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79 Years Strong
Preserving Public Housing
        Smith Houses

         March 2013




                            3
A Roadmap for Preservation




Ensures that public housing remains available for
 current and future generations of New Yorkers

                                                    4
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

                                                  5
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

                                         6
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
                                           7
Two Different Federal
     Funding Streams

       Capital:                Operating:
► Covers roofs, bricks,   ► Covers building
  elevators and             maintenance and
  electrical, plumbing      repairs, day to day
  and heating systems       operations and
► Requires long term
                            administration
  planning                ► Based on HUD funding
                            formula that short
► Calls for complex and
                            changes NYCHA
  lengthy execution


                                                   8
Insufficient Capital Funds For
                            Rehabilitation Needs
                                 2001   2002   2003   2004   2005   2006   2007   2008   2009   2010   2011   2012
                           $0
                         -$100
In Millions of Dollars




                         -$200
                         -$300
                         -$400
                         -$500
                         -$600
                         -$700                  Underfunded by
                         -$800                   $876 Million

                         -$900

                                                                                                                     9
Loss Of Operating Dollars For
                        Maintenance, Repairs And Services
                              2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
                        $0
Dollars in Millions


                      -$100
                      -$200
                      -$300
                      -$400
                      -$500
                      -$600             $ 750 Million
                                           Deficit
                      -$700
                      -$800
                                                                                            10
$13.4 Billion Unmet Capital Need
NYCHA Wide for the Next 5 Years

                 Smith Houses has
                   $227 Million in
                   capital needs

                   NYCHA’s current
                 5 year Modernization
                      Plan budgets
                $ 2.3 Million for Smith
                 Houses for 2012-2016
                                    11
Plan NYCHA
Is Our Plan Of Action

            To restore
        financial stability
          by looking for
        other sources of
            long-term
             funding
          opportunities
                              12
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.
                                              13
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                                    14
Setting the Record Straight
          The 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.

                                                15
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
                                              16
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

                                         17
Smith Houses: What does this mean?




4,280 residents live at Smith Houses
                                          18
Smith Houses Today




                     19
Development Opportunity at Smith Houses
                                      Robert F. Wagner Place Site
                                       Site Area: 19,000 SF
                                         New Construction: 365,000 SF
                                          (approx.)
                                      South Street Site
                                         Site Area: 55,000 SF
                                         New Construction: 700,000 SF
                                          (approx.)


                                         Low Income units will be
                                          available to households with
                                          incomes at or BELOW 60% of
                                          Area Median Income (AMI)

                                            Maximum Allowable Income
                                              1 person      $ 36,120
                                             2 persons      $ 41,280
1Basedon Dept. of Housing and Urban          3 persons      $ 46,440
Development 2013 (HUD) Standards             4 persons      $ 51,540
                                                                       20
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 800
  permanently low income housing units for low
  income New Yorkers
 NYCHA residents will be given a preference for
  the low-income units
                                                      21
Benefits for Smith 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

                                                  22
Closing Statement




                    23
Land Lease Website

http://on.nyc.gov/landlease


                          24
Q&A

      25

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Smith Infill Presentation 3 19-13

  • 1.
  • 3. Preserving Public Housing Smith Houses March 2013 3
  • 4. A Roadmap for Preservation Ensures that public housing remains available for current and future generations of New Yorkers 4
  • 5. 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 5
  • 6. 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 6
  • 7. 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 7
  • 8. Two Different Federal Funding Streams Capital: Operating: ► Covers roofs, bricks, ► Covers building elevators and maintenance and electrical, plumbing repairs, day to day and heating systems operations and ► Requires long term administration planning ► Based on HUD funding formula that short ► Calls for complex and changes NYCHA lengthy execution 8
  • 9. Insufficient Capital Funds For Rehabilitation Needs 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $0 -$100 In Millions of Dollars -$200 -$300 -$400 -$500 -$600 -$700 Underfunded by -$800 $876 Million -$900 9
  • 10. Loss Of Operating Dollars For Maintenance, Repairs And Services 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 $0 Dollars in Millions -$100 -$200 -$300 -$400 -$500 -$600 $ 750 Million Deficit -$700 -$800 10
  • 11. $13.4 Billion Unmet Capital Need NYCHA Wide for the Next 5 Years Smith Houses has $227 Million in capital needs NYCHA’s current 5 year Modernization Plan budgets $ 2.3 Million for Smith Houses for 2012-2016 11
  • 12. Plan NYCHA Is Our Plan Of Action To restore financial stability by looking for other sources of long-term funding opportunities 12
  • 13. 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. 13
  • 14. 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 14
  • 15. Setting the Record Straight The 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. 15
  • 16. 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 16
  • 17. 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 17
  • 18. Smith Houses: What does this mean? 4,280 residents live at Smith Houses 18
  • 20. Development Opportunity at Smith Houses Robert F. Wagner Place Site  Site Area: 19,000 SF  New Construction: 365,000 SF (approx.) South Street Site  Site Area: 55,000 SF  New Construction: 700,000 SF (approx.)  Low Income units will be available to households with incomes at or BELOW 60% of Area Median Income (AMI) Maximum Allowable Income 1 person $ 36,120 2 persons $ 41,280 1Basedon Dept. of Housing and Urban 3 persons $ 46,440 Development 2013 (HUD) Standards 4 persons $ 51,540 20
  • 21. 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 800 permanently low income housing units for low income New Yorkers  NYCHA residents will be given a preference for the low-income units 21
  • 22. Benefits for Smith 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 22
  • 25. Q&A 25

Notes de l'éditeur

  1. Presenter – General Manager Cecil HouseIntroduction: Good Evening everyone and welcome. I ask that everyone place take a seat we are about to begin the meeting.My name is Cecil House and I am the General Manager for the New York City Housing Authority. Tonight’s meeting is a very important meeting about preserving public housing. This is a start of many more conversations to come.It is a pleasure to be here – we have NYCHA staff from various departments – Development, Communications, Capital Projects, Operations, REES. But before we begin the meeting I would like to inform you of the following [Ask Interpreters to come up to podium]: We have available interpreters in Spanish, Chinese and Russian. They are going to come up now and introduce themselves and explain that we have wireless interpretation equipment; that will enable you to hear the presentation simultaneously in Spanish, Chinese and Russian.We also have sign languages interpreters who will be signing during the presentationI would like to go over some Ground Rules:We are here to listenIf you would like to speak or ask a question – we ask that you complete a speaker slip [Hold up a sample of speaker slip] This is a meeting for residents so we are going to take questions from residents first and then move on to other questions if time permits.We ask that your comments are respectful and that you be considerate of others and allow them time to share their questionsIf you have any personal and/or specific need or issue related to your apartment – please raise your hand, NYCHA staff is here to assist you.
  2. Presenter – General Manager Cecil HouseTonight’s meeting is a conversation about preserving, maintaining and protecting public housing for another 79 years. We want public housing to be here for future generations. As you know Baruch is 54 years old and is the largest development in Manhattan. I know that this important for you because you have taken the time out to come to this meeting.This is a continuation of several years of conversation that we have had going back to 2006 when NYCHA embarked on the first Plan to Preserve Public Housing to find alternative ideas and ways to preserve public housing.[HOLD UP 2006 PPPH Booklet] In this plan we talked about many ways to generate revenue to maintain and preserve this vital resource called public housing
  3. Presenter – General Manager Cecil HouseIn 2011 we introduced Plan NYCHA which was a collaborative effort again continuing the conversation. [HOLD Plan NYCHA Report up]
  4. Presenter – General Manager Cecil HouseMany of you may have participated in the Plan NYCHA roundtables and community conversations across the city were more than a dozens of meetings that NYCHA held with residents, elected officials and other key stakeholders. –
  5. Presenter – General Manager Cecil HouseEmphasis the points on the slide – WE are not doing anything else but preserving public housing for the future.Preserve – this NOT about demolishing, selling or privatizing public housingRestore – But in order to preserve public housing we need to restore financial stability. How do we transform the way we do things?Transforming – we can NO longer continue to do business the way we have been. We cannot have residents waiting for much needed repairs. We need to be much more efficient and better at what we do. Improve: When we transform and do better we provide better customer service.So we all share the same interest which is to preserve public housing. But the big challenge is achieving financial stability. All this preservation requires money and resources. Which NYCHA DOES NOT have right now.
  6. Presenter – General Manager Cecil HouseImagine that this big ball represents the more than 400,000 residents and over 2,500 buildings that make up NYCHA. Or imagine that this ball represents Baruch Houses and the over 5,400 families that call this home.For a very long time we have not received the adequate amount of funding from the federal governmentRegulatory burdens such as having to pay prevailing wages to all of employees, contractors and vendors are costly to NYCHAAging buildings – Most of our buildings are more than 40 years old – Therefore they require more maintenance and repairs and we need to find a way to prevent the buildings from decaying any further.So we are pushing this big boulder up a hill.
  7. Presenter – Presenter – General Manager Cecil House will ask staff from Capital Projects and Operations to explain Capital and Operation FundingSo this is very important I want to talk about the two sources of funding we receive.I am going to ask that members the Capital Projects Division and Operations come up to explain to all of you the difference between Capital and Operating Funding.Rebecca Finlan, Capital Projects DivisionLuis Ponce, Operations
  8. Presenter – Capital ProjectsAfter Rebecca finishes – both Rebecca and Ponce are still standing with you.Just to make it clear we have been underfunded by $876 million that could have been used for fixing elevators, roofs, boilers
  9. Presenter – OperationsJust to make it clear we have been underfunded by $750 million that could have been used for apartment repairs.
  10. Presenter – GM House$6 Billion is the current unmet capital need and over the next 5 years this need will more than double for a total amount of $13.4 BillionReiterate again the lack of the cumulative capital funding over the next 5years. Emphasize that NYCHA does not have enough money and that we cannot therefore make the necessary capital improvements or repairs.General Manager Cecil House will present this slide and then turn over presentation to EVP Fred Harris who is going to talk you through a proposal that will help us general critical funds to ensure financial stability.
  11. Presenter –Executive Vice President for Development, Fred Harris
  12. Presenter –Executive Vice President for Development, Fred Harris
  13. Presenter –Executive Vice President for Development, Fred Harris
  14. Presenter –Executive Vice President for Development, Fred HarrisGo through the points again to emphasize what the project is NOT to dispel rumors!!
  15. Presenter –Executive Vice President for Development, Fred Harris
  16. Presenter –Executive Vice President for Development, Fred Harris
  17. Presenter – Bernel Hall- Senior Portfolio Manager
  18. Presenter – Bernel Hall- Senior Portfolio Manager
  19. Presenter – Bernel Hall- Senior Portfolio Manager
  20. Presenter –Executive Vice President for Development, Fred Harris who will then turn it over to General Manager Cecil HousePlease note that the amount of money will be reinvested into Public Housing – in Baruch and across the city at other NYCHA developments.General Manager Cecil House will then introduce Presenter – Bernel Hall- Senior Portfolio Managerwho is the Team Leader for this project.
  21. Presenter – EVP Fred Harris
  22. Presenter – EVP Fred HarrisGM needs to reinforce what Fred just stated.
  23. Remind residents that we have copies of the presentation on the way out and also please visit the NYCHA website for updates.This is the start of many more conversations.
  24. General Manager and team will field questions from the audience