The New York City Housing Authority landed financing to renovate a property in the Bronx as it struggles with a challenging environment for rehabilitating its dilapidated portfolio.
NYCHA scored $231 million in financing for the overhaul of the 877-unit Eastchester Gardens, the Commercial Observer reported. Most of the 30-year funding came from Merchants Capital, primarily consisting of $221.7 million through a Freddie Mac Capital Markets Execution loan.
The financing was first reported by Globe St.
The property — a spry 75-year-old listed on the National Register of Historic Places — features 10 residential buildings, as well as a senior center and community center. It is in NYCHA’s Permanent Affordability Commitment Together program, which is funded through federal project-based Section 8. The complex is eligible for federal tax credits.
In total, renovations at the complex will carry a $391 million price tag. MDG Design + Construction, Infinite Horizons and property manager Wavecrest Management will be spearheading the process.
“With this collaboration between residents, NYCHA and the PACT partner team, units will receive a suite of new upgrades, such as new radiators, air conditioning, appliances, windows and other building improvements, delivering residents the quality of life they deserve,” Deputy Mayor Adolfo Carrión said in a statement.
NYCHA officials recently received a grilling from the New York City Council’s public housing committee. There are 240,000 on a waitlist for a NYCHA apartment, yet 6,000 units are empty, according to the organization’s dashboard; the true number of vacancies is greater than 8,600.
NYCHA is also struggling to turn units over in a timely manner, taking anywhere from a year to more on average due to the extensive upgrades often required after an apartment is vacated. Last year, the estimated average to renovate a single unit within the portfolio was $375,000.
The vacancy rate across the NYCHA portfolio is approximately 4.5 percent.
— Holden Walter-Warner
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