NYCHA Can’t Collect Rent, Wants Private Development

Requests for Proposals for private development of 10,000 units on Housing Authority land should start coming out in early Fall under a plan for revitalizing the Authority and  building housing announced by Mayor de Blasio this week. The report cites 11 acres of developable land in street-facing lots at NYCHA projects, without naming names, but press reports indicate the first sites targeted may be at the Van Dyke and Ingersoll projects in Brooklyn and  Mill Brook in the Bronx. Much of the housing would have to be 50 percent affordable in exchange for reduced land lease payments. Look for the RFPs on HPDs website. Meanwhile, the Mayor’s plan also details one reason public housing is not working…it is only collecting 74% of the rent due from tenants. The tenant share of rent at NYCHA averages only $484 a month, but 32,000 households out of 176,000 are delinquent.

The State Assembly fired the first salvo in the battle over renewing rent regulation in Albany, Tuesday, passing a bill that would end high rent/high income decontrol, make major capital improvement and individual apartment improvement increases into temporary surcharges, block adjustments to preferential rents on lease renewal, and drop the statutory vacancy allowance from 20 to 7.5 percent, among other changes. State Senate leaders and the  Governor have said they expect the rent laws to be renewed, but have not proposed any changes yet.

It looks as if developers can continue to use carried interest as an incentive for another year. Rep. Paul Ryan, chair of the House Ways and Means Committee, said changes in the tax provision were off the table until 2017.

Ever thought about testifying at the Rent Guidelines Board but did not know what to say? Watch a YouTube video of industry representatives from CHIP, RSA, REBNY, SPONY and CNYC making the case for higher rents at an RGB meeting and get the facts straight. Public hearings are scheduled around the boroughs June 8th, 11th, 15th, and 18th.

This entry was posted in Uncategorized. Bookmark the permalink.