Under the terms of the deal—which hasn’t yet closed—NYCHA and the developers will form a partnership that owns the properties. The housing agency would continue to own the land and retains the right to remove the developers from managing the properties if NYCHA officials are unhappy. NYCHA and the developers both say the housing authority is receiving the bulk of the financial benefits from the transaction. NYCHA can potentially use the money to close its deficit and make upgrades to other buildings in its vast portfolio across the city. When developers upgrade apartments they would be entitled to receive from the federal government the difference between market rents and the rents housing-authority tenants pay, which are equal to 30% of income. The developers will be able to sell tax-exempt bonds and federal tax credits under an agreement that expires in 30 years. At that point, at least in theory, the properties could be converted to market rate, though NYCHA would retain the power to make that decision, and officials said they were committed to preserving affordability.
Posted on: Wed, 10 Dec 2014 18:28:31 +0000
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