Related, Essence Approved To Build 3,500-Unit NYCHA Replacement Project

New York City Housing Authority’s board approved a plan to demolish 2,000 public housing apartments, replacing them with new projects by Related Cos. and Essence.

The 18 buildings, which are part of Manhattan’s Fulton and Chelsea-Elliott Houses, are home to 4,500 residents. Under the plan, those tenants will move back into the six to-be-built replacement buildings in phases over the course of seven years, Gothamist reports. 

The developers will be allowed to construct 3,500 units, both replacement affordable housing and market-rate apartments, on the two campuses. The project would be the largest of its kind in NYCHA's history, per Gothamist.

“While it’s taken a long time to get here and it’s going to take a long time to move on, this is a really important moment in the history of NYCHA’s transformation,” NYCHA board chair Jamie Rubin said at the meeting Wednesday.

NYCHA housing has long needed substantial investment to improve living conditions. An assessment last year estimated the cost to be $78.3B, according to reporting by The City. 

Issues in the portfolio are far-ranging, from elevators, plumbing and heating to full facade replacements. Residents have also complained about persistent rodent and mold problems.

To alleviate that cost, former Mayor Bill de Blasio introduced the Permanent Affordability Commitment Together plan in 2015. Under the new strategy, Section 9 public developments are converted to Project-Based Section 8 properties, which allow private developers to fund improvements in exchange for tax incentives. 

Developers involved in NYCHA projects across the five boroughs include Monadnock Development, The Arker Cos. and Douglaston Development, according to NYCHA data obtained by Bisnow. 

However, PACT has been controversial since its introduction, with residents expressing skepticism that private entities will improve living conditions. Such concerns have risen again with Related and Essence’s plans, with almost 1,000 residents signing a petition to stop demolition. 

Residents fear that they will be displaced and ultimately lose housing, calling the plan a “land grab,” according to Gothamist. Others worry that their rights, which include paying a percentage of their income on rent and the ability to pass leases to family members, will be denied.

NYCHA Vice President Jonathan Gouveia told the board that tenants will be moved into temporary housing, with the right to return to the developments following the replacement.