Preserving Public HousingRoundtable Discussion

Meltzer TowerApril 8, 2013

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Introductions

Conversation Guidelines

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Let’s hear from everyone No interruptions Treat everyone with respect Respect different opinions Facilitators will take comments and questions

at tables Note-takers are capturing ideas and opinions.

No names will be used.

NYCHA’s Land Lease Proposal

Proposal to lease land to a developer for construction of a new apartment building.

All revenue will go to building improvements at Meltzer Tower and other NYCHA

developments.4

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Overview of Land Lease Proposal Building Site and Design Options Request for Proposal Comments and Q & A

Discussion Topics

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Overview of Land Lease Proposal

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

Meltzer Tower has a$10.5 Million need

for capital improvements

Meltzer Tower is budgeted to receive

$167,000 for the next 5 years

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Overview: Land Lease Proposed Plan

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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Overview: Land Lease Proposed Plan

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 Straight: At Meltzer the Development Plan Will: Not increase rent for NYCHA residents

due to the new developments.

Not demolish public housing apartments

Not move 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

All new buildings located along street fronts to encourage pedestrian traffic and campus integration with the neighborhood and reduce construction impact

Replacement of all parking spaces for all current resident legal permit holders

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)

All revenue will be used to improve the quality of life of NYCHA residents by funding a portion of critical capital improvements – example: roofs, elevators, boilers, electrical system, apartment upgrades

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Benefits for Meltzer Tower Residents

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

Preference for low income apartments in the new buildings

Affordability restrictions are permanent13

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Meltzer Tower

Land Lease Plan

15250 residents live at Meltzer Tower

Meltzer Tower: Where We Are

Meltzer Tower: Development Site

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Development 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

Development Opportunity at Meltzer Tower

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Comments and Concerns about Land Lease Proposal

Group Discussion #1

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Building Site and Design Options

Possible Relocation of Site Uses

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Meltzer Tower: Building Lobby

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Meltzer Tower: Seating Area

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Meltzer Tower: Open Space

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Group Discussion #2

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Design Options Seating Area

Lobby

Open Space

Retail (in base of new building)

Security

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Process to ask developers for their ideas based on specific

guidelines that NYCHA provides

Request for Proposal

RFP is currently in development

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Guidelines Under Consideration Alternate power source

Distribution of apartment units

Employment opportunities & training

Preference for Meltzer residents for affordable units

Financial literacy training

Group Discussion #3

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Request for Proposal Alternate power source

Distribution of apartment units

Employment opportunities & training

Preference for Meltzer residents for affordable units

Financial literacy training

Next Steps in 2013

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RFP out end of April Round of resident discussions Proposals submitted July/August Round of resident discussions Designation of developer Fall 2013 Round of discussions with residents, NYCHA Staff

and designated developer

Key Milestones 2014-2016Ongoing resident discussions

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Environmental review

Submission of Section 18 application

HUD Review of Section 18 application

Upon approval, enter lease agreement

Construction preparation & groundbreaking

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Land Lease Websitehttp://on.nyc.gov/landlease

Public Comments can be submitted online and in writing to:

NYC Housing AuthorityLand Lease Comments

PO Box 3422 New York NY 10008

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Q & A