The voracious appetite of private developers for more, more, more NYC housing stock is a given these days. But are these same hungry developers preparing to eat away at the city’s affordable housing stock as well?
It appears so, and the city is handing it to them on a silver platter!
The New York City Housing Authority is nearing a deal to sell a 50 percent stake in six housing complexes in Brooklyn, Manhattan and the Bronx to private developers, the Daily News reports.
As a way to offset some of its own financial woes, NYCHA plans to sell close to 900 units to Real estate giant L+M Development Partners and BFC Partners for $150 million for the half-interest in the units, plus another $100 million for renovations. It is not yet known which six complexes NYCHA has decided to betroth.
“This is a creative way to preserve and maintain public housing for the future and to bring in much needed money for repairs,” a Housing Authority spokeswoman said. “(The city) is leveraging the value of its properties and tapping into new capital.”
The cash infusion would raise $100 million for NYCHA over the next two years and another $100 million through 2029. And after 30 years, the developers could ask for the units to become market rate, but the change would be at NYCHA’s discretion.