PRE-SUBMISSION CONFERENCE

PACT Round 10 RFEIPRE-SUBMISSION CONFERENCE

NYCHA Real Estate Development Department

May 2021

2

AGENDA

1. NYCHA Background & Overview of PACT program

2. RFEI overview

3. Project Descriptions

4. Responsibilities of Selected Applicants

5. Selection Criteria

6. Submission Requirements

7. Key Dates

8. Q&A

3

Conference Protocols

• All participants are muted

• Send questions via Q&A function

• Answers will come during Q&A portion

• Can’t use chat function? Send questions to [email protected]

• All questions will be answered in Addendum

mailto:[email protected]

NYCHA Overview

NYCHA is the largest landlord in New York City• 173,000+ public housing units across 326 developments

• NYCHA supplies 8% of New York City’s rental housing stock

• NYCHA houses more residents than Cleveland, Tampa, or Pittsburgh

NYCHA serves a diverse array of New Yorkers• NYCHA houses 1 in every 22 New Yorkers

• Nearly 40% of NYCHA households headed by persons age 62+

NYCHA provides a vital source of low-rent housing• Median income of NYCHA households is $17,088

• Average monthly rent of a NYCHA apartment is $522

• NYCHA comprises 83% of New York City apartments with rents less than $500/month

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5

NYCHA 2.0 Strategy

What is PACT?

6

• NYCHA needs $40 billion to fully renovate

and modernize its housing, but the federal

government has provided only a fraction of

the funding needed.

• Through PACT, developments are included

in the Rental Assistance Demonstration

(RAD) and convert to a more stable,

federally funded program called Project-

Based Section 8.

• PACT unlocks funding to

complete comprehensive repairs, while

keeping homes permanently affordable

and ensuring residents have the same

basic rights as they possess in the

public housing program.$B

$5B

$10B

$15B

$20B

$25B

$30B

$35B

2006 2011 2017

THE PROBLEMLack of Public Housing Funding

5-YEAR CAPITAL NEED

5-YEAR CAPITAL FUNDING

$6.6B

$16.8B

$31.8B

1. Stabilize a critical housing stock for New York City

2. Invest in communities by:

• Addressing community-wide goals and priorities

• Investing in resources and amenities that support resident health

and prosperity

3. Meaningfully engage communities in planning for the future

of their homes

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Goals of PACT

How PACT Works

* PACT uses the Rental Assistance Demonstration (RAD), which was designed to ensure that as developments transition to the Section 8 program, homes

remain permanently affordable and residents have the same basic rights as they possess in the public housing program.Ocean Bay (Bayside)

Betances

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PACT Investment & Improvement

Sites and Grounds

Building Systems

Newly renovated apartment at Twin Parks WestNew and improved building systems at Ocean Bay (Bayside)

Site improvements at Baychester and Betances Building improvements at Ocean Bay (Bayside) and Baychester

Buildings

Apartments

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PACT Progress to Date

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Nearly $1.8 billion in capital repairs

already completed or underway.

An additional $1.2 billion

will commence in 2021.BROOKLYN

MANHATTAN

STATEN

ISLAND

QUEENS

BRONX

Converted PACT Developments

Active PACT Projects

# Units

9,517

16,596

# Developments

49

49

98 26,113

10 Miles

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AGENDA


2. RFEI overview





7. Key Dates

8. Q&A

PACT Round 10

• Initial round of resident engagement and PACT

education has started

• We are continuing to conduct apartment inspections

and collect feedback on resident goals & priorities

• Residents will participate in the review of

submitted proposals & team interviews

• PACT partners will be selected by the end of the year,

and renovations will begin in early 2023

Total Units3,647

Total PNA$693.4M

Union Avenue Consolidated, Wilson

Consolidation, Ocean Hill & Stuyvesant

Gardens, Sack Wern & Clason Point Gardens

Developments18

Wilson Consolidation

Union Avenue ConsolidatedSack Wern & Clason Point Gardens

Ocean Hill & Stuyvesant

Gardens

10 Miles

BROOKLYN

STATEN

ISLAND

QUEENS

BRONX

MANHATTAN

12

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• Pre-Qualified Teams: Eligible respondents are limited to the pre-qualified

PACT list.

• Residents First: We are asking our partners to submit robust resident and

community engagement plans.

• Diversity: We are looking for partnerships that demonstrate a range of

experience, background, and perspective to achieve the best outcomes for our

residents

• Social Services: Social services and service coordination should be a priority

demonstrated by every team once selected and continued through our long-term

management partnership.

Key Highlights of this RFEI

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Key Highlights of this RFEI

• Complete Communities & Urban Design: We encourage partners to

identify opportunities to create and provide amenities, such as access to: fresh

food; health, educational, and cultural facilities; and recreation that will create

more complete communities for our residents.

• Design Excellence: NYCHA encourages teams to consider design strategies

and improvements that go well beyond addressing the basic repair needs.

• Sustainability: It must be a priority to bring NYCHA into a new era of deep

decarbonization and responsible resource management through these

rehabilitation projects. We have bolstered our requirements but encourage you to also propose new ideas.

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PACT Conversion Details

Ask a question by typing into the Q&A box or raise your hand!

PROGRAM COMPONENTS• Capital rehabilitation addressing 20-year needs of the developments

• Secure and coordinate financing with Housing Development Corporation (HDC)

• On-going operations/property management

• Social services plan, funding and ongoing coordination

CONVERSION PLAN• Buildings to be conveyed in ‘as-is’ condition through a ground lease

• Anticipated that developments will meet HUD’s obsolescence threshold and be eligible to convert through a

RAD / Section 18 Blend with 10% RAD / 90% S18 Tenant Protection Vouchers

• New construction opportunity

UNDERWRITING ASSUMPTIONS• Full detail can be found in the Underwriting Template for each site

• New construction template added to the template for relevant sites

• RAD rental assumptions are based on the applicable RAD Contract Rents

• Section 18 contract rents are based on the traditional project-based Section 8 formula and can be

underwritten up to 110% of Fair Market Rent (FMR), subject to rent reasonableness

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AGENDA


2. RFEI overview





7. Key Dates

8. Q&A

PACT Round 10

Wilson Consolidation

Union Avenue ConsolidatedSack Wern & Clason Point Gardens

Ocean Hill & Stuyvesant

Gardens

10 Miles

BROOKLYN

STATEN

ISLAND

QUEENS

BRONX

MANHATTAN

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Project Name Development Name UnitsTotal

Units

Union Avenue

Consolidated

EAGLE AVENUE-EAST 163RD STREET 66

983

CLAREMONT PARKWAY-FRANKLIN AVENUE 188

DAVIDSON 175

SOUTH BRONX AREA (SITE 402) 114

STEBBINS AVENUE-HEWITT PLACE 120

UNION AVENUE-EAST 163RD STREET 200

UNION AVENUE-EAST 166TH STREET 120

Wilson Consolidated

METRO NORTH PLAZA 275

921WHITE 248

WILSON 398

Ocean Hill +

Stuyvesant Gardens

OCEAN HILL APARTMENTS 238

929

SARATOGA VILLAGE 125

STUYVESANT GARDENS I 331

STUYVESANT GARDENS II 150

BEDFORD-STUYVESANT REHAB 85

Sack Wern & Clason

Point Gardens

CLASON POINT GARDENS 401 814

SACK WERN 413

4 projects 17 developments 3,647

Project Details

Round 10

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Union Avenue Consolidated

Project Name Development Name # Units

Union Avenue

Consolidated

EAGLE AVENUE-EAST 163RD STREET 66

CLAREMONT PARKWAY-FRANKLIN AVENUE 188

DAVIDSON 175

SOUTH BRONX AREA (SITE 402) 114

STEBBINS AVENUE-HEWITT PLACE 120

UNION AVENUE-EAST 163RD STREET 200

UNION AVENUE-EAST 166TH STREET 120

TOTAL 983

Neighborhood

Morrisania, BronxTotal Units

983Total PNA

$165.4M

0.25 Mile

Claremont Parkway-Franklin Avenue

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2

6

Davidson

Union Avenue-East 166th Street

Union Avenue-East 163rd Street

BD

Eagle Avenue-East 163rd Street

South Bronx Area (Site 402)

Stebbins Avenue-

Hewitt Place

C R O T O N A

P A R K

Developments

Management Office

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Wilson Consolidated

0.1 Mile

White

Metro North Plaza

Wilson

P.S. 146

EAST RIVERPLAYGROUND

FDNY EMS STATION 10

NYC Health + Hospitals / Metropolitan

96th St

103rd St

45

6

Wilson Developments

Management Office


Wilson

Consolidated

METRO NORTH PLAZA 275

WHITE 248

WILSON 398

TOTAL 921

Neighborhood

Harlem, ManhattanTotal Units

921Total PNA

$160.5M

Round 10

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Ocean Hill + Stuyvesant Gardens


Ocean Hill +

Stuyvesant

Gardens

OCEAN HILL APARTMENTS 238

SARATOGA VILLAGE 125

STUYVESANT GARDENS I 331

STUYVESANT GARDENS II 150

BEDFORD-STUYVESANT REHAB 85

TOTAL 929

Neighborhood

Central BrooklynTotal Units

929Total PNA

$176.9M

Ocean Hill + Stuyvesant Gardens

Bedford Stuyvesant RehabStuyvesant Gardens DevelopmentsOcean Hill Developments

0.5 Mile

Bedford Stuyvesant Rehab

Stuyvesant Gardens I

Stuyvesant Gardens II

Saratoga Village

Ocean Hill Apartments

CA

ZJ

M

S T U Y V E S A N T

H E I G H T S

Management Offices

Round 10

Round 10

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Sack Wern & Clason Point Gardens


Sack Wern &

Clason Point

Gardens

CLASON POINT GARDENS 401

SACK WERN 413

TOTAL 814

Neighborhood

Soundview, BronxTotal Units

814Total PNA

$190.4M

0.1 Mile

ClasonPoint

GardensSack Wern

Sack Wern

S O U N D V I E W

P A R K

P.S. 100

BRONX RIVER

PARKWAY

Sack Wern Developments

Management Office

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AGENDA


2. RFEI overview





7. Key Dates

8. Q&A

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General Requirements

• Preserve Resident Rights and Protections,

• Fair Housing

• Project Team with M/WBE and Nonprofit partners

• Schedule

• Tenant-In-Place Rehabilitation

• Pre-Closing Work: HQS related compliance,

violations

• Ongoing Property and Community

Facility Management

• Robust, Ongoing Resident Engagement

• Resident Stability and Retention Plan; Rent Arrears

• Scope Development, Environmental Approvals

• Identify & Correct Mold Remediation

• Lead Based Paint Abatement

• Design and Construction, Accessibility, Historic

Preservation

• Completion Guarantees

• Asset Management Reporting Requirements

• Credit Building, Broadband

• Security Plan

• COVID Health and Safety

• Affordability Requirements and Marketing of affordable

housing

• Establishment & Administration of Wait List

• Insurance Coverage

• Development Rights / Carve Outs

Project Requirements

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PACT Social Service-Related Requirements

• Service Coordination, Needs Assessment

• Maintenance of Existing Providers, Agreements

• New Service Generation

• Ongoing Funding Commitments

• Reporting Requirements

Energy, Health and Sustainability

Requirements

• New Heating System Replacement

• Base Sustainability Program

• Local Law 97, 84, 92 Compliance

• Electrification and Long-Term Emission Reduction

Plan

• Submetering and Utility Monitoring

• Green Infrastructure, Waste Management

Infrastructure

• Construction & Demolition Waste

• Smoke-Free policy

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Project Labor & Employment Provisions• Davis-Bacon Prevailing Wage Requirements

• Wage Standard for Building Service Employees

• Labor Relations

• Section 3 of the HUD Act of 1968

• Resident Economic Opportunities, Compliance

• NYCHA Staff Redevelopment

Additional:• Equal opportunity

• Ownership and control

Project Financing and Fee Requirements• Underwriting Guidelines / Template Compliance

• RAD-Section 18 Disposition Scenario

• Balanced Sources and Uses; Minimize City Subsidy

• No Inclusion of LIHTC

• Compliance with RAD, S18 Rent Levels, Over-Income

• Development Fee Guidance Compliance

• Equity Guidance and Compliance

• Lease Payment / Lessor (Seller) Note Structure

• Return to NYCHA

• NYCHA Specific Fees and Costs

• Residential Property Taxes

• Capital Needs Requirements

• Developer Fee Requirements

• Tenant Participation Activities Funding, Resident Advisor

Funds

• Tenant Legal Assistance, Social Services Budget

• New Construction Financing


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Selection Process

Process Requirement

Form Project Team

Submit Project Preference Ranking Form Submit Preference Ranking on PACT

Procurement Site

NYCHA to Provide Notification to Eligible

Applicants

Send NYCHA a Notification Email as a

Confirmation

Site Visits

Eligible Applicants to Ask Additional Questions Submit Questions

Project Proposal Submission Proposal

Selection by NYCHA

Social Service Provider Assignment Process

with NYCHA

Social Service Assessment and Initial Service

Plan

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Submission Requirements

Proposal Submission

A. Narrative Overview

B. Applicant Description

C. PACT Rehabilitation Proposal: Applicants must complete and submit Scope of Work Template

D. Development Experience, Management Experience, and Current Workload

E. Community Engagement Plan

F. Financial Proposal: Applicants must complete and submit Underwriting Standards and Rental Pro

Forma Template and utilize the underwriting standards and assumptions included therein

G. Assets and Financial Statements

H. Site Improvement and Redevelopment Plans (if applicable)

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Evaluation Criteria

THRESHOLD REVIEW (NYCHA)

Completeness of Proposal

Conformance with RFEI

Ability to Finance

COMPETITIVE REVIEW (Resident Review

Committee, NYCHA, and HDC)

Development Experience and Capacity

Property Management Experience and Plan

Financial Proposal

Quality of Proposed Rehabilitation

Community Engagement Plan

Section 3 Hiring Plan

During “Competitive Review,” a

resident committee composed

of the Tenant Association board

will review proposals with NYCHA

and HDC.

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May June & July September

RFEI Released

Pre-Submission Conferences

May 18th & 20th

Questions Due- 1st Round

May 21st

1st Round Q&A released

May 28th

Project Preference Ranking

Forms due

Project Preference Results

Announced

Virtual Site Visits

Questions Due- 2nd Round

2nd Round Q&A released

September 9th 5pm--

Submissions Due

Key Dates

*email questions to: [email protected]

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Questions?

Ask a question by typing into the

Q&A box or raise your hand!

You can also email all your questions

to: [email protected]

mailto:[email protected]

PRE-SUBMISSION CONFERENCE

Documents

Transcript of PRE-SUBMISSION CONFERENCE