79 Years Strong

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Meltzer Tower

March 2013

Preserving Public Housing

A Roadmap for Preservation

Ensures that public housing remains available for current and future generations of New Yorkers

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Plan NYCHA Development NYCHA worked hand in hand

by hosting dozens of meetings with residents, electeds, community partners and employees Thousands of residents

provided input into proposals including:o Looking at ways to use NYCHA’s

most valuable asset –our land- to generate revenue

o Development of new mixed-use, mixed-income housing to support more families in need

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A Roadmap for the Future

A Call to: Preserve public

housing – buildings, communities and opportunities Restore financial

stability Transform the way we

do things Improve services

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Why Now? NYCHA Is Struggling To Get Ahead

Severe government funding shortages Unmet capital needs Structural operating

deficit Regulatory burdens

hinder us from controlling costs

Aging and decaying buildings

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Two Different Federal Funding Streams

Capital:► Covers roofs, bricks,

elevators and electrical, plumbing and heating systems

► Requires long term planning

► Calls for complex and lengthy execution

Operating:► Covers building

maintenance and repairs, day to day operations and administration

► Based on HUD funding formula that short changes NYCHA

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-$900-$800-$700-$600-$500-$400-$300-$200-$100

$02001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

In M

illio

ns o

f Dol

lars

Insufficient Capital Funds For Rehabilitation Needs

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Underfunded by $876 Million

-$800-$700-$600-$500-$400-$300-$200-$100

$02001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Loss Of Operating Dollars For Maintenance, Repairs And Services

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$ 750 Million Deficit

Dol

lars

in M

illio

ns

$13.4 Billion Unmet Capital Need NYCHA Wide for the Next 5 Years

Meltzer Tower has a

$10.5 Million need for capital improvements

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Plan NYCHA Is Our Plan Of Action

To restore financial stability

by looking for other sources of

long-term funding

opportunities12

Proposed Plan will help Preserve Public Housing for Current and Future Families

NYCHA would lease (not sell) 14 parcels of land located within 8 developments

Income generated will be dedicated to building improvements for public housing

The developers will finance, construct, and operate new residential buildings.

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Proposed Plan will help Preserve Public Housing for Current and Future Families

Private developers will pay NYCHA for the right to build on leased land that NYCHA owns (and will continue to own)

Approximately 80% of the apartments will be market rate and 20% will be permanently low income

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Setting the Record StraightThe Development Plan Will: Not increase rent for NYCHA

residents due to the new developments.

Not demolish public housing apartments

Not displace NYCHA families Not privatize – NYCHA will still be

the landlord Not sell the land; NYCHA will own

the land under the new buildings. Not result in job losses or increased

work requirements for NYCHA personnel.

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NYCHA’s Core Principles for Development

Location of new buildings along street fronts to encourage pedestrian traffic and campus integration with the neighborhood

Replacement of all parking spaces for all current resident legal permit holders at impacted developments

Compactor yards relocated on campus

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NYCHA’s Core Principles for Development

Where space is available, other impacted areas will be relocated, replaced and/or reconfigured (i.e., seating areas and gardens)

NYCHA will remain your landlord and retain ownership of the land under the new buildings via 99-year ground leases

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Benefits NYCHA Wide

This initiative will generate between $30 Million and $50 Million of funding on a yearly basis for 99 years (term of ground lease)

New funding streams will be used to improve the quality of life of NYCHA residents by funding a portion of critical capital improvements

This initiative will generate approximately 800permanently low income housing units for low income New Yorkers

NYCHA resident will be given a preference for the low-income units

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Meltzer Tower: Where We Are

19250 residents live at Meltzer Tower

Meltzer Tower: Development Site

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Development Opportunity at Meltzer TowerDevelopment Site: Site Area: 18,750 SF (approx.)

New Construction: 121,500 SF (approx.)

Rent and utilities will NOT exceed 30% of your income

Affordable units will be available to households with incomes at or BELOW 60% of Area Median Income (AMI)

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Maximum Allowable Income

1 person $ 36,120

2 persons $ 41,280

3 persons $ 46,440

4 persons $ 51,540

Possible Relocation of Site Uses

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Benefits for Meltzer Tower Residents Preference for low income

apartments in the new buildings

Affordability restrictions are permanent

Alternative power for systems during blackouts such as hallway and stair lighting, heat and hot water, elevators and security

Construction and permanent jobs opportunities for NYCHA residents

Enhanced security features for the entire development

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Closing Statement

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Q & A