NYCHA Unveils Plans to Sell Section 8 Houses to Private Developers

NYCHA outlined its plan to sell Section 8 houses to two private developers as part of a new housing partnership at a City Council hearing on Tuesday.

“In an ideal world, Uncle Sam would give NYCHA the money it needs,” said Councilmember Ritchie Torres (D-Bronx), also chairman of the Committee of Public Housing. Since NYCHA does not receive federal funding, the Triborough Preservation partnership with L&M Development and Preservation Partners Inc., would allow them 50 percent ownership.

Torres also said that residents feared privatization, because it might displace them from their homes. Other members of the Committee on Public Housing voiced concerns on what they called a transformative impact for New Yorkers.

“This is the last stop on affordable housing,” said Councilmember, Laurie Cumbo (D-Brooklyn), who was skeptical about the deal, while another councilmember called it a “sad day” for NYCHA residents.

NYCHA Chairwoman and CEO Shola Olatoye defended NYCHA’s position and said it was a good day for residents because the deal would provide them “a roof that doesn’t leak, a kitchen that works, and a toilet that flushes.”

Olatoye said that $80 million in capital work would be used to “provide energy-efficient technologies and enhanced security.” NYCHA expects to generate $360 million in revenue over the next 15 years to fund more amenities, renovate lobbies, clean hallways and more repairs.

In December 2014, NYCHA announced a new partnership with L&M Development and Preservation Development Partners Inc. to bring more units of affordable housing. Among those developments are, Millbank – Frawley, East 120th Street, East 4th Street, Campos Plaza I, Saratoga Square and the Bronxchester Houses. The goal is to rehabilitate those developments in two years and as partial owner, NYCHA would oversee the transaction.

The Triborough Preservation deal raised three main concerns by the Committee. They questioned about the expiration of the 30 – year agreement, which Olatoye said, residents could reapply once the time is up. Second, would the units remain affordable? “The rent will not increase – it will stay at 30 percent of their home,” said Olatoye. Section 8 sectors accommodate low-income families who cannot afford market value housing.

Some committee members said rehabilitation could affect the tenant’s quality of life because construction would force them to relocate, but Olatoye argued, “Triborough would minimize the impact of renovation on residents.”

“The relocation will be temporary at no cost,” she said.

The Committee also questioned whether the deal would create more jobs. So far, 21 NYCHA residents have been hired for maintenance and construction positions with a wage of at least $15 per hour. Olatoye said NYCHA and its partners would make sure workers receive benefits.