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July 2019 July 2019 July 2019 July 2019 INTRODUCTION In December 2018, the New York 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. Revised July 2019 2 )&#)1I$! ;=@AC!H6#&#19#'!F!3>13#H9!9>!I)1'!6#HF%6&!9:F9!%13*)'#&N! •! P%6&98!5)%*'%1B!1#<!6#H*F3#4#19!:>)&%1B!I>6!)H!9>!V,!H)5*%3!:>)&%1B!IF4%*%#&! F9!P)*9>1!A>)&#&!%1!F!1#<!5)%*'%1B!>1!W#&9!.V9: U96##9X •! CI9#6! 6#*>3F9%>1! >I! 6#&%'#19&! 9>! 1#<! >6! #Y%&9%1B! FHF694#19&! F9! P)*9>18! 6#'#$#*>H4#19! >I! 9<>! &%9#&! F9! W#&9! ./9:! F1'! W#&9! .Z9:! U96##9&8! <%9:! FHH6>Y%4F9#*+! V--! 1#<! FHF694#19&! 9>! I)1'! 6#HF%6&! F1'! 36#F9#! 1#<! H#64F1#19*+!FII>6'F5*#!:>)&%1BX! •! 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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 Revised July 2019 4 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 New York City’s Mandatory Revised July 2019 5 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 Revised July 2019 6 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
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