In March 2010, the New York City Housing Authority was successful in getting the U.S. Department of Housing and Urban Development’s (HUD) approval to complete the Federalization of 21 former City and State NYCHA developments, with more than 20,000 housing units. In order to qualify for ongoing federal subsidies through a Mixed-Finance Modernization Plan, the developments were sold to an entity created and controlled by NYCHA. The sale also will enable HUD to include the 21 developments in a federal subsidy program that will deliver $65-$75 million every year for ongoing maintenance.
As a result of the transaction, NYCHA:
- Will receive more than $400 million in public and private funding, the majority of which will go to capital improvements that began immediately and will continue through 2012.
- Has begun apartment inspections and interior repairs on some of the 21 developments. So far NYCHA has started work at Rutgers and Amsterdam Addition in Manhattan, and Castle Hill and Marble Hill in the Bronx
- Has started Capital improvement work at all of the 21 developments. Including brick work, façade and roof repairs, elevator replacement, front and rear entrance renovations and heating upgrades.
NYCHA has preserved low-income housing over the past 75 years and will continue to do so into the future. The Mixed-Finance Modernization Plan is the tool we are using to fulfill this mission. But, in order to secure the funding as part of the federalization plan process, we need your assistance as residents to help us continue to preserve and strengthen public housing by providing NYCHA staff with documentation and signatures that will be requested of residents.
As a result of the transaction, NYCHA residents will notice some changes to their leases:
- The owner and landlord listed on the lease for the 21 City/State Developments will change from “NYCHA” to a new partnership referred to as “NYCHA Public Housing Preservation I, (or II), LLC.”
- Effective immediately, NYCHA has prepared new leases with the new partnership name for signatures from each authorized household member over the age of 18.
- The new lease has the same text as the existing lease, except that the partnership is named as the landlord, and NYCHA is named as the managing agent.
- NYCHA I HDFC, a wholly owned affiliate of NYCHA, is the managing member of NYCHA Public Housing Preservation I, LLC. NYCHA II HDFC, another wholly owned affiliate of NYCHA, is the managing member of NYCHA Public Housing Preservation II, LLC.
NYCHA is Preserving Public Housing for the Future
Through this transaction, NYCHA can protect and preserve the tenancy rights of all existing residents.
- NYCHA will continue to own the land where the developments are located and will continue to operate the community facilities and commercial spaces. NYCHA will be the managing agent for both LLCs and still will manage the buildings the way it has in the past.
- Rent guidelines under the new ownership structure will remain the same.
- Tenant rights under the new ownership structure will remain the same.
- No current resident will be displaced as a result of the new ownership structure.
- No employees will be terminated as a result of the new ownership structure.
- All rent checks will continue to be made payable to “New York City Housing Authority” or “NYCHA.”
- NYCHA will remain a public housing authority.
The documents below provide more information about the Mixed-Finance Modernization (Federalization) Program.
HUD Secretary Shaun Dononvan's Remarks Regarding Federalization
Transcript of Chairman Rhea's Address to Residents of the 21 City/State Developments (in PDF )
View Federalization photos (Flickr)
Video Presentation of Chairman Rhea's Address to Residents of the 21 City/State Developments (in wmv)
Frequently Asked Questions (FAQ)
Frequently asked questions (PDF)
Preguntas frecuentes (en PDF)
Часто задаваемые вопросы (в формате PDF)
English version of this web page (in PDF)
Traducción de la página web Modernización con Financiamiento Mixto (en PDF)
Перевод «Плана модернизации на основе смешанного финансирования» (в формате PDF)