New York City Housing Authority


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About NYCHA - City and State Developments

General Information
  1. What is NYCHA's goal?
  2. Why is the Mixed-Finance Modernization Plan critical?
  3. Why does NYCHA need to federalize its 21 City and State Developments?
  4. What is the process to federalize NYCHA's State and City Developments through a Mixed-Finance Modernization Plan?
  5. Where is the written proposal?
  6. Is NYCHA privatizing and selling off public housing?
  7. Who will manage the day to day operations of the buildings? Who owns the land and developments now?
  8. How can you lease the land without the buildings?
  9. What are the end results of Federalization?
  10. What will private funding mean in the long term for public housing?
Resident Benefits
  1. How will NYCHA residents benefit from the Mixed-Finance Modernization Plan?
  2. Will Mixed-Finance Modernization Plan provide more employees for NYCHA to take care its developments?
  3. Will NYCHA's first priority be to ensure the rights of the residents?
  4. Will the Public Housing Modernization Plan preserve NYCHA and public housing for the future?
Section 8
  1. What will happen to Section 8 tenants?
  2. Will residents that have Section 8 be forced to give up their vouchers as part of this plan?
  3. Will Section 8 tenants continue to be able to transfer internally within their developments?
Resident Issues - Tenancy, Rent, and Quality of Life
  1. Will NYCHA residents loose their apartments?
  2. How will the Public Modernization Plan affect those living in the 21 City/State NYCHA Developments?
  3. Will rent be increased or stay the same regardless of income and family composition?
  4. Will this transaction affect income guidelines over a sustained period of time?
  5. Will all residents become a NYCHA resident with the same access to programs and services?
  6. How can the residents be assured that the monies received from the 20 year partnership are used for the 21 State and City Developments?
  7. Will federalization provide more available public housing and handicap accessible apartments?
  8. What will happen to the residents of the State/City Developments once the 20 year building and land leases expire?
  9. Will the Public Housing Modernization Plan improve the quality of life the residents?
  10. Will the Public Housing Modernization Plan provide funding for increased security for NYCHA developments?
Finanacial Information
  1. What is the incentive or benefit for the banks to lease the land that NYCHA developments are built on?
  2. Which banks has NYCHA has reached out to?
  3. Will the banks be able to build on NYCHA property?
  4. What will happen if the partners go bankrupt or opt-out before the minimum 15 year period?
  5. Will residents be able to buy the bonds once they are issued?
Maintenance - Repairs/Improvements and Construction
  1. Will residents be relocated while structural improvements are being done?
  2. Will repairs be completed much quicker when the 21 State/City Developments become Federalized?
  3. How will NYCHA go about doing renovations or improvements?
  4. Will the renovations and capital improvement contracts include jobs for those individuals that are out of work?
Timeline - Next Steps
  1. When will the residents being to see the necessary changes taking place within their developments?
  2. What happens to NYCHA if this plan does not happen within the three-month timeframe or at all?
General Information
  1. What is NYCHA's goal?

    NYCHA is attempting to secure ongoing dedicated Federal funding for its 21 City and State developments. The 21 unfunded City and State developments include 344 East 28th Street, Amsterdam Addition, Baychester, Bay View, Boulevard, Bushwick, Castle Hill, Chelsea, Drew-Hamilton, Samuel (City), Independence Tower, Linden, Manhattanville, Marble Hill, Marlboro, Murphy, Rutgers, St. Mary's Park, Stapleton, Williams Plaza, and Wise Towers (the "21 Developments").


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  2. Why is the Mixed-Finance Modernization Plan critical?

    NYCHA has 21developments that were originally built by the State and City after World War II. Beginning in 1995, funding for these State and City developments was gradually eliminated. Currently the State and the City provide NO funding for these public housing units. This means that NYCHA has had to maintain these 21 developments and their approximately 21,000 apartments, by sharing the federal funds it receives for its other 325 public housing developments. In other words, NYCHA has maintained the State and City developments as federal public housing even though they have not received their own federal subsidy—nor any other government funding—for their maintenance. Almost two-thirds of NYCHA's current $150 million deficit- approximately $90 million- is due to meeting the unsubsidized needs of the State and City developments on a yearly basis. NYCHA can no longer afford to divert federal subsidies from the federal developments.


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  3. Why does NYCHA need to federalize its 21 State and City Developments?

    The passage of the American Reinvestment and Recovery Act (ARRA) by Congress last February has provided NYCHA with a one-time opportunity to qualify units in the 21 State and City built developments to receive annual federal and capital funding. The transaction must be complete by March 17, 2010.


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  4. What is the process to federalize NYCHA's State and City Developments through a Mixed-Finance Modernization Plan?

    As part of the Mixed-Finance Modernization Plan, NYCHA will provide a ground-lease of the land at the 21 State and City Developments to a limited partnership/limited liability company and sell the buildings to a limited partnership/limited liability company at their appraised value.


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  5. Where is the written proposal?

    The proposal is being worked on. NYCHA is committed to being more open and transparent about what's going on at NYCHA, both with residents and with the broader community in New York. As information becomes available, it is NYCHA's goal to share this information with you.


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  6. Is NYCHA privatizing and selling off public housing?

    The residential buildings in the State and City built developments will be sold to a partnership controlled by NYCHA. This is required under the rules for mixed finance affordable housing. NYCHA and the Board will maintain control of these developments. Although the buildings will be owned by the partnership, NYCHA will maintain control of the ownership structure. NYCHA will still own the land that the buildings sit on, the parking lots, the community facilities, the playgrounds, in addition to the buildings, NYCHA will own that outright.


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  7. Who will manage the day to day operations of the building?
    Who owns the land and developments now?

    NYCHA will be the managing partner of the entity that will own the developments, and as such will be overseeing the day-to-day operations of the buildings. The entity may contract with NYCHA or may contract with a private management firm to manage the operations of the building. NYCHA owns that land and the buildings sit on now.


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  8. How can you lease the land without the buildings?

    NYCHA will be providing a ground lease, which means we will allow the partnership to have the buildings maintained in that space, the right to access them.


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  9. What are the end results of Federalization?

    Residents' long term quality of life will be improved as dedicated funding and subsidies will result in improvements in building standards and conditions, as well as service enhancements into the future.


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  10. What will private funding mean in the long term for public housing?

    Private funding will mean more financial resources to invest in NYCHA developments.


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Resident Benefits
  1. How will NYCHA residents benefit from the Mixed-Finance Modernization Plan?

    All of the 21 State and City NYCHA developments would receive dedicated federal housing subsidies for the first time. Further more, you will continue to receive the same services and be subject to the same guidelines and regulations as you are today. Residents will have the guarantee that their units will be preserved as affordable public housing with all the tenancy rights, protections and services enjoyed by all other federal public housing residents.


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  2. Will Mixed-Finance Modernization Plan provide more employees for NYCHA to take care its developments?

    All of the units in these developments will be preserved as affordable housing. The City and State units will have their own operating and capital funds which will which will bring more funds into NYCHA to pay for more front line staff and supplies and more capital funds to pay for additional repairs to the buildings.


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  3. Will NYCHA's first priority be to ensure the rights of the residents?

    NYCHA's first obligation is and will continue to be the residents. In order for NYCHA to have these developments become part of the federal funding formula, we will have to maintain NYCHA's buildings by all of the regulatory requirements that HUD has always used to protect residents. Nothing will change from that prospective.


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  4. Will the Mixed-Finance Modernization Plan preserve NYCHA and public housing for the future?

    Yes. This process will improve your development and preserve public housing for the future. As a result of this intended plan, NYCHA will make an investment of more than $200 million dollars over the next two years.


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Section 8
  1. What will happen to Section 8 tenants?

    Section 8 tenants will remain Section 8 tenants.


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  2. Will residents that have Section 8 be forced to give up their vouchers as part of this plan?

    No, residents that currently have Section 8 living in the State and City Developments will not be required to give up their Section 8 status.


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  3. Will Section 8 tenants continue to be able to transfer internally within their developments?

    Residents that currently have Section 8 today will have the right to move with their Section 8 voucher to another apartment, to another unit within their development within those State and City Developments. But if you live in public housing today, you will not have the ability to transfer into Section 8 because only the 2,000 units that are already Section 8 will remain Section 8; all other units will remain as public housing.


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Resident Issues - Tenancy, Rent, and Quality of Life
  1. Will NYCHA residents lose their apartments?

    No. There will also be numerous assurances in the partnership agreement that the developments must remain public housing and cannot be converted to any other use.


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  2. How will the Mixed-Finance Modernization Plan affect those living in the 21 City/State NYCHA Developments ?

    As residents in this process, your day-to-day life will not change — all of your rights, services and protections as public housing residents will remain the same and you will remain subject to the same HUD guidelines with the same rent schedules and income requirements. All house rules and regulations and grievance procedures will still apply.


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  3. Will rent be increased or stay the same regardless of income and family composition?

    Residents will be subject to the same federal rent criteria and federal income guidelines as they are today and going forward.


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  4. Will this transaction affect income guidelines over a sustained period of time?

    Creating the partnership and raising money through a mixed financing strategy and investing in the buildings will have no impact on income guidelines immediately or into the future. Whatever rules that currently apply for income guidelines that are put in place by U.S. Department of Housing and Urban Development (HUD) will exist as they do today. And any changes that HUD makes will not only apply to these developments, but will apply to all of NYCHA – all 336 developments.


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  5. Will all residents become a NYCHA resident with the same access to programs and services?

    Residents will continue as public housing residents, which would be federalized. They will have the same access to programs and services as any other federal public housing resident living in developments owned by NYCHA.


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  6. How can the residents be assured that the monies received from the minimum 15 year partnership are used for the 21 State and City Developments?

    NYCHA will be making certain contractual agreements that the payments that we receive from HUD to support the 21 State and City Developments will in fact go to support the 21 developments.


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  7. Will federalization provide more available public housing and handicap accessible apartments?

    No, federalization doesn't mean that there would be more units available. We are not proposing that we are building new units with the money that we would be receiving form this mixed-finance strategy. NYCHA will be rehabilitating the existing 21,000 units that are in the 21 State/City Developments.

    Housing for the disabled will not change. There is nothing in the plan that would change the number of units that are currently serving disabled residents.


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  8. What will happen to the residents of the State/City Developments once the minimum 15 year building and land leases expire?

    At the end of the minimum 15 year partnership, the bank will receive the benefits from being a member of the partnership and at this point NYCHA will have the right to require the buildings. NYCHA will still continue to receive the federal operating and capital funding for the 21 State/City Developments at the end of the minimum 15 years.


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  9. Will the Mixed-Finance Modernization Plan improve the quality of life the residents?

    The issues that exist in NYCHA developments around the decreasing quality of life are broad. NYCHA has reduced staffing to support the developments from a peak of about 15,000 to only about 12,000 employees today. This is a direct result of cuts in the federal funding formula that NYCHA has been subjected to over a 10+ year period. The Obama Administration has already demonstrated both in the funding that they provided from the Stimulus money, but in the proposed funding levels for 2010 that there will be increased funding for public housing across the country. Ultimately, the goal for NYCHA is to hire more front-line staff in the developments doing the day-to-day maintenance and serving the needs of the residents.


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  10. Will the Mixed-Finance Modernization Plan provide funding for increased security for NYCHA developments?

    The Mixed-Finance Modernization Plan does not affect the current relationship with the NYPD Housing Bureau. There is no method as part of this transaction to increase funding to the NYPD and therefore, receive additional police services today.


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Financial Information
  1. What is the incentive or benefit for the banks to lease the land that NYCHA developments are built on?

    The first incentive for the banks is to receive Community Reinvestment Act Credit for investing and lending money into low and moderate income communities. All large banks have a Community Reinvestment Act requirement.


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  2. Which banks has NYCHA has reached out to?

    The three banks that NYCHA has reached out to are Citigroup, JP Morgan Chase, and Bank of America, the three largest banks in the country.


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  3. Will the banks be able to build on NYCHA property?

    No, the banks will not have the rights to build and construct on NYCHA property. NYCHA will maintain control of the land, and we will not be transferring any of our development rights.


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  4. What will happen if the partners go bankrupt or opt-out before the minimum 15 year period?

    This is a partnership and a legal entity in which the money will be deposited in an account at the time of the closing. The financial partner cannot opt-out of the transaction, once they sign the partnership agreement and the transaction closes.


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  5. Will residents be able to buy the bonds once they are issued?

    There will be bonds that NYCHA will issue that will be available in the retail market that residents and other New Yorkers who want to own those bonds as an investment opportunity would have the ability to purchase.


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Maintenance - Repairs/Improvements and Construction
  1. Will residents be relocated while structural improvements are being done?

    No resident will be relocated.  Residents may be asked to leave their apartment for several hours during the day to permit work to be performed inside the apartment, but they will be permitted to return at the end of the day to their apartment.


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  2. Will repairs be completed much quicker when the 21 State/City Developments become Federalized?

    Yes, NYCHA believes that we will have a significant improved ability to respond much more quickly to maintenance and long-term capital improvement requirements as a result of this transaction.


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  3. How will NYCHA go about doing renovations or improvements?

    The plan to go about the capital project work at the State/City Developments will be done by NYCHA's normal standards and process. NYCHA will have to go through the public procurement process and engage contractors to perform the capital work.


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  4. Will the renovations and capital improvement contracts include jobs for those individuals that are out of work?

    Yes, residents will receive jobs as a result of this transaction. Stimulus funding has been put in place principally to ensure that those who are out of work can work, and those who are underemployed hopefully can gain greater wages and longer hours.


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Timeline - Next Steps
  1. When will the residents being to see the necessary changes taking place within their developments?

    We must have the transaction completed by March 17, 2010; that's the deadline for the closing. So immediately following the closing that's when the actual work at the developments will begin and all contract/construction work will have to be completed over a two year period; by March 17, 2012.


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  2. What happens to NYCHA if this plan does not happen within the three-month timeframe or at all?

    It would be disappointing because it means that NYCHA will have missed on opportunity to get not only the $250 million to invest today in the 21 State and City Developments, but we will lost over $100 million a year going forward that we could potentially receive from the federal government to support the 21 State and City Developments going forward every year.


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