NYCHA’S
LUXURY
HOUSING
DEVELOPMENT
PLAN
8 SITES IN
MANHATTAN
Overview of NYCHA’s Plan
• Lease NYCHA land to developers for 99 years to
generate $30 - $50 million per year in income.
• Develop over 4,000 units of 80/20 (80% luxury, 20%
low income) housing on 8 sites in Manhattan.
• 5 of the 8 sites are on the Lower East Side, totaling
2,026 apartments.
• The sites include Smith Houses, Baruch Houses,
Campos Plaza, La Guardia Houses, and Meltzer Tower.
What NYCHA is Promising
• The low income housing will be affordable to
households at 60% of area median income.
• Preference to NYCHA residents for new Low
Income Housing.
• Low income housing will be permanently
affordable.
• No current residents will be displaced.
• New development will not result in rent
increases for NYCHA residents.
What NYCHA is Promising
• NYCHA would remain the landlord of the new
buildings.
• All parking spaces lost to development will be
replaced for current permit holders.
• Gardens and seating areas will be replaced
where space is available.
• New buildings will be along street fronts to
encourage pedestrian traffic.
Why is NYCHA Doing This?
• NYCHA has $13.4 billion in unmet capital
improvement needs.
• NYCHA has a $50 - $60 million annual deficit,
and this plan aims to generate $30 to $50
million annually in revenue from the land
leases.
• NYCHA owns 179,000 apartments in 2,600
buildings in NYC, and houses 630,000 people,
and they are facing federal budget cuts.
Overview of the 5 Sites
on the Lower East Side
Smith Houses has 1,931 apartments
near Catherine St. and South St.
Smith Houses: 1,151 New
Apartments Proposed
Has a $227 million unmet
capital improvement need
over the next 5 years.
2 Proposed Development
Sites: 1 at South Street
and 1 at Robert Wagner
Place. Total of 1,065,000
sq. ft. of new housing,
which is more than
Seward Park.
Baruch Houses has 2,193 apartments
at Houston St. near FDR Drive
Baruch Houses: 405 New Apartments
- NYCHA claims it has a $264 million unmet
capital improvement need over the next 5 years.
- Benefits claimed by NYCHA: Emergency power
generation, temp and permanent jobs,
enhanced security.
LaGuardia Houses has 1,093
apartments at Madison & Rutgers St.
LaGuardia: 276 New Apartments
Has a $79 million unmet capital improvement
need over the next 5 years.
1 Proposed Development Site at Madison St.
(9,000 sq. ft.), and 1 site at Rutgers St. (7,500 sq.
ft.).
Benefits: Same for all the sites – Power
generation, jobs, enhanced security.
Meltzer Tower has 230 apartments
at 1st St. between 1st Ave. & Ave. A
• Meltzer Tower Park
Meltzer Tower: 97 New Apartments
Meltzer Tower: 97 New Units
- Has a $10.5 million unmet capital
improvement need over the next 5 years.
- 1 Proposed Development Site at 1st St. near 1st
Ave. (13,500 sq. ft.).
- Elimination of a park.
- Benefits claimed: Same for all the sites –
Power generation, jobs, enhanced security.
Campos Plaza I & II has 494
Apartments at 12th St. Btwn Ave. B & C
Campos Plaza I & II:
97 New Apartments
- Has a $27.2 million unmet capital improvement
need over the next 5 years.
- 1 Proposed Development Site fronting on 12th St.
near Ave. B. (26,122 sq. ft.).
- Benefits claimed by NYCHA: Redesigned smaller
central plaza, emergency power generation, temp
and permanent jobs, enhanced security.
The Public Housing Law
Section 18
Development Process is Subject to
Section 18 of the Public Housing Law
• Section 18 deals with “disposition of public
housing”
• NYCHA can “dispose” of – lease or sell – its
land, if…
• “It is determined to be in the best interests of
residents because it will allow for building
repairs, etc…”
Section 18 (Continued)
• It is within the goals of the public housing
agency.
• The land being “disposed” of is considered
incidental to the housing - that selling/leasing
it will not interfere with NYCHA’s ability to
operate housing.
Section 18 Process:
- In order to lease the land, NYCHA must apply
to HUD.
- If HUD does not sign off on the disposition,
NYCHA cannot proceed with the lease.
- HUD may disapprove a request if the proposal
was not developed in consultation with the
residents who will be affected.
Section 18 – The Timeline
NYCHA
- prepares development specs (Now)
- releases RFP to developers (imminent)
- reviews the responses from developers
(this will take months)
- submits a Section 18 disposition proposal to
the NYCHA Board (To be determined - TBD)
- NYCHA Board approval (TBD)
Section 18 Timeline
• NYCHA
- Releases a draft of its Annual Plan (May)
- Holds a public hearing on the plan (June)
- Submits Final Annual Plan to HUD (October)
- Submits Section 18 proposal to HUD (TBD)
- HUD reviews and approves annual plan
(December)
- HUD decision on Section 18 proposal
(December)
Community Impacts: Decline in
Quality of Life
Loss of Open Space
(Playgrounds, Parking,
Etc…)
Increased Police
Presence, Loss of Political
Representation
Community Impacts:
Strain on Infrastructure
- Loss of street parking
- Traffic congestion
- Strain on aging sewer
system
- Strain on electrical grid
- School Overcrowding
Community Impacts:
Socio-Economic Changes
- Market rate housing changes
character of the community
- Escalating rents in surrounding
area displaces tenants
- Rising rents for local
retailers, loss of affordable
mom & pop stores, loss of
retail diversity
Smith Houses’ Position
• “We do not want any new building or
buildings built on Smith Houses property, but
we do want repairs done which are well over
due.”
Alfred E. Smith Residents Association
Plan of Action
• Coalitions are mobilizing against the plan.
• Good Old Lower East Side and the Urban
Justice Center are opposed to the plan and are
preparing to file a lawsuit.
• Cooper Square Committee’s Board
recommends that our members oppose the
plan, and that we support the efforts of
groups fighting the plan.
What You Can Do
• Support your friends and neighbors in the
NYCHA buildings, and protect your own
interests. This plan will affect EVERYONE!
Luxury development will push up rents
EVERYWHERE in our community, including
yours whether you are rent stabilized or not.