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Old 07-17-2017, 09:39 AM
 
23,262 posts, read 16,082,841 times
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Here's more info on six NYCHA develops that were partially privatized two years ago.

Deal Between NYCHA and Private Developers Provokes Questions

As you can see, the deal closed and the private investors own a 50% stake and after 30 years, if NYCHA approves they could take NYCHA's 50% stake, making the units entirely private. 4 of these developments were in Manhattan, one in the Bronx, and one in Brooklyn. Shortly after the one in the Rockaways that another posted a link to was partially privatized.

NYCHA allowed middle income housing to be build on NYCHA land in Chelsea.
"The rest would be market rate, a first for the agency, which has developed middle income buildings on NYCHA property, like the Chelsea Houses where there is an income cap of $167,000/year for families of four."

https://ny.curbed.com/2013/2/6/10276...ts-playgrounds

That too is partial privatization.

A developer will build a 47 floor tower on the Holmes projects.
http://www.nydailynews.com/new-york/...icle-1.3207691

A 50/50 affordable housing, along with a charter school was built on NYCHA land between 3rd and 2nd Avenue on 104th Street.

And here's more for the new leases to developers the city is currently negotiating.
https://www.dnainfo.com/new-york/201...r-houses-nycha
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Old 07-20-2017, 08:16 AM
 
Location: New York City
7,129 posts, read 5,506,929 times
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Quote:
Originally Posted by BoogeyDownDweller View Post
It's a weird scheme whereas NYCHA units in Campos houses for instance are being changed into section 8 and then sold to developers with the stipulation that they remain Section 8 in perpetuity. The city is claiming that the Feds will reimburse more for this kind of housing and the developers will make needed repairs.
So effectively, the units were "privatized" to the federal government

I wonder what would happen to this investor if section 8 were abolished
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Old 07-20-2017, 10:33 AM
 
23,262 posts, read 16,082,841 times
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Originally Posted by BlakeJones View Post
So effectively, the units were "privatized" to the federal government

I wonder what would happen to this investor if section 8 were abolished
The Feds don't own a stake in the project. They do fund Section 8. The developer has the option of taking Campos houses market rate in 30 years if they chose to do so.
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Old 07-20-2017, 12:34 PM
 
Location: New York City
7,129 posts, read 5,506,929 times
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Quote:
Originally Posted by NyWriterdude View Post
The Feds don't own a stake in the project. They do fund Section 8. The developer has the option of taking Campos houses market rate in 30 years if they chose to do so.
They can make them market rate but must still use section 8 vouchers (good luck finding section 8 tenants who can pay market).

The city does have an opt out clause in the deal, but presumably they would have to buy back the 50% equity and they'll never come up with that money so basically L+M Development is going to own these outright in 30 years.

The bottom line here is that the city is shifting financial burden from NYC to Washington. The city can't accept section 8 so instead they are using a private developer as a proxy owner to get free federal funding. As I said, they are effectively privatizing to the federal government (in a roundabout way)
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