July 2019 July 2019 INTRODUCTION In December 2018, the City Housing Authority (NYCHA) announced NYCHA 2.0, part of Mayor Bill de Blasio’s plan to preserve public housing and ensure residents have the safe, decent, and affordable homes they deserve. Through multiple strategies, NYCHA 2.0 will deliver comprehensive renovations, streamlined property management, and permanent affordability for NYCHA residents. NYCHA 2.0 includes three tools for achieving these goals: Permanent Affordability Commitment Together (PACT), Build to Preserve (BTP), and Transfer to Preserve (TTP).

In spring 2019, NYCHA began conversations with residents of Fulton Houses about how to best use these tools to repair and preserve Fulton Houses as permanently affordable housing for current residents and future generations of New Yorkers. This document includes responses to the questions and concerns raised at those initial engagement sessions. NYCHA 2.0 COMMITMENTS

1. No Displacement No residents will be displaced from their development.

2. Rents Unchanged at 30% of Adjusted Gross Income Residents will continue to pay 30% of their adjusted gross income as they do in public housing after conversion to Section 8 though PACT.

3. All Residents Maintain Rights Residents maintain the same rights after conversion to Section 8 through PACT.

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"#$%&#'!()*+!,-./! ! 3 TABLE OF CONTENTS Questions and responses from the initial engagement sessions are organized into the categories below. NYCHA will continue to add questions to this document throughout the visioning process.

Introduction ...... 2 NYCHA 2.0 Commitments ...... 2 Concept ...... 3 NYCHA 2.0 General Information ...... 5 NYCHA 2.0 at Fulton Houses ...... 8 NYCHA 2.0 Engagement ...... 10 PACT Information ...... 11 Build First Replacement Buildings ...... 20 New Mixed-Income Buildings at Fulton ...... 22 Funding & Repairs ...... 26 Other ...... 29 Glossary ...... 32

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NYCHA 2.0 GENERAL INFORMATION

1. What is NYCHA 2.0? While NYCHA provides a vital source of low-rent housing to a diverse array of New Yorkers, many of its buildings are rapidly deteriorating and federal disinvestment has created a $32 billion capital budget deficit. In exploring all available options to fund operations, necessary repairs, and upgrades, NYCHA 2.0 was developed to bring comprehensive repairs to NYCHA developments and improve the lives of our residents. NYCHA 2.0’s goal is to reduce the capital need Authority- wide by up to 75% by the end of 2028.

Through multiple strategies, NYCHA 2.0 will deliver comprehensive renovations, streamlined property management, and permanent affordability for NYCHA residents. NYCHA 2.0 includes three tools to achieve these goals: Permanent Affordability Commitment Together (PACT), Build to Preserve (BTP), and Transfer to Preserve (TTP).

2. What is Permanent Affordability Commitment Together (PACT)? Through PACT, NYCHA seeks to identify resources and opportunities to make major improvements to developments while preserving long-term affordability and maintaining public housing tenancy rights and protections for residents. PACT converts public housing subsidy (Section 9) to the more stable HUD project-based subsidy (Section 8). This conversion allows NYCHA to enter into public-private partnerships to fund comprehensive repairs and manage developments. Additionally, NYCHA continues to maintain ownership of the land and buildings as well as control over major decisions at and about the converted developments.

PACT includes portfolios under the federal Rental Assistance Demonstration (RAD) and NYCHA’s Unfunded Units (also known as LLC II and PACT City/State Developments). The concept NYCHA has presented at Fulton Houses includes conversion from Section 9 to Section 8 through PACT.

3. What is Build to Preserve (BTP)? Build to Preserve (BTP) is a new construction program to develop mixed-income buildings at select NYCHA developments. The program’s proceeds generate additional revenue to fund repairs. One hundred percent of the funds generated by new construction will first be used to fully renovate the host development, and any remaining proceeds will go toward repairs at other developments in the same neighborhood. All new mixed-income buildings under BTP will provide new permanently affordable housing at the same levels as ’s Mandatory

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Inclusionary Housing Program. BTP is expected to generate funds that will address approximately $2 billion in capital needs across 10,000 NYCHA apartments. The concept NYCHA has presented at Fulton Houses includes development of new buildings through BTP to generate revenue to fund repairs.

4. What is Transfer to Preserve (TTP)? Transfer to Preserve (TTP) is a program to generate revenue in exchange for selling NYCHA’s unused development rights (a.k.a. “air rights”) to neighboring sites. The proceeds of the program generate additional revenue to fund repairs. Like BTP, 100% of the funds generated by TTP will first be used to fully renovate the adjacent development, and any remaining proceeds will go toward repairs at other developments in the same neighborhood. TTP is expected to generate $1 billion for capital repairs at adjacent developments. The concept NYCHA has presented at Fulton Houses does not currently propose a development rights transfer through TTP, but we will continue to explore opportunities to do so.

5. Why is NYCHA pursuing NYCHA 2.0? While NYCHA provides a vital source of low-rent housing to a diverse array of New Yorkers, many NYCHA buildings are rapidly deteriorating and federal disinvestment has created a $32 billion capital budget deficit. In exploring all available options to fund operations, necessary repairs, and upgrades, NYCHA 2.0 was developed to bring comprehensive repairs to NYCHA developments and improve the lives of our residents. NYCHA 2.0’s goal is to reduce the capital need Authority- wide by up to 75% by the end of 2028.

6. What are the primary goals of NYCHA 2.0? • Raise money for critically needed repairs • Maintain long-term affordability for residents and increase affordable housing in New York City • Protect resident rights and retain NYCHA’s oversight role

7. What are the additional benefits of NYCHA 2.0? • Temporary and permanent job opportunities • Fostering of inclusive and equitable communities • Provision of neighborhood amenities, such as community facilities, neighborhood retail, and other public realm improvement

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8. Is NYCHA 2.0 privatization? No, this is a public-private partnership. NYCHA still owns the land and its existing buildings. NYCHA enters into long-term, 99-year leases with development partners for the land on new construction projects and for the land and buildings on preservation projects.

Under PACT, NYCHA enters into long-term lease agreements with development partners that will repair and manage the properties and provide social services to the residents. NYCHA will continue to own the land and buildings, participate as part of the development team (typically at 50% of ownership of the lessee), and oversee major decisions as the Section 8 contract administrator, including rent determination and filling vacancies.

Under Build to Preserve, NYCHA is not selling its land. Instead, NYCHA enters into a long-term lease agreement with the development partner. Through the lease agreement, NYCHA retains significant control over its development partners to ensure that they live up to the terms of agreement, including providing funding to the development where the new building is going up.

9. Is this gentrification? NYCHA 2.0’s primary goal is to permanently preserve affordable housing for low-income households in NYC. The concept proposed at Fulton Houses would also create approximately 200 additional affordable units.

10. How can I learn more about NYCHA 2.0? If you have questions, please call 212-306-4660, email [email protected], or visit the NYCHA 2.0 webpage at on.nyc.gov/NYCHA20Fulton.

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NYCHA 2.0 AT FULTON HOUSES

11. Which NYCHA developments are located in Chelsea? NYCHA developments in Council District 3 include Fulton, Chelsea, Chelsea Addition, and Elliot Houses. These 4 developments include 18 buildings composed of 2,072 apartments that house approximately 4,655 people. About 25% of the residents living in Chelsea are seniors.

5-Yr. Need Development Buildings Units Stories Pop. Year Avg. Rent Built (Per Unit) $168M Fulton 11 944 6 + 25 2,166 1965 $678 ($178K)

Chelsea 2 425 21 910 1964 $583 $101M ($135K)

Chelsea 1 96 14 114 1968 $357 $57M Addition ($186K)

Elliot 4 606 11 + 12 1,355 1947 $577 $18M (166K)

12. What is the capital need of the NYCHA developments located in Chelsea? According to the 2017 Physical Needs Assessment, the 5-year capital need at the 4 developments is more than $344 million. The 20-year capital need is almost $500 million.

13. How are NYCHA 2.0 sites selected? Many factors go into the selection process, including: • Where there is available land and development rights • Capital needs of the developments • Market potential to generate revenue • Affordable housing needs of the neighborhood • New York City’s community development goals

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NYCHA 2.0 ENGAGEMENT

18. Will residents be engaged on the NYCHA 2.0 strategy? Resident engagement is a critical component of NYCHA 2.0. Done in consultation with elected Resident Association leadership, the plan has established engagement opportunities throughout the development process.

Stage Engagement Opportunities

Planning • Meetings with residents and the Resident Association • Meetings with local community stakeholders, including local elected officials • Canvassing, lobby meetings, and other outreach • Tours of PACT developments • Resident Visioning series

Pre-Development • Capital repairs planning • Unit inspections • Resident and elected official consultations for HUD application • Ongoing meetings with resident leadership • Developer’s community outreach

Construction • Ongoing meetings with resident leadership • Developer’s community outreach

19. How can residents influence the project’s design or program? Before the Request for Proposals (RFP) is released, NYCHA will host Visioning Sessions. The RFP will be written to align with the plan developed during the Visioning Sessions, and a summary document of residents’ preferences and concerns will be published as an attachment to the RFP.

After a development team is selected, they will be responsible for engaging with the public throughout pre-development and construction around topics such as construction safety, training and hiring, design and program development, applying for the new buildings, prioritizing capital needs, and any other issues or opportunities that the public would like to discuss.

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PACT INFORMATION

The questions and answers below relate specifically to the conversion from Section 9 to Section 8 through PACT for the existing buildings and residents of Fulton Houses.

20. What is the Rental Assistance Demonstration (RAD)? RAD is an innovative U.S. Department of Housing & Urban Development (HUD) tool to preserve public housing and address capital needs (also called deferred maintenance). Under RAD, public housing authorities like NYCHA convert the funding source that supports a development from the public housing subsidy (Section 9) to the Section 8 voucher program. This conversion puts the development on a more solid financial footing, since Congress typically funds Section 8 at a higher percentage of need than Section 9. Furthermore, switching to Section 8 allows NYCHA to finance major critical repairs with non-governmental funds. In New York City, RAD is a collaboration between the Authority, NYCHA residents, development partners, and community and housing advocates.

According to HUD, here are five things you should know about RAD public housing conversions (source: https://www.hud.gov/RAD):

1. RAD allows public housing authorities to leverage public and private debt and equity to reinvest in the public housing stock. 2. In RAD, units move to a Section 8 platform with a long-term contract that, by law, must be renewed. This ensures that the units remain permanently affordable to low-income households. 3. Residents continue to pay 30% of their income toward rent and they maintain the same basic rights as they possess in the public housing program. 4. RAD maintains the public stewardship of the converted property through clear rules on ongoing ownership and use. 5. The RAD program is cost-neutral and does not increase HUD's budget. This program simply shifts units from the Public Housing program to the Section 8 program so that providers may leverage the private capital markets to make capital improvements.

21. What is Section 8? Created by the Housing and Community Development Act of 1978, the Housing Choice Voucher program, also known as Section 8, provides rental subsidies to eligible low- and moderate-income

Revised July 2019 11 families to rent housing in the private market. Eligibility for this program is based on a family's gross annual income and family size.

NYCHA currently administers the largest Section 8 program in the country. Approximately 85,000 Section 8 vouchers and over 25,000 owners currently participate in NYCHA’s Section 8 program.

22. What are the roles and responsibilities of each party under PACT? HUD, NYCHA, development partners, and residents all have obligations and responsibilities under PACT.

• Residents: Residents play an active role in the PACT process by providing their input and guidance to NYCHA and development partners throughout the predevelopment process. Residents weigh in on aspects of the program such as capital repairs needed in their developments and gaps in existing social services delivery. Residents of converting developments sign PACT leases with the new property manager prior to closing. Each family is expected to comply with the lease and the program requirements, pay its share of rent on time, maintain the unit in good condition, and accommodate inspections. Families must also notify NYCHA of any changes in income or family composition.

• HUD: HUD provides oversight of the Section 8 conversion process and allocates Section 8 subsidy to allow public housing authorities like NYCHA to make housing assistance payments on behalf of the families. HUD also pays NYCHA a fee for the costs of administering the Section 8 funding contract and monitors the administration of the program to ensure program rules are followed properly.

• NYCHA: NYCHA administers the Section 8 program and maintains ownership of the land and buildings to ensure the contractual agreements of the conversion are upheld. Section 8 is administered by NYCHA’s Leased Housing Department, which handles residents’ annual and interim income re-certifications, reasonable accommodation and portability requests, and apartment inspections to ensure all units meet HUD’s Housing Quality Standards. It also provides housing assistance payments to development partners on behalf of each family.

• Development partner: Prior to closing, the development partner is responsible for working with residents to develop a scope of work that covers:

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o Physical improvements to the apartments, buildings, and campus as a whole; o Property management improvements to the day-to-day operations and maintenance of the development; and o Social services improvements to fill gaps in the current delivery of services.

The development partner is also responsible for working with NYCHA and the NYC Housing Development Corporation to assemble and close on a financing structure that supports the rehabilitation budget. After closing, the development partner is responsible for: o Completing the tenant-in-place rehabilitation to address all of the development’s capital needs; o Managing the development with an on-site team that includes a live-in superintendent; and o Providing social services to the development’s residents in collaboration with existing on-site providers.

23. What are NYC’s guiding principles for RAD conversions? The RAD Roundtable’s “Guiding Principles” are intended to serve as supplemental to the rights and protections already provided to residents of converting developments by federal and state statutes, HUD regulations, and HUD notices. The Guiding Principles were developed in 2016 by the RAD Roundtable in partnership with NYCHA to ensure that the rights of tenants are protected as NYCHA preserves properties through PACT. The Guiding Principles are available at on.nyc.gov/RAD-Principles.

24. What are the differences between the NYCHA lease and the Section 8 PACT lease? The PACT lease that residents of converting developments sign is similar to the NYCHA public housing lease. The PACT lease was negotiated with NYCHA by the Legal Aid Society in 2016 on behalf of the RAD Roundtable. All resident lease documents are available on the PACT website at on.nyc.gov/nycha-rad.

25. How will NYCHA determine what repairs are done to each apartment? The scope of repair work will be based on the development’s RAD Capital Needs Assessment (which NYCHA is required to perform prior to closing), the development partner’s inspections and investigations, and resident input. Repairs could include new heating systems, elevator and

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facade upgrades, new kitchens and bathrooms, new windows, upgraded flooring, renovated common spaces, upgraded lighting, enhanced security features, and improved outdoor areas.

26. How are tenant-in-place renovations managed? Will residents have to temporarily relocate? NYCHA’s development partners work with residents to understand their needs and ensure adequate accommodations for any family that cannot remain in their apartment overnight while work is being done in the unit. If a resident is not available during the time selected for repairs, the development partner will work with that family to either safely gain access with their consent or perform the repairs at another time. The development partner will hire workers to assist families with moving furniture as needed. While renovations are happening in the apartments, residents will be able to rest in a hospitality suite within the development where they can also cook, read, watch TV, and go online. Property management staff will be working throughout the renovation period. Prior to conversion, NYCHA is responsible for ensuring that work orders continue to be processed and repairs are made in the apartments and buildings by NYCHA property management staff.

27. Can residents decline renovations? Residents can discuss any concerns about renovations with NYCHA and the development partner; however, if a renovation is required in an apartment in order to meet Housing Quality Standards or to ensure the proper function of a line-wide or building-wide system, then the resident cannot refuse such repair.

28. How will NYCHA handle repairs until the conversion? Prior to closing, NYCHA is responsible for ensuring that work orders continue to be processed and repairs are made in the apartments and buildings by NYCHA property management staff.

29. Will washing machines be allowed? Washing machines are allowed under all NYCHA and PACT leases as long as they are registered properly.

30. Will residents be forced to move under PACT-RAD at Fulton Houses? NYCHA has proposed relocation of some residents from existing low-rise buildings into existing units and/or brand-new apartments at Fulton Houses. Otherwise, no relocation is being proposed for residents living in NYCHA apartments that will be repaired. Additionally, the rehabilitation

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work will occur with tenants-in-place to minimize disruption to residents’ lives. Residents with medical conditions will be accommodated properly during the construction period.

Note: If a resident must be temporarily relocated due to medical reasons and/or reasonable accommodation, the temporary relocation will be performed at no expense to the resident. The resident may be able to relocate to a vacant unit in the same development, a vacant unit in another NYCHA development, or a vacant unit in the selected development partner’s housing stock.

31. How does PACT affect property management? After conversion, a third-party property manager, which will be part of the development team, will operate the property instead of NYCHA.

32. What organizing rights will Fulton Houses residents have under PACT? PACT residents have the same organizing rights as residents in traditional public housing, including the right to maintain, establish, and operate a Resident Association, which is called a Resident Organization (RO) under RAD. The property manager must continue to recognize legitimate ROs, provide funding to support these organizations, and give reasonable consideration to the concerns raised by these organizations. If there is a Resident Association (RA) that is 964-compliant and NYCHA-certified prior to closing, the RA will be recognized as the RO after conversion.

Under PACT, the property manager must provide resident participation funding in the amount of $25 per occupied unit per year. The Resident Organization must receive at least $15 of this amount to fund resident participation activities such as resident education, organizing around tenancy issues, and training activities. The owner may use $10 of this amount to pay for any costs to administer resident participation activities. If a Resident Association had unused resident participation funds before PACT, that money will still be available for the Resident Organization’s use after the conversion.

33. What procedural rights will residents have under PACT? Under PACT, residents will keep the same rights related to the grievance process, termination notification, and succession rights that existed under public housing. The property manager must provide ongoing orientation on the procedures for residents.

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• Grievances: Residents will continue to have the right to a fair hearing and a written decision within a reasonable timeframe. Residents have the right to appeal the hearing officer’s decision if they do not think it is fair. • Lease terminations: NYCHA and/or the property manager may terminate a household’s lease if it follows certain procedures and if the household seriously or repeatedly violated the lease terms. Prior to any termination, residents will be given notice of the grounds for termination. • Succession rights: Households of a unit prior to conversion will continue to have the same succession rights after conversion as NYCHA public housing residents. Persons who become residents of a unit after conversion will have succession rights according to Section 8 rules.

34. What if the new property manager is not doing a good job? NYCHA will have an ownership interest in the development and can change property managers if the management company fails to uphold its commitments.

35. Will residents still be part of NYCHA? Yes, residents will be participants in NYCHA’s Section 8 program. Section 8 is administered by NYCHA’s Leased Housing Department.

36. How much rent will residents pay after the Section 8 conversion? Rents will be set at 30% of a household’s adjusted gross income, exclusive of any allowance for tenant-paid utilities, if applicable. Residents will not be charged maintenance fees after conversion. Residents who currently pay less than 30% of income (flat rents) will experience a rent increase, phased in over 5 years. If residents’ income decreases, they have a right to request an interim recertification and an adjustment in their rent. Residents must recertify their income annually with both the new property manager and NYCHA.

37. Can residents continue to pay their rent on the 1st and 15th of the month? Typically, each household is responsible for paying rent to the property manager the first day of each month (or on the day of the month indicated in the lease) at a location designated by the property manager. If residents would like to make other payment arrangements, NYCHA can work with the property manager to try to accommodate such requests. Any such accommodations would be included in a resident’s lease.

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38. Will residents be charged a security deposit at conversion? Current residents will not be charged additional security deposits upon conversion. Security deposits with NYCHA will be transferred to the new property manager.

39. Will there be tenant screening at conversion? Residents converting to Section 8 under RAD will not be rescreened for program eligibility. All household members on the public housing lease before conversion have a “right to remain” after conversion without rescreening. Household members over the age of 18 who are applying to be added to the lease after conversion will be screened for criminal background and income.

40. What is the pet policy? NYCHA will recommend that all developers/property managers adopt NYCHA’s pet policy as a minimum standard. Residents with pets registered with NYCHA prior to conversion will be allowed to stay.

41. Will residents converting to Section 8 be right-sized? Families living in an under-occupied apartment must move to a right-sized unit if an appropriately sized apartment becomes available in the same development. Right-sizing is based upon NYCHA’s occupancy standards as defined in NYCHA’s current Section 8 Administrative Plan.

A household that has been approved for a live-in aide by NYCHA is permitted one additional bedroom.

42. What if a resident earns too much to qualify for Section 8? HUD allows residents in the converting developments to earn up to 80% of Area Median Income (AMI) and still qualify to live in a Section 8 project-based voucher development. Residents of converted units who earn more than 80% of AMI will be allowed to remain in their unit and pay 30% of their income as rent. Residents who currently pay less than 30% of income will experience a rent increase, phased in over 5 years. Note: Once the grandfathered household moves out, the unit must be leased to an eligible family.

43. Is there a rent cap? No family will pay more than 30% of their adjusted gross income toward rent.

44. Are the Section 8 vouchers portable?

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One year after the Section 8 conversion, a family can move out of their unit with a “Choice Mobility” tenant-based voucher, subject to funding availability. The voucher program allows tenants to move anywhere in the United States where Section 8 vouchers are accepted.

45. How will new residents be chosen when there are vacancies? Vacancies will be filled through a NYCHA Section 8 site-based wait list.

46. Will there be annual inspections? Yes, units will be inspected according to the Section 8 Housing Quality Standards. If a unit passes inspection, it may be inspected every two years. If a unit fails inspection, it will be inspected every year. A resident can request an inspection of their unit at any time.

47. Is parking for residents guaranteed under RAD? A PACT conversion does not impact parking; however, if a PACT conversion is coupled with construction of a new mixed-income building, there may be an overall reduction in parking at a NYCHA development. NYCHA will review any potential impacts to parking as well as other uses during the resident Visioning Sessions.

48. Can residents opt out of PACT? No. All residents in PACT developments will remain in their development and convert to Section 8. Any resident who wishes to remain in the public housing program may request a transfer, but the transfer must be for a valid reason, such as that the apartment is uninhabitable due to fire or flood, the tenant has a special need due to a disability, or the apartment is under- or over- occupied. There are currently more than 203,000 families on NYCHA’s public housing wait list and more than 8,000 families are awaiting a transfer. Vacancy within NYCHA’s public housing developments is less than 1% and transfers are extremely difficult to fulfill.

49. What other PACT conversions have been completed? • Ocean Bay (Bayside): 1,395 apartments in Queens; the development partners are RDC Development, Catholic Charities, and Ocean Bay Community Development Corporation. • Twin Parks West: 312 apartments in the Bronx; the development partners are Gilbane Development Company, Dantes Partners, Apex Building Group, and Kraus Management, Inc.

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• Betances: 1,088 apartments in the Bronx; the development partners are RDC Development and Catholic Charities. • Highbridge-Franklin: 336 apartments in the Bronx; the development partners are Gilbane Development Company, Dantes Partners, Apex Building Group, and Kraus Management, Inc. • Baychester & Murphy: 722 apartments in the Bronx; the development partners are MBD Community Housing Corporation, Camber Property Group, and L+M Development Partners, Inc. • Hope Gardens: 1,315 apartments in Brooklyn; the development partners are Pennrose and Acacia Network.

NYCHA is also on track to convert 25 scattered-site developments in Brooklyn and Manhattan, covering 4,343 apartments, in 2019 and early 2020. NYCHA will release project solicitations in 2019 to include the following developments that are slated for PACT conversion in late 2020: • Williamsburg: 1,630 apartments • Harlem River: 577 apartments • Harlem River II: 116 apartments • Audubon: 168 apartments • Bethune Gardens: 210 apartments • Marshall Plaza: 180 apartments

50. Will Fulton Houses residents have an opportunity to view another PACT development? Yes, there will be a tour in summer 2019, with additional opportunities in the future. NYCHA is happy to set up additional tours to show the work that is being done at PACT developments.

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BUILD FIRST REPLACEMENT BUILDINGS

The questions and answers below relate specifically to the new building that would be developed at Fulton Houses for replacement housing for existing NYCHA tenants in any buildings contemplated for demolition. The new buildings would be built first before any demolition. Existing residents would be relocated first and no displacement from Fulton Houses would occur.

51. What is Build First? In select cases, NYCHA may redevelop public housing units to make way for modern and more efficient buildings for residents. Build First is NYCHA’s commitment to build replacement units and relocate residents into permanent homes prior to any demolition or substantial rehabilitation projects.

52. What is Build First at Fulton? At Fulton Houses, this means that if any residential buildings are proposed to be demolished, the residents of the impacted buildings would decide to move into an apartment in the new replacement building at Fulton or another existing NYCHA apartment at Fulton Houses. Either way, households would retain their rights and continue to pay only 30% of their household’s adjusted gross income.

53. Where will the replacement building be located? The initial concept presented at kickoff meetings located the replacement building at the play area west of Fulton Houses Building #5 (427 and 431 West 17th Street). The staff parking lot on West 18th Street is an alternative site for the replacement building.

54. Will relocated residents have the same rights as other Fulton Houses residents, and will their rent stay the same? Yes, residents will also be converted to the Section 8 program through PACT along with all Fulton residents, will have the same rights, and their rent will remain the same.

55. Will the replacement housing units be smaller than the existing units? Replacement housing apartments will follow the NYC Department of Housing Preservation and Development’s (HPD) Design Guidelines for Multifamily New Construction & Senior Housing, including minimum sizes for bedrooms, living/dining, and storage. All apartments must be adaptable to the accessibility standards of the Americans with Disabilities Act.

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Residents will be offered apartments based upon their family composition. If a resident is currently in an apartment that is the right size based upon their family composition, they would continue to have the same size apartment. If a resident is currently in an under-occupied apartment, then the resident would move into an apartment that is appropriately sized based upon their family composition.

56. What assistance will be provided to relocate residents? NYCHA and the selected development team will provide moving assistance at no cost to the resident.

57. Which buildings will be demolished? The initial concept presented at kickoff meetings looks at redevelopment of Fulton Houses Buildings #1 and #11. Residents of those buildings would be relocated to brand-new apartments or existing apartments at Fulton Houses prior to demolition of the existing buildings.

58. Will there be upkeep to the buildings being demolished while the replacement building is being developed? Yes, regular operations will not change until all residents are relocated into new apartments.

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NEW MIXED-INCOME BUILDINGS AT FULTON

The questions and answers below relate specifically to the new mixed-income buildings that would be developed at Fulton Houses to generate revenue to fund repairs to existing NYCHA apartments and create new affordable housing units.

59. How many new buildings and units will be built, and how tall will the buildings be? NYCHA has not yet issued a Request for Proposals nor received any solicitations for the project, so the project details are not yet known. The concept presented during the initial meetings includes 3 new buildings between 10-35 stories containing approximately 700 units in total.

60. What are the income guidelines for the new affordable units in mixed- income buildings? All new mixed-income buildings must provide new permanently affordable housing at the same levels as New York City’s Mandatory Inclusionary Housing (MIH) program. Households that qualify for the new affordable units will pay no more than one-third of their household income. More information on the MIH program can be found at on.nyc.gov/Inclusionary-Housing.

61. Will NYCHA residents have priority in the mixed-income buildings? How will the new units be marketed? NYCHA residents will receive a preference for 25% of the new affordable units created from the new mixed-income buildings. Affordable units will be marketed publicly and leased through the City’s affordable housing application and lottery, according to the NYC Housing Development Corporation’s marketing guidelines. Preference and marketing requirements are part of the regulatory and operating agreements and ground lease. NYCHA residents who are interested in the new affordable housing units would have a preference for 25% of the new units.

Note: This policy applies only to the affordable units of the mixed-income buildings. Residents of any existing NYCHA buildings have exclusive preference to the replacement units.

62. How will the affordable and market-rate units be distributed throughout the new buildings? Unit distribution will comply with NYC guidelines, which specify that market-rate and affordable units be distributed throughout a majority of the floors in the building. NYCHA also requires all

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building services, amenities, entrances, and views to be open to residents of both the affordable and market-rate units.

63. Will the affordable units be designed just like market-rate units? Affordable units must comply with HPD’s Design Guidelines for Multifamily New Construction & Senior Housing. These guidelines typically allow for some differences in appliances and finishes. All amenities, common spaces, lobbies, etc., will be available to all tenants.

64. These affordable units are too expensive for most NYCHA residents; can we increase the level of affordability? The purpose of building mixed-income housing as part of this plan is primarily to generate revenue to repair the buildings at Fulton Houses. If NYCHA can provide comprehensive repairs with NYCHA 2.0, most residents won’t need to consider moving into the affordable units in the mixed-income buildings because the units they currently live in will be fully rehabilitated. Increased affordability also reduces the value of the new building, and therefore the returns to NYCHA to pay for capital repairs.

65. How are proposals evaluated for Build to Preserve (BTP)? Proposals that meet all threshold requirements will be comprehensively evaluated according to the competitive criteria set forth in the RFP. In previous RFPs, those have included: • Financial return to NYCHA • Financial feasibility of the development proposal • Quality of building and urban design • Program • Development experience, management, and capacity

66. Will NYCHA make the RFP proposals public? To protect the competitive nature of the process and mitigate potential conflicts of interest, all proposals will be treated as non-public information until after the process is complete.

67. What are the current uses of the development sites? Please see the site plan on page 3 of this document, which includes a description of current uses. There may be alternative sites that can be explored through the Visioning Sessions.

68. Will the project replace all existing uses?

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Depending on the final plan, NYCHA will speak with residents about what uses may be lost and how the loss of those uses can be mitigated.

69. Why is NYCHA proposing to use a recently completed grounds improvement site for development? NYCHA is looking at all options to address critical repair needs. The situation with public housing is deteriorating and so we must be flexible with our plans. There is also an alternative site that can be considered.

70. Will the new buildings have parking? New buildings will not be required to provide additional parking but may include new parking.

71. Will subsidy be used? No, it is not anticipated that any City subsidy will be used for the creation of the replacement housing or new mixed-income buildings.

72. Will Low-Income Housing Tax Credits (LIHTC) be used? It has not yet been determined if bond financing and LIHTC may be used for the creation of the replacement housing and/or new mixed-income buildings.

73. Will BTP provide more money to NYCHA than the 50/50 program? Yes, when considering the required amount of subsidy for the 50/50 program, the BTP program will generate significantly more revenue (because of the increased number of market-rate units) while still creating new affordable housing.

74. What will the size of the apartments in the replacement building be? Will they be equivalent to the existing apartments in terms of bedrooms and total square footage? All new apartments will meet HPD’s Design Guidelines for Multifamily New Construction & Senior Housing. During Visioning Sessions, NYCHA can review HPD Design Standards with residents as compared to current apartment sizes.

75. Will residents be able to see the designs of the new apartments? Yes, designs of the new apartments will be shared publicly.

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76. Will the new buildings obstruct residents’ air and light? All new construction projects must comply with New York City’s Zoning Resolution and Building Code. Both documents outline minimum distances between new and existing buildings for fire separation, natural light, and ventilation.

77. What amenities will the new buildings have (e.g., gym, laundry room, pool, security cameras, intercom system, balconies, HVAC/central air)? NYCHA has not yet issued a Request for Proposals (RFP) nor received any solicitations for the project, so the project details are not yet known. Before the RFP is released, NYCHA will host Visioning Sessions to help residents identify opportunities for the new buildings. A summary document of residents’ preferences and concerns is published as an attachment to the RFP.

78. Will affordable grocery stores be part of the campus? As part of the Visioning Sessions, NYCHA will discuss what residents would like to see as part of the new development, including grocery stores.

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FUNDING & REPAIRS

79. What happened to the federal, State, and City funding over time? The federal Public Housing Operating and Capital Funds have long been deeply underfunded. In all but two years since 2002, the federal government has provided less funding than agencies were due under the operating fund, triggering prorated cuts to each agency’s funding.

80. Will Section 8 funding also decrease over time? While there is no guarantee that either funding source will remain funded at the same levels, Section 8 funding is historically better funded than Section 9 funding.

81. What recent and planned repairs have been completed at Fulton? Below is a list of recent and planned repairs at Fulton Houses.

Scope Budget Completion Date

(Planned) Roof Replacement $2.1 M 2023-25

(Planned) Elevators & 2-way Communication $2 M 2021-2023

(Planned) Security Cameras $4 M 2022

(Planned) Basement Crawl Spaces $1 M 2021

(Planned) Community Center Mechanical Upgrades $2.1 M 2020

(Planned) Accessible Ramp, Garbage Hoist $540 K 2020

(Planned) Deep Retrofit Technologies Upgrade $4 M 2019

(Planned) Playground Upgrade $770 K 2019

Community Center Renovation $7.4 M 2018

Gas Riser Replacement (Bldg. #8) $130 K 2018

Brick Repairs (LL11) $3.5 M 2018

Security Enhancements $680 K 2013

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83. Is Fulton Houses eligible for hurricane relief funds? Fulton Houses did not receive any funding related to Hurricane Sandy.

84. How will the revenue from the NYCHA 2.0 project be spent? Revenue will be spent first to address the needs of Fulton Houses and then the surrounding NYCHA developments in Chelsea. We will work with residents to inform the scope of repairs.

85. How is the payment to NYCHA provided? Previously we have asked for pre-paid rent for the length of the ground lease upfront so that we can perform major capital repairs immediately rather than performing “band-aid” solutions over time. We are open to exploring new ideas that may provide future funding for repairs. PACT conversions always include capital reserves that can address ongoing needs.

86. What is the anticipated value of the ground lease? NYCHA does not know the anticipated value of the ground lease but will work with residents to develop a plan that we believe will address all the capital needs.

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OTHER

87. How does Build to Preserve assess environmental impacts? All new construction projects on NYCHA land are subject to environmental review per the National Environmental Policy Act, the State Environmental Quality Review Act, and the New York City Environmental Quality Review. For NYCHA 2.0 projects, NYCHA will conduct an Environmental Assessment Statement (EAS) during pre-development, providing an initial analysis of the project’s potential effects on the environment. Based on the EAS, the lead agency will determine if the project will or will not have a significant adverse impact on the environment. Changes or mitigation measures may be required to reduce the impact. If significant impacts are identified, a positive declaration is issued, requiring completion of an Environmental Impact Statement.

88. Have the negative health impacts of development been taken into consideration? NYCHA is working to ensure safe, clean homes for residents. NYCHA 2.0 intends to improve residents’ quality of life through capital repairs of the existing buildings. Once a proposed design for a new building is selected, an environmental review will determine the environmental areas of concern that must be mitigated prior to any groundbreaking.

89. How will permanent affordability be enforced? Permanent affordability will be included as a requirement in the NYCHA ground lease and a regulatory agreement from New York City will be recorded.

90. Can residents purchase their own apartments? No, the program does not include an option to purchase NYCHA apartments.

91. Will there be job opportunities as part of the NYCHA 2.0 strategy? Where federal funding is used for the preservation of public housing and the creation of replacement housing, Section 3 is required. Section 3 applies to the rehabilitation construction work under PACT. Section 3 is not required for the construction of the new mixed-income buildings as no federal funds will be used. However, NYCHA requires all developers – regardless of Section 3 applicability – to submit a comprehensive hiring plan for providing training and employment opportunities to NYCHA residents during and after construction.

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NYCHA’s development partners will collaborate with NYCHA’s Office of Resident Economic Empowerment and Sustainability (REES) to finalize an agreed-upon hiring plan that is consistent with applicable HUD and NYCHA resident hiring policies. The development teams will host public meetings to discuss their process for posting and hiring skilled and unskilled jobs on the construction site and within the management of the building, as well as for the social services delivery under PACT. NYCHA residents should register with REES for opportunities at the NYCHA 2.0 and other projects throughout the city.

92. What are the construction labor requirements? Is there a preference for minority- and women-owned small business enterprises (MWSBE)? 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 rehabilitation construction work under PACT.

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 will 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 will be adjusted in future years according to contract renewal negotiations, where adjustments will use as a floor 80% of the Prevailing Wage Schedule in effect at the time.

NYCHA aims to ensure that all businesses have an equal opportunity to participate in all aspects of NYCHA projects. As such, RFP applicants are encouraged to take affirmative steps to include MWSBEs in their development team, and such inclusion will be scored favorably. The selected development partner will state in all solicitations or advertisements for bids for a general contractor and subcontractors 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. MWSBEs will be given an equal opportunity to submit contracting and subcontracting proposals.

93. What is happening to the housing project at Harborview? Cooper Park? The Cooper Park proposal does not align with the NYCHA 2.0 goals (i.e., the proposed new buildings would not address the capital needs of Cooper Park) and so the proposal has been abandoned. NYCHA is still evaluating options at Harborview.

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94. Is the closing of Western Beef connected to NYCHA 2.0? No, this proposal is entirely separate from Western Beef’s decisions. However, development at Fulton Houses could be an opportunity to bring in new affordable food retail options (and this conversation should be a part of the Visioning Sessions).

95. What is the history of the new building at West 18th Street? The new development project on West 18th Street is currently leasing up, with 25% of the units rented with preference for NYCHA residents. As part of the Hudson Yards Points of Agreement, NYCHA leased a site for the development of an 18-story building with 160 mixed-income units, ranging in affordability from 50% AMI to 165% of AMI (20% at 50% AMI, 30% at 80% AMI, 20% at 130% AMI, and 30% at 165% AMI). The waste facility was relocated to West 19th Street. All resident parking permit holders have been accommodated as new spaces were added.

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GLOSSARY

Affordable housing Housing is typically considered “affordable” if it costs about one-third or less of household income, and is regulated so the rent can't go up dramatically over time.

Area Median Income (AMI) Area Median Income is what the family right in the middle of the income distribution earns. By definition, half the families earn more and half the families earn less. AMI is defined each year by the U.S. Department of Housing & Urban Development for all cities across the country. Refer to NYC Housing Preservation and Development for more information about current NYC AMI levels.

Conversion Conversion is the official point in the PACT process at which residents’ new Section 8 leases become effective, the development team enters into a long-term ground lease with NYCHA, and the new property manager assumes day-to-day operations.

Development team The development team includes: (1) the developer who will secure financing and carry out renovations, (2) the property manager who will assume maintenance and operations, and (3) the service provider who will provide on-site services, along with their architects, engineers, contractors, and other consultants.

HPD The New York City Department of Housing Preservation and Development is responsible for developing and maintaining the city's stock of affordable housing. Its regulations are compiled in Title 28 of the New York City Rules.

HUD The U.S. Department of Housing and Urban Development is the federal agency responsible for national policy and programs that address America’s housing needs, improve and develop the nation’s communities, and enforce fair housing laws.

NYCHA The New York City Housing Authority

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PHA Public housing authorities are independent agencies governed by HUD, not the local or state government. Public housing developments are always overseen by a housing authority. They often also oversee Section 8 vouchers as well.

REES NYCHA’s Office of Resident Economic Empowerment and Sustainability

RAD Rental Assistance Demonstration

RFP NYCHA will use a competitive process called a Request for Proposals (RFP) to select the development team that will renovate the property. As part of the RFP, the development team will have submitted the preliminary scope of work for the proposed improvements and a plan for providing training and employment opportunities both during and after construction.

RO Resident Organization (the new name of a Resident Association after RAD conversion)

Mixed-income housing Mixed-income residential buildings include rental units at differing levels of affordability, with some units at market rate and others available to low-income households at below-market rates.

Right-sizing To optimize the limited but vital resource of low-income housing, NYCHA’s right-sizing policy transitions families to apartments appropriate for their needs. Residents living in an over- or under-occupied apartment may be moved to a right-sized unit if an appropriately sized apartment becomes available in the same development.

Section 3 Section 3 is a means by which HUD fosters local economic development, neighborhood economic improvement, and individual self-sufficiency. Section 3 is the legal basis for providing jobs for residents and awarding contracts to businesses in areas receiving certain types of HUD financial assistance. Under Section 3 of the HUD Act of 1968, wherever HUD financial assistance is expended for housing or community development, to the greatest extent feasible, economic opportunities will be given to Section 3 residents and businesses in that area.

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Section 8 Section 8 of the United States Housing Act of 1937 authorized the payment of rental housing assistance to private landlords on behalf of eligible low- and moderate-income families.

Section 9 Section 9 of the United States Housing Act of 1937 established an Operating Fund for the purposes of making assistance available to public housing agencies for the operation and management of public housing.

Section 18 Section 18 of the United States Housing Act of 1937 provides that public housing agencies may demolish or dispose of public housing under certain conditions and with approval from HUD. The Section 18 application includes resident and elected official consultation, environmental review, and NYCHA Board approval.

Succession rights Succession rights allow a remaining occupant to become the tenant of record and claim all the same tenancy rights after the primary tenant’s departure. NYCHA requires that the remaining occupant qualify as a Remaining Family Member. Refer to NYCHA Resident Policies and Procedures for more information on qualifications.

Temporary relocation If temporary relocation is needed or requested during renovation, residents are guaranteed the “right to return,” and the development team will attempt to find an apartment within the development or in a nearby location and will cover all associated costs of moving.

Good standing Good standing refers to households that have complied with all the terms of their lease agreement.

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