Mayor Zohran Mamdani, the New York City Housing Authority, the New York City Housing Preservation Trust and the New York City Housing Development Corporation announced the financial closing for a $607 million modernization of Nostrand Houses in Sheepshead Bay, Brooklyn.
The $607 million investment will address decades of capital needs at Nostrand Houses, fully rehabilitating 1,148 apartments and modernizing systems across 16 residential buildings for approximately 2,000 residents, according to a press release from the Office of the Mayor.
“For generations, NYCHA residents have been told to wait for the investments their homes deserve,” said Mamdani. “The residents of Nostrand Houses took action: they voted to take a different path, and today that path is delivering."
The milestone comes after a vote by Nostrand Houses residents in December 2023 to become the first NYCHA development to join the trust. The announced funding is the first project to reach financial closing through the trust.
The Trust was signed into law by Gov. Kathy Hochul in 2022, seeking to unlock billions in federal funding for NYCHA developments.
“The New York City Public Housing Preservation Trust represents a new kind of public partnership, bringing residents together with NYCHA, the Trust and the City’s housing finance agency to harness the power of our public institutions to deliver the improvements residents deserve,” said Leila Bozorg, deputy mayor for housing and planning.
The Trust allows Nostrand Houses to access more flexible federal funding than traditional Section 9, government-owned public housing, while keeping the development entirely public. NYCHA will continue to manage the property.
According to the Office of the Mayor, every kitchen and bathroom will be renovated down to the wall structure with new finishes and plumbing components. Apartments will receive new appliances, quartz countertops, durable flooring, energy-efficient windows and new intercom systems. Renovated units will be remediated for lead and mold hazards.
All 16 buildings will receive upgrades to electrical wiring and plumbing systems, along with new elevators.
Kings Bay Y, selected with residents, will provide social service programs for crisis navigation and workforce development.
