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The housing tower that overlooks Saratoga Park in Bed Stuy is one of six Section 8 complexes owned by NYCHA across the city that are going to be sold to affordable housing developer L+M Partners. The developer will buy a 50 percent stake for $400 million over 15 years plus invest $100 million in renovating the 900 units, The Wall Street Journal reported.

Once an apartment is renovated, the federal government will pay L&M the difference between what the market rate rent would be and what the Section 8 tenants are actually paying. In addition, said the paper, the developers “will be able to sell tax-exempt bonds and federal tax credits under an agreement that expires in 30 years.”

After that period, the properties “could be converted to market rate,” although that decision would be made by NYCHA and “officials said they were committed to preserving affordability.”

The deal is a “partnership” not unlike the ones that have lately been made with libraries, churches and others. NYCHA would retain ownership of the underlying land.

The complex, Saratoga Square at 930 Halsey Street, is technically in Ocean Hill, although locals consider it Bed Stuy. (The Journal said it is in Bushwick, which starts on the other side of Broadway.) It consists of two buildings containing 251 apartments, all of which are senior housing, according to NYCHA’s own website. (Also part of the complex, but presumably not included in the deal, is the notable Saratoga Avenue Community Center at 940 Hancock Street, which has won architectural awards for its design. The architect is George Ranalli.)

The other complexes — Campos Plaza, East 4th Street Rehab, Milbank-Frawley Houses, East 120th Street Rehab and Bronxchester Houses — are not in Brooklyn.

Curiously, we noticed last week, Fordham professor of history Mark Naison claimed in a recent story in BK Nation that Bed Stuy’s famous Marcy Houses, where Jay-Z grew up, are going market rate in a similar sounding scheme. He doesn’t cite his sources for this information. Perhaps residents told him apartments were being set aside. NYCHA has also said it wants to redistribute larger apartments to larger families.

New York City to Sell Public-Housing Stake [WSJ]
Photo by Christopher Bride for PropertyShark


What's Your Take? Leave a Comment

  1. NYCHA has been currupt for years – seemingly so, anyhow. Anything they can do to make some money that will benefit the greater good of those really in need of NYCHA services is a good thing. Even some half-baked ideas are better than not trying anything…

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