option described in the criterion.

1 point is also available for projects that demonstrate that more than 50% of non-roof paved areas are shaded with either plant material or structures.

O YES O NO O MAYBE 6 2.11 Adaptive Reuse of Buildings Rehabilitate and adapt an existing structure that was not previously used as housing. Design the project to adapt, renovate, or reuse at least 50% of the existing structure and envelope.

O YES O NO O MAYBE 6 2.12 Access to Fresh, Local Foods Provide residents and staff with access to fresh, local foods, through Option 1: Neighborhood Farms and Gardens; Option 2: Community-Supported Agriculture; or Option 3: Proximity to Farmers Markets.

NYC OVERLAY: If selecting Option 3, projects may comply by being within the proximity from a Farmers Market as described in the criterion or from a market or grocery that meets the definition of FRESH. For more information on FRESH, see https://edc.nyc/program/food-retail-expansion-support-health-fresh

O YES O NO O MAYBE 8 2.13 Advanced Certification: Site Planning, Design, and Management Locate building(s) within a community that is certified in LEED for Neighborhood Development, LEED for Cities and Communities, Living Community Challenge, or SITES.

XO YES O NO O MAYBE 6 max 2.14 Local Economic Development and Community Wealth Creation Demonstrate that local preference for construction employment and subcontractor hiring was part of your bidding process, and how it functioned during construction [2 points] OR demonstrate that you PACT Specific: achieved at least 20% local employment [3 points] OR provide physical space for small business, Required nonprofits, and /or skills and workforce education [3 points].

NYC OVERLAY: Projects financed by HPD and receiving more than $2 million in City subsidy meet Option 1 as-of-right. HPD also encourages, for all projects, participation in the M/WBE Building Opportunity Initiative: www1.nyc.gov/site/hpd/developers/building-opportunity-initiative.page Note that for Option 3: Physical Space, project teams can work with local development corporations to receive tax credits from the Department of Finance for integrating support of non-profits as part of efforts to secure funding.

O YES O NO O MAYBE M 2.15a Access to Broadband: Broadband Ready (Mandatory for New Construction and Substantial Rehab Projects in Rural / Tribal / Small Town Locations) Incorporate broadband infrastructure so that when broadband service comes to a community, the property can be easily connected. Include a network of mini-ducts or conduit throughout the building extending from the expected communications access point to each network termination point in the building.

OX YES O NO O MAYBE 6 2.15b Access to Broadband: Connectivity (Optional for NYC Overlay and Rural/Tribal/Small Town) Ensure all units and common spaces in the property have broadband internet access with at least a speed of 25/3 mbs. PACT Specific: NYC OVERLAY: NYC Overlay projects may either earn 6 points by following the full criterion as written Required or may earn 3 points for providing broadband internet access with at least a speed of 25/3 mbs in all project common amenity areas (including lobbies and community rooms but not required to include corridors and stairwells and exterior areas), available to residents and staff.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 4 3. SITE IMPROVEMENTS

XO YES O NO O MAYBE M 3.1 Environmental Remediation Determine whether there are any hazardous materials present on the site through one of the four methods listed. Mitigate any contaminants found. PACT Specific: NYC OVERLAY, HPD FINANCED PROJECTS ONLY: Required New Construction, Third Party Transfer, and Participation Loan Program projects require Phase 1 Environmental Assessments and are considered in compliance with this criterion without further documentation. All other projects must comply with the applicable environmental assessment requirements of the HPD programs. Projects not producing Phase 1 reports must submit a memo outlining the assessment and remediation measures taken.

OX YES O NO O MAYBE M 3.2 Minimization of Disturbance during Staging and Construction (For sites >1 acre, implement EPA’s National Pollutant Discharge Elimination System) PACT Specific: Stormwater Discharges from Construction Activities guidance, or local requirements, whichever is more Required stringent. For sites with an area ≤1, follow guidance in full criterion.

OX YES O NO O MAYBE M 3.3 Ecosystem Services / Landscape (Mandatory, if providing landscaping) If providing plantings, all must be native or climate-appropriate (adapted) to the region and appropriate to PACT Specific: the site’s soil and microclimate. Do not introduce any invasive. Plant, seed, or xeriscape all disturbed areas. Required

XO YES O NO O MAYBE M 3.4 Surface Stormwater Management (Mandatory for New Construction projects. Mandatory for Substantial Rehab and Moderate Rehab projects if land disturbed is ≥ 5,000 ft2) Treat or retain on-site precipitation equivalent to the 60th percentile precipitation event. Where not PACT Specific: feasible due to geotechnical issues, soil conditions, or the size of the site, treat or retain the maximum Required volume possible. NYC OVERLAY: All projects are required to meet this criterion but no documentation is required; assumed as-of-right for NYC properties. Note that in 2021, there will be new NYC requirements for Municipal Separate Storm Sewer System (MS4)/Combined Sewer System (CSS) for new or redeveloped sites that disturb ≥ 20,000 ft2 of soil or increase impervious surfaces.

O YES O NO O MAYBE 10 max 3.5 Surface Stormwater Management Through on-site infiltration, evapotranspiration, and rainwater harvesting, retain precipitation volume from 70th percentile precipitation event [6 points], 80th percentile precipitation event [8 points], or 90th percentile precipitation event [10 points].

NYC OVERLAY: Only one option, worth 6 points, is available, for those projects that retain at least 1 inch of stormwater from contributing area.

XO YES O NO O MAYBE M 3.6 Efficient Irrigation and Water Reuse (Mandatory if permanent irrigation is utilized) PACT Specific: If irrigation is utilized, install an efficient irrigation system per the requirements listed. Required

O YES O NO O MAYBE 3.7 Efficient Irrigation and Water Reuse (Optional, if irrigation is utilized) Meet the requirements of Criterion 3.6 AND: 4 Option 1: Install an efficient irrigation system equipped with a WaterSense- labeled weather-based irrigation controller (WBIC) OR 6 Option 2: at least 50% of the site’s irrigation satisfied by water use from the sources listed.

4. WATER

XO YES O NO O MAYBE M 4.1 Water-Conserving Fixtures Reduce total indoor water consumption by at least 20% compared to baseline indoor water consumption PACT Specific: chart. Any new toilet, showerhead, and / or lav faucet must be WaterSense certified. For all single-family Required homes and all dwelling units in buildings three stories or fewer, the supply pressure may not exceed 60 psi.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 5

OX YES O NO O MAYBE 6 max 4.2 Advanced Water Conservation Reduce total indoor water consumption by at least 30% compared to baseline indoor water consumption chart. Any new toilet, showerhead, and/or lavatory faucet must be WaterSense certified. NYC OVERLAY: Projects are REQUIRED to comply with this criterion

XO YES O NO O MAYBE M / 11 max 4.3 Water Quality Mandatory for Substantial Rehabs of buildings built before 1986. Optional for all other building types (3 points): Replace lead service lines. PACT Specific: Mandatory for multifamily buildings with either a cooling tower, a centralized hot water system, Required or 10+ stories: Develop a Legionella water management program. Optional (8 points): Test and remediate as indicated for lead, nitrates, arsenic, and coliform bacteria.

NYC OVERLAY: New York State has a lead service line replacement program which can be of assistance for properties following the lead service line requirement. Compliance with Local Law 77 of 2015, which addresses cooling towers and Legionella [Administrative Code section 28-317] aligns with the Legionella water management program requirements in this criterion; no documentation is required for compliance with this portion of the criterion. NYC projects are still eligible for optional points for testing water quality as indicated.

OX YES O NO O MAYBE 4 4.4 Monitoring Water Consumption and Leaks Conduct pressure-loss tests and visual inspections to determine if there are leaks; fix any leaks found. AND Install an advanced water monitoring and leak detection system capable of identifying and PACT Specific: shutting water off during anomalous water events. OR Install a device to separately monitor water 4 points consumption of each cold branch off the apartment line riser for each dwelling unit or each cold water riser and the domestic hot water cold water feed for each building or each toilet that allows remote monitor readings; common laundry facilities; boiler makeup water; outdoor water consumption; and water consumption in any non-residential space.

NYC OVERLAY: Projects are REQUIRED to comply with this criterion. For projects with remote monitors, ensure that data contract is turned over to building management at completion of project.

O YES O NO O MAYBE 4 4.5 Efficient Plumbing Layout and Design Store no more than 0.5 gallon of water in any piping / manifold between the fixture and the water heating source or recirculation line. No more than 0.6 gallon of water shall be collected from the fixture before a 10-degree F rise in temperature is observed. Recirculation systems must be demand-initiated.

O YES O NO O MAYBE 6 max 4.6 Non-Potable Water Reuse Harvest, treat, and reuse rainwater and / or greywater to meet a portion of the project’s non-potable water needs: 10% reuse [3 points]; 20% reuse [4 points]; 30% reuse [5 points]; 40% reuse [6 points].

O YES O NO O MAYBE 8 4.7 Access to Potable Water During Emergencies Provide residents with ready access to potable water in the event of an emergency that disrupts normal access to potable water, including disruptions related to power outages that prevent pumping water to upper floors of multifamily buildings or pumping of water from on-site wells, per one of the three options listed.

NYC OVERLAY: NYC Plumbing Code 614 states, “Buildings that supply potable water from the public water main for dwelling units and sleeping units in Occupancy Groups I-1, R-1, R-2, and R-3 with the assistance of pumps shall provide additional fixtures that in an emergency when such pumps are inoperable are capable of supplying potable water from the public water main to the building utilizing only the available pressure from the public water main. Such fixtures shall comply with Sections 614.1.1 through 614.1.5.” Buildings supplying potable water with the assistance of pumps as described in NYC Plumbing Code 614 meet Option 1 of Criterion 4.7 as-of-right; no documentation is required.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 6 5. OPERATING ENERGY

OX YES O NO O MAYBE M 5.1a Building Performance Standard (Mandatory, New Construction) Certify all buildings with residential units in the project through either ENERGY STAR Multifamily New Construction (MFNC), ENERGY STAR Manufactured Homes, and/or ENERGY STAR Certified Homes PACT Specific: as relevant. AND Provide projected operating energy use intensity and projected operating building Required emissions intensity.

NYC OVERLAY: All projects are encouraged to analyze their EUI/GHG projections relative to Local Law 97 of 2019 targets for reference

OX YES O NO O MAYBE M 5.1b Building Performance Standard (Mandatory, Rehab) Provide projected operating energy use intensity and projected operating building emissions intensity. AND Conduct commissioning for compartmentalization, insulation installation, and HVAC systems as PACT Specific: indicated. AND one of the following options: Required • ERI: ≤ HERS 80 for each dwelling unit; exception for some Rehabs built before 1980. • ASHRAE: Energy performance of the completed building equivalent to, or better than, ASHRAE 90.1-2013 using an energy model created by a qualified energy services provider according to Appendix G 90.1-2016.

NYC OVERLAY: All projects are encouraged to analyze their EUI/GHG projections relative to Local Law 97 of 2019 targets for reference.

OX YES O NO O MAYBE 12 max 5.2a Moving to Zero Energy: Additional Reductions in Energy Use Not available for projects using prescriptive path for Criterion 5.1a or for projects following Criterion 5.2b or 5.4. Projects in CZ 1-4A following this criterion must also comply with PACT Specific: Criterion 7.8 Dehumidification. Min 5 points Design and construct a building that is projected to be more efficient that what is required by Criterion 5.1a/b. Achieve HERS score of 5 lower than required by Criterion 5.1a/b if following ERI path for compliance OR 5% greater efficiency than required if following ASHRAE path for 5.1a/b compliance [5 points]. Additional 1 point for each additional 2-point decrease in HERS score required by Criterion 5.1a/b if following ERI path for compliance OR for 1% greater efficiency if following ASHRAE path for 5.1a/b, up to a maximum of 12 optional points.

NYC OVERLAY: Projects are strongly encouraged to comply with this criterion to the maximum extent feasible.

O YES O NO O MAYBE 12-15 5.2b Moving to Zero Energy: Near Zero Certification (A Qualifying Option for Enterprise Green Communities Certification Plus) Not available for projects following Criterion 5.2a or 5.4. Projects in CZ 1-4A following this criterion must also comply with Criterion 7.8 Dehumidification. Certify the project in a program that requires advanced levels of building envelope performance such as DOE Zero Energy Ready Home (12 points) and/or PHI Classic or PHIUS+ (15 points).

NYC OVERLAY: Projects are encouraged to comply with this criterion. Projects meeting this criterion are more likely to meet future carbon targets. Note that financial incentives associated with NYSERDA programs may be available for projects in compliance with this criterion.

XO YES O NO O MAYBE 3-6 5.3a Moving to Zero Energy: Photovoltaic/Solar Hot Water Ready Not available for projects following Criterion 5.4. Orient, design, engineer, wire and /or plumb the development through the Photovoltaic Ready pathway PACT Specific: (3 points) and/or Solar Hot Water Ready Pathway (3 points) to accommodate installation of Required photovoltaic (PV) or solar hot water system in the future.

NYC OVERLAY: Projects not installing solar per Criterion 5.3b are strongly encouraged to comply with this optional criterion.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 7 OX YES O NO O MAYBE 8 max 5.3b Moving to Zero Energy: Renewable Energy Not available for projects following Criterion 5.4. Install a renewable energy source to provide a specified percentage of the project’s estimated source energy demand. See full criterion for allowable sources. Option 1 (4-8 points) for percentage of total PACT Specific: project energy consumption provided by renewable energy. Option 2 (1-5 points) for percentage of Required common area meter energy consumption provided by renewable energy

NYC OVERLAY: All HPD-financed projects are REQUIRED to submit an HPD Solar Approval Form and to either install solar to the extent determined by HPD’s Solar Feasibility Analysis and as approved by HPD, install a green roof over 90% of the project’s sustainable roofing zone, or comply with LL92/94. If the project has a solar array and it offsets less energy consumption that included on the points chart, 1 point will be granted to the project if at least 90% of the project’s “sustainable roofing zone” includes solar.

O YES O NO O MAYBE 24 5.4 Achieving Zero Energy (A Qualifying Option for Enterprise Green Communities Certification Plus) Not available for projects following Criterion 5.2a, 5.2b, 5.3a, or 5.3b. Projects in CZ 1-4A following this criterion must also comply with Criterion 7.8 Dehumidification. Achieve Zero Energy performance through one of the following options: Option 1: Certify each building in the project to DOE Zero Energy Ready Home program or PHI Plus AND either install renewables and/or procure renewable energy, which in sum will produce as much, or more, energy in a given year than the project is modeled to consume. OR Option 2: Certify each building in the project in a program that requires zero energy performance such as PHIUS+ Source Zero, PHI Plus, PHI Premium, ILFI’s Zero Energy Petal, Zero Carbon Petal, or Living Building Certification.

NYC OVERLAY: Financial incentives associated with NYSERDA programs may be available for projects in compliance with this criterion.

OX YES O NO O MAYBE 5 max 5.5a Moving to Zero Carbon: All-Electric Ready (Not available for projects following Criterion 5.5b)

PACT Specific: Ensure the project has adequate electric service and has been designed and wired to allow for a seamless Min 3 points switch to electricity as a fuel source in the future for the following uses: space heating [1 point], space cooling [1 point], water heating (DHW) [1 point], clothes dryers [1 point], equipment for cooking [1 point].

O YES O NO O MAYBE 6-15 5.5b Moving to Zero Carbon: All Electric Not available for projects following Criterion 5.5a No combustion equipment used as part of the building project; the project is all-electric.

NYC OVERLAY: Projects may earn 15 points through the full criterion as written above. OR, projects may earn 6 points for limiting combustion equipment solely to domestic hot water heating. Combustion-fueled emergency backup power sources are allowed.

Compliance with this criterion may aid in your project’s compliance with future carbon targets.

OX YES O NO O MAYBE M 5.6 Sizing of Heating and Cooling Equipment (Mandatory for Substantial and Moderate Rehabs that include replacement of heating and cooling equipment. Not relevant for projects following 5.1a, 5.2b, or 5.4) PACT Specific: Size and select heating and cooling equipment in accordance with ACCA manuals J and S OR in accordance Required with the ASHRAE Handbook of Fundamentals

OX YES O NO O MAYBE M 5.7 ENERGY STAR Appliances (Mandatory for Substantial and Moderate Rehabs providing appliances. Not relevant for projects following 5.1a, 5.2b, or 5.4) Install ENERGY STAR clothes washers, dishwashers, and refrigerators. If appliances will not be installed or PACT Specific: replaced at this time, specify that at the time of installation or replacement, ENERGY STAR models must be Required used via Criterion 8.1 and Criterion 8.4.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 8 XO YES O NO O MAYBE M 5.8 Lighting (Mandatory for all lighting within New Construction and Substantial Rehab projects. Mandatory for new lighting in Moderate Rehab projects) PACT Specific: Follow the guidance for high-efficacy permanently installed lighting and other characteristics for recessed Required light fixtures, occupancy sensors, lighting power density, and exterior lighting.

OX YES O NO O MAYBE 2-8 5.9 Resilient Energy Systems: Floodproofing Not relevant for Rehabilitation projects in Special Flood Hazard Areas Conduct floodproofing of lower floors, including perimeter floodproofing (barriers/shields). Design and PACT Specific: install building systems as specified by the full criterion so that the operation of those systems will not Required be grossly affected in case of a flood.

NYC OVERLAY: All NYC projects located within the FEMA 100-year flood zone are already required to comply with NYC Building Code Appendix G: Flood-Resistant Construction. Points can be achieved through this optional criterion for all projects within current and future flood zones by going above and beyond building code to mitigate future flood risk. Rather than following the national criterion, see available options below. To determine if Appendix G is applicable, please refer to the NYC Building Code. See Climate Resiliency Design Guidelines (CRDG) for guidance on how to identify future flood risk and to calculate the appropriate sea-level-rise-adjusted Design Flood Elevation (DFE). For projects in the current flood zone: Comply with Appendix G, but use the sea-level-rise-adjusted design flood elevation DFE based on the project’s useful life and as defined in the CRDG. This means locating all residential uses, mechanicals, and services critical to building function above the sea-level-rise-adjusted DFE. (8 points) OR Comply with Appendix G, and also locate mechanicals, services critical to building function, and at least one point of egress above the sea-level-rise-adjusted DFE based on the project’s useful life and as defined in the CRDG. (6 points) OR Provide additional flood mitigation features on the site including deployable flood barriers (e.g. stop logs, flood doors/gates, inflatable barriers) or natural systems-based approaches (e.g. living shorelines, restored wetlands, landscape berms). (4 points) For projects in future flood zones, based on the project’s useful life and as defined by the CRDG: Locate residential uses, mechanicals, services critical to building function, and at least one point of egress above the sea-level-rise-adjusted DFE based on the project’s useful life and as defined in the CRDG. (8 points) OR Locate mechanicals, services critical to building function, and at least one point of egress above the sea-level-rise-adjusted DFE, based on the project’s useful life and as defined in the CRDG. (6 points) OR Provide additional flood mitigation features on the site, including deployable flood barriers (e.g. stop logs, flood doors/gates, inflatable barriers) or natural systems-based approaches (e.g. living shorelines, restored wetlands, landscape berms). (4 points) OR Substantial or Moderate Rehabs only: Install backflow prevents/backwater valves or encapsulate mechanical equipment in place. (2 points)

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 9 XO YES O NO O MAYBE 4-8 5.10 Resilient Energy Systems: Critical Loads Provide emergency power to serve at least three critical energy loads as described by the full criterion. Option 1: Islandable photovoltaic system OR Option 2: Efficient generator. PACT Specific: NYC OVERLAY: Projects, particularly those servicing vulnerable populations, are encouraged to comply Required with this criterion. Projects may receive 4 points if, for at least one community room in the property that is easily accessed by residents, they provide emergency backup power for cooling, heating, internet access, refrigeration for medicines, charging stations, and minimum electric loads for lighting. Projects may receive 8 points if they comply with the full criterion as written, including preparing to serve critical loads in the project’s community rooms, if the project has such a facility.

6. MATERIALS

OX YES O NO O MAYBE 8 max 6.1 Ingredient Transparency for Material Health Install products that have publicly disclosed inventories characterized and screened to 1,000 ppm or better: PACT Specific: • 1 point per 5 installed Declare or HPD products from at least three different product categories Required • 1 point per 2 installed Declare or HPD products in any of these categories: adhesives, sealants, windows • 1 point per each product with third-party verified HPD or third party verified Declare Label • 2 points per each product with third-party verified HPD or third party verified Declare Label in any of these categories: adhesives, sealants, windows

XO YES O NO O MAYBE 3 max 6.2 Recycled Content and Ingredient Transparency Use building products that feature, and disclose, their recycled content. The building product must make PACT Specific: up 75% by weight or cost of a project category for the project and be composed of at least 25% post- Required consumer recycled content.

OX YES O NO O MAYBE 8 max 6.3 Chemical Hazard Optimization Install products that have third-party verification of optimization to 100 ppm or better per the options PACT Specific: listed within the full criterion. Required

OX YES O NO O MAYBE M 6.4 Heathier Material Selection Select all interior paints, coatings, primers, and wallpaper; interior adhesives and sealants; flooring; PACT Specific: insulation; and composite wood as specified. Optional points also available. Required

O YES O NO O MAYBE 12 max 6.5 Environmentally Responsible Material Selection Select concrete, steel, or insulation with a publicly disclosed EPD (3 points), Install a green or cool roof (3 points), use reflective paving (3 points), and/or use FSC certified wood (3 points). Refer to criterion for specifics.

NYC OVERLAY: Projects are encouraged to comply with the first component of this criterion [Select concrete, steel, or insulation with a publicly disclosed EPD (3 points)] Projects are encouraged to comply with the second component of this criterion [Install a green or cool roof (3 points)]. However, points are only available for the green roof aspect, not the cool roof aspect. Note that projects complying with this option will be eligible to waive the solar requirement of the NYC Overlay requiring solar installation—see Criterion 5.3b.

Projects are encouraged to comply with the third component of this criterion [Use reflective paving (3 points)]. Points are also available for the fourth component of this criterion [FSC certified wood installation (3 points)].

OX YES O NO O MAYBE M 6.6 Bath, Kitchen, Laundry Surfaces (Mandatory for New Construction and Substantial Rehab. Moderate Rehabs that do not include work in the shower and tub areas are exempt from the shower and tub enclosure requirement.) PACT Specific: Use materials that have durable, cleanable surfaces throughout bathrooms, kitchens and laundry rooms. Required Use moisture-resistant backing materials per ASTM # D 6329 or 3273 behind tub/shower enclosures, apart from one-piece fiberglass enclosures which are exempt. 2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 10 O YES O NO O MAYBE 4 max 6.7 Regional Materials Use products that were extracted, processed, and manufactured within 500 miles of the project for a minimum of 90%, based on weight or on cost, of the amount of the product category installed. Select any or all of these options (every two compliant materials can qualify for 1 point): • Framing • Cladding (e.g. siding, masonry, roofing) • Flooring • Concrete/cement and aggregate • Drywall/interior sheathing

XO YES O NO O MAYBE M 6.8 Managing Moisture: Foundations (Mandatory for all New Construction projects and all Rehab projects with either basement and / or crawl space foundations) PACT Specific: Install capillary breaks and vapor retarders that meet specified criteria appropriate for the foundation type. Required

XO YES O NO O MAYBE M 6.9 Managing Moisture: Roofing and Wall Systems (Mandatory for all Rehab projects that include deficiencies in or include replacing particular assemblies called out below. New Construction projects are considered compliant per Criterion 5.1) PACT Specific: Required Provide water drainage away from walls, window, and roofs by implementing the list of techniques.

OX YES O NO O MAYBE M / 6 max 6.10 Construction Waste Management Develop and implement a waste management plan that reduces non-hazardous construction and demolition waste through recycling, salvaging, or diversion strategies through one of the three options. PACT Specific: Achieve optional points by going above and beyond the requirement. Min 1 points NYC OVERLAY: Projects are encouraged to utilize the Department of Sanitation’s donateNYC website to post donations of unwanted but usable building materials and to donate materials to donateNYC partners such as BIGReuse and Rebuilding Together NYC. Also refer to these resources for waste salvage: www.bigreuse.org/ and https://rebuildingtogethernyc.org/

XO YES O NO O MAYBE 2 6.11 Recycling Storage For projects with municipal recycling infrastructure and/or haulers, provide separate bins for the collection of trash and recycling for each dwelling unit and all shared community rooms. OR PACT Specific: For projects without that infrastructure, advocate to the local waste hauler or municipality for regular 2 points collection of recyclables. NYC OVERLAY: Projects are REQUIRED to comply with this criterion and must also either allocate space for collection of organics or allocate additional space for the collection of cardboard or allocate space for at least one future recycling stream in all waste collection areas. This allocation of extra space must be clearly marked on plans and may either be in each dwelling unit, in each trash room, or outdoors. Projects are encouraged to refer to the Zero Waste Design Guidelines for best design practices: https://www.zerowastedesign.org/ New Construction projects are encouraged to consult with the Department of Sanitation on space allocation for waste management. DSNY recommends a waste management plan for buildings with over 150 units and containerized waste collection for buildings with over 300 units.

7. HEALTHY LIVING ENVIRONMENT

XO YES O NO O MAYBE M 7.1 Radon Mitigation (Mandatory for New Construction and Substantial Rehab) For New Construction in EPA Zone 1 areas, install passive radon-resistant features below the slab and a vertical vent pipe with junction box within 10 feet of an electrical outlet in case an active system should PACT Specific: prove necessary in the future. For Substantial Rehab projects in EPA Zone 1, test before and after the Required retrofit and mitigate per the specified protocols.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 11 XO YES O NO O MAYBE M 7.2 Reduce Lead Hazards in Pre-1978 Buildings (Mandatory, Substantial Rehab of Buildings Constructed Before 1978) Conduct lead risk assessment or inspection to identify lead hazards. Control identified lead hazards PACT Specific: using lead abatement or interim controls, using lead-safe work practices that minimize and contain Required dust. NYC OVERLAY: Refer to Local Law 1 of 2004 for work practice requirements.

OX YES O NO O MAYBE M 7.3 Combustion Equipment For new construction and rehab projects specify power-vented or direct-vent equipment when installing any new combustion appliance for space or water heating that will be located within the conditioned PACT Specific: space. If there are any combustion appliances within the conditioned space, install one hard-wired carbon Required monoxide (CO) alarm with battery backup function for each sleeping zone, placed per NFPA 720. Also in Rehabs, if there is any combustion equipment located within the conditioned space for space or water heating that is not power-vented or direct-vent and that is not scheduled for replacement, conduct combustion safety testing prior to and after the retrofit; remediate as indicated.

OX YES O NO O MAYBE M 7.4 Garage Isolation • Provide a continuous air barrier between the conditioned space and any garage space to prevent the migration of any contaminants into the living space. Visually inspect common walls and ceilings PACT Specific: between attached garages and living spaces to ensure that they are air-sealed before insulation is Required installed. • Do not install ductwork or air handling equipment for the conditioned space in a garage. • Fix all connecting doors between conditioned space and garage with gaskets or make airtight. • Install one hard-wired carbon monoxide (CO) alarm with battery backup function for each sleeping zone of the project, placed per National Fire Protection Association (NFPA) 72 unless the garage is mechanically ventilated or an open parking structure.

XO YES O NO O MAYBE M 7.5 Integrated Pest Management Seal all wall, floor, and joint penetrations with low-VOC caulking or other appropriate nontoxic sealing methods to prevent pest entry. PACT Specific: NYC OVERLAY: All projects are encouraged to design garbage and recycling areas for easy cleaning Required and pest prevention. Refer to NYC Department of Health and Mental Hygiene Rat Academy resources https://www1.nyc.gov/site/doh/health/health-topics/rodent-academy.page and the San Francisco “Pest Prevention by Design: Authoritative Guidelines for Designing Pests Out of Structures,” Principles 17.1 and 17.2. Before starting Substantial Rehab projects, projects are encouraged to engage with building maintenance staff and residents to identify and correct existing problems with trash collection and storage areas (e.g. inadequate space in trash rooms; narrow stairs; improper signage; unsafe access to exterior trash bins; etc.) (Reference Criterion 1.2)

OX YES O NO O MAYBE M / 10 7.6 Smoke-Free Policy (Mandatory and Optional 10 Points) Mandatory: Implement and enforce a smoke-free policy in all common area and within a 25-foot perimeter around the exterior of all residential buildings. Lease language must prohibit smoking in PACT Specific: these locations and provide a graduated enforcement policy. Make the smoke-free policy readily 10 points available. Optional: Expand the policy above to include all indoor spaces in the property.

NYC OVERLAY: Properties, except those serving 100% permanent supportive housing residents, are REQUIRED to expand the policy to include all indoor spaces in the property. For guidance, please see “Resources” in the full 2020 Criteria, which includes the NYC Department of Health and Mental Hygiene's Smoke‐Free Housing Resources.

XO YES O NO O MAYBE M / 12 max 7.7 Ventilation (Mandatory, New Construction and Substantial Rehab. Optional, Moderate Rehab) For each dwelling unit in full accordance with ASHRAE 62.2-2010, install: • A local mechanical exhaust system in each bathroom [3 points if Moderate Rehab] PACT Specific: • A local mechanical exhaust system in each kitchen [3 points if Moderate Rehab] Required • A whole-house mechanical ventilation system [3 points if Moderate Rehab] 2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 12 • Verify these flow rates are either within +/- 15 CFM or +/- 15% of design value. For each multifamily building of four or more stories, in full accordance with ASHRAE 62.1-2010, install: • A mechanical ventilation system for all hallways and common spaces [3 points if Moderate Rehab] For all project types, in addition to the above requirements: • All systems and ductwork must be installed per manufacturer’s recommendations • All individual bathroom fans must be ENERGY STAR-labeled and wired for adequate run-time. If using central ventilation systems with rooftop fans, each fan must be direct-drive and variable-speed with speed controller mounted near the fan. Fans with design CFM 300-2000 must also have an ECM motor.

NYC OVERLAY: All new construction and substantial rehab projects with mechanical exhaust ventilation are REQUIRED to specify properly sealed ductwork and specify a means of exhaust balancing. Constant Airflow Regulators are recommended. All substantial rehab projects with existing central exhaust ventilation systems are REQUIRED to specify cleaning, sealing, balancing, and right‐sizing roof‐top fans. All moderate rehab projects with existing central exhaust ventilation systems are REQUIRED to calculate cost/benefit of cleaning, sealing, balancing, and right‐sizing roof‐top fans. All projects are encouraged to incorporate performance‐based ventilation specifications in their construction documents. It is recommended that projects also consider natural ventilation. Note that window limiters are not required in units without children 10 years old or younger (Local Law 57 of 2011): project teams should provide tenants living in dwelling units without children the option of removing window limiters as part of the annual window guard notice.

In additional to the above, 1 point will be given to projects that provide window screens on all operable windows and 1 point for providing ENERGY STAR ceiling fans in all residential units.

OX YES O NO O MAYBE M OR 5 7.8 Dehumidification (Mandatory for properties in Climate Zones 1A, 2A, 3A and 4A following Criterion 5.2a, 5.2b or 5.4. Optional for all other properties) Option 1: Design, select, and install supplemental dehumidification equipment to keep relative PACT Specific: humidity <60%. Required OR Option 2: Equip all dwelling units with dedicated space, drain, and electrical hook-ups for permanent supplemental dehumidification systems to be installed if needed and install interior RH monitoring equipment as described.

OX YES O NO O MAYBE 3 7.9 Construction Pollution Management Option 1: Earn the EPA Indoor airPlus label OR Option 2: In all dwelling units, seal all heating, cooling, and ventilation return and supply ducts and PACT Specific: returns throughout construction to prevent construction debris from entering. Flush all dwelling units 3 points after completion of construction and prior to occupancy either for either 48 hours or with at least 14,000 ft3 per ft2 of floor area, then, replace all air handling equipment filters.

NYC OVERLAY: Projects are REQUIRED to comply with this criterion.

O YES O NO O MAYBE 3 7.10 Noise Reduction Option 1: Test and demonstrate that noise levels in bedrooms meet 30 dB LAeq (continuous) and 45 dB LAmax, (single sound) OR Option 2: Provide a noise abatement plan specific to the site covering general noise mitigation techniques in accordance with 24 CFR 51B. OR Option 3: Ensure all exterior wall and party wall penetrations are sealed with acoustical sealant, all party walls and floor/ceiling assemblies have an STC rating of at least 55, and exterior windows and doors in projects near a significant exterior noise source have an STC rating of at least 35.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 13 O YES O NO O MAYBE 8 7.11 Active Design: Promoting Physical Activity (All projects must comply with at least one of either 7.11, 7.12, or 7.13. No points are available for one criterion, but points are available for projects that meet two or three of these criteria.) Option 1: Encouraging Everyday Stair Usage. (Buildings that include stairs as the only means to travel from one floor to another are not eligible for this option). Provide a staircase that is accessible and visible from the main lobby and is visible within a 25-foot walking distance from any point in the lobby per the specifications listed. Place point-of-decision signage. OR Option 2: Activity Spaces. Provide on-site dedicated recreation space with exercise or play opportunities for adults and/or children that is open and accessible to all residents; see criterion for specifics.

NYC OVERLAY: Projects are encouraged to assess opportunities to implement Active Design. Executive Order 359, signed in 2013, requires relevant NYC agencies to review all projects undergoing major renovation and construction to assess opportunities for implementation of Active Design Strategies. See the Resources listed for this criterion, particularly Affordable Designs for Affordable Housing.

O YES O NO O MAYBE 8 7.12 Beyond ADA: Universal Design (All projects must comply with at least one of either 7.11, 7.12, or 7.13. No points are available for one criterion, but points are available for projects that meet two or three of these criteria.) Select and implement at least one of the Options with at least three different strategies in at least 75% units. Option 1: Create welcoming and accessible spaces that encourage equitable use and social connections Option 2: Create spaces that are easy and intuitive to use and navigate Option 3: Promote safety and create spaces that allow for human error Option 4: Create spaces that can be accessed and used with minimal physical effort Option 5: Create spaces with the appropriate size and space to allow for use, whatever the user’s form of mobility, size, or posture

O YES O NO O MAYBE 8 7.13 Healing-Centered Design (All projects must comply with at least one of either 7.11, 7.12, or 7.13. No points are available for one criterion, but points are available for projects that meet two or three of these criteria.) Select and implement at least two of the Options with at least two different strategies listed in at least 75% units. Option 1: Provide an environment that promotes feelings of real and perceived safety Option 2: Create flexible spaces that allow for personalization and/or manipulation to meet individual and community needs Option 3: Connect residents and staff to a living landscape and the natural environment. Option 4: Utilize art and culture in project design and programming and promote social connectedness

8. OPERATIONS, MAINTENANCE, AND RESIDENT ENGAGEMENT

OX YES O NO O MAYBE M 8.1 Building Operations & Maintenance Manual and Plan (For all multifamily projects) Develop a manual with thorough building operations and maintenance (O&M) guidance and a complementary plan. The manual and plan should be developed over the course of the project design, PACT Specific: development and construction stages, and should include sections/chapters addressing the list of Required topics. NYC OVERLAY: Note Current Facility Requirements (CFR) also may fit this criterion, and, building operators may be eligible for a free 30-hour Building Operator Training offered through CUNY’s Building Performance Lab or 32BJ training fund. Include the following guidance for waste in the manual: Containerize waste containing food to the extent possible to limit rodent access. Organic waste for collection shall be in a container with a latching lid. Do not set out material in bags in tree pits and clean curb daily after set out.

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 14 XO YES O NO O MAYBE M 8.2 Emergency Management Manual (For all multifamily projects) Provide a manual on emergency operations targeted toward operations and maintenance staff and other building-level personnel. The manual should address responses to various types of PACT Specific: emergencies, leading with those that have the greatest probability of negatively affecting the project. Required The manual should provide guidance as to how to sustain the delivery of adequate housing throughout an emergency and cover a range of topics, including but not limited to: • communication plans for staff and residents • useful contact information for public utility and other service providers • infrastructure and building “shutdown” procedures • plan for regular testing of backup energy systems, if these exist

NYC OVERLAY: In addition to the four items above, projects are REQUIRED to include the location of backup power and broadband (if any) within the property and how to locate outside emergency resources. Including the following links is recommended: • Hurricane Resources: https://www1.nyc.gov/assets/em/html/know-your-zone/knowyourzone.html • Emergency Shelters and Cooling centers: Call 311 or https://maps.nyc.gov/oem/cc/inactive.html • Public Wifi: https://www.link.nyc/ These resources may be helpful: Ready New York (https://www1.nyc.gov/site/em/ready/ready-new- york.page), NYC Severe Weather resources for property owners (https://www1.nyc.gov/site/severeweather/resources/resources.page), NYC Emergency Management Community Emergency Response Team (https://nycem.samaritan.com/custom/505/#/volunteer_home)

OX YES O NO O MAYBE M 8.3 Resident Manual Provide a guide for homeowners and renters that explains the intent, benefits, use and maintenance of their home’s green features and practices. The Resident Manual should encourage green and healthy PACT Specific: activities per the list of topics. Required NYC OVERLAY: In addition to the requirements listed in the Manual, projects are REQUIRED to include information about accessibility and emergency features available to tenants (i.e. grab bars, kitchen adaptations or pull cord system). Manuals must also include guidance that tenants living in dwelling units without children may request that window limiters be removed as part of the annual window guard notice. And, include the location of backup power and broadband (if any) within the property and how to locate outside emergency resources. The following resources will likely be helpful: • NYC DOHMH Falls Prevention literature: "How to Prevent Falls Checklist" and "CDC: Checklist for Safety," both here: https://www1.nyc.gov/site/doh/health/health-topics/healthy-aging-preventing-falls-in- older-adults.page • Hurricane Resources: https://www1.nyc.gov/assets/em/html/know-your-zone/knowyourzone.html • Emergency Shelters and Cooling centers: Call 311 or https://maps.nyc.gov/oem/cc/inactive.html • Public Wifi: https://www.link.nyc/

OX YES O NO O MAYBE M 8.4 Walk-Throughs and Orientations to Property Operation Provide a comprehensive walk-through and orientation for all residents, property manager(s) and buildings PACT Specific: operations staff. Required

XO YES O NO O MAYBE M 8.5 Energy and Water Data Collection and Monitoring For rental properties, upload project energy and water performance data in an online utility benchmarking platform annually for at least 5 years from time of construction completion per one of the PACT Specific: four methods provided; grant Enterprise view access for that period. For owner-occupied units, collect Required and monitor utility data in a manner that allows for easy access and review. NYC OVERLAY: HPD’s Benchmarking Protocol (which all HPD-financed projects must follow for the duration of the regulatory term) satisfies compliance with this criterion if projects also grant Enterprise view access to the data. https://www1.nyc.gov/site/hpd/developers/benchmarking-protocol.page

2020 ENTERPRISE GREEN COMMUNITIES CRITERIA CHECKLIST: NYC OVERLAY 15 Exhibit L: Lead Procedures and Requirements

NEW YORK CITY HOUSING AUTHORITY 250 BROADWAY  NEW YORK, NY 10007

TEL: (212) 306-3000  http://nyc.gov/nycha

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

Lead-Based Paint Abatement Procedures for NYCHA’s PACT Projects

INTRODUCTION

On January 31, 2019, the U.S. Department of Housing and Urban Development (“HUD”) and the New York City Housing Authority (“NYCHA”) entered into an agreement (“HUD Agreement”) to establish specific requirements and milestones to address the serious health and safety hazards at NYCHA properties, including lead-based paint. The obligations of the HUD Agreement apply to any converted properties under the PACT program if such conversions have occurred more than six (6) months after the effective date of the HUD Agreement.

PACT POLICY: Lead-Based Paint

NYCHA has approved the following policy recommendations regarding the evaluation and control of lead- based paint in all public housing developments converting to Section 8 under PACT after July 31, 2019 that were built prior to January 1, 1978 and are not exempt because of recent inspection or abatement as per 24 C.F.R. § 35.115.

1. The Developer must conduct paint testing and risk assessment according to the random sampling requirements of the multi-family protocol defined by HUD. 2. The Developer shall abate all lead-based paint during the construction period even if it does not meet the definition of a lead-based paint hazard. 3. Appropriate methods of abatement will be reported by a certified individual(s) in the risk assessment report and may include building component replacement, enclosure or encapsulation systems, onsite and offsite paint removal, and soil removal or covering. 4. The Developer must establish an electronic disclosure portal for residents to access all materials required to be disclosed by the Lead Disclosure Rule.

PACT LEAD-BASED PAINT REQUIREMENTS

To be consistent with the most stringent standard established by the HUD Agreement, PACT projects will abate all lead-based paint during the construction period even if it does not meet the definition of a lead- based paint hazard. This section provides the most current guidance for lead-based paint identification, assessment, and abatement for PACT Projects. It is intended for consistency with NYCHA procedures in compliance with the HUD Agreement, RAD Notice, HUD Lead Safe Housing Rule, and Environmental Protection Agency’s requirements for lead-based paint activities.

1. Paint Inspection - The Developer must conduct paint testing or presume the presence of lead- based paint on all painted surfaces in units and common areas Paint testing must be performed by a certified lead-based paint inspector or risk assessor according to the Environmental Protection Agency’s (“EPA’s”) Work Practice Standards and HUD’s Guidelines for the Evaluation and Control of Lead-Based Paint Hazards in Housing (“HUD’s Guidelines for LBP Hazards”)

NEW YORK CITY HOUSING AUTHORITY 250 BROADWAY  NEW YORK, NY 10007

TEL: (212) 306-3000  http://nyc.gov/nycha

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

a. Historical Records - NYCHA shall provide any documentation available to the Authority regarding lead-based paint and lead-based paint hazards to both the firm preparing the Capital Needs Assessment and the PACT Developer. See RAD Notice Section 1.4.A.16. Typically, NYCHA’s reports are not considered current by HUD’s standards2 and therefore PACT Developers must complete their own inspections prior to closing.3 b. Unit Sampling – The certified inspector will select the housing units, common areas, and exterior site areas that require lead-based paint inspection according to the random sampling requirements of the multi-family protocol defined by HUD. See HUD’s Guidelines for LBP Hazards, Chapter 7, Section V. c. Lead-Based Paint - HUD defines lead based paint as a surface coating that contains lead equal to or exceeding 1.0 milligram per square centimeter or 0.5 percent by weight or 5,000 parts per million (ppm) by weight. See 24 C.F.R. §35.110. d. Unsampled Units – If a particular component type in the sampled unit is classified as positive, that same component type in the unsampled unit is also classified as positive, except where the number of positive components is small (less than 5%) and further analysis is required. See HUD’s Guidelines for LBP Hazards, Chapter 7, Section V.

2. Risk Assessment – The Developer must perform a risk assessment in the dwelling units, interior common areas, and exterior public spaces in accordance with the EPA’s Work Practice Standards. See 24 C.F.R. §35.1320 and HUD’s Guidelines for LBP Hazards. Background information regarding the physical characteristics of the dwelling and occupant use patterns that may cause lead-based paint exposure to one or more children age 6 years and under shall be collected. HUD considers a risk assessment to be valid for 12 months.

a. Reporting - The certified risk assessor shall prepare a risk assessment report that includes a description of the location, type, and severity of any identified lead-based paint; a description of abatement options for each component; and a suggested prioritization for addressing each component. See HUD’s Guidelines for LBP Hazards, Chapter 5.. b. Children with Elevated Blood Lead Levels – In the case of dwellings where a child under the age of 6 has an elevated blood lead level (EBLL) and lead-based paint hazards are identified in the unit and/or common area servicing the unit, the Developer shall inform NYCHA within 5 business days. NYCHA must interim control all lead-based paint hazards within 30 calendar days4 after receipt of the risk assessment report of the health department’s evaluation. See 24 C.F.R. §35.730. c. Operations and Maintenance - If the use of an encapsulant or enclosure is recommended, the report shall recommend a maintenance and monitoring schedule for the encapsulant or enclosure. See 40 C.F.R. §745.227. Developers must provide an

2 If the PHA has provided the report of a current risk assessment (less than 12 months old), or an older risk assessment and reports of all subsequent periodic re-evaluations, that documentation shall satisfy the Developer’s requirement to have completed a risk assessment under subpart H. 3 NYCHA’s XRF initiative may produce data for certain developments that will obviate the need for additional testing or assessments. NYCHA will consult with Developers on the availability of this data on a project by project basis. 4 If more than 20 units have lead-based paint hazards such that the control work would disturb painted surfaces that total more than the de minimis threshold of § 35.1350(d), NYCHA has 90 calendar days to control such hazards. NEW YORK CITY HOUSING AUTHORITY 250 BROADWAY  NEW YORK, NY 10007

TEL: (212) 306-3000  http://nyc.gov/nycha

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER Operations and Maintenance (“O&M”) plan that includes training and certifying personnel who abate or maintain surfaces with lead-based paint in accordance with EPA’s Work Place Standards. See 40 C.F.R. §745, Subpart E, L, and Q.

3. Notification and Reporting – According to the Lead Disclosure Rule, HUD and EPA require the disclosure of known information on lead-based paint and lead-based paint hazards to occupants of most housing built before 1978. a. Lease Signing – Per the RAD Notice, Developers shall provide residents signing leases with information about the presence of lead-based paint and lead-based paint hazards in their apartments and developments in accordance with the Lead Disclosure Rule. See 24 C.F.R. §35 and 40 C.F.R. §745. b. Evaluation Disclosure - When evaluation is undertaken or if a presumption is made that lead-based paint is present, the Developer shall provide a notice to occupants within 15 calendar days of the date when the Authority receives the report or makes the presumption. See 24 C.F.R. §35.125. c. Child with Elevated Blood Lead Levels – To comply with the reporting for each confirmed case of a child under age 6 with an elevated blood lead level (EBLL) in a timely manner, NYCHA and the Developer shall notify HUD and the NYC Department of Health and Mental Hygiene (DOHMH) according to the following requirements: 1. NYCHA and the Developer shall report the name and address of a child identified as having an EBLL to the NOHMH within 5 business days of being so notified by any other medical health care professional. 2. NYCHA and the Developer shall report each confirmed case of a child with an EBLL to the HUD field office and the HUD Office of Lead Hazard Control and Healthy Homes within 5 business days of being notified. 3. NYCHA and the Developer shall notify HUD of any environmental investigation, verification, and reduction activities of lead-based paint within 10 business days of the deadline of each activity. d. Electronic Copies - The HUD Agreement requires that NYCHA ensure that electronic copies of all materials required to be disclosed by the Lead Disclosure Rule are available to residents through an internet-based portal. Thus, the Developer must establish an electronic disclosure portal for residents to access.

4. Abatement of Lead-Based Paint – The Developer shall abate all lead-based paint during the construction period. Abatement shall be performed by certified individual(s) in accordance with methods and standards established by HUD and EPA per 40 C.F.R. §745. a. Types of Abatement – Abatement refers to a group of measures that can be expected to eliminate or reduce exposures to lead hazards for at least 20 years under normal conditions, in accordance with standards established by the EPA. There are four typical methods of abatement, including building component replacement, enclosure or encapsulation systems, onsite and offsite paint removal, and soil removal or covering. See HUD’s Guidelines for LBP Hazards, Chapters 12 and 13. b. Budget – If a project requires abatement, the Developer must account for the cost of abatement in the up-front rehabilitation scope of work. c. Occupant Protection Plan - A certified abatement supervisor must prepare occupant protection plans (OPP) prior to abatement that are unique for each residential dwelling NEW YORK CITY HOUSING AUTHORITY 250 BROADWAY  NEW YORK, NY 10007

TEL: (212) 306-3000  http://nyc.gov/nycha

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

units. The OPPs shall describe the procedures that will be taken during abatement to protect the building occupants from exposure to any lead-based paint. See 40 C.F.R. §745.227

5. Clearance - Following abatement, clearance examinations by a certified risk assessor shall include a visual inspection, dust sampling analysis, and preparation of a report in accordance with 24 C.F.R. § 35.1340. a. Sampling - If clearance is being performed for more than 10 dwelling units of similar construction and maintenance, random sampling may be conducted in accordance with 40 C.F.R. 745.227(e)(9). b. Reports – The Developer must provide clearance reports according to the EPA’s regulations at 40 CFR 745.227(e) to NYCHA in an electronic format within 5 business days after receipt of each clearance report. NYCHA reserves the right to perform onsite monitoring of all clearance activities. The Developer must provide all clearance reports to NYCHA, including clearance reports indicating failed clearance.

Additional lead-based paint abatement requirements may be imposed by NYCHA. All notification requirements resulting from lead-based paint testing or abatement under federal, state, or local laws shall be the sole responsibility of the Project Team(s). The Project Team(s) shall provide NYCHA with all documents regarding abatement activities, including records, reports, testing results, contractor and worker certifications, notices, filings, occupant protection plans, abatement reports, and any other project- related documents.

NYCHA shall have a right to observe all abatement activities, including any pre-and post-abatement activities, and, upon request, review all project documentation. NYCHA shall notify the Project Team in writing of any deficiencies regarding compliance with this paragraph and any applicable legal requirements to abatement activities, and shall specify a period in which the Project Team must correct such deficiencies, or provide adequate documentation, to the satisfaction of NYCHA, of compliance with the requirements of this paragraph and all applicable legal requirements.

Upon conversion, the PACT developments will remain subject to the HUD Lead Safe Housing Rule under 24 C.F.R. Part 35, Subpart H. The Lead Safe Housing Rule applies to all target housing that is federally owned and target housing receiving Federal assistance. The Lead Safe Housing Rule requirements for conversions include: provision of EPA Lead pamphlet, paint testing of surfaces to be disturbed or presume lead based paint, risk assessment, abatement of lead based paint hazards, notice to occupants and ongoing lead based paint maintenance. NYCHA will ensure that the Developer adheres to the requirements through the collection of clearance reports which HUD requires after abatement.. Exhibit M: Mold Procedures and Requirements

NEW YORK CITY HOUSING AUTHORITY 250 BROADWAY  NEW YORK, NY 10007

TEL: (212) 306-3000  http://nyc.gov/nycha

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

Mold and Moisture Control Procedures for NYCHA’s PACT Projects

INTRODUCTION

On the 31st day of January 2019, HUD, U.S. Attorney for the Southern District of New York, NYCHA and the City of New York entered into an agreement establishes a framework by which NYCHA will continue to evaluate and progress towards compliance with federal requirements in connection with the physical condition of its properties including deficiencies in physical conditions relating to mold (“HUD Agreement”). The obligations of the HUD Agreement apply to apartment units, common areas, residential buildings, and building sites consisting of public housing owned or operated by NYCHA and receiving funding through Section 9 of the Housing Act. The HUD Agreement in connection with mold has a focus on the evaluation of mold and leak incidences and recurrence as well as prompt remediation of mold, leaks and moisture. The obligations of the HUD Agreement apply to any converted properties under the PACT program if such conversions have occurred more than six (6) months after the effective date of the HUD Agreement.

Baez v. NYCHA

Concern about indoor exposure to mold has been increasing as the public becomes more aware that exposure to mold can cause a variety of health effects and symptoms. Baez v. NYCHA (“Baez”) is a class-action lawsuit filed December 2013 to NYCHA, for failure to remediate the mold and excessive moisture (including leaks) in plaintiffs’ homes that exacerbate their respiratory illnesses. Under the Baez Consent Decree, and the HUD Agreement, NYCHA promised to abate mold and excessive moisture (including leaks).

PACT POLICY: Mold Testing and Moisture Control

This document provides the most current guidance for moisture control, mold growth prevention, and remediation for PACT properties. It is intended for consistency with NYCHA procedures as a suggested guideline for the execution of PACT Mold Operations and Maintenance (O&M) Plans consistent with the HUD Agreement, and the Baez Consent Decree.

It is essential to identify and correct the underlying source of water intrusion or condensation. Water can enter an apartment through cracks and gaps in roofs, walls, and seals around windows. Moisture can also be generated inside the apartment by cooking, showers, or even clothes drying. PACT Project Teams will conduct comprehensive randomized unit inspections as part of the REDD pre-development process to identify mold and moisture.

To effectively remediate cases of, and prevent mold, the PACT Project Teams must outline, in the Mold O&M Plans, the essential tasks that will be routinely executed to eliminate sources of moisture. Effective communication with residents as well as routine maintenance methods that will help document and prevent the root causes of mold and humidity must be described as part of the Mold O&M Plans.

NEW YORK CITY HOUSING AUTHORITY 250 BROADWAY  NEW YORK, NY 10007

TEL: (212) 306-3000  http://nyc.gov/nycha

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

Additionally, NYCHA’s Healthy Homes Unit are in the process of creating HUD Mold and Leaks Action and Asset Plans that outline the following eight (8) focus areas for mold and leak mitigations:

1) Building-wide ventilation (Capital plan for repair or replacement of roof fans and cleaning of local exhaust grills) 2) Building-wide plumbing (Capital plan for replacing missing and damaged piping and insulation) 3) Building-wide structural issues (Capital plan for addressing pointing/facades) 4) Roofs and parapets (expectations for repair and replacement) 5) Apartment specific work (Remediation plan that may need to be compete as a result of capital repairs first taking place) 6) Day to day operational response to resident complaints that arise from the above systems not properly functioning (O&M Plans) 7) Resident communication and education strategies 8) Annual reporting requirements to NYCHA detailing capital repairs, remediation work completed in Apartments and resident communication and responses to complaints and mold issues (O&M Plans)

In all situations, the underlying cause of water accumulation (including leaks, mold and excess moisture) must be fixed, or the problem may recur. A prompt response (within 24 to 48 hours) and thorough clean- up, drying, and removal of water-damaged materials will prevent or limit mold growth. On-site staff should receive the training necessary to carry out their responsibilities concerning communicating with residents, cleaning, removing, and restoring damaged surfaces and documenting all remediation efforts. As part of the required training under OSHA’s Hazard Communication Standard (29CFR 1910.1200), workers must be informed about safe work practices for using various chemicals, including disinfectants, and personal protective equipment, which may be a part of a mold response. On-site staff should be familiar with procedures to deal with water intrusion/excessive moisture and appropriate remediation techniques for water-damaged surfaces.

Capital, O&M and Remediation Plans must cover the essential elements to counter/prevent mold. The Healthy Homes Unit Team will assist in the review of the RAD developer’s Capital, O&M and Remediation plans before the PACT conversion closing.

Proposed Transition Steps and Milestones

Step 1: Six months prior to the transition, NYCHA will provide the PACT Project Teams all Maximo resident complaint data requiring response to mold and leak complaints. This will include: • Data for all open mold and leak work order tickets (with related work order and CCC details); • Data on closed or cancelled work order tickets in the prior 6 months that were closed with no work done or where the inspection found the report of a leak or mold to be unfounded; • Data on all roof fan and ventilation inspections and related repair work completed in the prior six months; • Data from the Ombudsperson Call Center and HUD Complaint Line for reported resident complaints for the prior six months; and NEW YORK CITY HOUSING AUTHORITY 250 BROADWAY  NEW YORK, NY 10007

TEL: (212) 306-3000  http://nyc.gov/nycha

GREGORY RUSS CHAIR & CHIEF EXECUTIVE OFFICER

• Data on XRF inspections that were completed in the prior six months where a mold or leak condition may have been observed.

Step 2: In the comprehensive unit inspections that PACT Project Teams will conduct as part of the REDD pre-development process to identify mold, leaks and moisture, the PACT Projects Teams will identify remediation that could be completed by NYCHA and systems remediation that are more capital in nature and will require longer timelines. This step will inform the development of plans required under Step 3.

Step 3: PACT Project Teams will submit Capital, O&M and Remediation Plans for NYCHA’s review based on the Step 1 report and site-specific inspections two months prior to the scheduled transition date.

Step 4: NYCHA will take ten business days to review and comment on the submitted plans and allow another ten business days for revisions. The agreed upon plans will be binding as per the Lease Agreement.

Step 5: Ten business days prior to the transition, NYCHA will provide a final report of completed work orders identified in Step 1. The intent of this report is to demonstrate completion of work under NYCHA’s purview.

NYCHA shall have a right to observe all moisture control activities and, upon request, review all project documentation. NYCHA shall notify the Project Team in writing of any inconsistencies with the goals of the HUD Agreement or Baez Consent Decree and any applicable legal requirements to control moisture and mold, and shall specify a period in which the Project Team must correct such deficiencies, or provide adequate documentation, to the satisfaction of NYCHA, of compliance with the requirements of this paragraph and all applicable legal requirements. Exhibit N: Resident & Community Engagement Guidelines

Exhibit N

Resident & Community Engagement Guide

I. Background

This memo details the expectations for engaging with NYCHA residents, tenant leadership (where applicable), elected officials and other community stakeholders. PACT Partners are expected to draft and implement Resident & Community Engagement Plans that reflect the guidance below. This guidance includes a sample meeting schedule as well as direction for utilizing various resources and technologies meant to enhance the accessibility and effectiveness of the community engagement process. NYCHA Real Estate Development Department (REDD) will support efforts and monitor compliance from designation through ongoing operations.

Upon designation, PACT Partners and NYHCA will review and update the team’s Resident & Community Engagement Plan to determine the most appropriate meeting schedule and cadence. The Resident & Community Engagement Plan should include a plan for outreach to residents, resident leaders, elected officials and other community stakeholders. The Plan will be reviewed by NYCHA and finalized after designation, prior to beginning outreach. The Plan must detail an outreach and reporting structure that will provide residents and elected officials with regular, proactive, and transparent project updates from designation through to ongoing operations.

II. Resident & Community Engagement Plan Goals and Objectives

• Encourage resident participation by establishing a clear engagement plan that outlines meeting schedules and other touchpoints. • Be thoughtful about outreach to non-resident stakeholders including local community based organizations, service providers and elected officials, among others. • Demonstrate how resident input is considered and how it will shape the project. • Allow for flexibility to best respond to resident and project needs.

III. Resources/Technology

PACT Partners should be prepared to utilize a variety of staff resources and media to thoroughly engage residents. If your team does not have equivalent in-house tools/services, you should consider budgeting for the following resources, including but not limited to:

(a) Resident liaison(s): Assist with communication between residents and PACT partners, build and maintain up-to-date contact lists, ensure timely delivery of collateral/materials to residents and track distribution, actively outreach to resident groups to provide information and discuss issues, and maintain “office hours,” among any other tasks.

(b) Project website: Allows for residents to access all information regarding PACT and their development. Project websites should have information to access resident meetings, recordings of meeting for residents to view, link to NYCHA PACT Resident Resources, contact information for development team, etc.

(d) Budget resources and time for printing, mailing and flyering: Throughout the engagement process, many materials will need to be printed and distributed to residents, in multiple languages. In-house print shops or on-call printing services will be required.

(e) Budget for translation needs: All materials will require translation in the primary languages spoken per development. Simultaneous translation will be required for all in- person meetings, webinars, and conference calls, as-needed.

(f) Where spaces permit, teams will provide light, healthy refreshments for all in-person meetings, including both food and drink. If available, PACT Partners are encouraged to use resident catering companies and other food businesses.

(g) Provide onsite licensed/accredited childcare options to ensure residents with children can reasonably join and participate in in-person meetings.

(h) Dedicated hotline and email address for residents to ask questions and raise concerns. Partners will be expected to provide information about how many calls/emails they are receiving including responses to any questions that are raised.

(i) Provision of free-to-resident training and safety courses, associated with project employment opportunities.

(j) Provision of free-to resident legal resources focused on leasing and the transition to Project Based Section 8.

IV. Meeting Schedule and Objectives

All meetings and inspections are opportunities to both share information and gather input. NYCHA will advise on all agendas/activities per meeting, but in general, partners should plan to host the following at a minimum.

PACT Partners will coordinate with NYCHA to determine how best to engage residents while prioritizing their health and safety. Meetings should be held entirely virtually (with dial-in options) until otherwise noted. However, depending on the current state of public health, outdoor activities, tabling, door-knocking, and/ or other small group meetings may be considered, pending discussions with NYCHA. No in-person activities shall occur until it is determined by NYCHA that it is safe to do so.

Elected Official Outreach PACT Partners will coordinate with work with NYCHA to schedule introductions and project briefings to local City, State and Federal elected officials.

NYCHA Real Estate Development Department (REDD) and Intergovernmental Affairs (IGA) teams will join, coordinate introductions and can assist with initial scheduling, as-needed.

Monthly TA Meeting Each month, PACT partners are expected to meet with tenant leadership to discuss project schedule, provide relevant updates, and preview material for upcoming resident meetings.

NYCHA REDD and Community Development teams will join, coordinate introductions and can assist with initial scheduling, as-needed.

Meeting #1: PACT Partners Introduction - All Residents:

Topics/Agenda: (a) NYCHA-led update and recap of the process to-date (b) Team introductions and relevant experience (c) Share project timeline (d) Discuss Covid-19 protocols related to outreach, inspections, and construction (e) Present draft Resident & Community Engagement Plan for discussion (f) Discussion of known physical conditions and potential improvements (g) Explanation of upcoming inspection schedule

Meetings #2-5: Scope of Work Meetings:

PACT Partners, including architects and landscape designers, should plan to host a series of at least four discrete meetings around scope development. Meeting topics may vary depending on need and opportunity, but should include: (a) Overview and explanation of the Physical Needs Assessment (b) Health and Safety protocols (c) Logistics around construction and potential temporary relocation (d) Details on design and construction: (i) Findings from building and unit inspections (ii) Building systems, including elevators, roofs, facades, energy systems, boilers, and any other relevant components. (iii) Building grounds (landscape, hardscape, pathways, parking and program) and common spaces (lobbies, hallways, community rooms, offices, and community facility and commercial spaces). (iv) In-unit repairs and renovations.

Scope meetings should clearly demonstrate need and describe opportunities for repairs/improvements, as well as seek relevant input from residents on their priorities. Residents should have numerous opportunities to provide feedback on proposed scopes of work, design elements, and programming (where applicable).

Inspections:

All in-unit inspections should be considered an engagement opportunity. Community partners or other resident liaisons from the PACT Partners team are expected to join inspections to provide updates to residents, share information, and collect input on repair issues. Efforts should be taken to combine tasks, limiting the total number of visits. NYCHA to advise on required collateral material, but may include: (a) Updated FAQ (b) Updated One-Pagers or Fact Sheets (c) Resident input Surveys (improvement priorities, visual preferences for design styles, colors, etc., other?) (d) Social Service Needs Assessment

*Inspectors should always have properly displayed identification, and meetings should be set in advance. Members of the PACT Partners team, including any resident liaisons, should assist with scheduling inspections and accompany inspectors.

Meeting #6: Lease Information & Plan for Lease Signings

NYCHA will coordinate with TAs and PACT Partners to develop an outreach plan to facilitate lease signings.

At a minimum: (a) Partners are expected to mail sample leases (and post to web) at least three-four months in advance of closing, giving NYCHA advanced notice. NYCHA will provide the lease and a cover page, and Partners should prepare a cover letter with information on how lease signings will be conducted.

(b) Partners will be expected to retain a legal services organizations (such as the Legal Aid Society) at the direction of NYCHA to provide free advice to all tenants via hotline (or in- person consultations if/when appropriate). No tenants are expected to sign a lease without having had the opportunity to consult with a third-party legal services provider.

(c) Partners may elect to create House Rules to be signed during the lease signing. If Partners so elect, a draft must be circulated to NYCHA for review and approval, and then the TA for review and approval. Any House Rules may not be more restrictive than NYCHA’s public housing house rules.

(d) Partners will reach out to schedule lease-signing appointments with every household.

(e) Separate from lease signings, PACT Partners will be expected to provide information on lease signings throughout process, including at least one resident meeting specifically focused on the content of leases and process/plan for residents to sign. This meeting must include representative(s) from NYCHA’s Leased Housing Department. This meeting must occur before any lease signings take place. PACT Partners will coordinate with NYCHA to identify the most appropriate timing for the meeting, approximately 3-4 months in advance of the expected closing date.

Meeting #7: Employment Opportunity Meeting*

PACT Partners should provide information about employment and training opportunities associated with the PACT project. The meeting should focus discussion on all open construction and property management positions, describe the application process, and provide timeframes for hiring.

Prior to meeting, PACT Partners should coordinate with REES to identify current eligible residents and relevant training courses (OSHA 30, security, among others) that will be offered directly or through referrals.

PACT Partners must also coordinate with NYCHA REES on hosting job fair(s) to continue advertising employment opportunities and recruiting residents to fill those positions.

*Meeting can occur any time during pre-development, after team introduction. NYCHA to advise on timing.

Meeting #8: Social Services Meeting*

PACT Partners, in collaboration with assigned Social Service Providers, are expected to craft comprehensive Social Services Plans informed by extensive resident consultation and feedback. Outreach may be conducted through wellness visits, surveys, workshops, and other strategies. However, PACT Partners should expect to host at least one large resident meeting to discuss and gather feedback on proposed Social Services Plans. During the meeting, Social Service Providers should provide information about their organization, their mission, and plans to provide services for the development, as well as to discuss and gather feedback on findings from previously distributed social service needs assessments. Residents must have the opportunity to review and provide feedback on proposed plans before they are finalized.

*Meeting can occur any time during pre-development, after team introduction. NYCHA to advise on timing.

Meeting #9: Property Management Team Introduction

As the project approaches conversion, PACT Partners should host a meeting to review all required paperwork that residents will need to complete in order to convert to the Section 8 program. This is also an opportunity for residents to get to know the property management team and ask questions regarding property management strategies/priorities at their development. The agenda should also advertise any upcoming legal clinics or lease signing workshops.

Meeting #10: Property Management Team Orientation

This meeting can occur just prior to or immediately following conversion. The goal is to orient residents to new property management policies and processes. For example, property managers should explain the house rules, describe processes for paying rent and submitting work tickets, and share contact information in case of emergencies or any other issues.

Post-conversion Meetings

Teams should describe their plans for continued engagement with residents and other community stakeholders following conversion. Post-conversion outreach should include, but not be limited to, construction progress/update meetings and ongoing meetings with tenant leaders.

V. Resident Meetings - Best Practices

General

a) PACT Partner-led meetings should always include: a. An opportunity for a NYCHA representative to provide remarks at the top of the meeting and to join for questions and answers; b. NYCHA contact information for both the PACT hotline and the NYCHA Customer Contact Center, and; c. NYCHA logo (where other team member logos are displayed, for example: title slides, headers, footers, etc.). b) For all printed materials, meeting advertisements, and presentation decks, PACT Partners must share with NYCHA three weeks prior to planned use. NYCHA will provide comments and feedback within five business days of receipt to account for translation, printing, and distribution.

c) Draft agendas (including facilitation questions/guide if needed) must be shared with NYCHA three weeks in advance of external use for review.

d) Presentation material must be sent to TAs and elected officials in advance of all meetings (following NYCHA’s review).

e) Flyers for events must be mailed to each resident at least two weeks in advance of the meeting and should be hung on every floor/lobby at the development, in every primary language for the development. PACT Partner contact information, and website address should be included in all flyers/material distributed. NYCHA will advise on where to post/hang flyers. All posted material should be removed post-meeting.

f) Robocalls and/or text messages must be sent to all households with a reminder about the upcoming events two days in advance, as well as day-of.

g) All printed materials must be legible and adequately sized for all audiences. Body text in presentation decks should not be less 16pt.

h) Residents must receive printed copies of all materials, in both English and Spanish, in advance of any webinar (day of the event is acceptable only if material is being hand- delivered). Copies of all other relevant primary languages should be made available at property management (or other on-site) office.

i) Partners should be aware of how meeting schedules will effect residents ability/likelihood to attend meetings. When scheduling meetings, PACT Partners must take into consideration resident fatigue and cultural or religious holidays.

Virtual/Tele-Town Hall - Best Practices (a) As attendees are logging in, an intro slide, with background music, must be displayed informing them that the presentation will start shortly. (b) Presenters must introduce themselves with their video cameras enabled.

(c) Presentations must all begin with a brief tutorial of the webinar interface. Participants should be asked to practice muting/unmuting, type in the chat/Q&A box, enable microphones/cameras, raise hands, and any other relevant task we will be asking of them throughout the presentation.

(d) Presenters must enable functionality that allows participants to see who else is on the call or how many other participants are on the line.

(e) PACT partners must track attendance for all virtual meetings and report back to NYCHA with final headcounts within one day of meeting. Where multiple developments may be on a single webinar, attendance should be reflected by development.

(f) Residents must have the option to ask questions either through chat/question boxes or by “raising their hand” and being unmuted. Residents who elect to ask questions themselves should be allowed the opportunity to follow up if any points are not clear. The same applies for questions that require simultaneous translation.

(g) For webinars that utilize simultaneous translation, the call-in numbers for specific languages should be included on the title slide for participants to view as they wait to begin, as well as in the chat section.

(h) During webinars or in-person meetings residents should be given ample time after the presentation (at least 30 minutes) to ask questions and share thoughts (depending on the meeting topic, this can be flexible). Depending on the size of the group, PACT partners should be prepared to spend some time after the meeting has formally “ended” to continue answering resident questions and/or schedule phone calls to speak with individual residents.

(i) A call-in number/hotline should be available to any resident to call with questions or walk-through presentation materials.

(j) Within five business days following all webinars, PACT Partners are required to post recordings of the presentations to their project pages.

VI. PACT Developer Team Webpage Content Guidance Each website must contain the following content. Each item below does not require its own unique section/tab and can be combined as makes sense per project. Overall, we encourage text to be placed on the page and not have all information linked to documents. This helps ensure any translation plug-in can read the text (or e-reader) and that important information is not hard to find. • Homepage with project overview, to include: o Name of the project o Brief PACT program explanation (noting that the project will bring comprehensive repairs, new property management, enhanced social services, while maintaining affordable rent and resident protections)

• PACT Partner team introduction, including notable experience

• Link back to NYCHA PACT website: https://www1.nyc.gov/site/nycha/about/pact.page

• Contact information for the development team. At a minimum contact information for property management should be listed, including at 24-hour number for emergency repairs.

• Contact form (where residents can submit comments/questions directly from the webpage)

• Resident Resources, examples include: o Information on hiring/training opportunities o Updates on social service provision o Notes on property management processes- paying rent, submitting work orders, and others.

• Schedule/Timelines o Resident meetings o Inspections o Construction

• Resident contact information collection

• Overview of resident protections. Please use NYCHA documents listed below for language in this section, so residents receive consistent language regarding their rights and protections.

• Document Repository with downloadable links to all collateral and presentation material

Exhibit O: Asset Management and Construction Reporting Requirements

Preliminary Summary of Reporting Requirements

Except as otherwise provided below (a) monthly submissions shall be delivered to the Authority no more than fifteen (15) days following each calendar month, (b) quarterly submissions shall be delivered to the Authority no more than thirty (30) days following each calendar quarter and (c) annual submissions shall be delivered to the Authority no more than one hundred twenty (120) days following each calendar year.

Submission Timing and Frequency Submission Requirement Ongoing Periodic Submissions 1 Notice of emergency situations and expenditures affecting the Operating Within forty-eight (48) hours of the Budget expenditure 2 Legal Proceedings Report Monthly 3 Quarterly Operating Budget Report identifying actual expenses and all Quarterly variances from the approved Operating Budget.

4 Quarterly Reports including: narratives, reports and statements provided to Quarterly within 30 days the Approved Mortgage Lenders, a balance sheet, an income statement, a narrative summary describing any significant financial activity that is not captured in the balance sheet and income statement, and the current balance in each account maintained by Owner pursuant to the Control Agreement, including without limitation the Replacement Reserve and any deposit to or withdrawal from such account.

5 Quarterly Reasonable Accommodations Reports Quarterly

6 Proposed annual Operating Budget Annually, 120 days before the beginning of each calendar year

7 Evidence of required deposits to the Replacement Reserve Annually

8 Annual Audited financial statements Annually

9 Supplemental Annual Submission including: Annually (with the Annual Audited Financial (a) rent roll; (b) all required insurance certifications; (c) copies of all required Statements) licenses for operating a multifamily development; (d) copies of any property inspection reports; (e) copies of any other third party inspections or other reports by Federal, State, local, or other entities from the completed fiscal year; (f) net deposits to the Replacement Reserve; (g) Net Cash Flow (as defined in the Operating Agreement); (h) the balance at the end of the period of the Replacement Reserve and any other project reserve; (i) aggregate stated lease rents and the amounts thereof uncollected from the Rental Units and other units for which no eviction actions have been commenced; (j) the Grievance Status Report

10 Forward Cash Flow Projections (as defined by the Operating Agreement) Annually

11 Lead reporting consistent with approved Lead O&M Plans, NYC Local Law Annually and biennially as required by NYC 1/Local Law 31 (pre- 1960s) and federal HUD Lead Safe requirements Local Law 1 and Local Law 31 (pre-1960s) and federal HUD Lead Safe requirements

12 Elevated Blood Lead Level (EBLL) cases summary report in accordance Periodically as required by NYCHA, and with NYC Health Code, §§ 173.13 & 173.14 24 CFR § DOHMH but no less frequently than Quarterly

35.730 (in addition to notifications required by NYC DOHMH, NYCHA or otherwise 13 Mold report detailing closed work orders, addressed Ombudsperson Call Periodically as required by NYCHA but no less Center cases, capital repairs, remediation work completed in Rental Units frequently than Quarterly and resident communication and responses to complaints mold issues

14 Elevator report providing the number of elevator outages during the Periodically as required by NYCHA but no less reporting period, whether planned or unplanned, the response times to frequently than Quarterly such outages, notification times of residents of such outages, and the repairs or replacement of such elevators; Category 1, 3 and/or 5 Category periodic inspections and tests of elevators as applicable

15 Pest report detailing the number of pest complaints by residents, response Periodically as required by NYCHA but no less methods and time and any targeted relief for infestations frequently than Quarterly

16 Heating report detailing the number of Heating Failures during such Heating Periodically as required by NYCHA but no less Season, the response times to such Heating Failures, and how residents were frequently than Quarterly notified of such Heating Failures, both planned and unplanned

17 Petroleum Bulk Storage (PBS) and Chemical Bulk Storage (CBS) Annual Annually testing reports issued to NYSDEC for PBS and CBS on property as per the New York State [6 NYCRR Part 613 and/or 6 NYCRR 596-599], federal [40 CFR Part 280] and other local, state and federal regulations.

18 Water and electric Annually

a. Total building emissions intensity (pre, post-audit proposed, and each post-completion year), using the current GHG coefficients of energy consumption listed in LL97 or promulgated under LL97’s rules; b. Annual water consumption per unit, as measured by the DEP meter; c. Tenant electric consumption by quartiles by month; d. Indoor temperature feedback with a sampling of no less than 30% of units per building if the development is retaining or replacing a central heating system; and e. Data showing any instances of recorded indoor temperature in violation of the City Code minimum temperatures during the heating season, including the recorded date, time, indoor and outdoor temperatures associated with such violations.

Note, an exemption from requirements (d) and (e) applies where the central steam or hydronic system with a central system that provides unit-by-unit temperature controls accessible to the tenants are replacing current heating systems.

Construction Period 18 Construction Reports including percentage of Development Work Monthly completed and any certifications made to Approved Mortgage Lenders

19 Construction Documentation including 1) Applications and Certificates of Periodically Payment, 2) Change Orders, 3) Architects Field Reports, and 4) Certificate of Substantial Completion

20 Davis Bacon prevailing wage compliance reports Monthly

21 General Contractor and subcontractor certification of Davis Bacon Construction Completion Compliance 22 SBE, MBE and WBE Reports Monthly

23 REES Job Order Forms As new hiring opportunities arise, prior to job posting 24 REES Employment Verification Forms Within 48 hours of new Section 3 employee start date 25 Section 3 and Other Economic Opportunities summary report Monthly

26 Section 3 Compliance Form and Certification 120 days after substantial completion of the Development Work 27 Mold Open NYCHA Work Order Reporting and Closeout Report Ongoing and within 90 days of closing

28 Lead Abatement Documentation and Final Report 120 days after substantial completion of the Development Work

29 Accessibility Work - Certificate of Acceptance 120 days after substantial completion of the Development Work

30 ADA Unit Conversion Summary 120 days after substantial completion of the Development Work

31 Enterprise Green Communities Final Checklist and Certification 120 days after substantial completion of the Development Work

32 As built drawings and site surveys of the Development, reflecting all 120 days after substantial completion of the change orders and amendments to the Plans and Specifications in Development Work REVIT/DWG, and PDF formats.

Exhibit P: Housing Retention Guidelines

EXHIBIT P Resident Stability & Retention Guidelines for PACT Development Partners March 2021

BACKGROUND NYCHA’s Real Estate Development Department developed a set of resident retention guidelines to ensure proactive processes are in place to protect residents from displacement during the ongoing public health crisis due to COVID-19. The guidelines were created for all Permanent Affordability Commitment Together (PACT) development partners and will be followed by property management staff at each PACT development. Housing stability is critical during this public health crisis and we are all working together to ensure that households have been provided with appropriate resources and information about how to address arrears or other tenancy issues. PACT development partners are expected to work directly with residents to respond to their unique circumstances and offer resources based on their situation. Development partners should also utilize their on-site social service providers to conduct outreach and provide direct assistance.

The retention guidelines were created in response to the COVID-19 public health crisis but will now be implemented at all PACT projects moving forward. GOALS AND OBJECTIVES

• Ensure that housing stability and retention is a key component of each PACT Development Team’s work • Outline expectations for communication and connection to resources so that all PACT Development Teams allocate the necessary resources and staff levels to oversee this on-going work • To confirm that households across the PACT portfolio are provided the same information about their rights as NYC tenants and access to resources to help address arrears or cure breaches in their lease.

HOW TO USE THESE GUIDELINES The Designated Project Teams will be expected to create and implement a ‘Resident Stability & Retention Plan’ that outlines their approach to provide pro-active communication and outreach to households to avoid unnecessary evictions. Project Teams will outline how they will adopt these guidelines into a standard operating procedure for their site, in coordination with NYCHA, following designation. Once implemented, Project Teams will provide updates on their outreach and communication efforts through a Legal Proceeding report submitted to the REDD Asset Management team.

HOUSING STABILITY AND RETENTION GUIDELINES

Expectations for outreach and communication before starting a formal eviction proceeding in court: Households with Rental Arrears For residents with any rental arrears, PACT development partners are expected to conduct the following outreach prior to starting a formal eviction proceeding to ensure that all proactive steps have been taken.

1. Make all possible attempts to reach out and connect with your tenant. Find out why your tenant is behind on rent, knowing this will inform what other information you should provide them. o A minimum of two attempts through two different modes of communication should be made to contact the tenant. This should include phone calls, door knocking, and hand-delivering an outreach letter to the household. o Schedule an appointment with the tenant to walk through the following steps. Property management should assist tenants in applying for assistance during this appointment. o Development partners should utilize their on-site social service providers to reach out to the tenant to engage them in services and connect them to resources. o All initial outreach attempts should be documented in the ‘Pre-Eviction Outreach’ section of your legal proceeding report.

2. Clarify information about eviction moratoriums if still in place. Direct outreach can help clarify uncertainties and ensure that families remain in their homes.

3. Ask your tenant if they have experienced a loss in income and if they have reported that loss in income to NYCHA. If they have experienced a loss in income.... o Property management should share the ‘Interim Recertification Guide’ from NYCHA’s Leased Housing Department with the tenant. o Direct residents to visit the Section 8 Self-Service Portal to submit an interim recertification online. . Section 8 participants can report a decrease in household income by completing an Interim Recertification by visiting: selfserve.nycha/info or by calling the Customer Contact Center at 718-707-7771 o Because interim recertifications will not address arrears, residents should be provided the list of resources in steps 4-5 to assist with any outstanding rent payments.

4. If your tenant owes arrears, they might qualify for emergency payment assistance. o Property management can share an ‘Eviction Prevention 1-pager’ or flyer from the Mayor’s Office to Protect Tenants o Property managers should inform residents that the NYC Department of Social Services/ Human Resources Administration (DSS/HRA) has several programs for tenants in need of assistance. Tenants can apply for one-time emergency Assistance/One-Shot-Deal (ES/OSD) for Rent Arrears. o Property management staff should help residents access these services and inform NYCHA of any issues or complications with applications or processing. When necessary, NYCHA can help flag a case or follow up with other city agencies. o Direct residents to call 311 and ask for the “Tenant Helpline” o They can also complete a form on the Mayor’s Office to Protect Tenants here: https://www1.nyc.gov/content/tenantprotection/pages/contact-us o Households can also reach out to ACCESS NYC to see if they are eligible for rent assistance: https://access.nyc.gov/eligibility/#step-1 o If PACT development partners are aware of any other non-profit assistance programs, they should make their best effort to

5. If your tenant is ineligible for any of the above resources or services and they are unable to pay arrears in a lump sum, work with them to set up a repayment agreement. o HUD encourages Section 8 property managers to enter into repayment agreements so families may continue to be housed. Section 8 property managers are encouraged to set up a repayment agreement with reasonable payments spread over time that will not cause an undue burden to the tenant. o Repayment agreements must follow any local or state eviction moratoriums, or other tenant or landlord protections in effect in NYC. o PACT development partners who enter into a repayment agreement with residents and used the NYCHA Section 8 Participant Repayment Agreement form are eligible for a $500 incentive from NYCHA, provided certain requirements are met. Additional information about this incentive program can be found online on NYCHA’s Section 8 Owners webpage.

6. If the tenant is unable to afford their portion of rent because the contract rent is greater than the voucher payment standard, encourage them to apply for a transfer. o Tenants can submit a transfer request on the Tenant Self-Service Portal: selfserve.nycha/info o They can call the NYCHA Customer Contact Center at 718-707-7771 to obtain a copy of the transfer request form.

7. Follow up and give households time. Once you have provided residents with a resource, you should follow up within 2 weeks to make sure residents have taken the necessary steps to connect with services. o Provide your tenant time to work through any eligibility screening and enrollment process. o Ask for regular updates on their status. o All updates should be documented in the ‘Actions Steps’ section of your Pre-Eviction Outreach log.

Holdover Issues PACT development partners are expected to take the following steps for households with lease violations before starting formal eviction proceedings.

1. Make all possible attempts to reach out and connect with your tenants. Find out why your tenant has violated their lease. Knowing this will inform what other information you should provide them. o A minimum of two attempts through two different modes of communication should be made to contact the tenant. This should include phone calls, door knocking, and hand-delivering an outreach letter to the household. o Schedule an appointment with the tenant to walk through the following steps. Property management should assist tenants in connecting to assistance during this appointment. o Development partners should utilize their on-site social service providers to reach out to the tenant to engage them in services and connect them to resources. o All outreach attempts should be documented on ‘Pre-Eviction Outreach’ section of your Legal Proceedings report.

2. Provide the tenant with an opportunity to cure the behavior that is causing the breach of the lease. o If it is a nuisance condition, give them an opportunity to change their behavior. o If someone other than the head of household is causing the issues, provide the head of household the opportunity to remove that member from their Section 8 household.

3. Clarify information about eviction moratoriums if still in place. Direct outreach can help clarify uncertainties and ensure that families remain in their homes.

4. Provide your tenant a copy of grievance procedures. Property management should ensure use of grievance procedures and that residents are aware of all steps. NYCHA will provide detailed guidance on the grievance process in a separate communication.

5. Ask your tenant if they are currently connected with social services or supports that could help address any root cause of the lease violation. o Provide the household with your PACT Social Service provider contact information o Ask if they would like to have the social service provider reach out to them o Have tenant sign a consent form so you’re able to share their information with a social service provider. Use the example form enclosed with this memo to make your own.

6. Social services should attempt to work with the tenant to refrain from future lease violations, if possible. o This should include violations regarding habitability concerns, nuisance or community disturbances or other issues.

7. Include details of your communication with tenants and support services in your report to NYCHA. NYCHA will provide assistance or intervene if necessary.

Outreach and communication once a formal eviction proceeding begins in court:

For Rental Arrears & Holdover Cases Development partners should note on the Pre-Eviction Outreach log the date a case is escalated to s formal proceeding. Development partners will then need to include this case in the appropriate Legal Proceedings Summary Tab.

1. Follow any state or federal guidance for eviction moratoriums, if in place.

2. Continue to provide all of the above resources to your tenant, depending on their unique household situation. o This includes following up with residents to ask if they have had any trouble connecting with services and working with the tenant’s legal advocate, if any. o Continue to share your social service providers contact information. o All outreach attempts should be documented on the appropriate tab of your Legal Proceedings report.

3. Make sure residents know they are eligible for free legal counsel once a formal eviction proceeding has started. o Provide residents with a formal letter outlining the resources available to them. o Inform residents that they have 4 steps they can take and that they should not wait to connect to free legal services. Outline the following steps: i. CALL 311 and ask for the “Tenant Helpline” ii. FILL OUT the Mayor's Office to Protect Tenants' Contact Us form by visiting: https://www1.nyc.gov/content/tenantprotection/pages/contact-us iii. SUBMIT an application for emergency rental assistance and other benefits with HRA. Right now, the Human Resources Administration (HRA) is ready to receive applications for emergency rental assistance for those in need. In most cases, the entire process can be done without going in person to the HRA office. Visit nyc.gov/accesshra iv. USE the Tenant Resource Portal to learn more about nonpayment and holdover evictions and the rights and protections tenants have in each scenario.

4. Consistently follow up with households. Make sure they know how to connect with resources, answer any questions they might have and continue to work towards an agreement or plan to avoid eviction by all means necessary.

5. Continue to log all outreach in your Legal Proceedings log. Continue to provide details on all steps taken with the household in your weekly report to NYCHA.

###

Exhibit Q: Section 3 Hiring Forms

EMPLOYMENT & TRAINING PLAN

A. Company Information

Company Name:______Federal Tax ID number: ______

Business Address: ______

Business Phone #: ______

NYCHA Development (where work is being performed): ______

B. Contact Person:

The name & phone number of the individual authorized to serve as the Company Officer is: Company Officer Name:______Company Officer Email and Phone #:______Contract number (if applicable): ______

C. Employment and Training Opportunities:

NYCHA Resident Order of priority:

Category 1 residents: Residents of the housing development(s) where work is being performed Category 2 residents: Residents of other housing developments managed by the housing authority

Employment Opportunities

Construction Positions (Non-Section 3 Projects only)

Projected Titles Training Projected # of Projected # of New Provided NYCHA Hires (Y/N) Resident Hires

1 October 6, 2017 EMPLOYMENT & TRAINING PLAN

Post- Construction (Permanent) Positions

Projected Titles Training Projected # of Projected # of New Provided NYCHA Hires (Y/N) Resident Hires

Training Opportunities (All training offered including construction related training) Projected Training Length of training Certificates/licenses Projected # of obtained training slots

D. Recruitment and Outreach Strategies:

What actions will your company take to recruit NYCHA residents for training and employment opportunities listed above?

• Do you commit to working with the NYCHA’s office of Resident Economic Empowerment & Sustainability (REES) to source Category 1 & 2 residents? ______

• Do you commit to interviewing qualified Category 1 & 2 residents who are graduates of the NYCHA Resident Training Academy and other REES partners? ______

• What other tools will you use to market job opportunities? ______

• In which locations will you hang recruitment posters/flyers? ______• Do you commit to working with property managers to post available opportunities? ______

• Which Resident Association/Organizations will you contact? ______

• How else do you plan to inform the NYCHA community regarding job opportunities? ______• How else will you recruit NYCHA residents? ______

2 October 6, 2017 EMPLOYMENT & TRAINING PLAN

E. Certification of Compliance

The proposer hereby certifies by signing below, that it will comply with the resident training and hiring regulations as set forth by NYCHA. The Company Officer agrees to meet with any qualified NYCHA residents submitted by NYCHA for employment consideration and to provide documentation and reports required by NYCHA to confirm hiring of residents.

Signature: ______

Print: ______

Title: ______

Date: ______

3 October 6, 2017 EMPLOYMENT & TRAINING PLAN

Directions

A) Company Information Please fill out the company information for the development team completely. The NYCHA development where work is being performed should also be completed.

B) Contact Person Please include the name and contact information of the person authorized by the development team to provide NYCHA with information on the training and hiring plan commitment. This person should be able to answer questions directly related to the projections, hiring of NYCHA residents, and reporting requirement on this project.

C) Employment and Training Opportunities Please submit a plan for providing training and employment opportunities to NYCHA residents as directed below:

Construction Positions (Non-Section 3 Projects only) This section should be completed by development teams without a Section 3 requirement. If the projected is subjected to Section 3 requirements, the development team must submit a separate Section 3 hiring plan for construction positions.

Please provide a breakdown on the total number of positions by titles and the number committed to the hiring of NYCHA residents on this project.

Post- Construction (Permanent) Positions (Both Section 3 & Non-Section 3 Projects) This section should be completed by development teams for post-construction position such as permanent positions with the management team or other selected vendors. Development teams with a Section 3 requirement are also expected to complete this section for post-construction positions.

Please provide a breakdown on the total number of positions by titles and the number committed to the hiring of NYCHA residents on this project. If the development team will be providing training for any of the available positions, please indicate so under the “Training Provided” column. The training should be further broken out under the “Training Opportunities” section.

Training Opportunities (All training offered including construction related training) Please list all training that will be provided to NYCHA residents by the development team for both construction and post-construction (permanent) opportunities. These should be separate from general on-boarding training provided by the company to all employees.

Note: The development team shall collaborate with NYCHA’s Resident Economic Empowerment and Sustainability Office (“REES”) to finalize this training and employment opportunities plan. REES referrals shall be included as one source of recruiting qualified NYCHA residents for employment.

Definitions

HUD Section 3 Regulation: The Section 3 program requires that recipients of certain HUD financial assistance, to the greatest extent possible, provide job training, employment, and contract opportunities for low- or very-low income residents in connection with projects and activities in their neighborhoods. https://www.hud.gov/Section3

4 October 6, 2017 Exhibit R: Management Questionnaire

EXHIBIT R Management Questionnaire Applicants should provide responses to each question below and write an introductory narrative that explains Applicants’ approach to property management as it relates customer service, operations, and communications to residents. (6 Pages Max)

Management Operations & Staff

1. What are the hours of operation for property management? Location(s)? 2. What options are available for residents to contact property management staff (Drop-in office, telephone #, email, “after hours” contact information)? 3. What is your property management staffing structure (organizational chart)? 4. What are the anticipated staffing levels and roles for our development (X Property Manager, X Superintendent, X Management Staff, X Maintenance Workers, X “handymen”, X Grounds Keepers, X Caretakers, etc.)? 5. What resources are available to provide residents with assistance in completing necessary housing related documents and other general housing issues? 6. Are computers available for tenant use in property management offices to complete interim and annual recertifications? 7. What languages do tenant facing management staff speak? How does property management staff ensure residents are assisted in their preferred language? 8. Across your portfolio, how many units does a property manager typically oversee? Superintendent? 9. Across your portfolio, what is the ratio of maintenance staff to units? 10. How does management capture resident feedback? 11. How does management staff identify and address security concerns? Please include any helpful details from your security plan. 12. What procedures are in place to address disagreement and conflict between neighbors? 13. How do you envision property management staff working with the resident association? 14. Do you require property managers and superintendents to attend resident association meetings? 15. What is your complaints procedure? 16. What steps do property management staff take to work with residents that have: (1) rental arrears and (2) hoarding and upkeep Issues? 17. How do you help residents build credit through making rent payments? 18. Please detail how you have collaborated with social service organizations to provide service coordination and case management to residents? What kinds of services have you been able to provide? 19. What COVID-19 protocols do you have in place?

Repairs & Maintenance

1. How can residents request maintenance service (e.g., Hotline, Website, In-person, App)? 2. What are the hours of operation for maintenance staff? 3. What is your work order process? 4. What does your internal maintenance dashboard look like? 5. How do you update residents about maintenance repairs? 6. How are repair dates selected? 7. How quickly can residents expect a repair to take on average, from initial report to completion? 8. What processes are in place for quality assurance? 9. Across your portfolio, what is your average work order completion time? 10. Please share a sample cleaning and maintenance schedule. 11. How are residents informed of scheduled and unscheduled outages (heat and hot water, elevators, etc.)? Exhibit S: Chelsea NYCHA Working Group Report

CHELSEA NYCHA WORKING

GROUP FEB 2021 Working Group Members

New York State Senator Chelsea Neighborhood Robert Jackson, NY State Senator Local Partners Residents Johanna Garcia Clinton Housing Development Matthew Levy Company Elliott-Chelsea Houses Chris Nickell Darlene Waters, RA President Savannah Wu Sheila Harris, RA Board Member New York State Assembly Member Julie Elliot Jone Lawson, RA Board Member Richard Gottfried, NY Assembly Hudson Guild Peter Lim, RA Board Member Member Ken Jockers Dolores Payon, RA Board Member Wendi Paster Manhattan Community Board 4 Letisa Romero, RA Board Member Matt Tighe Jesse Bodine Rodney Rutherford, RA Board Member Office of the New York City Public Elzora Cleveland Arimy Fuentes Advocate Nelly Gonzalez Florence Hunter Jumaane Williams, NYC Public Lowell Kern Mary Taylor Advocate Betty Mackintosh Barbara Waddell Steele Delsenia Glover, Deputy Public Mike Noble Fulton Houses Advocate, Housing Equity Joe Restuccia Miguel Acevedo, RA President Ivie Bien Aime John Roche, RA Board Member Office of the New York City Lenny Rosado, RA Board Member Comptroller Nonprofit Organizations Guy Cantales Scott Stringer, NYC Comptroller Citizens Budget Commission Mae Chestnut Brian Cook Sean Campion Eddie Lauria Dylan Hewitt Andrew Rein Mary McGee Nina Saxon Walkiris Rosado Citizens Housing Planning Council Manhattan Borough President Samuel Rosedietcher Jessica Katz Gale Brewer, Manhattan Borough Evelyn Suarez President Community Service Society Hector Vazquez, previously a Lizette Chaparro of New York resident of Elliott-Chelsea Hally Chu Victor Bach Brian Lewis Sam Stein Jessica Mates Tom Waters* Government New York City Council Hester Street U.S. Representative Corey Johnson, City Council Speaker Ibrahim Abdul-Matin Jerry Nadler, U.S. Representative Erik Bottcher Patrice Edwards Robert Atterbury Sarah Gastelum Betsy MacLean Hayley Berson Matthew Green Cesar Mesias Robert Gottheim Chelsea Kelley Kim Ochilo Office of the Mayor of New York City Rosa Kelly Barbara Prevatt Bill de Blasio, Mayor of New York City Raju Mann Isella Ramirez Vicki Been, Deputy Mayor of Carl Wilson NYU Furman Center Housing & Economic Development New York City Housing Authority Ingrid Gould Ellen Sarah Batchu Gregory Russ, NYCHA Chair Matthew Murphy Jodi Callender Anand Amin Jon Cohen New York Housing Conference Barbara Brancaccio Rachel Fee Gabrielle Dann-Allel Matt Charney Pierina Sanchez Jonathan Gouveia The Legal Aid Society New York State Senator Jennifer Hiser Lucy Newman Brad Hoylman, NY State Senator Brian Honan Maia Berlow Simon Kawitzky Zach Duffy Juan Santiago Jacob Priley Leroy Williams

*Tom Waters was a valued member of the Working Group and a lifelong housing activist. He passed due to COVID-19 on April 4th, 2020. Contents

01 1. Letter from the Working Group

03 2. Introduction 03 About the Working Group Process 05 Goals + Values

07 3. History + Context 07 Disinvestment + Deferred Repairs 09 Capital Needs Overview

11 4. Resident Priorities (Engagement Findings) 11 November 2019 13 December 2020

16 5. Recommendations 16 Preface 19 Capital Finance 45 Resident Rights + Protections 61 Resident Engagement

70 6. Next Steps 70 Lessons Learned 71 Next Steps 71 Renovation Timeline

73 7. Appendix 4 Chelsea NYCHA Working Group Letter from the Chelsea NYCHA Working Group

The residents of Fulton, Chelsea, Elliott and Chelsea Addition Houses, the New York City Housing Authority (NYCHA), the City of New York, housing advocates, elected officials, and our neighbors have been grappling with an urgent challenge when it comes to providing safe, quality housing in our chronically underfunded public housing developments. It is an active and ongoing crisis, and we must find a solution.

Nearly 5,000 New Yorkers live in the Chelsea NYCHA developments (Fulton, Chelsea, Elliott, and Chelsea Addition Houses). Many have lived in the neighborhood for decades: have grown up here, raised kids here, and are now taking care of parents here. Many have also experienced the effect of deferred maintenance and disinvestment firsthand. We all agree the Chelsea NYCHA Developments must be renovated to provide current and future residents with high-quality homes, to preserve this vital source of affordable housing for generations to come, and to ensure that the surrounding neighborhood maintains the racial, ethnic, and economic diversity so critical to New York’s vitality.

The Chelsea NYCHA Working Group (“the Working Group”) was formed to make recommendations to meet the urgent capital improvement and repair needs of the Chelsea NYCHA developments as soon as possible. We met almost every week for over 15 months and have learned from NYCHA residents, housing experts, and each other. The recommendations included here are the result of hard work, creative thinking, and collaboration.

This process has been challenging. We did not always agree, nor do we pretend to agree on every line or item in this report, but for the benefit of the residents of the Chelsea NYCHA developments, we have worked together to come to these recommendations. We had tough conversations about the competing demands and the lack of Federal investment in public housing, heard from housing experts, and deeply examined data. Throughout the process, we did our best to center the voices of residents and to stay focused on ensuring quality affordable housing for years to come.

NYCHA residents must continue to be at the center of these conversations going forward. In this process, residents have brought their concerns, their experience, their connections, and their insights. It took time to develop trust among our multi-stakeholder, cross-sectoral group; but, all along, we worked together to leverage the diverse expertise in the room to build consensus on a set of recommendations for these developments.

We would like to take a moment to thank all who were involved: to all the local elected officials who pushed for the Working Group and worked side-by-side with us throughout the process; to Hester Street for their expert facilitation; to NYCHA and Mayor’s Office staff for their engaged participation; to the housing advocates and other nonprofits that generously gave their time and expertise; and to Hudson Guild for sharing its space with us. Thank you to Mayor de Blasio, Deputy Mayor Been, and Chair Russ for their personal participation in meetings, their leadership, and their willingness to consider all ideas on the table. Most importantly, we greatly appreciate the local NYCHA residents and the Fulton and Elliott-Chelsea Resident Associations for their commitment to, and love for, their community.

Signed,

The Working Group

Chelsea NYCHA Working Group 1 2 Chelsea NYCHA Working Group Introduction

In October 2019, stakeholders in the community formed the Working Group to research, evaluate, and make recommendations to systematically and effectively address the capital needs of the four Chelsea NYCHA developments: Fulton, Chelsea, Elliott, and Chelsea Addition Houses.1

Following community objection to a draft proposal from NYCHA that considered partial demolition to repair and renovate the Chelsea NYCHA developments, local elected officials, NYCHA residents of Chelsea, and members of the wider Chelsea community called for more, and transparent, community input on any plan to address much-needed capital repairs.

The Working Group is a collaboration of resident representatives, elected officials, Manhattan Community Board 4, housing and legal advocates, the Mayor’s Office and NYCHA (please see full Working Group members list in the Acknowledgements). Hester Street, a mission-driven urban planning and community development nonprofit versed in housing practice and policy in New York City, served as the Working Group’s facilitator.

To fulfill its charge, the Working Group established these goals:

1. Address the Chelsea NYCHA developments capital needs of today and the future; 2. Ensure resident rights are protected and expanded before, during, and after renovation; 3. Establish clear and consistent resident engagement throughout the renovation process and beyond.

1 Chelsea, Chelsea Addition, and Elliott Houses are often collectively referred to as “Elliott-Chelsea”.

Chelsea NYCHA Working Group 3 Process

IDENTIFY NEEDS + PRIORITIES

OCT 2019

Working Public Mayoral Group Workshops Town Hall Announced WG PAUSED DRAFT [ MAR - SEPT ] RECOMMENDATIONS

Chinese Info Elliott- Sub-Committee Session Chelsea Info Meetings Session

SHARE INCORPORATE RECOMMENDATIONS FEEDBACK EARLY 2021

PATH FORWARD Public Workshops KEY - Working Group Meetings - Public Engagement Sessions

In weekly meetings over the course of fifteen months, the Working Group discussed the funding crisis at NYCHA and reviewed in detail the physical needs assessments and repair costs for the Chelsea NYCHA developments. The group also received many presentations: housing experts presented on a wide variety of financing strategies to fund capital improvements and repairs; legal experts presented on resident rights and protections; and community development experts presented models of public housing resident engagement and resident management. Furthermore, the process included both Working Group meetings and public engagement sessions with NYCHA residents of Chelsea (as well as with the broader community). The Working Group meetings informed the content of the public workshops and vice versa. The aim was to include as many voices in the conversation as possible while moving towards achievable solutions.

People did not always agree. We debated and argued about infinite scenarios—and individuals still have differing and dissenting views regarding elements of the proposal. Ultimately though, the Working Group came together to develop actionable recommendations in three categories: Capital Finance, Resident Rights and Protections, and Resident Engagement. This report details recommendations within each, and outlines next steps for implementation.

4 Chelsea NYCHA Working Group Working Group Values

With the guidance of Hester Street, the Working Group built consensus on a set of guiding values to be: • Resident-centered in its uplifting of residents’ knowledge of, and experience in, their homes and neighborhood • Transparent in its roles, responsibilities, purpose, parameters, goals, and outcomes • Iterative in its process through an exchange of ideas, feedback, and questions between the Working Group and residents across all four developments • Rigorous in its research and assessment of a variety of methods to ensure capital needs are met

Chelsea NYCHA Working Group 5 6 Chelsea NYCHA Working Group History and Context

Founded more than 85 years ago, NYCHA is the largest Public Housing Authority in the nation. If the NYCHA resident public housing population were a city, it would be larger than many major American cities, including Pittsburgh. NYCHA manages 170,000 apartments across the five boroughs, housing a population of approximately 366,000 low- and moderate- income residents.2 NYCHA residents are a diverse group and include essential workers, City agency and health care workers, police officers, teachers, and restaurant and retail employees.

NYCHA background, disinvestment, and deferred repairs

Historically, NYCHA has been regarded as a national model of “public housing that works,” providing the most durable affordable housing in the country to the largest number of public housing residents. However, NYCHA has weathered multiple decades with decreased funding, and over the last 20 years, a perfect storm of disinvestment and aging buildings has left NYCHA and its residents in severe straits. The Authority faces a daunting $40 billion in capital needs, and these needs grow by at least $1 billion each year.

Beginning in 2008, NYCHA faced budget cuts that required the Authority to make severe staff reductions: from 14,000 to 11,000 employees, thus weakening the Authority’s property management capabilities and contributing to the physical distress of its housing stock. Despite recent NYCHA efforts to accelerate repairs, too many residents continue to deal with challenging conditions, including: leaking roofs, fragile plumbing, failing elevators, heating outages, crumbling facades, mold, rodent infestations, and lead-paint risks.

2NYCHA (2020). https://www1.nyc.gov/assets/operations/downloads/pdf/mmr2020/nycha.pdf

Chelsea NYCHA Working Group 7 During this time, NYCHA was not the only Public Housing Authority inadequately resourced to meet its outsized needs. In 2010, a study prepared for the U.S. Department of Housing and Urban Development (HUD) estimated the backlog of public housing capital needs to be approximately $26 billion, with each subsequent year accruing an additional $3.4 billion in unmet capital needs.3 Recognizing these enormous needs, Congress passed legislation in 2012 authorizing the Rental Assistance Demonstration Program (RAD) to give Public Housing Authorities a tool to preserve and improve public housing properties. Under RAD, a Public Housing Authority can apply to HUD for authorization to convert its public housing to Section 8.

NYCHA has also developed several strategies as part of its 2018 10-year strategic plan, NYCHA 2.0, that would bring an estimated $24 billion in vital repairs to NYCHA developments. NYCHA 2.0 Capital Finance strategies include new construction of mixed-income housing on NYCHA property, the transfer of development rights, and Section 8 conversions. In addition to RAD, NYCHA is using other provisions under the U.S. Housing Act to convert its public housing portfolio to Section 8 funding. NYCHA has named this blended conversion model PACT, which stands for Permanent Affordability Commitment Together.

3HUD Physical Needs Assessment (2020). https://www.hud.gov/sites/documents/PH_CAPITAL_NEEDS.PDF

8 Chelsea NYCHA Working Group Chelsea NYCHA Developments Capital Needs Overview

To get a handle on the total cost to repair the buildings and renovate the apartments, the Working Group examined the 2017 NYCHA Physical Needs Assessment (PNA) for the Chelsea NYCHA developments. The PNA is an inventory of the major repair costs prepared every five years by contracted engineering firms for NYCHA, as required by HUD. After thorough examination, the Working Group adjusted the 2017 PNA to arrive at an estimated total cost of $366 million for the Chelsea developments. This adjusted cost accounts for the addition of other necessary capital improvement costs, removal of items that have been addressed since 2017, and inclusion of inflation. The estimated $366 million capital need includes: new kitchens and bathrooms in every unit, new elevators, new heating systems in each building, upgraded security, improved outdoor and recreation areas, and many other improvements.

Since significant increases in federal support, which is the Working Group’s preferred source of funding for capital repairs, are unlikely in the near future, and state and city governments are not able to fund all the repairs and ongoing maintenance, the Working Group report recommends multiple strategies to cover the cost of the repairs. These strategies include: PACT conversion, the construction of new mixed-income housing, ground floor retail conversions and the construction of commercial space, community facility development, funds from the City Council, and funds from the West Chelsea Affordable Housing Fund, if available. It also includes a commitment to construct spaces for community services, an essential element of any final redevelopment plan.

Capital Needs Overview

$31M Capital Repair Need: $17.8M [8.5%] Estimated $366 MILLION* [5%] $11.3 [3%] Key Apartments [Kitchen, Bathroom, Floors]

$52.5M $144.9M Architectural [Exterior, Roofing, Common Areas] [14.5%] [39.5%] Systems [Mechanical, Electrical, Plumbing] Site + Grounds $108.7M [29.5%] Additional Heating Needs [Net Of 5-Year PNA] Inflation + Other Costs**

*Based on 2017 Physical Needs Assessment ** Inflation cost since 2017 [3% Annually] + Retiring Outstanding Debt/LIHTC

Chelsea NYCHA Working Group 9

Resident Priorities

Large in-person public workshop engagements in November 2019 and virtual engagement sessions in December 2020 were an important component of the Working Group process and proposal.

November 2019 Summary + Findings

The purpose of the 2019 sessions was to provide an opportunity for NYCHA residents of Chelsea and other local stakeholders to express their concerns, to understand constraints, to evaluate options, and to help develop possible solutions to ensure comprehensive renovation of the four developments.

The first round of engagement sessions included large workshops held in the evenings; and Working Group presentations at Resident Association meetings and meetings of the Chelsea NYCHA Chinese community. What would have been a second round of engagement sessions in mid-March 2020 was canceled due to COVID-19.

Outreach for the meetings in November 2019 included flyers placed under residents’ doors, robocalls, and signs in all building lobbies. All outreach and workshop materials were offered in English, Spanish, Mandarin and Russian, and all sessions offered simultaneous interpretation in all four languages.

The November 2019 engagement made clear that residents are most concerned with keeping their affordable rents. The second highest priority issue was safety and security. Residents were also deeply concerned about the possibility of demolition.

Chelsea NYCHA Working Group 11 November 2019 Key Takeaways

Top priorities from residents: • Long-Term Affordability: Keeping rent at a max of 30% of annual income over the long-term was residents’ top priority. • No Demolition: Protecting all existing residential buildings from demolition was the second priority for residents, especially residents of Fulton Houses. • Safety + Security: Addressing public safety and security was the third priority identified by residents. Reducing pest infestations, improving waste management, and other security measures were especially important for residents of Elliott-Chelsea.

Below are a few direct quotes from residents [from a short questionnaire] who shared their biggest hopes and fears about the rehabilitation process during the 2019 engagement sessions.

What are your hopes for this process? What do you fear will result from this process?

“More trust and transparency between NYCHA “I fear losing my home and having to return to and residents. NYCHA tenants housing concerns the shelter because rent outside of NYCHA is too prioritized.” high. I want to stay in my home with my family.”

“To save our developments by finding a funding “Being priced out of our trendy neighborhood.” source that is fair and reasonable.” “That we may lose our apartment and they move “Keep rent at 30% to fix up apartments and us to a place that we don’t want to go.” grounds, to provide a better quality of life.” “Nothing will be solved, and everything will be “Affordable, safe, clean buildings.” dismissed.”

Virtual Sessions

Engagement Sessions: NYCHA Residents November 20 + 21, Attendees Total 2 228 135 Participated 2019

12 Chelsea NYCHA Working Group December 2020 Summary + Findings

In December 2020, the Working Group hosted five virtual sessions, in addition to one virtual session hosted in partnership with Manhattan Community Board 4. These virtual workshops were primarily run by Working Group members who are Chelsea NYCHA residents. The engagement sessions provided an opportunity for the Working Group to share its draft recommendations with NYCHA residents of Chelsea and other local stakeholders, to collect feedback, and to answer questions. The issues raised at both rounds of engagement guided, shaped, and sharpened the recommendations laid out in this document.

Outreach for meetings in December 2020 included printed material distribution to all households, robocalls, phone calls, and posted flyers in all buildings. All outreach and workshop materials were offered in English, Spanish, Mandarin and Russian, and all sessions offered simultaneous interpretation in all four languages.

The December 2020 engagement confirmed residents’ priorities: staying in their homes, safeguarding their affordable rents, strengthening tenant protections, improving security, and better understanding how and when the recommendations would be implemented.

December 2020 Key Takeaways

Two hundred seventy-one residents from all four Chelsea NYCHA developments logged on or called in to the engagement sessions. They raised key questions about the recommendations and underlined the importance of addressing repairs to their homes and safety and security concerns like broken entry doors and drug sales while also tackling quality of life concerns, such as pests and trash. Residents recommended upgraded or replaced building entry doors and security cameras in stairwells and on grounds.

Meeting participants sought to understand how the renovation process would impact their household and neighborhood in terms of affordability, repairs and renovations, and their rights as tenants.

They raised questions about how and when the renovations would take place, and how they could be engaged in that process. Residents with disabilities had concerns about Americans with Disabilities Act (ADA) compliance, temporary relocation, and related moving costs.

There was much interest in learning where the mixed-income residential and low-rise commercial infill development would be and the levels of affordability for the new mixed-income residential buildings.

The engagement sessions also provided the Working Group an opportunity to: • Confirm that NYCHA will retain ownership of the land and continue to have a role in the Chelsea NYCHA developments. • Tackle disinformation about the proposed renovation process for the Chelsea NYCHA developments.

Virtual Sessions: NYCHA Residents Attendees Total 6 December 8, 10, 12, 482 271 Participated 14, 16 + 17, 2020

Chelsea NYCHA Working Group 13 Key Issues by Category

Resident Rights + Protections • Confirmation of the protected and strengthened tenant rights • Assurance that their rent will remain capped at 30% of their annual income • Information and guidelines on rightsizing, the process of moving under-occupied and over- occupied households to appropriately-sized units; updating household composition; and completing the annual recertification process • Information about admission process for new incoming residents including credit and background checks • Clear information about utility responsibility changes • Information on protections and accommodations for disabled residents

Capital Finance • Clear information about planned repairs and ongoing maintenance • Clear information about the PACT conversion process and proposed infill development • Confirmation about continued public ownership by NYCHA • Information about new and existing community facility improvements • Assurance about energy and systems upgrades • Assurance about safety and security improvements

Resident Engagement Includes: • Clear information about renovation process and timeline and how residents can be engaged throughout • Detailed information about new contact and maintenance request system • Information on how residents can inform safety and security plans throughout renovation process

14 Chelsea NYCHA Working Group Chelsea NYCHA Working Group 15 Recommendations

The Working Group created three subcommittees in seeking to provide a holistic and equitable solution for the Chelsea NYCHA developments: • Capital Finance Strategies [pg 19] • Resident Rights and Protections [pg 45] • Resident Engagement [pg 61] The recommendations in this report were drafted by the subcommittees prior to the review and adoption by the full Working Group.

The Working Group asserts:

• There is no silver bullet: no single financing strategy or approach will address the capital needs of the Chelsea NYCHA developments. A viable path forward must include multiple, interconnected strategies.

• A comprehensive and precise approach to renovating the developments is needed; any intervention must respond to the particular needs of each development.

• All three sets of Working Group recommendations are inextricably linked: they work in concert with each other and cannot be pulled apart or selectively enforced.

• NYCHA residents of Chelsea must play a central decision-making role in the renovation and operation of their homes now and in the future, and it is NYCHA’s responsibility to ensure that the agency and property manager’s resident engagement is accessible and that both are held accountable.

• Fundamental to any redevelopment plan is a commitment to appropriate space for essential community services serving the residents of the four developments.

16 Chelsea NYCHA Working Group Glossary of Terms

ADA Standards: Making physical changes (e.g., installing grab bars, wider doors, lower 1. cabinets) to comply with accessibility requirements, under the Americans with Disabilities Act (ADA).

Area Median Income (AMI): The midpoint of a region’s income distribution (half of families 2. in a region earn more than the median and half earn less than the median). In affordable housing, income eligibility thresholds are set relative to the AMI e.g. 50% of the AMI.

Low-rise infill commercial / community facility development: Construction of one- or 3. two-story buildings on parking lots for commercial uses, such as offices, community facilities, or retail.

Mixed-Income residential infill development:Construction of new residential buildings 4. with both market-rate and affordable apartments for a range of incomes on parking lots or other spaces within NYCHA developments.

PACT (Permanent Affordability Commitment Together) Conversion: A process that 5. converts NYCHA developments to the more stable, federally funded Project-Based Section 8 program. This conversion allows nonprofit and for-profit developers to access capital to fund major capital improvements and maintain permanent affordability and residents’ rights on NYCHA developments.

Request for Proposals (RFP): An RFP is a document issued by a governmental agency or 6. authority announcing and soliciting bids from developers for a public project.

Transfer of Development Rights (TDR): TDR is a zoning mechanism that allows property 7. owners to buy development rights from another property owner to increase the density of their development.

West Chelsea Affordable Housing Fund (WCAHF): The West Chelsea Affordable Housing 8. Fund was created as part of a West Chelsea Special District Rezoning in 2005 to “be used for the development, acquisition or rehabilitation of low, moderate- or middle-income housing located in Community District 4” (in Manhattan).4

4NYC Department of City Planning https://zr.planning.nyc.gov/article-ix/chapter-8/98-262

Chelsea NYCHA Working Group 17

Capital Finance

The Capital Finance Subcommittee was charged with reviewing the City’s proposed plan and developing alternatives to meet the Chelsea NYCHA capital repair and replacement needs in a manner acceptable to the Working Group, and most importantly, to the residents. From January 2019 to December 2020, Capital Finance held regular meetings to build consensus on a set of financing solutions to address the full Physical Needs Assessment (PNA). The Capital Finance Subcommittee consisted of NYCHA residents, including the Elliott, Chelsea and Fulton Houses Resident Association Presidents, Deputy Mayor Vicki Been, NYCHA Chair Gregory Russ, elected officials, Community Board 4 members, NYCHA staff, and local and city-wide nonprofit advocacy groups. Joe Restuccia of Manhattan Community Board 4 and Sean Campion of the Citizens Budget Commission co-chaired the Subcommittee.

NYCHA presented its proposed financing for capital renovations at the Chelsea NYCHA developments, including PACT conversion, and new construction of mixed-income residential infill sites. As the Capital Finance Subcommittee examined each element, it arrived at the need to create a financial model to test both existing and proposed financing options. The financial model, created by the two co-chairs, became a key education and communication tool to analyze the tradeoffs associated with different development scenarios. The financial model informed discussions by showing how various components worked together and was critical to the Working Group’s recommendations.

The financial model, and the estimates derived from it, should not be construed as a final financing plan, but, instead, as a set of parameters for financing to inform the Working Group’s recommendations. The final financing plan must continue to balance funding for NYCHA capital renovations alongside the recommendations of this report.

Chelsea NYCHA Working Group 19 Chelsea Developments: Capital Needs

Physical Needs Assessment

The committee’s first task was to review the 2017 Physical Needs Assessment (PNA) for the four developments as proposed by NYCHA (see Appendix A). The Capital Finance Subcommittee reviewed the PNA line-by-line and worked with NYCHA to remove capital items that had already been completed or were in the NYCHA repair pipeline to educate Working Group Members, especially NYCHA residents, about what a full capital renovation would encompass. Notably, these discussions revealed that a full replacement of the heating systems was not included in the PNA.

Heating Systems Replacement

A reliable heating system has been a major concern for the Chelsea NYCHA residents. The heating systems at the developments have been plagued for decades with breakdowns that have resulted in some buildings going without heat for extended periods of time during the winter. The current heating system is a central system with underground piping between the multiple buildings on each campus. Pipes run from a direct connection off the street to the Con Edison steam service. If there is a break in an underground distribution line, multiple buildings lose heat. After long discussion, and with the agreement of NYCHA Chair Gregory Russ, the installation of individual building heating systems, including new distribution piping to and throughout all apartments, was included in the Working Group’s recommended scope of work. This decision increased the overall capital needs by approximately $18M to an estimated total of $366M.

Table 1: Capital Needs Summary

Chelsea Elliott Chelsea Fulton Total Addition

2017 PNA Need (Adjusted) 57,135,546 100,546,789 17,570,176 167,357,771 $342,610,283 Completed (1,588,065) (1,918,280) (129,766) (7,730,025) ($11,366,137) Improvements Planned Improvements (132,762) (1,150,000) (1,212,666) (11,206,236) ($13,701,664)

Updated Five Year Need $55,414,719 $97,478,510 $16,227,744 $148,421,509 $317,542,482

+ Inflation to 2020 5,138,441 9,038,890 1,504,750 13,762,681 $29,444,762 (3% Annually) + Additional Heating Needs (net of 5-Year $17,797,807 PNA need) + Retiring Outstanding $1,500,000 Debt/LIHTC

Cost of Remaining $60,553,160 $106,517,399 $17,732,494 $162,184,191 $366,285,051 Needs

20 Chelsea NYCHA Working Group Security Improvements

Security continues to be a major issue in these buildings. During the Resident Engagement Sessions and the Manhattan Community Board 4 Public Forum, residents requested security improvements, including entry doors, security cameras, intercoms, and coordination with NYPD. Specific recommendations are detailed below.

Flood Resiliency

In light of the October 2020 Zoning for Coastal Flood Resiliency Text Amendment certified for Uniform Land Use Review Procedure (ULURP) by the Department of City Planning in October 2020, the Capital Finance Subcommittee discussed how the 1% (100-year) and 0.2% (500-year) annual chance flood requirements would affect the Working Group recommendations. The Subcommittee recommends that additional resiliency measures be considered in the rehabilitation of the Chelsea NYCHA developments to protect the buildings against the worst possible impacts of climate change. The 500-year annual chance flood requirements should apply to the entirety of the Chelsea NYCHA campuses subject to the requirements of the Zoning for Flood Resiliency Text Amendment.5 Specific recommendations are detailed in the Appendix.

5NYC Department of City Planning https://www1.nyc.gov/site/planning/plans/flood-resilience-zoning-text-update/flood- resilience-zoning-text-update.page

Chelsea NYCHA Working Group 21 Review of Financing Strategies

The Capital Finance Subcommittee considered multiple alternative financing strategies, including: • Public Financing • Transfer of Development Rights • Ground Floor Retail and Community Facilities Development • Resident Management Corporations • West Chelsea Affordable Housing Fund • Mixed-Income Residential Infill • PACT Conversion

During the course of discussions, it became clear that the PACT Conversion (sometimes referred to as a RAD conversion) was the strategy most fraught with emotion, disinformation, and fear by the residents. Therefore, the Capital Finance Subcommittee decided to review the other strategies first to determine the degree of capital financing that could be raised without the PACT Conversion option.

Public Financing

In the full Working Group, NYCHA demonstrated that federal capital and operating funding for Section 9 Public Housing6 has dramatically decreased over the past thirty years. However, Section 8 Housing7 has a greater number of developments in districts across the nation and is available for nonprofit and privately-managed housing. In addition, representatives of local elected officials presented on available state and city funding.

The presentations concluded that over the past 30 years, federal funding has gone down relative to the need, while Section 8 funding has remained stable. There has been no political will at the federal level to increase funding for public housing. New York State funding is minimal compared to the capital need for the Chelsea NYCHA developments. While the City will provide over $2.2 billion in capital funds to NYCHA citywide over 10 years (between 2019 and 2029) as required by its 2019 agreement with HUD, NYCHA’s citywide capital needs exceed $40 billion. The current City budget allocations for Chelsea NYCHA do not cover its capital needs.

6Under Section 9 of the Housing Act of 1937, municipal corporations and public authorities were funded to build, own, and operate subsidized apartment complexes, known as public housing. 7Section 8 Housing, created by the Housing and Community Development Act of 1978, is a funding source for private, public, and nonprofit developers to own and operate affordable housing by using a federal government rental subsidy, while tenants pay 30% of their income as rent. https://www1.nyc.gov/site/nycha/section-8/about-section-8.page

22 Chelsea NYCHA Working Group There was broad consensus in the Working Group that public funding was preferable to PACT Review of Financing Strategies conversion and infill development, but the uncertain timing of its availability would not meet the immediate need for capital repairs. Given the urgency of the capital repair need at the Chelsea NYCHA developments, the Working Group consensus was to move forward with alternative sources of financing. If there were to be a change in availability of public funding, the Sources for Capital Financing Plan can be modified to substitute public financing in place of another element. Public financing currently included in the financial model are City budget allocations from the New York City Council that NYCHA has not yet spent. Transfer of Development Rights (TDR) The West Chelsea Special Zoning District, immediately to the west of the Chelsea NYCHA developments, has multiple TDR zoning mechanisms, all of which have been successfully utilized to transfer air rights.

The TDR financing strategy was studied and presented by Manhattan Community Board 4 and staff from the City Council Land Use Division. Analysis on the degree of funding to be raised through TDR was reviewed by the Capital Finance Subcommittee and presented to the full Working Group. It was agreed that TDR could not provide immediate funding for capital needs as it is market-driven and dependent upon development sites in West Chelsea that will be developed into the future.

Instead, the Capital Finance Subcommittee recommended that when TDR is available, it be used to create an ongoing Capital Reserve Fund for the Chelsea NYCHA developments after the major proposed renovations are completed.

Ground Floor Retail and Community Facility Developments The Fulton Residents Association pointed out that multiple ground-floor spaces within NYCHA developments along Ninth Avenue are empty or underused. Capital Finance Subcommittee members toured the spaces and proposed to convert them into commercial space. In addition, a strategy was proposed for the construction of one- and two-story infill buildings on parking lots on West 16th Street and on both sides of West 18th Street for retail, commercial, community facility use (Figure 2). One site for ground floor commercial redevelopment was also identified in the Elliott-Chelsea Houses.

These strategies will enhance the developments by creating practical active ground floor uses that will also connect the Fulton campus to the surrounding community. Through the current economic downturn, there continues to be a vital commercial, retail, and community facility market in Chelsea. Under current R8 zoning, midblock community facilities, like health clinics or schools, can be built as-of-right, but retail or office uses would require a zoning change to be undertaken by a future development team. Resident Management Corporations A Resident Management Corporation (RMC) is an official, legal option through which public housing residents can take full or partial management responsibilities of their developments.

A group of NYCHA residents of Chelsea invited Schulte Roth & Zabel LLP and Siegel Teitelbaum & Evans, LLP to present on RMCs to the full Working Group in February 2020. Although not fully detailed, it was discussed by the Working Group. There was a question of whether the RMC model could be applied to developments of this scale. The Capital Finance Subcommittee took no position and made no recommendation.

Chelsea NYCHA Working Group 23 West Chelsea Affordable Housing Fund

The West Chelsea Affordable Housing Fund (WCAHF) was created as part of a West Chelsea Special District Rezoning in 2005. The rezoning enabled the sale of development rights over and above the High Line Transfer Corridor for property owners encumbered by the High Line Right-of-Way and established the creation of the WCAHF after 90% of the High Line development rights were sold. The WCAHF enables owners to gain a zoning bonus in certain areas of the West Chelsea Special Zoning District by making set contributions to the City-administered fund and is to be used for “the development, acquisition or rehabilitation of low, moderate- or middle-income housing located in Community District 4 in the Borough of Manhattan.”8

The renovation of the Chelsea NYCHA developments is clearly an affordable housing need. Currently, the administrator of the WCAHF has $0, but the Fund has $1,733,500 committed9 from developers that can be applied to the new construction. The Capital Finance Subcommittee recommends that a portion of this fund be used, subject to availability, to meet the Chelsea NYCHA development capital needs.

Mixed-Income Residential Infill Construction

As part of West Chelsea Rezoning Points of Agreement, two new affordable housing developments at 401 West 25th Street and 425 West 18th Street, comprising 326 affordable apartments with AMI bands from 40% to 195%, were developed. Both Chelsea NYCHA resident associations were part of the public process in siting and reviewing those developments. Additional affordable housing sites were identified in Manhattan Community Board 4’s 2015 Affordable Housing Plan10 to expand the supply of affordable housing in Chelsea.

Since the concept of infill development was not new to Chelsea NYCHA developments, the Capital Finance Subcommittee dove into the details of siting, affordability, and constraints for new mixed- income residential infill construction.

Discussion and Debate on ULURP for Mixed Income Residential Infill

The Working Group discussed the Uniform Land Use Review Process (ULURP), the City’s public review process for land use actions. Some Working Group members believed that the proposed infill developments should go through ULURP, noting concerns regarding the precedent set for future NYCHA PACT conversions with proposed infill developments and the importance of ongoing public input and a final City Council vote. Some Working Group members did not support ULURP, noting that the Working Group process has already provided significant opportunities for public review and outlined future extensive resident participation. Residents of Fulton and Elliott-Chelsea in particular opposed ULURP because it would further extend the timeline for rehabilitation. The Working Group ultimately opted not to recommend ULURP in this instance.

8NYC Department of City Planning https://zr.planning.nyc.gov/article-ix/chapter-8/98-262 9The WCHAF has $1,733,500 committed from the Related Companies in relation to a zoning matter at 500 West 28th Street. The execution of a regulatory agreement with the Department of Housing Preservation and Development (HPD) to deliver the funds was delayed by COVID-19. 10Manhattan Community Board 4 (2015) https://cbmanhattan.cityofnewyork.us/cb4/wp-content/uploads/ sites/10/2020/05/29-HHHS-Updates-to-MCB4-Affordable-Housing-Plan-no-memo.pdf

24 Chelsea NYCHA Working Group Review Of Sites

NYCHA presented a version of its original plan for mixed-income residential infill development on sites that required the demolition of some Fulton Houses buildings. At the request of the Capital Finance Subcommittee, NYCHA presented a map with other potential locations for new infill housing, including the playground on Ninth Avenue and West 19th Street (see Figures 1 and 3) and sites A through C.2 on the Elliott-Chelsea Houses campus. The first charge of the Capital Finance Subcommittee was to review all sites and to develop acceptable parameters.

Infill development site selection criteria included: • The site requires no residential demolition • Infill sites will not replace open space areas (i.e., basketball courts or playgrounds), except for one location at Fulton Houses11 • To protect light and views from existing apartments, infill sites adjacent to NYCHA buildings would have a 60-foot separation from existing NYCHA windows to new infill windows • A 30-foot separation from existing NYCHA windows to an infill building blank wall would be required • The height of infill buildings would be kept between 22 and 24 stories to be consistent with existing building heights • Parking for existing NYCHA permit holders would be retained and redistributed throughout the campuses Based on these conditions, plus the total square footage of the infill lot to be created, sites were selected, with the given parameters, and the maximum square footage of infill developments was determined.

Figure 1: NYCHA Site Analysis Fulton Site Map

C2 C1

19TH ST 9TH VE 10TH VE

18TH ST

17TH ST

New Mixed Income Residential Buildings

NYCHA Buildings A N NYCHA Lot Boundaries

11That open space will be replaced with an indoor community center located at 429 West 17th Street

Chelsea NYCHA Working Group 25 Site by Site Review

The Capital Finance Subcommittee reviewed each site and came to consensus on sites on the Fulton and Elliott-Chelsea campuses. The infill housing would produce approximately 696 new apartments. The Capital Finance Subcommittee worked with NYCHA and did its own local market research to determine the economics of constructing such buildings, taking into account development, construction, and market rate rents. NYCHA reviewed those suppositions and the Capital Finance Subcommittee built a financial model to incorporate them.

Fulton Infill Sites Sites A, B1, B2, C1, 1, 2, 3, D, E, F, G are in Figure 2. The Capital Finance Subcommittee reviewed each site and came to the consensus that each site would be acceptable to the NYCHA tenants and the community given the footprint, massing, and height.

Based on information from the model, the Capital Finance Subcommittee realized that infill sites were needed on the Elliott-Chelsea campus as well.

Elliott-Chelsea Infill Sites

The Capital Finance Subcommittee reviewed the current site of garbage storage at Elliott on West 26th Street near Ninth Avenue, Site EC1. The same requirements for footprint, building separation, and height that were agreed to by consensus were used for the Elliott campus. After Site EC1 was incorporated into the model, there still remained a shortfall in capital funding.

Figure 2: Working Group Recommended Fulton Site Map

19TH ST

E 9TH VE 10TH VE 3

18TH ST B2 2 Retail Retrofit(1 story)

New Mixed Income B1 Residential Buildings

New Commercial /Community 17TH ST Facilities (1 - 2 Stories) G D Relocated Basketball Court

NYCHA Buildings N A 1 NYCHA Lot Boundaries

26 Chelsea NYCHA Working Group Hudson Guild Site Members of Capital Finance Subcommittee toured the Hudson Guild site, Site EC2, including the adjacent playground, with the President of the Elliott Resident Association, Darlene Waters, and then had follow up discussions with Ken Jockers, Executive Director of Hudson Guild; other Resident Association members; and City Council Speaker Corey Johnson’s staff. With that guidance, the Capital Finance Subcommittee discussed the siting of another residential infill building at the Hudson Guild site, along with the construction of a new Hudson Guild. This site was the most difficult since it required phased construction planning, relocation of a playground, and retrofit of the existing one-story building at the Hudson Guild Children’s Center for commercial purposes.

As an outcome of those site visits and discussions, it was recommended that a new residential building be located on West 27th Street facing Chelsea Park, which would place the building further from the adjacent east and west windows of NYCHA buildings to preserve their light and air. This proposed development would result in moving the Hudson Guild to the entry playground area on West 26th Street. The Hudson Guild replacement building would consolidate all of its West 26th Street programs in a single location within a two-story building to preserve light and air to the adjacent NYCHA buildings on West 26th Street. Sites on Elliott-Chelsea, EC1 and EC2 (Figure 4), could be built and that square footage would produce approximately 236 apartments.

Once consensus was reached on the infill sites, the next discussion centered around the income mix of the residential development sites.

Figure 3: NYCHA Site Analysis Elliott-Chelsea Site Map

CHELSE R

CHELSE DDITION ELLIOTT

.S. 33

A ELLIOTT 10TH VE 9TH VE 26TH ST

ELLIOTT CHELSE

New Mixed Income Residential Building 25TH ST

NYCHA Buildings CHELSE N RECRETION NYCHA Lot Boundaries CENTER

Chelsea NYCHA Working Group 27 Figure 4: Working Group Recommended Elliott-Chelsea Site Map

CHELSE R

CHELSE DDITION ELLIOTT EC1

.S. 33

H I ELLIOTT 10TH VE 9TH VE Retail Retrofit (1 story) 26TH ST

New Mixed Income EC2 Residential Buildings ELLIOTT CHELSE New Community Facility (Hudson Guild, 1-2 stories)

Partial Demolition of Hudson Guild 25TH ST NYCHA Buildings CHELSE N RECRETION NYCHA Lot Boundaries CENTER

Table 2: Proposed Development Summary

Development Units Chelsea 425

Elliott 96

Chelsea 606 Addition

Fulton 944

Affordable 348

Market Rate 348

Total 2,767

28 Chelsea NYCHA Working Group Housing Program & Affordability Background

West Chelsea today is one of the highest income districts in the city, with many high-end condominiums, luxury rentals, and a series of 80/20 Program12 developments. The long-term lower- and middle-income tenants in Chelsea are surrounded by the massive change and gentrification that have come to the neighborhood, which many see as a result of the West Chelsea Rezoning in 2005. Within West Chelsea, the Chelsea NYCHA developments are now an island of affordability in a sea of high-income rental and ownership housing.13 Many members of the Capital Finance Subcommittee, including elected officials and NYCHA residents, voiced concern over introducing market rate apartments on NYCHA land.

For NYCHA residents of Chelsea, this concern was not an abstract fear because residents have friends and family members who have been displaced by the gentrification of Chelsea. The new market rate developments in Chelsea are immediately adjacent to, or across the street from, the NYCHA Chelsea developments. This change has created an extreme disparity in incomes in the neighborhood which was chronicled in the 2015 HBO documentary, Class Divide, featuring many NYCHA residents of Chelsea. Therefore, minimizing the number of market rate units in proposed mixed-income residential infill buildings was important for NYCHA residents of Chelsea. Increased Capital Financing vs. Range of Affordability

The more market rate housing there is in an infill building, the more funding there is for NYCHA capital repairs. Less market rate housing within new infill development runs counter to the goal of generating maximum investment for the Chelsea NYCHA developments’ capital renovations, so the percentage of affordable apartments and the range of incomes to which those apartments would be affordable became the next major discussion.

While more market rate housing on each infill site would generate more funds for Chelsea NYCHA capital repairs, fewer new affordable apartments would be available. Such an approach would create either the 75/25 Program or Mandatory Inclusionary Housing14 programs completed or under construction throughout Chelsea and Manhattan Community District 4. Less market rate housing would have three results: • Less capital financing generated for renovations • More affordable apartments • Affordability at moderate- and middle- income, not low-income ranges

A robust discussion revolved around how to balance these competing needs and concerns.

12The 80/20 Program of the NY State Housing Finance Agency (HFA), now the 75/25 Program, offered tax-exempt financing to multi-family rental developments with 20% of the apartments for very low-income residents 13In Chelsea A Great Wealth Divide, NY Times, October 25, 2015 14Mandatory Inclusionary Housing is a city program that requires sites affected by zoning actions to create permanently affordable housing. Passed in 2016, it has two basic affordability options (25% or 30% of units set aside for affordable housing).

Chelsea NYCHA Working Group 29 Recent Affordable Housing Production in Chelsea As a result of the West Chelsea Rezoning in 2005, Chelsea has seen significant production of affordable apartments, the majority of which serve low-income households.

According to data collected by Manhattan Community Board 4, 1,296 affordable apartments were built in Chelsea between 2008 and 2018 through Inclusionary or other zoning-driven programs. Of those, 992 units, or 76.5%, are for low-income households earning less than 80% AMI, with the majority of those, 835 units, affordable for households earning between 40% and 60% AMI (see Appendix B). The remaining 304 units are for households between 100% and 195% AMI, the majority of those, 249 units or 23.5%, are for households between 100% and 165% AMI. Therefore, while the market serves the highest incomes and Inclusionary Housing predominantly serves incomes below 50% AMI, affordable housing for moderate- and middle-income households are left out of the mix. Discussion and Debate on Range of Apartment Affordability The Capital Finance Subcommittee discussed and reviewed multiple income mix scenarios. Some members requested only affordable apartments with no market rate units. NYCHA offered its original scenarios based on the Mandatory Inclusionary Housing zoning requirements (which would mix 70 or 75% market rate apartments with 30 to 25% affordable apartments). It was noted the Mandatory Inclusionary Housing scenarios would produce the most capital investment for NYCHA, with a smaller number of affordable apartments and with those apartments affordable to lower income households, but more market rate units. Neighborhood economic integration was discussed, noting the side-by- side examples of Penn South as middle-income housing alongside NYCHA’s low-income housing. Questions were raised about how the draft recommendations could balance economic integration at multiple income bands, provide lower affordability bands and still produce the needed financing for the Chelsea NYCHA capital renovation.

This discussion continued throughout the Working Group process because of the complexity of trying to achieve multiple development and housing goals and considerations at the same time. One housing goal was to reach civil servants, teachers, and two-income households who fall in the middle-income range of 120-165% of the AMI (see Table 4 for AMI Income limits), for households of one to five people, making $95,520–$186,605 (Table 5). These are members of the community who cannot compete in the housing market in Chelsea, where market-rate studios start with a rent of $3,200, one-bedrooms at $3,800, and two bedrooms at $5,500/month.

In direct opposition to the above goal, developments with majority market-rate and a lower number of affordable units would raise the most capital funding for the renovation plan. However, some Working Group members were reluctant to support any market-rate housing development within the Chelsea NYCHA developments.

Consequently, the Capital Finance Subcommittee’s initial proposal tried to balance the competing needs by the preservation of 2,071 low-income Chelsea NYCHA apartments for the low-income portion of the capital plan, new income-restricted units would be for middle-income households, and market rate units would comprise the balance. Throughout the discussion, all parties agreed that the proposed plan needed to reach more moderate- and low-income households.

30 Chelsea NYCHA Working Group Table 3: Initial Apartment Income Affordability Bands and Units

Income Bands Percent of Number Total Units of Units Low-Income (Existing) 75% 2,071

Middle Income (New) 12.5% 348

Market Rate (New) 12.5% 348 TOTAL 2,767

Table 4: Initial Affordability Summary

AMI Projected Number of Percent of Bands Rent* Units Total Units

MID 125% $2,979 174 25%

165% $4,131 174 25%

Market Rate Units 348 50%

TOTAL 696 Income Levels: MID - Middle *Projected rent price based on 2 bedroom unit HPD AMI Levels Source: https://www1.nyc.gov/site/hpd/services-and-information/area-median-income.page

Table 5: Initial Middle-Income Apartment Median Income Breakdown

MID Family 125% 165% Size AMI AMI

1 $95,520 $131,340

2 $109,200 $150,150

3 $122,880 $168,960

4 $136,440 $187,605

Income Levels: MID - Middle

Chelsea NYCHA Working Group 31 The Impact of the Coronavirus Pandemic on Housing Finance

The economic impact of COVID-19 created a nationwide decrease in mortgage interest rates.15 The financial model was modified to reflect that decrease, which generated an additional $14.4M in PACT funding for renovations. A further mortgage interest revision in January 2020, generated a further $25.4M from PACT. That change enabled more lower-income units to be incorporated into the income band mix. With that final change, the proposed housing program was modified to include affordable apartments in the income bands listed below.

Summary of Discussion on Range of Affordability

With a deeper and broader range of affordability, reconciliation of the competing needs—creating wider affordability range, minimizing market rate units, and providing sufficient capital financing towards existing NYCHA apartment renovation—was achieved. The consensus on the range of affordability for mixed-income residential infill on the Chelsea NYCHA developments was driven by extremely local conditions and concerns. Chelsea NYCHA developments are adjacent to some of the highest-cost residential housing in the City. That proximity, and its real and perceived effects, informed the debate and the consensus reached.

The income affordability mix for infill projects on other NYCHA campuses in the city should be tailored to neighborhood needs. What makes sense for Chelsea may not make sense for other neighborhoods in the city. The Working Group recommendations, including affordability range and mix, represents the Working Group’s vision for meeting the needs expressed by the residents of the Chelsea NYCHA developments. The Working Group recommends the following affordability bands:

Figure 7: Proposed Market Rate and Affordable Unit Table 6: Revised Apartment Income Breakdown Affordability Bands and Units 2,071 Units Percent Number Income Bands of Total of Units New Construction Mixed- Units Income Infill Housing for Low-Income 75% 2,071 Capital Improvements (Existing) Generates $81M Low-Income To Preserve (New) 4.5% 126 2,071 Units for Low + Very Low Moderate Income 2.5% 70 Income families (New) earning up to $35K-40K Middle Income 348 Units 348 Units 5.5% 152 (New) Middle Income 152 Units Moderate Income Market Rate Market Rate 12.6% 348 70 Units 348 Units (New) Low Income 126 Units TOTAL 2,767 [New Construction] [Existing NYCHA]

15Those lower mortgage rates are market driven, based on current interest trends.

32 Chelsea NYCHA Working Group Table 7: Affordability Summary

AMI Projected Rent* Number of Percent of Bands Units Total Units

VLI 50% $1,110 35 5%

LI 60% $1,366 35 5%

80% $1,878 56 8%

MOD 100% $2,467 70 10%

MID 125% $2,979 70 10%

165% $4,131 82 12%

Market Rate Units 348 50%

TOTAL 696 Income Levels: VLI - Very Low LI - Low MOD - Moderate MID - Middle *Projected rent price based on 2 bedroom unit HPD AMI Levels Source: https://www1.nyc.gov/site/hpd/services-and-information/area-median-income.page

Table 8: Moderate- and Middle-Income Apartment Median Income Breakdown

VLI LI MOD MID Family 50% 60% 80% 100% 125% 165% Size AMI AMI AMI AMI AMI AMI

1 $39,800 $47,760 $63,680 $79,600 $95,520 $131,340

2 $45,500 $54,600 $72,800 $91,000 $109,200 $150,150

3 $51,200 $61,440 $81,920 $102,400 $122,880 $168,960

4 $56,850 $68,220 $90,960 $113,700 $136,440 $187,605

Income Levels: VLI - Very Low LI - Low MOD - Moderate MID - Middle

Chelsea NYCHA Working Group 33 PACT Conversion

The main resident concern about PACT conversion centered around misinformation suggesting that the City and NYCHA sought to sell public housing developments to private owners. Tenants expressed concern about losing City and NYCHA oversight, losing existing rights granted under NYCHA ground leases, and losing existing rights for complaints and grievances.

Presentations on PACT by NYCHA informed the Working Group deliberations. These program terms became the most important considerations in the group’s deliberations: • NYCHA would continue to own the Chelsea NYCHA land and existing buildings, which would be ground leased to a private and nonprofit development team • The terms of the ground lease would protect all tenant rights and tenant engagement requirements as agreed to in the Working Group proposal • Each new residential, commercial, or community facility infill development site would be owned by NYCHA, ground leased to a PACT project team, and have a separate regulatory agreement governing apartment affordability • The Section 9, or Public Housing, Program does not allow a mortgage for capital renovation, while the Section 8 Program allows mortgages; therefore, a development is eligible for significant financing following a PACT conversion • NYCHA would have multiple provisions in the ground lease and other regulatory documents to hold the PACT project team accountable, and enforce the requirements of the PACT conversion and residential infill • If the PACT project team did not perform, NYCHA would be able to terminate their ground lease

The Working Group conducted a comprehensive assessment of PACT, including budget estimates, zoning analyses, and conversations with key stakeholders.

How a PACT Conversion Works

NYCHA issues an RFP for PACT conversion. Project teams (a developer, property manager, general contractor, and social service provider) submit proposals that must be responsive to the RFP. The RFP for the PACT developments would include the following terms: • Development of a renovation plan to meet capital needs, as identified by the Physical Needs Assessment and modified by the Working Group’s proposal, with a detailed timeline for development and construction • A 99-year ground lease from NYCHA that maintains affordability • Conversion of rental subsidies from Section 9 to Section 8 • At least 25% of the Section 8 units would be Tenant Protection Vouchers (TPV), with higher rents and subsidies paid to the project • The higher subsidies from the TPVs would allow the development to carry a larger mortgage to finance the renovation • NYCHA has agreed to seek a waiver from HUD to implement a rent cap for PACT conversion at Chelsea NYCHA developments. A series of performance standards for the completion of renovations, residential infill, and commercial and community facility spaces (if proposed in RFP response)

34 Chelsea NYCHA Working Group After NYCHA and Resident Associations leadership evaluate the RFP responses, NYCHA awards the project to a PACT project team. NYCHA and the selected team will complete the plan which would then be submitted to HUD. After HUD approval, NYCHA closes on the 99-year lease with the PACT project team and the financing is secured. The capital renovations of the existing NYCHA buildings would then begin and new infill construction will also be phased over time.

The entire development process from NYCHA’s release of an RFP to project closing with a PACT project team will take approximately 24-36 months.

Why PACT?

The main discussion focused on why a PACT conversion was needed at all. Over multiple meetings, it became clear that a PACT conversion provided the single largest source of funds to finance the NYCHA Chelsea developments’ capital needs. Of the $366M needed, PACT would provide approximately $263M, or 72% of the total project funds.

However, the Working Group agreed that PACT could proceed only if the NYCHA Chelsea residents maintained and strengthened their current tenant rights and protections, and the PACT conversion must also include a robust and long-term resident engagement process that centers resident experience and priorities.

A PACT conversion should move forward only under the following conditions: • Resident Rights and Protections recommendations must be incorporated into the NYCHA RFP, NYCHA lease, and other regulatory documents • Resident Engagement recommendations must be incorporated into the NYCHA RFP, NYCHA lease, and other regulatory documents • The RFP would preference development teams that include nonprofit partners and/or Minority and Women-Owned Business Enterprises (M/WBEs) developers, and other protected groups

The Working Group recommends that the PACT conversion be an integral part of the solution under those conditions. PACT would generate the largest portion of the capital financing required to meet the Chelsea NYCHA developments’ capital finance needs and to provide renovated, safe, sound, and permanently affordable housing for the NYCHA residents of Chelsea.

Chelsea NYCHA Working Group 35 Principles & Recommendations

The Principles and Recommendations listed below were developed to guide a NYCHA-issued RFP for the above-mentioned scope, setting parameters for the process and means by which the redevelopment would be undertaken. The goals of this endeavor are to meet the NYCHA Capital Needs and to ensure that NYCHA residents of Chelsea play a central role in the planning for, and renovation of, their homes.

These recommendations are interconnected to, and contingent on, the implementation of the Resident Rights & Protections and Resident Engagement recommendations.

Principles

1. No existing residential buildings in the NYCHA Chelsea developments will be demolished. 2. All financing generated in this proposal will be used only in the NYCHA Chelsea developments. 3. NYCHA resident rights must be protected and detailed in NYCHA’s 99-year lease with the PACT project team and in all regulatory documents with complete enforceability. These resident rights must be subject to the recommendations made by the Working Group. 4. NYCHA residents must continue to be engaged consistently and substantively, throughout the development process, by NYCHA and the PACT project team. This engagement must be subject to the recommendations made by the Working Group. 5. Development of residential infill sites must balance maximum capital financing for Chelsea NYCHA development renovations while respecting the NYCHA campus and neighborhood context, in height and bulk. Infill development must balance a range of affordability, with minimum market rate units to keep comprehensive renovations at each development financially feasible. 6. Residential infill developments’ affordable units shall have a 50% community preference. Within the 50% community preference, 50% of those apartments will have NYCHA tenant preference.

36 Chelsea NYCHA Working Group Recommendations

1.0 Development Team • Preference for significant nonprofit (NFP) and M/WBE developer participation, including but not limited to: • NFP participates in all major decisions concerning program and performance • NFP shares equitably in developer fee • NFP participates actively in resident engagement • High preference for nonprofit developers who have experience and/or ties to the Chelsea community.16 • Development team must have experience with local hiring, apprentice programs, and Section 3 hiring, to provide employment for very low- and low-income NYCHA residents. 2.0 Siting and Design Considerations • Activate space by re-configuring or re-locating existing building entrances to ensure safety, and to adjust to new retail spaces.

3.0 Capital Renovations • Must be completed in accordance with the most recent PNA for all four Chelsea NYCHA developments, corrected and revised as Appendix A, and any new inspections conducted through the process • Must also include the installation of individual, per building heating systems, including new distribution piping to and throughout all apartments • Must include upgrades to building systems to ensure optimal utility performance (heating, cooling, water) and indoor air quality • Make apartments accessible and in compliance with ADA Standards for disabled tenants

4.0 Security Improvements During the Chelsea NYCHA Resident Engagement Sessions and Manhattan Community Board 4 Public Forum in December 2020, multiple residents brought forth requests for security improvements, including: • Upgraded or replaced building entry doors • Installation of security cameras in stairwells and on grounds • Replacement of apartment intercoms, with consideration of video intercoms • Replacement of building and entry door keys with an electronic fob system • Consideration of providing space for Police Service Area (PSA) 4 substation on both campuses 5.0 Construction & Renovation Impacts • PACT project team must meet all Department of Buildings requirements for occupied apartment renovation and keep renovation and construction sites safe, clean, and healthy • Infill construction phasing and logistics must be planned to minimize construction impact on NYCHA residents of Chelsea • Renovation and construction logistics planning and communication must be developed in consultation with the Resident Associations

16Being a key member of the Working Group, Joe Restuccia, Executive Director of the Clinton Housing Development Company, has recused himself and his organization from participation on development teams connected to the future redevelopment RFP for the Chelsea NYCHA developments.

Chelsea NYCHA Working Group 37 6.0 Flood Resiliency Subject to the Zoning for Flood Resiliency Text Amendment currently under public review, the project should incorporate, and manage the cost implication of, the following flood mitigation measures: • 0.2% (500-year flood) annual chance flood requirements should apply to the entirety of the Fulton campus and where applicable on the Elliott-Chelsea campus • In order to ensure adequate ground floor building height, and no ‘squashed floors’ (with low ceiling height), the residential entrances will be dry floodproofed for any new construction, • Retail retrofit will be wet floodproofed17 • Community facilities will be dry floodproofed18 • Parking will be wet floodproofed • Additional height is allowed for flood proofing purposes, that additional height allowance flows from the Base Flood Elevation (BFE) • The NYCHA tax lots border on a BFE of 2 to 4 feet. That standard allows 5 ft in additional height. Therefore, the plan should increase the maximum height on the Fulton campus from 220 feet to 225 ft and on the Elliott-Chelsea campus from 240 feet to 245 feet. • There is no need for the flood resiliency Floor Area Ratio (FAR) exemption, since the proposed new infill developments are well under the existing available FAR in the NYCHA campuses. • For the existing buildings, all mechanical and heating systems must be relocated above the first floor. All building entrances on the Fulton campus must be dry floodproofed.19 All elevator or equipment or elevator pits must be dry floodproofed.

17Allows flood waters to enter the enclosed areas. For more, see: https://www.fema.gov/pdf/rebuild/mat/sec6.pdf 18Prevents the entry of flood waters. For more, see: https://www.fema.gov/pdf/rebuild/mat/sec6.pdf 19Dry floodproofing of buildings are not required at the Elliott-Chelsea campus since all building entrances are already elevated.

38 Chelsea NYCHA Working Group Sources Of Capital Financing

The following financing sources were discussed extensively and comprise a viable combination of Capital Financing sources to meet Chelsea NYCHA Capital Needs. Please note, estimated financing amounts are based on the financial model, and are not a final financing plan, but a set of financial parameters. The sources are listed below in order of magnitude:

Modified RAD/PACT Conversion with Private Mortgage Debt (Estimated $263 million) EST. • PACT conversion must be conditional on acceptance of the Resident Rights and $263M Protections recommendations. • Resident Protection provisions must be included in NYCHA Ground Lease and Regulatory Agreements with the PACT project team. NYCHA will pursue HUD waivers if necessary, as described in the Resident Rights and Protections section, to ensure those protections in perpetuity. • Section 8 TPVs must be secured for 25% of the Chelsea NYCHA tenant to ensure the project’s financial viability. • Section 8 TPVs must be secured for the 96 apartments in Chelsea Addition if the development meets the criteria of the Federal Public Housing obsolescence rules, to ensure the overall project’s financial viability. • PACT conversion must be conditional upon acceptance of the Resident Engagement recommendations.

Mixed-Income Residential Infill Construction

EST. (Estimated $81 million) $81M The Working Group considered sites A through C.2 (Figures 1 and 3) proposed by NYCHA on the Fulton campus and proposed two additional sites on the Elliott- Chelsea campus. Each site was carefully considered in relation to the existing NYCHA residential buildings surrounding the proposed site and the current uses (i.e., tenant parking, open space, community facility or maintenance facility). Overall development criteria were developed. Sites were evaluated against that criteria. Six sites were recommended for mixed income residential development— sites A, B.1, B.2, and C.1 in the Fulton campus, sites EC1 and EC2 in the Elliott- Chelsea campus (Figures 2 and 4). The Working Group rejected site C.2 as not being appropriate for development in the Fulton campus. Overall considerations are listed below: a site-by-site evaluation is attached as Appendix C.

Site Considerations • Height and bulk of any new development must fit within neighborhood context. • Maximum Building Heights of 22 floors (or 225 feet) on the Fulton campus and 24 floors (or 245 feet) on the Elliott-Chelsea Campus. • NYCHA Resident parking must be retained at the current number of parking spaces. NYCHA Resident parking will be reconfigured and relocated within each NYCHA campus in Chelsea, and existing tenant parking contracts will be continued.

Chelsea NYCHA Working Group 39 • NYCHA garbage and recycling facilities must be relocated, redistributed, and incorporated into designs of residential or commercial/community facility infill buildings. • Any community open space, playground, or outdoor recreation space that is displaced by new construction must be replaced. • Development on existing open space or playground must replace that community amenity. The first Temporary Certificate of Occupancy for the new mixed-income residential building replacing the open space or playground must be conditioned upon the Temporary Certificate of Occupancy in the new community or recreational facility. • The renovation/replacement of the Hudson Guild building must be phased to ensure minimal disruption of social and community services provided by Hudson Guild.

Retail Retrofit

EST. (Estimated $12 million) • Pursuant to the recommendations of the Fulton Resident Association, six sites $12M (D, E, F, H, I and an infill site between E and F) were identified to be developed as retail retrofit spaces on West 17th Street and between West 18th and 19th Streets. An estimated 19,100 SF of retail retrofits spaces can be created, which would restore ground floor retail continuity between West 16th and West 19th Streets on the west side of Ninth Ave. The basketball court currently located between West 18th Street and West 19th Street would be shifted west to allow for an additional one-story retail infill site of 3,800 SF to connect sites E and F.

Public Financing

EST. (Estimated $8 million) • Public funding is preferable, but public funding sufficient to meet the current $8M serious Chelsea NYCHA development capital needs of $366 million is not available at the Federal, State, or City government level at this time. • Federal-level funding has dramatically been reduced over past decades. State capital funding is minimal compared to the capital need at the Chelsea NYCHA developments. While the City has recently included $2.2 billion from 2019 to 2029 in its budget for NYCHA, that amount is for the entire city. Any allocation would not meet the total need at the Chelsea NYCHA developments. • If and when there is a change in government budget capacity for NYCHA, the Sources for Capital Financing can be modified to substitute public financing in place of another element. • The current City Council Capital Budget allocation for Chelsea NYCHA developments of $7,553,750 is included in the Capital Finance Subcommittee financial model.20

20City Council funding has certain restrictions that impact when and how that funding can be used. Developer respondents to the Chelsea NYCHA RFP should perform their own analysis to determine whether this funding should be relied upon.

40 Chelsea NYCHA Working Group Ground Floor Retail and Community Facility Developments

EST. (Estimated $5 million) • A plan for ground floor reuse at four sites (1, 2, and 3, G), for an estimated total $5M of 38,618 SF, was developed to include not only renovation of spaces along Ninth Avenue for commercial use, but also construction of one- to two-story infill commercial or community facility buildings on parking lots on West 16th Street and on both sides of West 18th Street (Figure 2), which was extended to one site on the Elliott-Chelsea campus. • Under the current R8 zoning, community facilities are as-of-right while midblock retail / office developments would require a zoning change.

West Chelsea Affordable Housing Fund (WCAHF)

EST. (Estimated $734,000) • The WCAHF has $1,733,500 committed by developers. With $1M of that $734K commitment allocated for another City project, the remaining committed funds of $733,500 should be used for the Chelsea NYCHA developments’ capital needs, if available.

Additional Contingency

EST. (Estimated $3 million) • The plan also contains an additional $3 million in contingency to cover funding $3M unforeseen capital improvement needs that may be discovered during the course of construction.

Table 9: Estimated Sources of Capital Funding Against 5-Year Capital Need

$400 $3M Contingency

$350

$81M $1M $300 Residential Infill West Chelsea Affordable Housing Fund* West Chelsea Affordable Housing Fund $250 $5M Office/ Community Office + Community $366M Facility Infill Estimated Facility Infill $200 Capital $8M Need City Council City Council Capital Capital Allocation Allocation $150 $12M Retrofit and Retail Retrofit

Capital Need/Funding [millions] Need/Funding Capital $263M Lease RAD $100 Mixed-Income Residential Infill $50 RAD

$0 *Subject to availability

Chelsea NYCHA Working Group 41 Mechanisms Discussed, but Not Included

Transfer of Development Rights (TDR) and Resident Management Corporations (RMCs) were discussed extensively in multiple meetings. The Capital Finance Subcommittee reached consensus that neither mechanism could provide timely and adequate funding to address the capital needs of the Chelsea NYCHA developments. The Working Group recommends that since the TDR process is market-driven and dependent upon development sites in West Chelsea developed over a period of time, it cannot provide immediate funding for capital needs. However, TDR should be used to create an ongoing Capital Reserve Fund for the Chelsea NYCHA developments after the major proposed renovations

42 Chelsea NYCHA Working Group Chelsea NYCHA Working Group 43 44 Chelsea NYCHA Working Group Resident Rights and Protections

The Chelsea Working Group Resident Rights and Protections Subcommittee was charged with reviewing the differences between the NYCHA Public Housing (Section 9) and NYCHA PACT (Section 8) programs and ensuring both current and future residents have their rights as tenants protected and expanded should a PACT conversion take place. Residents shared with the Working Group that, due to longstanding concerns about the management of public housing, there is deep mistrust of NYCHA. This is reflected in resident concerns about their ability to stay in their homes without seeing increases in rent or threats of eviction. Furthermore, many residents experienced fear and confusion about what a PACT conversion would mean for them. From January to March 2020 and September to December 2020, the Resident Rights and Protections Subcommittee performed a detailed review of leasing and contract documents, consulted experts in New York housing law and NYCHA policy, researched responses to resident concerns, and created the following recommendations to protect and expand resident rights before, during, and after a PACT conversion.

Chelsea NYCHA Working Group 45 Background

General Overview of Existing Protections for PACT Conversions When the RAD program was first created, HUD codified the rights of residents in developments undergoing a RAD conversion, which carry through to all PACT conversions as well. For example, during a RAD conversion, residents have the right to remain in their homes, with no re-screening for income eligibility or criminal background checks. In 2016, Enterprise Community Partners, a nonprofit that is focused on the preservation and development of affordable housing, in partnership with NYCHA, convened the RAD Roundtable, a group of resident leaders and housing advocates, to further ensure resident rights were protected as NYCHA converted properties through RAD. The RAD Roundtable issued a document with Guiding Principles that NYCHA committed to follow in its conversions. NYCHA has also committed to expanding both RAD tenant protections and the RAD Roundtable Guidelines to its PACT conversions.

The following are key existing resident protections from the RAD Roundtable Guidelines:

Notice of a RAD Conversion: Residents and Resident Associations (RAs) will have notice that their development is under consideration for a RAD conversion. NYCHA will begin outreach and education with residents while HUD considers NYCHA applications to ensure residents can learn about RAD in advance of HUD approval of developments.

Rent: Residents will continue paying no more than 30% of adjusted gross household income towards the rent. Households that pay a flat rent (less than 30%) prior to conversion will experience a rent increase, to be phased in over a five-year period.

Grievances and Lease Terminations: NYCHA will develop a set of procedures for resident grievances and lease termination proceedings that will take effect upon conversion. The procedures will be uniform for each converted development and must be implemented by each property manager.

Succession Rights: After a conversion, current residents will continue to have the same Public Housing succession rights, and new residents will have Section 8 succession rights.

Right to Organize: Residents will continue to have the right to form a resident organization, which the property manager must recognize. If one does not exist before a RAD conversion, the property manager is required to support resident efforts to create one.

Resident Participation Funding: Resident organizations will continue to decide how to use their portion of Tenant Participation Activity (TPA) Funds.

46 Chelsea NYCHA Working Group Guiding Principles

The Working Group aimed to create recommendations that would ensure residents have the same or greater protections after a PACT conversion as they do under the Public Housing program. There are four guiding principles that drove the Working Group’s review: • Rent & Fees: Ensure residents do not see higher rents or non-rent charges as a result of a PACT conversion. • Legal Protections: Ensure residents have greater, or at minimum the same, legal rights to stay in their homes, and protection against eviction or loss of subsidy. • Tenant Placement & Selection: Ensure residents have better, or at least similar, rules when it comes to succession rights, apartment size, entering the development, or requesting to move. • Development Rules: Ensure that residents have a meaningful and enforceable right to participate in decisions made about the development and an opportunity to challenge decisions they oppose.

Section 1: Rent and Fees Ensure residents do not see higher rents or non-rent charges as a result of a conversion.

Recommendations

1.1 NYCHA should seek to implement a rent cap, set at the contract rent, for all units converting through the PACT program to prevent higher-income residents from paying above market rents and to reduce the risk of displacement. Currently, under HUD’s rules for PACT-converting households, the tenant’s share of the rent would be 30% of a household’s adjusted gross income. There is not an upper limit on the actual dollar amount a tenant can be asked to pay—similar to a “flat-rent”—which means that while the rent will be limited to 30% of a household’s adjusted gross income, the amount tenants pay may be higher than market rents in the area. If, at the time of conversion, the tenant was not paying 30% of adjusted gross household income, the rent increase would be phased in over five years.

Chelsea NYCHA Working Group 47 The Working Group heard from many residents, particularly those with multiple working household members, who were concerned that without a rent cap they would end up paying above market rents and be priced out of their homes, constructively evicting them. While capping rent at 30% of a tenant’s income ensures no tenant will become “rent burdened,” preventing residents from reaching an upper limit on their rent also inhibits them from building the intergenerational wealth that is a key to building economic security and exiting a cycle of poverty.

To implement a rent cap, NYCHA would require approval from HUD. In the past, NYCHA has sought HUD’s approval to institute a rent cap on other PACT conversions without success. However, those projects were distinct from any proposed PACT conversion at Chelsea; therefore, the Working Group recommends NYCHA seek permission to implement a rent cap for PACT conversion at Chelsea. The Working Group recommends it be set at no higher than the “contract rent,” which is the total amount of rent NYCHA or a private landlord can receive from HUD for a Section 8 unit. Alternatively, if HUD is not willing to grant permission, the Working Group also recommends NYCHA require any rent collected above the contract rent amount remain within the development and ensure it is used in a way that does not provide a PACT partner additional revenue.

1.2 Ensure no fees or other non-rent charges are higher than those for Public Housing. This includes late fees or fees for appliances like air conditioners or washing machines, pets, parking, or tenant damage to the apartment. Under Public Housing and PACT, there are no late fees, and no fee or charge can be considered “added rent.”

The Working Group recommends that no fee or charge exceed the limits set by NYCHA, and these limits should be included in binding documents between the developer and NYCHA.

1.3 Notification, comment, and approval on submetering. Utility responsibility currently does not change as the result of a PACT conversion, i.e., if utilities are included in the resident’s rent under the Public Housing program, the utilities will still be included in the resident’s rent after PACT conversion. After PACT conversion, a property manager may seek to employ energy- and water- conservation strategies, such as installing sub-meters and shifting responsibility of utilities to tenants, if NYCHA consents. Should this occur, NYCHA must provide residents with a utility allowance deduction, which would be applied when a tenant’s rent is being calculated. NYCHA performs a HUD-mandated annual review of electricity, heat, and hot water consumption rates to establish a Section 8 utility allowance schedule.

If a new property management team is seeking to move to submetering under a conversion, the Working Group recommends:

1. Tenants be notified in advance of decision; 2. NYCHA elect to establish a site-specific utility allowance; 3. Tenants have opportunity for public comment / feedback in advance of decision; and 4. NYCHA approves the final decision.

48 Chelsea NYCHA Working Group Existing Protections Residents raised concerns about the following areas, and after the Working Group reviewed them, it determined no change was needed to strengthen existing protections

1.4 Transfer fees already paid. During a PACT conversion, any security deposit and/or pet fees that a household already paid to NYCHA will be transferred to the new PACT property manager, and the household will not have to pay anything additional even if, for example, the original security deposit paid at the time of move-in is less than the current share of the rent. After a PACT conversion, any household newly entering the development will be required to pay a security deposit limited to one month of the tenant’s portion of the rent.

With the understanding that residents of developments undergoing PACT conversions will not have to pay any pet and/or security deposit fees they have already paid to NYCHA, the Working Group has no recommendation.

Section 2: Legal Protections Ensure residents have greater, or at minimum the same, legal rights to stay in their homes, and protection against eviction or loss of subsidy.

Recommendations

2.1 Extend protections under the Tyson-Randolph consent decree to PACT residents. Under Public Housing, NYCHA, as landlord, may terminate a tenancy for “good cause” using an administrative hearing process. Grounds for termination include misrepresentation of income; chronic rent delinquency; unauthorized occupants; and criminal activity on or off development grounds. A tenant is entitled to a hearing before an impartial hearing officer at NYCHA’s hearing office currently located at 803 Atlantic Avenue, Brooklyn, New York. If the tenancy is terminated as a result of the administrative hearing process, a tenant may appeal the decision in an Article 78 proceeding in the New York State Supreme Court. If terminated, NYCHA must commence a holdover proceeding in Housing Court in order to secure a possessory judgment and warrant of eviction. In most holdover cases, NYCHA secures a termination of tenancy at the administrative hearing level, and issues at the administrative hearing level cannot be heard in Housing Court and are binding on a Housing Court judge.

Under the Tyson-Randolph federal consent decree that currently governs NYCHA, in termination of tenancy administrative hearings involving Non-Desirability charges, if the tenant of record can show that, at the time of the administrative hearing, the alleged “offending” household member is no longer part of the household, NYCHA cannot terminate the tenancy. NYCHA is limited to issuing a probationary order and/or an order of Permanent Exclusion in these cases.

As with Public Housing, under the PACT lease, the new property manager may only evict a tenant for “good cause” such as nuisance, criminal activity, and harboring a pet in violation

Chelsea NYCHA Working Group 49 of a no-pet clause. Under PACT, these cases are brought in Housing Court—not in NYCHA’s administrative hearing process—and decisions issued by a Housing Court judge are appealed to the State Appellate courts.

Under PACT, NYCHA may move to terminate a resident’s Section 8 subsidy for “good cause” including failure to submit required documentation, misrepresentation of income, and criminal activity in the unit. Tenants are entitled to notice and a hearing before an impartial hearing officer under theWilliams Consent Decree. If terminated, a tenant can appeal the decision in an Article 78 proceeding in State Supreme Court.

The Working Group understands that PACT residents have stronger protections against eviction or loss of subsidy in most cases. To further protect residents, the Working Group recommends PACT tenants receive protection under the Tyson-Randolph consent decree post-PACT conversion.

2.2 NYCHA should clarify the tailored grievance procedures for PACT conversions. Under Public Housing, a tenant can commence a grievance against NYCHA for tenancy issues, including rent, adding household members, and reasonable accommodation requests. Initial steps in the grievance process are heard by NYCHA property management staff. If necessary, a tenant may present their grievance before an impartial hearing officer at NYCHA’s Administrative Hearing Office currently located at 803 Atlantic Avenue, Brooklyn, New York.

After a PACT conversion, tenant grievances related to their Section 8 subsidy, such as the amount of rent they pay or reasonable accommodation requests related to the Section 8 subsidy, are heard by NYCHA. All other grievances will be heard by the PACT property manager.

The Working Group recommends NYCHA clarify the grievance procedures for PACT residents, including which issues can be grieved, with what procedure each issue can be grieved, and where each issue can be grieved.

2.3 NYCHA should notify residents of lease changes, so they have an opportunity to comment prior to NYCHA issuing approval. The PACT lease currently states:

“Schedules of added charges for services, equipment, repairs and utilities, rules and regulations, policies, House Rules and all items specifically herein required to be posted shall be publicly posted in a conspicuous manner in the Management Office and in a prominent location in each building and shall be furnished to the Tenant on request. Such schedules, policies, rules and regulations may be modified from time to time by the Owner and/or Managing Agent, provided that the Owner and/ or Managing Agent shall give at least 30 days’ prior written notice to the Tenant. Such notice shall set forth the proposed modification and the reason therefor and shall provide the Tenant an opportunity to present written comments which shall be taken into consideration by the Owner and/or Managing Agent prior to the proposed modification becoming effective.” [emphasis added]

1Approved PACT Lease (as of 8/6/2020) https://www1.nyc.gov/assets/nycha/downloads/pdf/NYCHA%20PACT%20 Resident%20Lease_English.pdf

50 Chelsea NYCHA Working Group The Working Group recommends this language be updated to make clear that:

1. Residents will be notified of any lease changes; 2. Residents will have the opportunity to comment on any lease changes prior to NYCHA approval; and 3. Only lease changes that have been approved by NYCHA must be accepted within 30 days.

2.4 Support residents to access their rights by ensuring assistance is available. Residents raised that while they can file for interim recertifications if their income changes or to add or remove members of their households, their ability to do so in public housing was often limited by the lack of trained staff to assist them in filling out the appropriate forms. After a PACT conversion, NYCHA will still process all income eligibility forms, including annual and interim recertifications.

To ensure that residents can access all of their legal rights during and after a PACT conversion, including receiving timely assistance with submitting required tenant forms to NYCHA, the Working Group recommends NYCHA set minimum staffing levels for PACT project partners. This may require additional trained staff to be provided on-site. Furthermore, the Working Group recommends NYCHA and the PACT project partners provide residents with clear guidance stating their right to request documents and notices in their preferred language and their ability to specify their household’s preferred method of communication.

2.5 Automatic termination of permanent exclusions, tenant notification of the termination process, and admission of excluded individuals who meet Section 8 eligibility criteria. Federal law requires Public Housing Authorities, like NYCHA, to ensure that no tenant, member of the tenant’s household, or guest engages in: (1) criminal activity that threatens the health, safety or right to peaceful enjoyment of the premises by other residents, or (2) drug- related criminal activity on or off the premises. Permanent exclusion was created to preserve the tenancy of a public housing household that might otherwise be evicted for such activities and requires that the offending individual not live in, visit, or return to the household.

Under PACT, households can apply to add previously excluded tenants to the lease, and if the excluded tenant meets the Section 8 standards for admission, they are added to the household.

The Working Group recommends NYCHA go further to ensure permanent exclusion is not a barrier to accessing PACT housing by making the following changes:

1. Any order of permanent exclusion that exists on a current tenancy should be automatically lifted when a development converts through PACT, and 2. NYCHA should notify all residents of this change by email/mail.

Chelsea NYCHA Working Group 51 Completed Recommendations Over the course of the Working Group, NYCHA made updates to its PACT lease that incorporated some of the committee’s draft recommendations, including:

2.6 Removal of the “As-is” condition clause from the lease. The PACT lease previously stated, “Tenant accepts the apartment in the condition it is in as of the date of the Lease as set forth above.” The Working Group found this clause did not reflect the goal of a PACT conversion, which is to dramatically change the condition of the apartments.

The Working Group appreciates that NYCHA has removed this clause from the lease.

2.7 Alignment of the Objectionable Conduct Standard to NYC Law. Previously, the PACT lease included a provision that required residents to refrain from playing music that disturbs other residents, but violation of this provision was unlikely to result in legal action.

The Working Group appreciates that NYCHA has removed this clause, which the Working Group believed to be unenforceable, from the lease.

2.8 Limit Form Requirements. Previously, the PACT lease stated, “Tenant agrees to complete any and all forms that may be requested by Owner from time to time.”

The Working Group appreciates that NYCHA has agreed to limit required forms to those relevant to subsidy or financing and forms mandated by law.

Existing Protections Residents raised concerns about the following areas, and after the Working Group reviewed them, it determined no change was needed to strengthen existing protections.

2.9 Maintaining tenant rights should an eviction take place. Under NYCHA Public Housing, NYCHA is able to bring accusations against a tenant for violations that will result in the loss of their subsidy before an administrative law judge. These proceedings have a lower standard of evidence than those brought directly to Housing Court and more often result in the eviction of a resident.

Under PACT, the landlord must bring eviction cases directly to Housing Court. As landlords, both NYCHA and PACT project partners must share timeline and notice requirements with tenants before eviction cases, including non-payment cases, can be brought against a tenant.

Given that the eviction timeline under PACT remains consistent with NYCHA and other housing and given that PACT partners must bring cases directly to Housing Court, which will likely result in fewer evictions for minor violations, the Working Group has no additional recommendation on this area.

52 Chelsea NYCHA Working Group 2.10 Ensuring tenants have safe, livable conditions, with respect to mold, lead and asbestos. The Working Group understands that NYCHA is responsible for all open work orders prior to a conversion, and that if NYCHA does not complete those work orders before conversion, they are transferred to the PACT developer to address. Furthermore, the Working Group understands that the comprehensive scope of repairs will address the root and underlying causes of mold covered by the Baez Consent Decree, the presence of lead recognized in the 2019 HUD Agreement, and the presence of asbestos. In particular:

• Mold: NYCHA requires all PACT developers to adhere to the most current guidance for moisture control and mold growth prevention for PACT developments. When a development converts through PACT, the development will undergo a comprehensive scope of repairs (including upgraded plumbing and heating systems, bathrooms, kitchens, roofs, facades, and other capital improvements), which addresses the root and underlying causes that can result in mold.

• Lead: PACT developers are also required to abate all lead-based paint during construction.

• Asbestos: All Asbestos Containing Material (ACM) must be addressed in accordance with New York City Department of Environmental Protection, New York State Department of Labor, and U. S. Environmental Protection Agency guidelines, but does not have to be removed if the site is found to be asbestos free, or the amount of ACM found is intact, in good condition and will not be disturbed by any potential work. If the ACM is not removed, proper maintenance and control measures to keep it intact must be provided by the PACT developer.

The Working Group also understands that residents have more, and better, avenues for legally compelling repairs and receiving regular inspections for substandard housing conditions after a PACT conversion.

With the understanding that NYCHA transfers all uncompleted repair requests to the new PACT project partners to address outstanding issues as it takes stock of the condition of the buildings and units for the larger rehabilitation and that residents are not required to resubmit an outstanding repair request to the new PACT management team, the Working Group has no recommendation in this area.

2.11 Owners Inability to Provide Service. Currently, the PACT lease states, “If Owner is unable to provide certain services as a result of circumstances which are not the fault of Owner, Tenant’s obligations under this Lease, including the obligation to pay rent, shall remain in effect, except as otherwise permitted by law.”

The Working Group understands that the clause “except as otherwise permitted by law” adequately protects the ability for tenants to legally withhold rent when allowed under New York State and New York City housing laws; therefore, the Working Group does not have an additional recommendation on this area.

Chelsea NYCHA Working Group 53 Section 3: Tenant Placement + Selection Ensure residents have better, or at least similar, rules when it comes to succession rights, apartment size, entering the development or requesting to move, rights to stay in their homes, and protection against eviction or loss of subsidy.

Recommendations

3.1 Guarantee seniors can choose between a studio or 1-bedroom should there be a change in the development. Under Public Housing, seniors who are requesting to transfer to a senior development have the option to choose between studios or one-bedroom units, but their choices are often limited by available apartments.

The Working Group recommends that if a single, senior resident is forced to move because of a change to the development, they should be able to choose between a studio or 1-bedroom, without their choice being limited by availability.

3.2 Limit additional credit and background checks. During a conversion from Public Housing to PACT, current household members that are on the lease are not rescreened. After a PACT conversion, HUD mandates that NYCHA screen new households entering the development using a criminal background check; a sex offender check; and confirmation of no Public Housing Authority debt. Currently, PACT project partners have the ability to further screen for “tenant suitability,” including checking credit history or requesting evidence of 12 months of on-time rental payments.

The Working Group recommends that all PACT project teams be prohibited from doing any “tenant suitability” screenings beyond that which NYCHA completes, and this requirement should be memorialized in the RFP and leasing documents, to better align total PACT screening requirements with those of Public Housing.

3.3 Provide Temporary Relocation Agreements. Residents have a federally protected legal right to return to their units should they have to temporarily move because of construction or repairs. Although most work is expected to be completed with residents in place, should a health condition or other situation necessitate a household temporarily relocate, renovated vacant units within the developments, called “hospitality suites” by NYCHA, are used for the temporary living space.

The Working Group recommends that relocating residents receive a Temporary Relocation Agreement, which is a binding guarantee of resident rights and protections signed by NYCHA and each relocating household. In addition to specifying residents’ rights, the Temporary Relocation Agreement could include the process for temporary relocation, the benefits and assistance available for relocation, and the roles of all parties involved in the relocation. The Working Group also recommends that residents be provided temporary living space as close to their apartment as possible.

54 Chelsea NYCHA Working Group 3.4 Ensure tenants’ right to move. After a PACT conversion, residents will no longer be able to transfer to or from other public housing developments. The Working Group understands that any resident with a pending Public Housing transfer will receive a notice cancelling the Public Housing transfer and information on how to request a transfer once the property has converted to project-based Section 8. Additionally, one year after a PACT conversion, income qualifying residents will have the option to request a Choice Mobility Voucher (sometimes known as a “portable voucher”) to move within or outside of New York City to any jurisdiction nationwide that has a tenant-based Section 8 program, limited by the availability of the vouchers.

If a household is under-occupied or over-occupied, they do not need to request a transfer within the development. Instead, NYCHA will maintain a list of the units that are over- occupied and under-occupied. Once the development fully converts, or earlier if possible, NYCHA will share the list with the PACT property management team to begin rightsizing units based on availability and starting with the most extreme cases of under-occupied and over-occupied households. After this initial rightsizing takes place, NYCHA’s Section 8 program will establish a site-based waitlist for new admission households to move into the development. Current residents will continue to maintain priority for internal transfers to appropriately-sized units, as part of the right-sizing process, and will maintain their place in the transfer priority ranking based on the length of time they have been waiting.

The Working Group understands that conversion to PACT may provide stronger protections for residents who are experiencing domestic violence, who are intimidated victims or witnesses, who face life threatening Housing Quality Standards (HQS) violations, or who have reasonable accommodation needs. Once they submit a Section 8 transfer request and identify these reasons as the reason for the transfer, they will be considered an emergency transfer and will receive a tenant-based “portable” Section 8 transfer voucher, as long as there is available funding.

Should residents require assistance moving to a rightsized apartment, the PACT Social Service Provider can help them access moving resources available through the Human Resources Administration (HRA) or elsewhere, although the Working Group understands that seeking this assistance may be a burden. PACT partners in previous conversions have not typically paid for moving costs unless a tenant is being temporarily relocated due to renovations.

The Working Group recommends that when a household is obligated to right-size, the developer should provide upfront funding for moving expenses alongside any assistance provided through HRA. Residents should also be provided assistance through the PACT Social Service Provider to navigate HRA’s application process.

Chelsea NYCHA Working Group 55 Completed Recommendations Over the course of the Working Group, NYCHA made updates to its PACT lease that incorporated some of the committee’s draft recommendations, including:

3.5 Aligning Public Housing and Section 8 Succession Rights for future tenants. Under PACT, current residents keep their Public Housing succession rights and future residents have Section 8 succession rights. NYCHA is currently rewriting its policies to align the Section 8 succession rights with those of Public Housing, so there will be no difference for current and future residents.

With the understanding that Section 8 succession rights will align with those of Section 9 for current and future tenants, the Working Group has no additional recommendation on this area.

3.6 Allowing Public Housing and Section 8 Housing Choice Voucher applicants to join PACT waitlists. The Public Housing waitlist is significantly larger than the NYCHA Section 8 waitlist, which closed to new applicants in 2009, and individuals on the Public Housing waitlist are not eligible for placement at developments once they convert through PACT. However, last year, NYCHA updated its Self-Service Portal to protect long-waiting applicants from losing their “spot” in line as properties convert from one program to another. Applicants on the Public Housing and Section 8 waitlists can now opt into PACT-development waiting lists through the same portal, and use their original application date to maintain their order on the waitlist. For example, if an applicant is currently on the Public Housing waitlist, they can opt into site-specific Section 8 Project-Based Voucher (PBV) waitlists for PACT-converted properties, and their application date will be based on the day they originally applied for Public Housing. The same standards apply for those on the Section 8 Housing Choice Voucher waitlist who want to opt into any and/or all Section 8 site-specific PBV waitlists and maintain their application date from when they originally applied for a Housing Choice Voucher.

With the understanding that the process to fill vacancies largely mirrors the process for Public Housing, and individuals have the ability to opt into both Public Housing and Section 8 waitlists, the Working Group has no additional recommendation on this area.

Existing Protections Residents raised concerns about the following areas, and after the Working Group reviewed them, it determined no change was needed to strengthen existing protections.

3.7 Ensure Occupancy Standards are not more restrictive than current Public Housing standards. Under Public Housing, residents can add caregivers and foster children as temporary members of their household who are ineligible for succession rights; however, public housing residents cannot add household members who would cause their unit to become “overcrowded.” Under PACT, new and current residents are still able to add caregivers and foster children as temporary members of their household who are ineligible for succession rights, but new residents can add family members to the lease, even if doing so would make the unit “overcrowded,” and these overcrowded households are not required to right-size until a unit becomes available.

56 Chelsea NYCHA Working Group Given that occupancy standards are the same, and even better in some cases, after a PACT conversion, the Working Group has no additional recommendation on this area.

Section 4: Development Rules Ensure that residents have a meaningful and enforceable right to participate in decisions made about the development and an opportunity to challenge decisions they oppose.

Recommendations

4.1 Engage residents in shaping House Rules during and after a PACT conversion. House Rules set expectations and responsibilities for tenants. Under Public Housing, House Rules are included in a resident’s lease agreement with NYCHA. Under PACT, House Rules are not part of the lease, significantly reducing the ability to use violations of the House Rules as grounds for eviction. The Working Group considered the potential of House Rules to curb unwanted behavior, as well as to be overly restrictive or punitive, and think it is important that residents are consulted to develop fair and balanced House Rules based on individual development needs.

The Working Group recommends that: 1. When tenant engagement on House Rules begins, PACT project teams should use NYCHA’s House Rules as the proposed House Rules and tenants can negotiate further based on their development’s specific needs. 2. If PACT project teams propose any changes to NYCHA’s House Rules through this process, tenants should be a key part of the process, and any changes should be subject to NYCHA’s final approval. 3. Tenants should similarly have an opportunity to shape and comment on any rule changes in the future, and any future changes should be subject to NYCHA approval only after residents have had an opportunity to provide comments and feedback.

4.2 Respect tenant apartment improvements, and provide for appliances going forward. Under Public Housing, residents cannot install appliances or perform alterations without NYCHA’s prior written permission, including washing machines, freezers, painting or replacing fixtures. Under PACT, the ability to perform apartment alterations depends on the House Rules.

The Working Group recommends NYCHA proactively assist tenants in registering apartment improvements and grandfathers any safe and legal alterations, including providing written retroactive approvals, to the greatest extent possible, in advance of a PACT conversion. Furthermore, tenants should also have a meaningful opportunity to help shape rules governing appliances and improvements moving forward.

Chelsea NYCHA Working Group 57 1. For air conditioners, residents should be allowed at least one per room if it does not interfere with fire or safety codes, and any PACT project partner should be encouraged to explore the possibility of central air. 2. For laundry services, any PACT project partner should be encouraged to explore the possibility of affordable/at cost on-site laundry facilities, in-unit washer-dryer combos, or allowing tenants to install new washers going forward, beyond grandfathered, properly installed and registered washers.

4.3 Ensure any pet policy is not more restrictive than NYCHA’s current Public Housing policy. Under PACT, pets registered with NYCHA prior to conversion have the “right to stay” with the household after conversion, and new tenants admitted after conversion must comply with property management’s rules for pets in their Section 8 lease. Residents in the Working Group expressed both a desire for more enforcement of the current pet policy and more permissive pet policies.

The Working Group recommends that at a minimum, any pet policy is not more restrictive than NYCHA’s current policy and that a developer consult with residents before setting reasonable pet limitations. Furthermore, any fees for new pets after conversion should not exceed NYCHA’s Public Housing pet fees.

4.4 Engage residents of Senior Buildings regarding any changes to the Senior Building status. Federal rules prohibit PACT from having a senior-only designation like public housing developments often have. In order to maintain an elderly occupancy, NYCHA can provide a preference to households with a head of household or spouse who is an elderly member (age 62+) but cannot deny admission to a non-elderly household that comes to the top of the waiting list. Removing the senior designation from the Chelsea Addition building could allow adult children to move in with their parents and to be added to the lease, which is currently prohibited. This change could also lead to a longer-term demographic change in the building.

The Working Group recommends the residents of any senior building are robustly engaged on any decisions related to the senior building’s status. To the extent that residents want a senior-only designation, NYCHA should pursue all options to create this designation, including seeking a waiver from HUD, if necessary.

4.5 Ensure full Tenant Participation Activity (TPA) Funds are provided to Resident Associations. Under PACT, any current TPA funds held by NYCHA, on behalf of a Resident Association, will be carried forward, and Resident Associations will continue to receive the same amount of funding as they receive under Public Housing.

The Working Group recommends that the full value of the TPA funds be passed to the resident organization for its use and that no portion of the TPA funds be retained by a PACT project partner.

58 Chelsea NYCHA Working Group 4.6 Ensure residents have safe homes and developments. Residents expressed deep concern regarding safety and security within the developments. Some physical safety measures, including security cameras, better lighting, and electronic locks, are addressed in other areas of the report. These recommendations are just a starting point, and further resident engagement, outlined in the following section, is required to identify the specific security recommendations.

Given the impact of policing on residents’ lives, the Working Group recommends that NYCHA consult residents on whether they would prefer a PSA 4 substation to be placed in Chelsea or whether the developments should be covered by the 10th Precinct. The Working Group also recommends the PACT partners work collaboratively with the New York City Police Department to address drug selling on the property. Additionally, the Working Group recommends the PACT partners implement and enforce identification standards for on-site personnel, including all contractors and tradespeople that provide repairs.

Existing Protections Residents raised concerns about the following areas, and after the Working Group reviewed them, it determined no change was needed to strengthen existing protections.

4.7 Process for complaining about Housing Conditions. Under Public Housing, residents can call NYCHA’s Customer Contact Center (CCC) to complain about housing conditions. Under PACT, residents can call 311, in addition to the CCC, to log complaints regarding housing conditions. Under PACT, any 311 complaints will be directed to the Department of Housing Preservation and Development (HPD), and any CCC complaints will result in the scheduling of an HQS inspection if the tenant requests it.

The Working Group has reviewed this issue and because tenants have more avenues for making complaints about housing conditions under PACT, does not have a recommendation.

Chelsea NYCHA Working Group 59 60 Chelsea NYCHA Working Group Resident Engagement

The Resident Engagement Subcommittee focused on two main tasks: to provide support and guidance to Hester Street in engaging residents in the Working Group process itself and to lay out recommendations to ensure meaningful, consistent, continuous, and documented resident engagement for the PACT conversion and renovation process.

The Resident Engagement Subcommittee membership skewed toward residents of the NYCHA Chelsea developments, with elected officials and NYCHA also represented. Miguel Acevedo, President of Fulton Resident Association, and Chris Nickell, Deputy Chief of Staff for State Senator Robert Jackson, co-chaired the Subcommittee. Meetings regularly included 15–20 members.

In addition to the Working Group engagement described elsewhere in this report, the Subcommittee arranged for special briefing sessions to be held for Elliott-Chelsea Houses residents, who had not been given as many opportunities to understand the PACT program as their neighbors in Fulton. The Resident Engagement Subcommittee also held a briefing to Mandarin- and Cantonese-speaking residents in Elliott-Chelsea Houses.

The below recommendations lay out the Resident Engagement Subcommittee’s vision for giving residents real decision-making power in the renovation of their homes. After the guiding principles, the recommendations are organized by stage of renovation, from development of the RFP to the post- renovation move-in and beyond.

Chelsea NYCHA Working Group 61 Guiding Principles

These guiding principles apply to engagement during all aspects of the renovation process and beyond. The Resident Engagement Subcommittee crafted these principles to provide a baseline for informing and consulting residents that is higher than what currently exists within NYCHA as a whole and the buildings that have undergone PACT conversions in particular. These guiding principles carry forward the fundamental value of self-determination for residents of Public Housing. • The Elliott-Chelsea and Fulton Houses Resident Associations (collectively the “RAs”) should collaborate to guide NYCHA on the complete renovation of the four Chelsea NYCHA Developments. • The RAs should invite community board representatives, local community- based organizations, and other key stakeholders to participate in milestone meetings and to share their expertise. • The RAs and NYCHA should establish communication goals and identify issues that require campus/neighborhood-wide meetings at key milestones in the renovation process. • Informed by the public engagement during the Working Group process, the RAs and NYCHA, in collaboration with a third-party facilitator, should organize a transition process to ensure the RAs and NYCHA are well positioned to jointly carry out a pre-development engagement process that aims to affirm the required, preferred, and negotiable RFP and project deliverables of Chelsea NYCHA residents. • The RAs and NYCHA should work collaboratively to identify key communication protocols and transparency standards to ensure that, throughout the development process and beyond, tenants receive ample, clear information (in their preferred language) about any update, input opportunity, or anything relevant to their apartment and their quality of life. • NYCHA should partner with the RAs to communicate information, and NYCHA should seek input in the following ways: mailings; robocalls; building and floor meetings; campus-wide tenant meetings; posted information in common areas and hallways, under the doors, on doorknobs; and one-on-one conversations with tenants. NYCHA should also use other methods to receive input such as Google forms and a dedicated email address for people who cannot attend meetings.

62 Chelsea NYCHA Working Group Section 1: RFP Development

The first stage in the renovation will be development of an RFP. Government agencies often draft RFPs with little input from the members of the public who would be affected by the resulting project. In envisioning what resident engagement should look like during renovations at the Chelsea NYCHA developments, the Resident Engagement Subcommittee saw an opportunity to give residents a seat at the table, at the outset, by including the RA leadership in the development process.

The Resident Engagement Subcommittee also agreed on several broad recommendations regarding the RFP itself: preference for a nonprofit development partner, local hiring for temporary and long- term positions, conducting comprehensive outreach, and implementing temporary tenant relocations.

Recommendations 1.1 NYCHA and outside advisors should provide training on the RFP process (development, evaluation, and award) to the RAs, and other interested NYCHA residents from the four Chelsea developments to ensure the RAs are well-prepared to effectively participate in and guide the process of renovation.

1.2 The RFPs should have as strong a preference as possible for all PACT project teams to include a nonprofit partner with a meaningful role in the teamt.

1.3 The RFPs should have a preference for applicants that commit to working with existing local nonprofit social services providers and can demonstrate a track record of having done that in other places.

1.4 The RFPs should require applicants to provide a detailed plan for hiring local NYCHA residents of Chelsea for temporary positions (i.e. construction, relocation assistance) and long-term positions.

1.5 RFP applicants that provide comprehensive work training and employment opportunities for residents should receive extra point considerations for their application.

1.6 The solicitation for a full renovation of the Chelsea NYCHA developments should require applicants to provide a detailed outreach and engagement strategy that encompasses all phases of development, design, construction, move-in, and day-to-day management.

1.7 The solicitation for a full renovation of the Chelsea NYCHA developments should require applicants to provide information about how they currently collect, track, and provide updates and information about repairs and work orders.

1.8 The solicitation for a full renovation of the Chelsea NYCHA developments should require applicants to provide detailed information about any previous (or current) temporary tenant relocation they have successfully conducted. If they have not conducted relocation, they should provide specific information about how they would conduct that process.

Chelsea NYCHA Working Group 63 1.9 Citing a list of community needs and priorities, the RAs may provide additional recommendations for RFP criteria (i.e., programming details, testimonials on management, etc.) to NYCHA as the RFP is developed. In particular, RAs will work with NYCHA to determine an appropriate weight for resident feedback in the evaluation process below.

Section 2: RFP Evaluation + Award

In the selection of a developer team, the Resident Engagement Subcommittee felt strongly that residents—via the RAs—must be given a seat at the table. In order to remove as many ambiguities as possible, the Subcommittee sought to articulate a clear connection between resident feedback and the concrete way that feedback will factor into the selection of a developer team. In other words, despite this section of Resident Engagement recommendations being the shortest the Working Group is issuing, it is in many ways the most important.

Recommendations

2.1 NYCHA will put all applicants through a threshold review to ensure they meet the basic criteria laid out in the RFP. NYCHA will also review additional technical aspects of the proposals to narrow the pool of applicants to multiple finalists.

2.2 RA board members who have been trained during the RFP development phase and who have signed confidentiality forms will be granted access to de-anonymized finalist proposals and will have the opportunity to interview the developer teams. They will rank the finalists. NYCHA will allocate a certain number of points, determined in advance per 1.9 above, according to the aggregate resident rankings.

2.3 As much anonymized information about these finalists’ applications as possible will be shared with the residents of both campuses. NYCHA and the RAs can collaborate to provide opportunities for residents to voice feedback on these finalists consistent with legal procurement requirements.

64 Chelsea NYCHA Working Group Section 3: Pre-development

After residents and NYCHA select a PACT Project team, the responsibility of resident engagement shifts largely to that PACT Project team. The Resident Engagement Subcommittee maintains that before renovation begins, the PACT Project team must engage with the RAs to proactively address concerns about safety, changes to the rules and regulations residents currently navigate in public housing, and the possibility of temporary relocation during renovations.

While the Resident Engagement Subcommittee does not prescribe exactly how that engagement should occur, the Guiding Principles above apply. Drawing on the work of Subcommittee Member Jessica Katz and her organization, Citizens Housing and Planning Council, the Resident Engagement Subcommittee prioritized recommendations in line with the process many public housing developments in England took in recent years to renovate their stock after decades of similar disinvestment.

Recommendations

3.1 The selected PACT Project team should work with RAs to establish a comprehensive safety and security plan for each Chelsea NYCHA Development, including collaboration with PSA 4 or local NYPD 10th Precinct officers.

3.2 The selected PACT Project team should work with NYCHA and the RAs to engage residents on any changes to the House Rules, pet policy, and/or the Chelsea Addition’s Senior Building designation during the PACT conversion process.

3.3 The selected PACT Project team should provide clear information and options for temporary or permanent relocation to tenants so that building renovation and apartment renovations can take place in the most seamless manner possible.

Chelsea NYCHA Working Group 65 Section 4: Design

Residents on the Resident Engagement Subcommittee felt particularly strongly about this section of the recommendations, and it was easy to understand why—it directly affects how their homes will look and feel after renovation. The Resident Engagement Subcommittee expects any PACT Project team to work closely with residents on design elements of the renovation, down to selection of building materials and fixtures.

Recommendations

4.1 The selected developer should propose building improvements and new construction that is contextual with existing NYCHA buildings and with the neighborhood character of Chelsea.

4.2 The selected PACT Project team should provide information about its construction materials and building-wide systems specifications to the RAs and tenants, including apartment mock- ups and samples of materials and finishes.

4.3 The selected PACT Project team should provide ample opportunities for tenants to weigh in on design elements and improvements in shared spaces, hallways, stairwells, elevators, front doors, and outdoor areas.

4.4 The selected PACT Project team should offer opportunities for tenants to tour other developments it has constructed and renovated. Tenants should have an opportunity to ask current tenants about their assessments of management communication and repair response time.

66 Chelsea NYCHA Working Group Section 5: Construction

During the construction phase of renovation, clear communication and engagement with residents is paramount. The overwhelming preference among residents is for construction to occur without temporary relocation. However, given the extent of disrepair at these and many Chelsea NYCHA developments, the Resident Engagement Subcommittee understood in-apartment renovation may not always be possible, including where health concerns exist for residents. These recommendations focus on the temporary relocation process, should it be necessary, and with the understanding that one goal of renovation will be to minimize the number of families who need to be temporarily relocated. Above all, the Resident Engagement Subcommittee seeks to ensure that the PACT Project team communicates proactively, often, and through multiple avenues with affected residents.

Recommendations

5.1 Before any type of tenant relocation is planned, an exhaustive effort to inform and assist impacted tenants must be made.

5.2 Tenants needing to temporarily or permanently relocate during any renovation or construction period should receive enough notice in writing, through one-one meetings, and lobby meetings.

5.3 NYCHA and the selected PACT Project team must prepare relocation plans, including assistance for tenants needing to relocate personal belongings (i.e. furniture, appliances, etc.), and ensure residents are well aware of available resources for moving.

5.4 Tenants of units undergoing renovation or adjacent to the roof, façade, etc. should have an option to temporarily relocate to reduce any construction-related impact.

5.5 The PACT Project team should establish a construction-phase security and safety plan to minimize potential negative impacts to quality of life (noise, dust, etc.) during the construction phase. This should include communications plans to ensure tenants understand what to expect during construction activities.

Chelsea NYCHA Working Group 67 Section 6: Move In + Beyond

The Resident Engagement Subcommittee also considered the need for resident engagement to continue post-renovation. The Resident Engagement Subcommittee recommendations center on the ongoing relationship between the PACT management of the Chelsea NYCHA developments and the residents. While the day-to-day nature of that relationship will hinge on the culture of responsiveness management builds, the long-term success will depend on continued engagement with residents on guiding documents like the lease and House Rules. The Resident Engagement Subcommittee believes strongly that new PACT management should avoid a unilateral approach; residents must be consulted on the issues that affect their homes.

Recommendations

6.1 The selected PACT project team and future PACT management should work collaboratively with the existing RA at each Chelsea NYCHA development as a partner to ensure its local expertise and connection to the tenants is considered and valued.

6.2 Many of the anticipated areas of resident engagement are covered above, but these recommendations are not all-inclusive. There may be some changes that arise after move- in that would also require thorough engagement of residents. For example, as the Resident Rights and Protections Subcommittee raised in its recommendations, any changes to the PACT lease or any changes to the utility metering practices that management may propose in the future would require renewed engagement with residents.

6.3 If and when any issues arise that may require an update to the House Rules, the selected developer should collaborate with the RAs to establish an inclusive series of public meetings with interpretation available to ensure residents have ample opportunities to provide input on any changes. Draft changes to the House Rules should be subject to final NYCHA approval.

68 Chelsea NYCHA Working Group Conclusion

Like the recommendations in the rest of this report, these recommendations cannot be taken piecemeal. They come as a package, working together to create a culture of resident engagement at every step of the renovation process and afterwards. They build on the work to focus on residents, which the Resident Engagement Subcommittee led with the larger Working Group. NYCHA and the Mayor’s Office came to the table with the valuable perspective of how things are done across the citywide portfolio and the ways they are already turning a corner to prioritize deeper resident engagement. The resident members of the Resident Engagement Subcommittee, along with content experts and elected official representatives, pushed the Resident Engagement Subcommittee to consider ways of engaging residents that may have precedent elsewhere but have not been tried out recently by NYCHA. In the course of the Subcommittee’s work, these give-and-take conversations resulted in a set of recommendations that the Working Group believes are both possible and effective ways to center resident voices during the renovation process and beyond.

The Resident Engagement recommendations provide a guide to ensure robust and meaningful resident engagement throughout the PACT conversion and renovation process. The Working Group recognizes some iteration and adjustments may be necessary as implementation begins but wants to underline the importance of consistent, clear, and inclusive engagement.

Chelsea NYCHA Working Group 69 Lessons Learned

This report was prepared by the Working Group and reflects the results of more than fifteen months of regular meetings, out-of- meeting thinking, and hard work. This process was a reflection on where people live and how their lives are impacted by both housing and neighborhood changes, and, at the same time, on one’s own role in those changes. The Working Group is also reflective of a new wave of local civic leadership.

We learned that when a diverse set of 2. Establish process, goals, and roles. community stakeholders makes an investment Establishing a process with agreed upon of time, energy, and focus, it is possible to goals and clear roles will ensure group work strengthen our capacity to have difficult trade- and conversation are productive and solution off conversations, to compromise, to make oriented. tough decisions, and to learn from each other. Most importantly, this process was a model 3. Structure an iterative process. Ensure that showed how any proposed policy can be resident priorities feed NYCHA plans and effectively vetted by the people most impacted that NYCHA plans are shared with residents by it. to create a strong feedback loop.

The Working Group and public engagement 4. Be flexible, patient, and a collaborator. process to make recommendations on A collaborative approach with diverse actionable and achievable approaches to meet perspectives and priorities in the room the approximately $366M capital need of requires that everyone commit to being Chelsea NYCHA developments also provides patient, to being open-minded, and to shift a framework that could be helpful in future gears from the individual to the collective NYCHA development and/or PACT conversions: to build consensus and inspire forward thinking. 1. Engage residents early and often. Planning for development, PACT conversion, or other 5. Build trust and ensure accountability. types of renovation on NYCHA campuses Establishing guidelines for confidentiality, must start and end with NYCHA residents. sharing speaking time, and helping to Resident engagement must be inclusive, uncover new options, while also being honest accessible, accountable, frequent and and clear about intentions, can ensure a consistent. team dynamic that yields the most fruitful outcomes.

70 Chelsea NYCHA Working Group Next Steps

The goal of the Working Group is to establish a path toward a long- term solution that addresses the rapidly decaying buildings that are home to nearly 5,000 New Yorkers in the Chelsea neighborhood.

The recommendations included in this report should provide guidance and a measure of accountability to NYCHA, the City, Resident Associations, and residents in the Chelsea NYCHA Developments as they work collaboratively to develop and issue an RFP, review application submissions, select a PACT project team, and establish a public engagement process throughout the development timeline to ensure NYCHA residents of Chelsea are meaningfully engaged and involved in deciding the future of their homes.

Working Resident Working PATH Group Engagement Group FORWARD

RESIDENT OVERSIGHT Continued resident engagement to ensure the path forward is reflected in implementation

Pre-Development Initial Construction + Full Environmental Rehabilitation Rehabilitation Assessment + Construction Completed

Chelsea NYCHA Working Group 71 72 Chelsea NYCHA Working Group Appendix A1. NYCHA Chelsea NYCHA Physical Needs Assessment Summary

2017 PNA Need 57,135,546 Exterior Brick Repairs Building 1 (2018) (891,302) Exterior Brick Repairs Building 2 (2018) (696,764) Playground Improvements (2021) (132,762) Updated Five Year Need $55,414,719 Inflation to 2020 (3% Annually) $5,138,441

Cost of Remaining Needs $60,553,160

Appendix A2. Chelsea Addition Physical Needs Assessment Summary

2017 PNA Need 17,570,176 Building 1 Front Door & LAC Relocation (2019) (129,766) Building 1 Roof Tank (2023) (900,000) Building 1 Brickwork LL-11 (2025) (312,666) Updated Five Year Need $16,227,744 Inflation to 2020 (3% Annually) $1,504,750

Cost of Remaining Needs $17,732,494

Chelsea NYCHA Working Group 73 Appendix A3. Elliott Physical Needs Assessment Summary

2017 PNA Need 100,546,789 Exterior Brick Repairs Building 1 (2017) (826,280) Replacement of Underground Water & Fire Distribution Piping (2019) (1,092,000) Roof Tank Replacement Building 4 (2021) (900,000) Two Exterior Compactors (2023) (250,000) Updated Five Year Need $97,478,510 Inflation to 2020 (3% Annually) $9,038,890

Cost of Remaining Needs $106,517,399

Appendix A4. Fulton Physical Needs Assessment Summary

2017 PNA Need 167,357,771 Brick Repairs (2017-2018) (3,954,773) Senior Center Renovation (2018) (3,189,081) Playground Renovation (2019) (512,687) Accessible Ramps (2019) (73,484) Roof Replacement (2023) (10,536,568) Senior Center Renovation (2020) (669,669) Updated Five Year Need $148,421,509 Inflation to 2020 (3% Annually) $13,762,681

Cost of Remaining Needs $162,184,191

74 Chelsea NYCHA Working Group Appendix B. Recent Affordable Housing Production in Chelsea1

Afforda Total 40% 50% Below 80% 125% 130% 165% 195% Address Project Name ble Units AMI AMI 60% AMI AMI AMI AMI AMI Units 450 W 17th St Caledonia 282 59 - 59 ------303 10th Ave Port 10 89 18 3 15 ------316 11th Ave The Ohm 369 74 11 63 ------500 W 30th St Abington House 385 77 - - 77 - - - - - 525 W 28th St AVA High Line 691 138 12 67 63 - - - - - 507 W 28th St 507 W. 28th Street 375 75 - 75 ------529 W 29th St (MP Transfer) 125 125 - - - 125 - - - - 401 W 25th St Artimus 168 168 7 28 - - - 20 - 58 425 W 18th St Artimus 158 158 32 - 32 - - 31 63 535 W 23rd St The Tate 313 79 20 59 - - - - 16 - 601 W 29th St 931 234 93 95 - - - 47 - - 606 W 30th St 277 70 31 25 - - 14 - - - Total 4,163 1,275 177 518 140 157 14 67 47 121

1 West Chelsea Points of Agreement – MCB4 Annual POA Tracking 2020 - https://cbmanhattan.cityofnewyork. us/cb4/wp-content/uploads/sites/10/2020/12/WC-POA-Inventory-for-Cb4-Website-12.23.20.pdf

Chelsea NYCHA Working Group 75 Appendix C. CFS Recommended Sites Apartment and Square Footage Counts by Campus4

Building Loss Average # of Net GFA Total Site # Footprint GFA (SF) Factor apt size Value to NYCHA stories (SF) Apts (SF) (SF) (SF) Fulton Site A 4,800 22 105,600 21,120 84,480 800 105 15,958,162 Site B1 4,800 22 105,600 21,120 84,480 800 105 10,765,412 Site B2 6,800 22 149,600 29,920 119,680 800 149 22,629,280 Site C1 4,600 22 101,200 20,240 80,960 800 101 14,934,397 Site 11 8,083 2 14,883 1,489 13,394 N/A 0 4,785,203 Site 2 4,410 2 7,710 771 6,939 N/A 0 Site 3 7,200 2 14,400 1,440 12,960 N/A 0 Site G 1,625 1 1,625 81 1,544 N/A 0 Site D2 1,200 1 1,200 60 1,140 N/A 0 4,698,173 Site E 1,000 1 1,000 50 950 N/A 0 Infill Site F & E 3,800 1 3,800 0 3,800 N/A 0 Site F 1,300 1 1,000 50 950 N/A 0 Total 49,618 507,618 411,277 460 $73,770,627 Elliott-Chelsea Site EC 1 3 5,692 24 136,608 27,322 109,286 800 137 1,904,801 Site I 18,000 2 18,000 1,800 16,200 N/A 0 Site EC 2 4,500 22 99,000 19,800 79,200 800 99 15,122,515 Site H 11,800 1 11,800 590 11,210 N/A 0 7,599,294 Total 39,992 265,408 215,896 236 $24,626,610 GRAND TOTAL 89,610 773,026 627,173 696 $98,397,237

1combined value for Office or Comm Facility Infill at 1, 2, 3, & G 2combined value for Fulton Site Retail Retrofit at D, E, F, & Infill F & E 3combined value for Site EC1 & I 4Estimated building footprints, Gross Floor Area (GFA), net GFA, average apartment size, number of total apartments, and value to NYCHA based on CFS Working Group financial model and should not be construed as a final financing plan, but instead as a set of parameters.

76 Chelsea NYCHA Working Group Appendix D. CFS Recommended Sites Apartment Counts & Square Footage by Development Type1

Building Loss Average # of Net GFA Total Site # Footprint GFA (SF) Factor apt size stories (SF) Apts (SF) (SF) (SF) Mixed Income Residential Infill Site A 4,800 22 105,600 21,120 84,480 800 105 Site B1 4,800 22 105,600 21,120 84,480 800 105 Site B2 6,800 22 149,600 29,920 119,680 800 149 Site C1 4,600 22 101,200 20,240 80,960 800 101 Site EC 2 4,500 22 99,000 19,800 79,200 800 99 Site EC 12 5,692 24 136,608 27,322 109,286 800 137 Total 31,192 697,608 139,522 558,086 Office/Community Facility Infill Site 1 8,083 2 14,883 1,489 13,394 N/A 0 Site 2 4,410 2 7,710 771 6,939 N/A 0 Site 3 7,200 2 14,400 1,440 12,960 N/A 0 Site G 1,625 1 1,625 81 1,544 N/A 0 Site H 11,800 1 11,800 590 11,210 N/A 0 Total 33,118 50,418 4,371 46,047 Retail Infill & Retrofit Site D 3 1,200 1 1,200 60 1,140 N/A 0 Site E 1,000 1 1,000 50 950 N/A 0 Infill Site F & E 3,800 1 3,800 0 3,800 N/A 0 Site F 1,300 1 1,000 50 950 N/A 0 Total 7,300 7,000 160 6,840 Community Facility New Construction Site I 18,000 2 18,000 1,800 16,200 N/A 0 TOTAL 89,610 773,026 627,173 696

1Estimated building footprints, Gross Floor Area (GFA), net GFA, average apartment size, number of total apartments, and value to NYCHA based on CFS Working Group financial model and should not be construed as a final financing plan, but instead as a set of parameters. 2combined value for Site EC1 & I 3combined value for Fulton Site Retail Retrofit at D, E, F, & Infill F & E

Chelsea NYCHA Working Group 77 Appendix E1. Working Group Recommended Fulton Site Map

Retail Retrofit(1 story)

New Mixed-Income Residential Buildings

New Commercial /Community Facilities (1 - 2 Stories) C1 Relocated Basketball Court NYCHA Buildings 19TH ST NYCHA Lot Boundaries F

E 9TH VE

10TH VE 3

18TH ST

B2 2

17TH ST

G D

A 1

78 Chelsea NYCHA Working Group 19TH ST

Appendix E2. 9TH VE

10TH VE 3 Fulton Site A1 18TH ST Building Loss Average # of Net GFA Value to Site # FootprintB2 2 GFA (SF) Factor apt size Total Apts stories (SF) NYCHA 1 (SF) (SF) (SF) Site A 4,800 22 105,600 21,120 84,480 800 105 $15,958,162

B11Net of replacement parking cost of $250,000.

17TH ST

G D

A 1

Appendix E3. C1 Fulton Site B1 19TH ST

Building Loss Average # of Net GFA Value to Site # Footprint GFA (SF) Factor apt size Total Apts stories (SF) NYCHA 1 (SF) (SF) (SF) Site B1 4,800 22 105,600 21,120 84,480 800 105 $10,765,412

1Net of the cost of new Rec Center of $5,442,750. 9TH VE

10TH VE 3

18TH ST

B2 2

17TH ST

A 1 Chelsea NYCHA Working Group 79 Appendix E4. C1 Fulton Site B2 19TH ST Building Loss Average # of Net GFA Value to Site # Footprint GFA (SF) Factor apt size Total Apts stories (SF) NYCHA 1 (SF) (SF) (SF) Site B2 6,800 22 149,600 29,920 119,680 800 149 $22,629,280

1Net of replacement parking cost of $300,000. 9TH VE

10TH VE 3

18TH ST

B2 2

17TH ST

Appendix E5. Fulton Site C1 A 1

Building Loss Average # of Net GFA Value to Site # Footprint GFA (SF) Factor apt size Total Apts stories (SF) NYCHA 1 (SF) (SF) (SF) Site C1 4,600 22 101,200 20,240 80,960 800 101 $14,934,397

1Net of replacement parking cost of $550,000.

19TH ST 9TH VE

10TH VE 3 80 Chelsea NYCHA Working Group 18TH ST

17TH ST Appendix E6. Fulton Site 1

Building Loss Average # of Net GFA Value to Site # Footprint GFA (SF) Factor apt size Total Apts stories (SF) NYCHA1 (SF) (SF) (SF) Site 1 8,083 2 14,883 1,489 13,394 N/A 0 4,785,203 Site 2 4,410 2 7,710 771 6,939 N/A 0 Site 3 7,200 2 14,400 1,440 12,960 N/A 0 Site G 1,625 1 1,625 81 1,544 N/A 0 Total 21,318 38,618 3,781 34,837 $4,785,203

1Net of replacement parking cost of $3.1M. C1

19TH ST

E 9TH VE

10TH VE 3

18TH ST

B2 2

G 17TH ST D

A 1

Chelsea NYCHA Working Group 81 Appendix E7. Fulton Site D, E, F, and Infill Site F and E

Building Loss Average # of Net GFA Value to Site # Footprint GFA (SF) Factor apt size Total Apts stories (SF) NYCHA 1 (SF) (SF) (SF) Site D 1,200 1 1,200 60 1,140 N/A 0 4,698,173 Site E 1,000 1 1,000 50 950 N/A 0 Infill Site F & E2 3,800 1 3,800 0 3,800 N/A 0 Site F 1,300 1 1,000 50 950 N/A 0 Total 7,300 7,000 160 6,840 $4,698,173

1Combined value for Fulton Site Retail Retrofit at D, E, F, & Infill F & E. Net of basketball court relocation cost of $67,260. 2Planned relocation of basketball court to the west of Infill Site F and E. C1

19TH ST

E 9TH VE

10TH VE 3

18TH ST

B2 2

17TH ST

G D

A 1

82 Chelsea NYCHA Working Group Appendix F1. Working Group Recommended Elliott-Chelsea Site Map

Retail Retrofit (1 story)

New Mixed-Income Residential Buildings

New Community Facility (Hudson Guild, 1-2 stories)

Partial Demolition of Hudson Guild

CHELSE NYCHA Buildings R NYCHA Lot Boundaries

CHELSE DDITION ELLIOTT EC1 .S. 33

H I ELLIOTT 10TH VE 9TH VE 26TH ST

ELLIOTT EC2 CHELSE

25TH ST CHELSE RECRETION CENTER

Chelsea NYCHA Working Group 83 Appendix F2. Elliott-Chelsea Site EC1, I, and H

Building Loss Average # of Net GFA Value to Site # Footprint GFA (SF) Factor apt size Total Apts stories (SF) NYCHA 1 (SF) (SF) (SF) Site EC 1 5,692 24 136,608 27,322 109,286 800 137 $1,904,801 Site I 18,000 2 18,000 1,800 16,200 N/A 0 Site H 11,800 1 11,800 590 11,210 N/A 0 $7,599,294 Total 35,492 155,198 29,712 136,696 137 $9,504,095

1Combined value for EC1 and Hudson Guilds Site I. Net of New Hudson Guild construction cost of $22,150,000.

Appendix F3. Elliott-Chelsea Site EC2

Building Loss Average # of Net GFA Value to Site # Footprint GFA (SF) Factor apt size Total Apts stories (SF) NYCHA (SF) (SF) (SF) Site EC 2 4,500 22 99,000 19,800 79,200 800 99 $15,122,515

84 Chelsea NYCHA Working Group Appendix G. Flood Resiliency

Flood Resiliency Text Amendment: Impact on Chelsea NYCHA Plan Analysis

Table of Contents 1. Summary 2. Recommendations 3. Background 4. Regulatory Context 5. Wet vs. Dry Flood Proofing 6. Coastal Resilience: Elliott Chelsea & Fulton 7. Working Group Recommended Sites & Flood Proofing Requirements by NYCHA Campus

Summary In light of the Zoning for Flood Resiliency Text Amendment certified for ULURP by the Department of City Planning on October 2020, the Working Group reviewed additional recommendations to address how the 1% (100-year) and 0.2% (500-year) annual chance flood requirements would affect the proposed plan.

Recommendations Subject to the Zoning for Flood Resiliency Text Amendment the project should incorporate and manage the cost implication of the following flood mitigation measures: • 0.2% (500-year flood) annual chance flood requirements should apply to the entirety of the Fulton campus and where applicable on the Elliott-Chelsea campus • In order to ensure adequate ground floor building height, and no ‘squashed floors’ (with low ceiling height), the residential entrances will be dry floodproofed for any new construction, • Retail retrofit will be wet floodproofed • Community facilities will be dry floodproofed • Parking will be wet floodproofed • Additional height is allowed for flood proofing purposes, that additional height allowance flows from the Base Flood Elevation (BFE). • The NYCHA tax lots border on a BFE of 2 to 4 feet. That standard allows 5 ft in additional height. Therefore, the plan should increase the maximum height on Fulton from 220 feet to 225 ft & Elliott Chelsea from 240 feet to 245 feet. • There is no need for the flood resiliency Floor Area Ratio (FAR) exemption, since the proposed new infill developments are well under the existing available FAR in the NYCHA campuses • For the existing buildings, all mechanical and heating systems must be relocated above the first floor. All building entrances in Fulton must be dry floodproofed.1 All elevator or equipment or elevator pits must be dry floodproofed.

1Dry floodproofing of buildings are not required at Elliott Chelsea since all building entrances are already elevated.

Chelsea NYCHA Working Group 85 Background

Subsequent to Hurricane Sandy, the Department of City Planning (DCP) has been working with West Chelsea, one of the communities where there was particularly heavy damage from Sandy and where there are substantial flood risks due to climate change. DCP’s Resilient Neighborhoods, an initiative funded by HUD, focuses on areas that present specific land use, zoning and resiliency issues that cannot be fully addressed by citywide zoning changes or guidelines. In 2013, DCP brought the Flood Resilience Zoning Text Amendment through ULURP and it was adopted in October to encourage flood-resilient building construction throughout designated flood zones.2 The proposed changes are needed in order to remove regulatory barriers that would hinder or prevent the reconstruction of storm-damaged properties. The amendment would enable new and existing buildings to comply with new, higher flood elevations issued by the Federal Emergency Management Agency (FEMA), and to new requirements in the Building Code.

As the conditions continue to change, the City has proposed a new zoning amendment. On October 19, 2020, DCP referred out the Zoning for Coastal Flood Resiliency (ZCFR) Citywide Text Amendment, beginning the public review process. ZCFR would improve upon and make permanent the relevant provisions of the current temporary zoning rules and provide homeowners, business owners, and practitioners who live and work in the city’s floodplain the option to design or otherwise retrofit buildings to: (a) reduce damage from future coastal flood events, (b) be resilient in the long-term by accounting for climate change, and (c) potentially save on long-term flood insurance costs. In addition, ZCFR would include citywide provisions to help sites provide back-up energy, and rules that help the City recover from future disasters, including provisions intended to help address the COVID-19 pandemic and its associated economic effects.

Most critically, as DCP states, “the 2013 Flood Text and the 2015 Recovery Text focused on modifying zoning regulations so that buildings could be constructed or modified to meet minimum requirements set forth in Appendix G of the Building Code[, the Flood Resistant Construction Code3]. However, the city’s flood risk will continue to increase with climate change, since sea level rise will increase the potential height of storm surges. For that reason, current building code standards that are tied to today’s storm surge projections may not be sufficient to protect buildings from being damaged by future storms. In addition to increasing the potential height of storm surges, sea level rise will also cause the floodplain to expand over time.”4

As one can see in Figure 1, there are many NYCHA sites on flood zones, such as the Rockaways and Red Hook sites. One of the sites adjacent to the 500-year flood is the Elliott Chelsea and Fulton Houses (see Figure 2 for Sandy Inundation around the Chelsea NYCHA sites).

22013 DCP Flood Resilience Zoning Text Amendment - https://www1.nyc.gov/assets/planning/download/pdf/plans/flood- resiliency/flood_resiliency.pdf 32013 Appendix G of the NYC Building Code, the Flood Resistant Construction Code - https://www1.nyc.gov/ assets/buildings/apps/pdf_viewer/viewer.html?file=2014CC_BC_Appendix_G_Flood-Resistant_Construction. pdf§ion=conscode_2014 4Project Description – Zoning for Coastal Resiliency, Page 4 - https://www1.nyc.gov/assets/planning/download/pdf/plans- studies/flood-resiliency-update/project-description.pdf

86 Chelsea NYCHA Working Group Figure 1: 100 (1%) and 500-Year (2%) Annual Chance Flood Bordering NYCHA Campuses

Figure 2: Sandy Inundation (2012) Around the Chelsea NYCHA Sites)

Chelsea NYCHA Working Group 87 Regulatory Context5

A wide array of programs and regulations at various levels of government shape the City’s approach to managing flood risk and promoting resilient development. In the United States, floodplain regulation begins with Flood Insurance Rate Maps (FIRMs), which FEMA creates and maintains. The maps show the extent and elevation to which flood waters are expected to rise during a 100-year flood or a flood that has a 1% chance of occurring in any given year. The elevation of the expected 100-year annual chance flood is called BFE. FIRMs also show the 500-year or 0.2% annual chance floodplain, which is shown as the Shaded X Zone. The 100-year annual chance floodplain is divided into three areas -- the V Zone, Coastal A Zone, and A Zone -- each associated with a different degree of flood risk (Figure 3).

The 100-year floodplain is also the area where property owners with federally-regulated or federally- insured mortgages are required to carry flood insurance. For residential structures, flood insurance premiums under FEMA’s National Flood Insurance Program (NFIP) are determined by the relationship between the lowest occupied floor of the structure and the BFE shown on the FIRMs at the structure’s location, as well as other factors. Homes built before the FIRMs were established have historically been offered subsidized insurance rates. However, due to recent federal legislative changes, those subsidized rates are gradually increasing to come in line over time with actuarial rates more closely reflecting the flood risk a home faces. For the past several years, FEMA has been in the process of updating the FIRMs for New York City, which were implemented in 1983 and most recently updated in 2007. As part of the mapping update, FEMA issued updated Preliminary FIRMs (PFIRMs) in December 2013 with another revision in January 2015 (Figure 4). In most places, these PFIRMs show an expanded 100-year floodplain. The maps also heighten Base Flood Elevations for much of the city (Figure 5). The City filed an appeal of the PFIRMs because they overstate the size of the city’s 100-year floodplain due to inaccuracies in FEMA’s underlying analysis. The FIRMs will not be updated until 2026 at the earliest.

Figure 3: Flood Zones, Risks & Strategies (Source: DCP)

5Information from Department of City Planning, Resilient Neighborhoods: West Chelsea Report (May 2016) - https://www1. nyc.gov/assets/planning/download/pdf/plans-studies/resilient-neighborhoods/west-chelsea/summary-report-west-chelsea.

88 Chelsea NYCHA Working Group Figure 4: Preliminary Flood Insurance Rate Maps (PFIRMs) Flood Zones (Source: DCP)

Figure 5: Base Flood Elevation 2015 (Source: DCP)

Chelsea NYCHA Working Group 89 Wet vs Dry Flood Proofing

Wet floodproofing is a method designed to allow the passage of water within parts of the structure that are located below the flood elevation, while ensuring that the structure resists water loads. Dry floodproofing is a method designed to seal a building’s exterior walls to flood waters while ensuring that the building can resist water loads below the expected level of flooding. See Figure 6 for examples. Appendix G of the Building Code currently requires all habitable spaces of new construction, and existing buildings that were substantially damaged or are undertaking substantial improvements, to be raised above the Design Flood Elevation (DFE). Furthermore:

All spaces below the DFE must be either wet-floodproofed, if the building is used solely for residential use, or dry-floodproofed, if the building contains non-residential uses. Spaces that are wet flood proofed only can be used as crawl space, or for parking, storage and building access, and spaces that are dry-floodproofed can be used for non-residential uses. Additionally, residential buildings are not allowed to provide spaces, such as basements and cellars, below grade and mechanical equipment must be located above the DFE.6

Wet Floodproofed Spaces

ZCFR would provide a consistent floor area exemption for wet floodproofed ground floor spaces for all buildings to promote long-term resiliency improvements. “Flood-resistant construction standards” require the ground floor of residential buildings to be wet floodproofed, thereby limiting the use of this ground floor space solely to parking, storage and/or building access. The 2013 Flood Text addressed this by allowing all existing structures to fully exempt a wet floodproofed ground floor. In 2013, the City also updated its Building Code to require one or two feet of freeboard called the “Flood Resistant Construction Elevation” or FRCE: all buildings (except single family homes) were required to be elevated or floodproofed to 1-foot above the base flood elevation.

For new buildings, the exemptions are limited to entryway areas used for enclosed ramps and stairs to encourage access to be kept within the building. ZCFR would provide the full ground floor exemption for wet-floodproofed spaces to new and existing buildings.

Dry Floodproofed Spaces

To promote a safe and lively pedestrian environment, ZCFR would encourage active, non-residential dry floodproofed ground floor spaces along the City’s retail corridors. While this method allows active uses to be kept close to grade, which is beneficial in maintaining retail continuity along the city’s commercial streets, this method has proven to be quite costly. For new buildings, the exemptions are limited to entryway areas used for enclosed ramps and stairs, to encourage access to be located within the building.

6Department of City Planning (DCP) Project Description – Zoning for Coastal Resiliency, Page 2 - https://www1.nyc.gov/ assets/planning/download/pdf/plans-studies/flood-resiliency-update/project-description.pdf

90 Chelsea NYCHA Working Group Figure 6: Dry & Wet Floodproofing Examples (Source: DCP)

Chelsea NYCHA Working Group 91 Coastal Resilience: Chelsea, Chelsea Addition, Elliott, and Fulton

Chelsea, Chelsea Addition, Elliott, and Fulton are partially located in flood zone areas. Zoning for Coastal Resiliency (ZCFR) would simplify the design process for housing campuses by determining applicability based on the zoning lot. The consensus is to treat the worst-case scenario of the 0.2% (500-year) flood, which requires testing through the buildings against those requirements (Figure 7). The CFS should provide the most protection and resilience to climate change because the sites in the 500-year floodplain may come into the 100-year floodplain as climate change continues.

Figure 7: 100 (1%) and 500-Year (0.2%) Floodplain on the Fulton and Elliott-Chelsea Sites - Overall Map

Chelsea NYCHA Affected Sites

Fulton affected sites: sites 1, 2, 3, A, B1, B2, C1, G are in 500-year floodplain (4 residential, 4 office/ community infill), all tax lots are partially in the 100-Year floodplain.

Elliott-Chelsea affected sites: sites H and I are in 500-year floodplain (1 retail/commercial/community conversion, 1 community facility new construction); both tax lots are partially in the 500-year floodplain.

92 Chelsea NYCHA Working Group Figure 8: CFS Recommended Site Maps Fulton Overall Map & Fulton 100 & 200-Year Annual Chance Floodplain Map7 (orange –500-Year (2%) annual chance floodplain, blue – 100-Year (1%) floodplain): sites 1, 2, 3, G, A, B1, B2, C1 are in the 500-year floodplain (4 residential, 4 office/ community infill); all lots are partially in the 100 and 500-year floodplains.

7NYC Department of City Planning Community District Profiles: Manhattan Community District 4 https://communityprofiles. planning.nyc.gov/manhattan/4#floodplain

Chelsea NYCHA Working Group 93 Figure 9: CFS Recommended Site Maps Elliott-Chelsea Overall Map & Elliott-Chelsea 100 & 200-Year Annual Chance Floodplain Map (orange –500-Year (2%) annual chance floodplain, blue – 100-Year (1%) floodplain): sites H and I are in 500-Year floodplain (1 retail/commercial/community conversion, 1 community facility new construction; both lots are partially in 500-Year floodplain)

94 Chelsea NYCHA Working Group Site Impact & Recommendations

• Applicability: The 0.2% (500-year flood) annual chance flood requirements should apply to the entirety of Chelsea, Chelsea Addition, Elliott, and Fulton NYCHA campuses. • New Construction Impacts: For any new construction, in order to ensure adequate ground floor building height, and not to create a ‘squashed floor’ (with a low ceiling height), residential entrances will be dry floodproofed. The ground floor community facility on site B1 at West 17th Street will also be dry floodproofed. Any other retail and commercial uses will be wet floodproofed. • Ground Floor Use Impacts: Ground floor retail and commercial uses to be wet-floodproofed. Building entrances will need to be dry floodproofed under Appendix G of the Building Code. • Retail Impacts: Retail retrofit to be wet-floodproofed. Retail facilities on the Fulton Site can be dry floodproofed to comply with Appendix G of the Building Code. Retail is exempt for the first 30 feet; however, metal grill work is sometimes required. It might be more desirable for a retail tenant to have dry floodproofing in place, as retail insurance could be lower. • Community Facility Impacts: Community facilities to be dry floodproofed. The Hudson Guild on the ground floor would have the same requirements as retail buildings. • Parking Impacts: Mid-block parking relocations throughout Fulton will be allowed to be wet floodproofed. • Height Allowances: New infill developments in the Chelsea NYCHA developments could receive height and FAR benefits in the 500-year floodplain with the new zoning, only if they completely comply with Appendix G. There is no need for the flood resiliency FAR exemption since the proposed new infill developments are well under the existing available FAR in the NYCHA campuses. Additional height is allowed for flood proofing purposes, that additional height allowance flows from the Base Flood Elevation (BFE). The NYCHA tax lots border on a BFE of 2 to 4 feet. That standard allows 5 ft in additional height. Therefore, the plan should increase the maximum height on Fulton from 220 feet to 225 ft & Elliott Chelsea from 240 feet to 245 feet. • Existing Building Impacts: For the existing buildings, all mechanical and heating systems must be relocated above the first floor. All building entrances in Fulton must be dry floodproofed. All elevator or equipment or elevator pits must be dry floodproofed.

Chelsea NYCHA Working Group 95 CFS Recommended Sites & Flood Proofing Requirements by NYCHA Campus8

CFS Recommended Sites & Flood Proofing Requirements by NYCHA Campus8

Building Present in Flood BFE Footprint # of Net GFA Flood Plain Proofing (2015 Site # (SF) stories GFA (SF) (SF) Total Apts Proposed Use (Wet/dry) PFIRMs) Value to NYCHA Fulton Site A 4,800 22 105,600 84,480 105 Residential 0.2% Dry9 19,836,303 Site B1 4,800 22 105,600 84,480 105 Residential 0.2% Dry 0.1-2 ft 14,643,553 Site B2 6,800 22 149,600 119,680 149 Residential 0.2% Dry 0.1-2 ft 28,123,313 Site C1 4,600 22 101,200 80,960 101 Residential 0.2% Dry 0.1-4 ft 18,650,949 Site 1 8,083 2 14,883 13,394 0 Office/Community 0.2% Dry 4,785,203 (combined Site 2 4,410 2 7,710 6,939 0 Office/Community 0.2% Dry 0.1-2 ft value for Office or Comm Facility Infill at 1, 2, 3, & Site 3 7,200 2 14,400 12,960 0 Office/Community 0.2% Dry 0.1-2 ft G) Site G 1,625 1 1,625 1,544 0 Office/Community 0.2% Dry 0.1-2 ft Site D 1,200 1 1,200 1,140 0 Retail Infill & Retrofit Wet Site E 1,000 1 1,000 950 0 Retail Infill & Retrofit Wet 4,698,173 (combined Infill Site F value for Fulton Site and E 3,800 1 3,800 3,800 0 Retail Infill & Retrofit Wet Retail Retrofit at D, E, F, Site F 1,300 1 1,000 950 0 Retail Infill & Retrofit Wet & Infill F & E)

Total 49,618 507,618 411,277 460 $90,737,494 Elliott Chelsea Site EC 1 5,692 24 136,608 27,322 109,286 Residential Dry Community Facility $ 3,812,654 (combined Site I 18,000 2 18,000 1,800 16,200 New Construction 0.2% Dry value for Site EC1 & I) Site EC 2 4,500 22 99,000 19,800 79,200 Residential Dry $18,758,272 Site H 11,800 1 11,800 590 11,210 Office/Community 0.2% Dry $ 7,599,294

Total 71,628 265,408 215,896 $30,170,220

Total Bldg Total GFA Net GFA Footprint (SF) (SF) Total Value to NYCHA 89,610 773,026 627,173 $120,907,714

8 Estimated building footprints, Gross Floor Area (GFA), net GFA, average apartment size, number of total apartments, and value to NYCHA based on CFS Working Group financial model and should not be construed as a final financing plan, but instead as a set of parameters. 9 Residential entrances will be dry floodproofed Flood Resiliency Text Amendment: Impact on Chelsea NYCHA Plan Analysis Page 14

8Estimated building footprints, Gross Floor Area (GFA), net GFA, average apartment size, number of total apartments, and value to NYCHA based on CFS Working Group financial model and should not be construed as a final financing plan, but instead as a set of parameters. 9Residential entrances will be dry floodproofed

96 Chelsea NYCHA Working Group Appendix H. Case Studies

NYCHA is the largest Public Housing Agency in North America, so finding comparable housing authorities is not an easy task. However, the Working Group expressed an openness to work collaboratively in good faith with diverse perspectives and expertise by casting a wider net for models to help shape the process of renovating and effectively sustaining Fulton, Elliott, Chelsea, and Chelsea Addition. Below are two examples from across the country and across the Atlantic Ocean that together provide good lessons and examples to learn from and pilot, in New York City.

i. England Case Study By Heather Beck & Jessica Katz, CHPC *Portions of this section are included in CHPC’s Report ‘Public Housing Revolution: Lessons from London’ released in October 2019.

England is working to solve an even larger public housing crisis than the one NYCHA faces today. Key principles and ideas are drawn from research conducted by Citizens Housing & Planning Council, meetings with key policy and decision makers along with a trip to see on-ground realities of England’s resident engagement in person.

While England regeneration efforts are still underway, they have leveraged several key principles that have enabled the transformation of their public housing stock.

The three principles are:

1. A Decent Homes Standard was created, and local councils are required to meet the standard. 2. The expertise of residents is paired with the resources of the affordable housing industry. 3. A menu of different options provides residents and local councils the ability to decide how to reach the Decent Homes Standard.

Critical to the success of any regeneration plan is a resident-centric process which includes practical ways for residents to have meaningful participation in the planning and execution of housing plans. Residents are rightly put at the center of decision-making, with acknowledgement of their expertise as the consumers of housing. While the affordable housing industry is given an elevated role and brings new resources to public housing, the industry must work alongside residents to create a plan that works for all parties. True resident participation is only possible when a menu of options exists, as residents can make real choices about the future of their development.

Residents and the affordable housing sector are enabled by the requirement to meet the Decent Homes Standard, which provides them a clear and tangible goal. The federal government requires that resident participation and resident approval of any plan to revitalize public housing.

Chelsea NYCHA Working Group 97 Options Bring Everyone to the Table In England, Public Housing residents, local authorities and housing providers have balanced roles because they must make decisions together. To reach the Decent Homes Standard, the national government authorizes local councils and residents to develop a menu of options based on the unique needs of each development. This facilitates an environment for residents to move forward with a plan that fits their needs and values.

Some Public Housing residents have chosen to transfer to an affordable housing owner and manager, demolish existing buildings, and re-develop the sites with new affordable housing, with the guarantee that they will be able to receive brand new homes. In other cases where renovation was not needed, residents have been allowed to choose a new management structure. For example, residents can opt to contract with their housing authority, to run certain aspects of their housing management themselves. Each decision reflects the residents who make up that community.

The ability to choose from a menu of options acknowledges that there is no one perfect solution, and that people will differ in their approach to Public Housing regeneration.

ii. San Francisco Case Study

The San Francisco RAD conversion is historic because the San Francisco Housing Authority (SFHA) turned over their entire portfolio of 28 properties and a total of 3,482 units where over 10,000 people reside across three years. SFHA originally estimated the capital needs at $270 million, but later discovered it was over $1 billion to adequately repair all units. To most efficiently address the tremendous need, the process established a triage approach that prioritized life safety issues, followed by building envelope needs, common areas, and unit upgrades. Although SFHA’s entire portfolio is comparable to 1-2 developments alone for NYCHA, there are key components that can be helpful to consider as NYCHA considers an innovative and collaborative approach to complete rehabilitation in the four Chelsea developments. Key Components: For each of the 28 SFHA properties, a development team included the leadership of a nonprofit partner familiar with the surrounding neighborhood and had close ties to the Public Housing residents. This built-in relationship with the local neighborhood made good faith tangible.

A huge network of hundreds of people made up of over 72 organizations, residents, non-profit service providers, affordable housing developers, labor unions, private developers, and governmental representatives strategized on a plan forward together.

Wrap-around social services that included a combination of translation, health care, youth development, wellness and case management and mental health services for each property ensured that residents’ needs were considered and addressed.

Interactive and deep resident engagement took on many shapes to ensure that people were met where it made it easier for them to fully engage.

SFHA made public commitments to ease fears and tensions early in the process that included (but not limited to):

• 99-year lease with development team that required affordability be maintained throughout contract

98 Chelsea NYCHA Working Group • No displacement of existing residents • No rescreening of existing residents • Method of rent calculation will not change • If any relocation is required, it will be temporary

iii. Resident Management Model Adopted from concept paper, “Resident Management Corporation: A Viable Option for Fulton House Residents,” Schulte Roth & Zabel LLP and Siegel Teitelbaum & Evans, LLP. February 2020

Upon the request of Fulton Residents on the Working Group, Normal Seigel presented their concept paper about an alternative model of property management or improvement that could position residents as the managers of their housing development. Under HUD regulations, residents may create a Resident Management Corporation (RMC) through an election of residents to serve as the Board of Directors. The RMCs are required to be incorporated as non-profit organizations by the state. The RMC would verify their ability and skill to perform management duties and would enter a management contract with the Public Housing Authority, or in this case, NYCHA. The PHA would review the RMC’s performance at least once a year to determine compliance with all requirements of habitability.

Adopting the RMC model does require extensive training and technical support to ensure that residents are able to adequately manage the property. In St. Louis, following a rent strike, a Civic Alliance for Housing was established to provide training and technical assistance to RMCs in the city. Similar training would be necessary in Fulton, Chelsea, Elliott, and Chelsea Addition Houses to establish a solid base of understanding of property management. Funding for technical support and to ensure existing capital needs are met is a huge need. While there have been many RMC models across the country—some of which have existed for about 20 years—most have been dissolved and turned over to their local Public Housing authorities.

Chelsea NYCHA Working Group 99 Appendix I. Engagement Attendance for December 2020 sessions

VIRTUAL ZOOM MEETINGS for RESIDENTS of Chelsea # of Residents in Date # of Participants Addition, Elliott and Fulton Attendance Houses

12/8/2020 Tuesday, 6-8pm 148 94

12/10/2020 Thursday, 6-8pm 98 50

12/12/2020 Saturday, 10am-12pm 66 36

12/14/2020 Monday, 10am-12pm 82 36

12/16/2020 Wednesday, 6-8pm 88 55

Total 482 271

100 Chelsea NYCHA Working Group Appendix J. Resident Engagement

DRAFT - Resident-Participation in RFP/Solicitation Framework Disclaimer: The Proposed Developer Selection framework reflects conversations amongst the Working Group members in late January 2021. The Developer Selection framework will continue to evolve based on input from Chelsea resident leadership ahead of the RFP issuance.

Chelsea RFP – Proposed Developer Selection Process

Technical Review • NYCHA/Housing Development Corporation (HDC) reviewers conduct preliminary screening of proposals to ensure: • Completeness of proposal • Compliance with RFP requirements • Ability to finance • NYCHA/HDC reviewers evaluate proposals that pass initial screening in the following areas: • Development experience and capacity • Property management experience • Financial proposal • Quality of proposed rehabilitation plans (i.e., to ensure the proposal can address the full 20- year capital need as required by HUD) • Proposals that meet technical criteria advance.

Competitive Review • Resident leaders join with NYCHA/HDC reviewers to vet proposals that have passed Technical Review. • Residents must sign a confidentiality and conflict of interest agreement. • NYCHA/HDC reviewers and resident leaders score proposals in areas such as: • Community goals and priorities, including alignment with Working Group recommendations • Property management plan • Resident engagement plan • Design • NYCHA/HDC reviewers and resident leaders conduct interviews with finalist development teams.

Developer Selection • Scorecards are finalized and tabulated. • NYCHA/HDC reviewers and resident leaders meet to review final scorecard results and make recommendations for developer selection.

Chelsea NYCHA Working Group 101