FOR IMMEDIATE RELEASE: March 2, 2022
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NYCHA Announces PACT Partners to Provide Approximately $360 Million in Comprehensive Repairs for Reid Apartments and Park Rock Consolidated in Brooklyn
Over 3,600 residents will receive renovated apartments, building infrastructure upgrades, and redesigned public spaces
A team with several New York-based MBEs and the Local Development Corporation of East New York will guide the scope of repairs and coordinate social services
Current photos and proposed renderings for the developments are available here
NEW YORK - Today, the New York City Housing Authority (NYCHA) formally announced the selection of BRP Companies, Urbane, and Fairstead as the PACT partners to deliver approximately $360 million in comprehensive building and apartment upgrades for Reid Apartments and Park Rock Consolidated. Collectively, the developments comprise 1,700 apartments with 88 buildings that are home to more than 3,600 residents. As part of the project, residents will see comprehensive apartment upgrades; enhancements to public areas; the creation of community green spaces; and the renovation of the Reid Senior Center.
Experienced and certified Minority-owned Business Enterprises (MBE), BRP Companies and Urbane bring decades of demonstrated success overseeing affordable housing and mixed-use commercial projects throughout New York City. Fairstead – a real estate firm with a national footprint that specializes in creating high-quality sustainable housing – will serve as the general contractor and property manager. The Local Development Corporation of East New York (LDCENY) – a well-established, 42-year-old nonprofit organization that has deep roots in the community and extensive experience developing affordable housing projects in Eastern Brooklyn – will serve as community engagement partner to liaise with residents and stakeholders. NYCHA and the selected development team will work with resident leaders to select a non-profit partner that will deliver enhanced social services and community programs. As part of the resident engagement process, NYCHA and the selected partners held a virtual meeting on Thursday to introduce the partners to residents and to share an overview of expected repairs. PACT partners will continue to engage with residents around planned renovations over the next year, and construction is expected to begin in early 2023.
“Today’s designation is a critical step toward ensuring better living conditions for the 3,600 tenants who call Reid Apartments and Park Rock Consolidated home,” said New York City Chief Housing Officer Jessica Katz. “I am particularly pleased to see the stellar lineup of developers who were selected, which includes MBE partners with a strong track record of providing high-quality housing and amenities.”
“This partnership will fundamentally improve the conditions and quality of life for 3,600 residents living at 88 sites throughout Eastern Brooklyn, all while preserving their tenant rights and protections," said NYCHA Chair & CEO Greg Russ. “Today’s selection reaffirms NYCHA’s commitment to working with diverse, qualified, and experienced partners who share our dedication to stabilizing long-standing communities and preserving public housing for future generations.”
“Today’s announcement is the latest milestone in the Authority’s effort to bring meaningful investments to our residents through the PACT program,” said NYCHA Executive Vice President for Real Estate Development Jonathan Gouveia. “Residents’ quality of life will be improved through comprehensive building repairs and the reactivation of underutilized open spaces into beautiful, accessible green spaces all members of the community can use.”
“The comprehensive improvements resulting from today’s designation will ultimately benefit more than 3,600 residents across the Reid Apartments and Park Rock Consolidated NYCHA campuses,” said Housing Development Corporation President Eric Enderlin. “Congratulations to the development team, and thanks to all our partners for their ongoing efforts to guarantee affordability and tenant protections while providing essential upgrades to our public housing stock under the PACT program.”
“We are extremely grateful to play a role in the transformation and revitalization of nearly 1,700 homes for East New York residents through NYCHA’s PACT program,” said Co-Founder & Managing Partner of BRP Companies Meredith Marshall. “It has long been our mission to ensure the creation and preservation of safe and stable affordable housing options in each of our developments in order to provide the best quality of life possible for our residents. We’re looking forward to continuing these efforts as we embark on this new opportunity alongside NYCHA, HDC, The City of New York, and the greater East New York community.”
“Urbane is dedicated to advancing opportunities for community wealth and economic mobility for public housing residents here in NYC and throughout the country. That starts with providing quality, public housing communities where residents can thrive in place and where their success becomes a force multiplier for the larger community,” said Principal and CEO of Urbane James Johnson-Piett. “We are humbled by the opportunity to be a part of this groundbreaking public-private investment in Brooklyn public housing communities in partnership with NYCHA, BRP Companies, Fairstead, LDCENY, and HDC as we work toward leveling the playing field for thousands of New Yorkers.”
“For over 40 years, the Local Development Corporation of East New York (LDCENY) has been committed to improving the lives of residents in East Brooklyn, including Brownsville and Crown Heights, strengthening communities and uplifting individuals. As the local non-profit partner, we will be exceptionally focused on ensuring that residents are treated with respect and professionalism throughout the entire process,” said Director of Economic Development and Housing of LDCENY Bill Wilkins. "We understand the need for safe, comfortable, and dignified homes for family foundations and neighborhood cohesion. Our role is to give guidance to the development team and be an advocate for residents of these campuses.”
“Fairstead is committed to helping cities around the country provide quality, affordable homes to those most in need, and innovative public-private partnerships like PACT are playing a critical role in revitalizing public housing communities and helping our neighborhoods thrive,” said Fairstead CEO Jeffrey Goldberg. “We are thrilled to join with our partners at NYCHA, HDC, BRP, Urbane, and the Local Development Corporation of East New York to help the City restore 88 buildings in Brooklyn to the high-quality housing they were designed to be. Having a safe, affordable home is the solid foundation everyone needs to grow and succeed, and we are proud to be a part of the team that will help make this a reality for thousands of New Yorkers.”
The selected PACT partners have become known for not just their ability to rehabilitate homes, but also for their approach to working directly with communities to facilitate investments that are responsive to resident priorities. BRP Companies is a Black-owned real estate firm that is at the forefront of mixed-use development and renovating urban, multi-family properties. Urbane (a certified New York City and New York State Minority-owned Business Enterprise) is a community development venture aimed at generating long-term prosperity and wealth creation in historically disinvested communities.
In 2015, the two companies collaborated to renovate Flatbush Caton Market and bring 166 residential units to that site. Fairstead is a purpose-driven real estate developer that specializes in creating sustainable, high-quality housing. LDCENY empowers low-to-moderate-income women and minorities with programs that promote economic sufficiency and asset-building. The Reid Apartments and Park Rock Consolidated project encompasses 15 different developments with a mix of walk-up scattered site buildings. Reid Apartments is home to over 200 seniors who have access to an on-site Senior Center. The other buildings being renovated as part of this project are scattered over several neighborhoods and are primarily walk-up buildings without elevator service.
The selected PACT partners will implement a responsive property management plan to provide on-site, active management of the scattered developments. The range of planned improvements for these developments includes upgrades to heating, domestic hot water, and ventilation systems; new high-performance roofs and upgrades to building envelopes and windows; renovations to playground equipment, seating areas, and onsite landscapes; new finishes, lighting, and appliances in apartments and community facilities; and upgraded laundry rooms, lobbies, and other common areas.
The selected PACT teams will use the Rental Assistance Demonstration (RAD) program to transition operating subsidy to the Project-Based Section 8 program and finance the 20-year capital needs at each development. They will also be responsible for the day-to-day management and operation of the development. NYCHA will continue to own the land and buildings, administer the Section 8 subsidy, set rents, manage the waitlist for vacant apartments, and monitor conditions at the development. With the development team now in place, NYCHA and its partners will continue to work closely with residents and tenant association leaders to plan and prepare for these historic community investments.
The New York City Housing Development Corporation (HDC), New York City’s municipal Housing Finance Agency, is the financing partner for PACT. HDC will coordinate or provide loan financing funding by bonds issued through HDC’s Multi-Family Housing Bond Resolution (the “Open Resolution”) or the newly created Housing Impact Bond Resolution (the “Impact Resolution”), a bond resolution created solely to facilitate NYCHA transactions.
Since 2016, the PACT program has generated more than $3.4 billion in capital funding for comprehensive apartment renovations and building infrastructure improvements for nearly 15,500 households. Approximately $579 million in renovations have already been completed, and $2.8 billion in major upgrades are underway or will begin early this year. An additional 19,700 households are part of active development projects in the process of resident engagement or pre-development. In sum, NYCHA has more than 35,000 apartments completed, in construction, or in a stage of resident engagement or pre-development.
About the New York City Housing Authority (NYCHA)
The New York City Housing Authority (NYCHA), the largest public housing authority in North America, was created in 1935 to provide decent, affordable housing for low- and moderate-income New Yorkers. NYCHA is home to roughly 1 in 15 New Yorkers across over 177,000 apartments within 335 housing developments. NYCHA serves over 350,000 residents through the conventional public housing program (Section 9), over 20,000 residents at developments that have been converted to PACT/RAD, and over 75,000 families through federal rent subsidies (the Section 8 Leased Housing Program). In addition, NYCHA connects residents to opportunities in financial empowerment, business development, career advancement, and educational programs. With a housing stock that spans all five boroughs, NYCHA is a city within a city.
About the New York City Housing Development Corporation (HDC)
The New York City Housing Development Corporation (HDC) is the nation’s largest municipal Housing Finance Agency and is charged with helping to finance the creation or preservation of affordable housing under Mayor Bill de Blasio’s Housing New York plan. Since 2003, HDC has financed more than 180,000 housing units using over $23.5 billion in bonds and other debt obligations, and provided in excess of $2.9 billion in subsidy. HDC ranks among the nation’s top issuers of mortgage revenue bonds for affordable multi-family housing on Thomson Reuter’s annual list of multi-family bond issuers. In each of the last seven consecutive years, HDC’s annual bond issuance has surpassed $1 billion. For additional information, visit http://www.nychdc.com.