To that end, NYCHA announced last month that private developers have been selected to purchase property and construct or renovate 1,000 units of affordable housing on four public housing sites in the South Bronx. The sale of land at Forest Houses, Highbridge Gardens, Soundview Houses and University Avenue was arranged through a relatively new type of partnership between the Authority and the city Department of Housing Preservation and Development (HPD). Under this model, HPD and NYCHA work together to create the development proposals. NYCHA then provides the land and nets a profit — in this case, $29 million. The collaboration is touted as mutually beneficial, furthering the mission of both agencies. But some warn that opening the floodgates to development on public housing property may lead to problems if the process isn’t carefully regulated.
HPD is eager to facilitate the development of affordable housing for low- and moderate-income families — 6,000 new units by 2013, according to NYCHA spokesman Howard Marder. That helps to fulfill the commitment of the city's New Housing Marketplace Plan, which promises 165,000 affordable units by 2013. And NYCHA is all too happy to create a new revenue stream after years of federal de-funding. The cuts have shortchanged NYCHA $611 million since 2001, which has constrained the agency’s ability to maintain its units and provide services. This year it will operate at a $195.3 million deficit. NYCHA’s financial conundrum has forced it to consider raising rents and cutting “non-core services” such as job training and enrichment programs.
While those involved find much to praise in the innovative arrangement, some are raising questions about the process for community review and whether there are enough provisions for involving residents and neighbors. It's notable that new construction will follow HUD procedures (because the federal Department of Housing and Urban Development oversees housing authorities across the nation) rather than New York City's comprehensive land use evaluation process.
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An August report from the office of Manhattan Borough President Scott Stringer pointed to the fact that development on NYCHA land would not be subject to the City’s Unified Land Use Review Process (ULURP) unless "NYCHA or the developer seek additional waivers or public actions." Marder explained that while NYCHA land is held to the city’s environmental review process, there exists no mandatory participation in ULURP, which typically governs transactions of city-owned land. ULURP mandates a procedure of notification and conduct of public hearings at multiple levels of government, with opportunities for public feedback and approval at each level.
By contrast, the HUD process involves a brief description of the development proposal in a publicized annual plan. This is approved and followed by a documented resident meeting coordinated by the tenant association. HUD is also required to seek feedback on the proposal from the borough's council of NYCHA tenant association presidents, though no other local governing body is involved. According to Marder, if a conflict arises between residents and NYCHA regarding the plan, it is resolved on a “site specific” basis at the tenant association level. Further, HUD also does not require the participation of non-NYCHA community members — though they may live across the street or next door to the new building in question — as they are not viewed as part of the community under HUD guidelines.
