douglass land lease presentation 3-21-13
DESCRIPTION
Douglass Houses has a $192 million unmet need for capital building improvements over the next 5 years.TRANSCRIPT
79 Years Strong
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Douglass Houses
March 2013
Preserving Public Housing
A Roadmap for Preservation
Ensures that public housing remains available for current and future generations of New Yorkers
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Plan NYCHA Development NYCHA worked hand in hand
by hosting dozens of meetings with residents, electeds, community partners and employees Thousands of residents
provided input into proposals including:o Looking at ways to use NYCHA’s
most valuable asset –our land- to generate revenue
o Development of new mixed-use, mixed-income housing to support more families in need
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A Roadmap for the Future
A Call to: Preserve public
housing – buildings, communities and opportunities Restore financial
stability Transform the way we
do things Improve services
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Why Now? NYCHA Is Struggling To Get Ahead
Severe government funding shortages Unmet capital needs Structural operating
deficit Regulatory burdens
hinder us from controlling costs
Aging and decaying buildings
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Two Different Federal Funding Streams
Capital:► Covers roofs, bricks,
elevators and electrical, plumbing and heating systems
► Requires long term planning
► Calls for complex and lengthy execution
Operating:► Covers building
maintenance and repairs, day to day operations and administration
► Based on HUD funding formula that short changes NYCHA
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-$900-$800-$700-$600-$500-$400-$300-$200-$100
$02001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
In M
illio
ns o
f Dol
lars
Insufficient Capital Funds For Rehabilitation Needs
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Underfunded by $876 Million
-$800-$700-$600-$500-$400-$300-$200-$100
$02001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Loss Of Operating Dollars For Maintenance, Repairs And Services
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$ 750 Million Deficit
Dol
lars
in M
illio
ns
$13.4 Billion Unmet Capital Need NYCHA Wide for the Next 5 Years
Douglass Houses and Addition have a total of $192 Million need for capital improvements.
Only $17.4 Millionworth of improvements are planned over the next 5 years
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Plan NYCHA Is Our Plan Of Action
To restore financial stability
by looking for other sources of
long-term funding
opportunities12
Proposed Plan will help Preserve Public Housing for Current and Future Families
NYCHA would lease (not sell) 14 parcels of land located within 8 developments
Income generated will be dedicated to building improvements for public housing
The developers will finance, construct, and operate new residential buildings.
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Proposed Plan will help Preserve Public Housing for Current and Future Families
Private developers will pay NYCHA for the right to build on leased land that NYCHA owns (and will continue to own)
Approximately 80% of the apartments will be market rate and 20% will be permanently low income
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Setting the Record StraightThe Development Plan Will: Not increase rent for NYCHA
residents due to the new developments.
Not demolish public housing apartments
Not displace NYCHA families Not privatize – NYCHA will still be
the landlord Not sell the land; NYCHA will own
the land under the new buildings. Not result in job losses or increased
work requirements for NYCHA personnel.
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NYCHA’s Core Principles for Development
Location of new buildings along street fronts to encourage pedestrian traffic and campus integration with the neighborhood
Replacement of all parking spaces for all current resident legal permit holders at impacted developments
Compactor yards relocated on campus
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NYCHA’s Core Principles for Development
Where space is available, other impacted areas will be relocated, replaced and/or reconfigured (i.e., seating areas and gardens)
NYCHA will remain your landlord and retain ownership of the land under the new buildings via 99-year ground leases
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Douglass Houses: Where We Are
184,612 residents live at Douglass Houses & Addition
Douglass Houses: Development Sites
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Development Opportunity at Douglass Houses
Manhattan Avenue Site Site Area: 19,000 SF
New Construction: 340,000 SF (approx.)
West 100th Street Site
Site Area: 18,750 SF
New Construction: 220,000 SF (approx.)
West 104th Street Site
Site Area: 16,000 SF
New Construction: 175,000 SF (approx.)
Low Income units will be available to households with incomes at or below 60% of Area Median Income (AMI)
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Maximum Allowable Income
1 person $ 36,120
2 persons $ 41,280
3 persons $ 46,440
4 persons $ 51,540
Douglass Houses Today
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Benefits NYCHA Wide
This initiative will generate between $30 Million and $50 Million of funding on a yearly basis for 99 years (term of ground lease)
New funding streams will be used to improve the quality of life of NYCHA residents by funding a portion of critical capital improvements
This initiative will generate approximately 800permanently low income housing units for low income New Yorkers
NYCHA residents will be given a preference for the low-income units
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Benefits for Douglass Houses Residents
Preference for low income apartments in the new buildings
Affordability restrictions are permanent
Alternative power for systems during blackouts such as hallway and stair lighting, heat and hot water, elevators and security
Construction and permanent jobs opportunities for NYCHA residents
Enhanced security features for the entire development
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Closing Statement
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Q & A