Bronx Public Housing Receives $231M for Full Renovation
The community is among the oldest public housing properties in New York City.
The New York City Housing Authority, working through the Permanent Affordability Commitment Together (PACT) program, has obtained $231 million in financing for the renovation of Eastchester Gardens, a 877-unit public housing property in the Bronx. Established in 1950, the property is one of the oldest public housing developments in New York City, and in fact the second oldest in the borough itself.
With 10 residential buildings, a senior center and community center, Eastchester Gardens is currently home to over 1,850 residents. The property is open to individuals earning 60 percent or less of the Area Median Income.
The renovations will see upgrades to HVAC systems, plumbing, new lighting (including LED additions, flooring, and electrical systems, while also preserving historic elements and the buildings’ design. Americans with Disabilities Act compliance and improvements to community and outdoor spaces are planned as well.
The revitalization will also include the property’s community center and senior center, which are operated by Neighborhood Initiatives Development Corp. and Regional Aid for Interim Needs. Through a partnership with BronxWorks, the revitalization will introduce new on sMDite supportive services such as individual case management, counseling, mental health referrals, benefits enrollment assistance and financial education, employment training, job placement assistance and nutrition resources.
Merchants Capital facilitated the financing, with the lion’s share represented by a $221.7 million 30-year Freddie Mac permanent loan. Eastchester Gardens will be listed on the National Register of Historic Places and thus will also able to receive historic tax credits to support its revitalization.
The companies tasked to undertake the renovation include MDG Design + Construction, Infinite Horizons and Wavecrest Management. They will assess the capital needs of the development and fully rehabilitate all apartments, shared spaces, grounds and building infrastructure.
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MDG specializes in the restoration and new construction of residential apartments in New York City and Long Island, with a focus on affordable housing. Infinite Horizons, a Minority Business Enterprise, specializes in rehabilitation and the construction of residential mixed-use buildings. Wavecrest Management is one of the largest property management companies in the city.
How PACT works
In New York City, properties selected to be a part of the PACT program receive comprehensive renovations, enhanced property management, and expanded on-site social services. After conversion, NYCHA continues to own the properties, administer the Section 8 subsidies and monitor conditions at the communities. About 21,000 residential units in the city have been or are being renovated under the program across nearly 140 properties.
Through PACT, developments are included in the federal Rental Assistance Demonstration and converted to Project-Based Section 8. According to NYCHA, that allows funding to complete comprehensive repairs, while also ensuring units remain permanently affordable.
PACT, which began in 2016, is based on partnerships with private and nonprofit partners. Once a property is converted to Project-Based Section 8, NYCHA leases the land and buildings to the development partners who will conduct the repairs, serve as the new on-site property manager and provide enhanced social services.
