January 13, 2017
The New York City Housing Authority (NYCHA) closed a giant deal Dec. 30 to bring $325 million to Ocean Bay Houses, a 1,400-unit public housing community in the Rockaways in Queens, NY.
It’s the first deal in New York City through the federal Rental Assistance Demonstration program, run by the Department of Housing and Urban Development (HUD). The program, called Permanent Affordability Commitment Together in New York City, transforms public housing, so that money contributed by HUD to maintain the property can be used to support a mortgage. In this case, New York State issued $213 million in housing bonds.
The housing authority will also partner with RDC Development, a private development and management team.
The 24 buildings at Ocean Bay Houses will receive extensive renovations and repairs, including new roofs, heating systems and security systems. The housing authority has struggled with years of federal budget cuts, and has a backlog of $17 billion in unmet capital needs.