Baruch Houses has a $251 million unmet need for capital improvements over the next 5 years. Baruch Addition has as $13 million unmet need for capital improvements over the next 5 years.

1. Preserving Public Housing
Roundtable Discussion
Baruch Houses
April 22, 2013

2. 2
Introductions

3. Conversation Guidelines
3
 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.

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 Baruch Houses and other
NYCHA developments.
4

5. 5
 Overview of Land Lease Proposal
 Building Site and Design Options
 Request for Proposal
 Project Timeline
 Comments and Q & A
Discussion Topics

6. 6
Overview of Land Lease
Proposal

7. $13.4 Billion Unmet Capital Need
NYCHA Wide for the Next 5 Years
Baruch Houses currently
has $264 Million in
capital needs
NYCHA’s current 5 year
Modernization Plan
budgets $10.7 Million for
Baruch Houses for 2013-
2017
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 Baruch 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 Baruch 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

13. 13
Baruch Houses
Land Lease Plan

14. Baruch Houses: Where We Are
14
4,280 residents live at Baruch Houses

15. Development Opportunity at Baruch Houses
Development Site:
 Site Area: 26,200SF (approx.)
 New Construction: 350,000 SF
(approx.) / 378 Apartments*
 Affordable units will be
available to households with
incomes at or BELOW 60% of
Area Median Income (AMI)
15
Maximum Allowable Income
1 person $ 36,120
2 person $ 41,280
3 person $ 46,440
4 person $ 51,540
*Calculation based on 925 SF unit size assumption

16. East Houston Street Development Site
Baruch Houses: Development Site

17. 17
Comments and Concerns about
Land Lease Proposal
Group Discussion #1

18. 18
Process to ask developers for
their ideas based on specific
guidelines that NYCHA provides
Request for Proposal

19. RFP is currently in development
19
Guidelines Under Consideration
 Alternate power source
 Distribution of apartment units
 Employment opportunities & training
 Preference for Baruch Houses residents for
affordable units
 Financial literacy training

20. Group Discussion #2
20
Request for Proposal
 Alternate power source
 Distribution of apartment units
 Employment opportunities & training
 Preference for Baruch Houses residents for
affordable units
 Financial literacy training

21. Next Steps in 2013
21
 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

22. Key Milestones 2014-2016
Ongoing resident discussions
22
 Environmental review
 Submission of Section 18 application
 HUD Review of Section 18 application
 Upon approval, enter lease agreement
 Construction preparation & groundbreaking

23. 23
Q & A

24. 24
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