This document summarizes a roundtable discussion about NYCHA's proposal to lease land to developers to build new residential buildings. NYCHA has an $13.4 billion capital need over 5 years but only $8.5 million planned in work. The proposal would generate $30-50 million annually for 99 years for capital improvements. At Carver Houses, two development sites were proposed, with 242,000 square feet of residential space and 500,000 square feet of community facility space. Residents discussed concerns and provided feedback on the proposal, design options, request for proposal guidelines, and next steps in the process.
3. Conversation Guidelines
Let’s hear from everyone
No interruptions
Treat everyone with respect
Respect different opinions
No videotaping
Facilitators will take comments and questions at
tables
Note-takers are capturing ideas and opinions. No
names will be used. 3
4. NYCHA’s Land Lease Proposal
Proposal to lease land to a developer for
construction of a new apartment building.
All revenue will go to building improvements
at Carver Houses and other
NYCHA developments.
4
5. Discussion Topics
Overview of Land Lease Proposal
Building Site and Design Options
Request for Proposal
Project Timeline
Comments and Q & A
5
7. $13.4 Billion Unmet Capital Need
NYCHA Wide for the Next 5 Years
Carver Houses has
$41Million needed
for capital
improvements
Only $8.5 million of
work is planned
over the next 5
years
7
8. Overview: Land Lease Proposed Plan
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.
Approximately 80% of the
apartments will be market rate
and 20% will be permanently
low income 8
9. Setting the Record Straight:
At Carver the Development Plan Will:
Not increase rent for NYCHA residents
due to the new developments.
Not demolish public housing apartments
Not move 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.
9
10. NYCHA’s Core Principles for Development
All new buildings located along
street fronts to encourage
pedestrian traffic and campus
integration with the neighborhood
and reduce construction impact
Replacement of all parking
spaces for all current resident
legal permit holders
NYCHA will remain your landlord
and retain ownership of the land
under the new buildings via
99-year ground leases
10
11. 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)
All revenue will be used to improve the quality of
life of NYCHA residents by funding a portion of
critical capital improvements – example: roofs,
elevators, boilers, electrical system, apartment
upgrades
11
12. Benefits for Carver Houses Residents
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
Preference for low income apartments in the
new buildings
Affordability restrictions are permanent
12
15. Development Opportunity at Carver Houses
E 102nd St & Madison Ave Site
Site Area: 14,000 SF
E 102nd St & Park Ave Site
Site Area: 23,000 SF
Proposed Floor Area
242,000 SF Residential Floor Area / 262
Apartments* (Approx.)
500,000 SF Community Facility Floor
Area (Revenue Generating Community
Facility eg. Medical Facility, Student
Dormitory)
1Affordableunits will be available to
households with incomes at or BELOW
60% of Area Median Income (AMI)
1Based Maximum Allowable Income
on Dept. of Housing and Urban
1 person $ 36,120
Development 2013 (HUD) Standards
*Assumption based on 925 SF / Apartment 2 persons $ 41,280
3 persons $ 46,440
4 persons $ 51,540
15
19. Carver Houses: Development
Sites
Park Avenue & E 102nd Street Site
Development Site
Madison Avenue & E 102nd Street Site
Development Site
20. Carver Houses: New Parking and
Improved Open Space
E 106th St Landscaped
Area New Parking Lot
Park Ave @ E 105th St Park Ave Parking Lot @ E 100th St
Landscaped Area New Expanded
Parking Lot
Madison Ave @ E
100th St New Parking
Lot
E 99th St Parking Lot Expanded
22. Request for Proposal
Process to ask developers for
their ideas based on specific
guidelines that NYCHA provides
22
23. RFP is currently in development
Guidelines Under Consideration
Alternate power source
Distribution of apartment units
Employment opportunities & training
Preference for Carver Houses residents for
affordable units
Financial literacy training
23
24. Group Discussion #3
Request for Proposal
Alternate power source
Distribution of apartment units
Employment opportunities & training
Preference for Carver Houses residents for
affordable units
Financial literacy training
24
25. Next Steps in 2013
RFP out end of April
Round of resident discussions
Proposals submitted July/August
Round of resident discussions
Designation of developer Fall 2013
Round of discussions with residents, NYCHA Staff
and designated developer
25
26. Key Milestones 2014-2016
Ongoing resident discussions
Environmental review
Submission of Section 18 application
HUD Review of Section 18 application
Upon approval, enter lease agreement
Construction preparation & groundbreaking
26
28. Land Lease Website
http://on.nyc.gov/landlease
Public comments can be submitted online and in writing to:
New York City Housing Authority
Land Lease Comments
PO Box 3422
New York, NY 10008
28
Hinweis der Redaktion
Presenter, Kevin Norman, Director for Mixed Finance Asset ManagementGood evening everyone and thank you for participating in this very important discussion today. This will be just one of many discussions that NYCHA and all of you-- will have in the coming weeks about a proposal to generate funding to Improve and Preserve Public Housing here at Meltzer. Unlike Chicago, Atlanta, St Louis who demolished their public housing, NYCHA wants to keep it going for another 79 years. What we are going to do today is talk about one initiative to help do just that. Many of you may have come to a meeting NYCHA hosted a few weeks ago. I also know there has been a lot of misinformation or confusion out there about plans for this development and that is why it is so important that you have come here to get information, raise questions, give your opinion and offer ideas. I speak for everyone at NYCHA when I say we want to and will answers all those questions, hear your comments and welcome all of your suggestions and ideas. There are more meetings to come so this will not be the only chance to offer your opinion-- this is just the beginning of this multi-year process until 2015 to 2016.
Presenter, Kevin Norman, Director for Mixed Finance Asset ManagementMy name is Kevin Norman, Director for Mixed Finance Asset Management at NYCHA and I will be your moderator for this group discussion. There are many other NYCHA staff around the room who are here to provide info and I will briefly ask them to introduce themselves. (Development team Fred Harris, Bernel Hall and Manhattan Property Management Director, Sheila Pinckney)Finally We also have NYCHA staff here from Property Management who can answer or address any issues you have with your apartment – they are right outside of the this room, and staff who can talk about job training and support etc. I ask that if you have a question or issue about a personal matter please raise your hand and we will make sure you speak to the right staff person.
Presenter, Kevin Norman, Director for Mixed Finance Asset ManagementWalk through each of the points listed on the slideLet’s go through the ground rules so that we make the best use of everyone’s time.We want everyone to feel comfortable and have the ability to speak freely therefore there will be no videotaping allowed. Please be advised that there is a NYCHA staff photographer that will be taking pictures of the meeting. If you do not want your photo taken please inform a NYCHA staff person. We also ask that if you have materials that you would like to hand out please wait until the end of the meeting.At each table you have a facilitator and note taker whose job it is to keep your group discussions going and take down everything so that NYCHA has captured all comments. Facilitators wave hands and note takers. I hope you all took a moment to introduce yourselves at your tables.
Presenter, Kevin Norman, Director for Mixed Finance Asset ManagementSo lets talk about WHY WE ARE ALL HERE TONIGHT. As you may have heard or read NYCHA has developed a proposal based on discussions and planning over the past two years, much of which involved input and discussions with resident leaders and residents across the city as part of Plan NYCHA. We are going to go through the details of this plan in a moment but basically, This proposal is to lease land to a developer for construction of a new apartment building here at Carver Houses. The new apartments would be a mix of market rate and low income, and The money generated from this lease of NYCHA land will all go to building improvements at Carver Houses as well as other NYCHA developments. (let me repeat this again because there has been a lot of confusion.--reinforce the lease and not sell- and that all money coming in from the leases would go back into Carver Houses for improvements like roof, elevators, heating systems etc.... as well as other public housing developments across the city. Most importantly this plan will not require any Carver resident to move, pay higher rent or lose their apartment over time. The primary purpose of this plan is to generate substantial money to help save public housing here at Carver as well as other NYCHA developments and to make sure that public housing is around for the future.
Presenter, Kevin Norman, Director for Mixed Finance Asset ManagementThis PLAN is ALOT to TAKE in. There is important information we want to share and importantly we want to hear what you think and answer your questions. Based on feedback we got from you and other residents when we had our first round of meetings, we have broken down the discussion today into four parts. (Go through the Four Topics, letting them know that for each topic NYCHA staff will share information and then we will break into the table groups to review and discuss the information).
Presenter, Kevin Norman, Director for Mixed Finance Asset ManagementSo lets get started with an overview of the details of the proposal so that everyone has the same information. We will provide you with a copy of the complete presentation at the end of the meeting today. I would like to introduce Fred Harris, Executive Vice President for Real Estate Development
Presenter Fred Harris, EVP for Real Estate Development Reinforce the unmet need due to years of underfunding by the federal government $876 Million in Capital funding and $750 Million in Operating. NYCHA is not getting enough money to keep the buildings maintained.
Presenter –Executive Vice President for Development, Fred Harris
Presenter –Executive Vice President for Development, Fred Harris
Presenter –Executive Vice President for Development, Fred Harris
Presenter Fred Harris, EVP for Real Estate DevelopmentReinforce that revenue that will go back into preserving public housing at Carver and other NYCHA developments across the city.
Presenter Fred Harris, EVP for Real Estate DevelopmentFred Harris will then introduce Bernel Hall, Sr. Transactional Manager for Real Estate Development
Presenter, Kevin Norman, Director for Mixed Finance Asset Management will introduce Bernel Hall, Senior Transactional Manager for Real Estate Development
Presenter Bernel Hall, Senior Transactional Manager for Real Estate Development
Presenter - Bernel Hall, Senior Transactional Manager for Real Estate Development
Presenter, Kevin Norman, Director for Mixed Finance Asset Management So now we are going to take a break here for 15 minutes -to discuss everything we have shared at your tables. Tell us what you think about what we have shared so far, ask your questions and let us know your concerns. We will then have the facilitators go through the top -line comments before we go on.When 15 mins. are up then do read outs from each facilitator at each table.Bernel Hall to come up
Presenter - Bernel Hall, Senior Transactional Manager for Real Estate Development
Presenter -Bernel Hall, Senior Transactional Manager for Real Estate Development
Presenter -Bernel Hall, Senior Transactional Manager for Real Estate Development
Presenter -Bernel Hall, Senior Transactional Manager for Real Estate Development
Presenter, Kevin Norman, Director for Mixed Finance Asset Management So now we are going to take a break here for 15 minutes to discuss everything we have shared at your tables. Tell us what you think about what we have shared so far, ask your questions and let us know your concerns. We will then have the facilitators go through the topline comments before we go on. OK Lets do the read outs
Presenter, Kevin Norman, Director for Mixed Finance Asset Management Now lets talk about an important next step in this process and that is the Request for Proposal. Ask Fred Harris to come up
Presenter – Fred Harris, EVP for Real Estate Development
Presenter, Kevin Norman, Director for Mixed Finance Asset Management For our 3rd breakout discussion we want to get your thoughts and suggestions about what is important to go into this request for proposal to developers. we need you to think about - Alternate power source, distribution of units, Job opportunities for residents, Preference for Carver Houses residents for the affordable apartments and financial training support for those who are interested in applying. There may also be other concerns that you want to make sure get addressed in this proposal so please offer them as well. Do brief read outs from Facilitators at each table
Presenter, Kevin Norman, Director for Mixed Finance Asset Management OK now lets talk about next steps because this is not going to happen overnight. This will take several years. Fred please come up to discuss the project timeline.
Presenter – Fred Harris, EVP for Real Estate Development
Kevin Norman, Director for Mixed Finance Asset Management and team will field questions from the audience
Presenter, Kevin Norman, Director for Mixed Finance Asset Management Thank you all for participating. We hope you found this worthwhile and again this will not be the only chance to get info and offer your comments. You can do that several ways- First attend the NYCHA meetings we will hold in coming weeks; two go online at any time and offer your comments or three write us your comments and concerns and send to the address on the screen.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.