Establishes the New York city housing authority repair certificate program to grant zoning benefits to developers which perform capital repairs to housing projects

Summary of specific provisions

Section one of the bill amends the administrative code of the city of New York by adding a new section 25-114 that creates the New York city housing authority repair certificate program. The City planning commission, in cooperation with NYCHA, will establish the program. The program will allow developers with projects in areas being upzoned for development to apply to the commission for an floor area ratio (FAR) bonus for a project. The commission shall determine the value of the requested bonuses to the developers. The commission shall grant the FAR bonus for a project after the developer has received the NYCHA repair certificate from the Housing authority. Ownership of these certificates is transferable.

Section two of the bill amends the public housing law by adding a new section 402-c that establishes the guidelines for setting up the NYCHA repair certificate. NYCHA, in consultation with the New York city planning commission will establish the guidelines for the program.

Certificates shall not be issued for work that would constitute regular maintenance. Certificates can only be awarded for work that constitutes capital repairs of projects. NYCHA shall establish an office to administer the program. This office shall create a list of capital repair projects and set their value and prioritize the projects based on the urgency or importance of these capital repairs.

A developer can apply for a NYCHA repair certificate and NYCHA will, upon ten days of applying, provide them with a list of repair projects that are equal in value to the sought after bonus. The list will prioritize projects based on their urgency and give priority to projects within the same neighborhood as the project that would gain a bonus. The applicant then has thirty days to submit which projects they would conduct, an estimate from the developer of the cost of completing the project and a timeline for completion. NYCHA can, upon review, ask for a revised cost estimate and plan from the developer.

The developer can submit a revised application. If NYCHA fails to accept this application then it must provide a developer with a reason in writing. If NYCHA accept the application, the developer will be awarded a certificate upon the completion of the agreed upon repair project.

Section three of this bill sets an effective date.

Justification

NYCHA is the largest housing authority in the United States, and its over 179,000 units are home to more than 400,000 New Yorkers. Unfortunately, conditions at many NYCHA developments are deplorable. NYCHA has been called the worst landlord in NYC. A recent report by the NYC Comptroller found that more than a third of all NYCHA units had some form of deficiency. The latest NYC Housing and Vacancy Survey found that more than 30% of NYCHA units experience water leaks, and more than a quarter had suffered from breakdowns in heating equipment. Not only were conditions at NYCHA apartments worse than those for any other class of housing stock in NYC, but these figures represented a worrying decline in the quality of NYCHA housing over the past few years.

NYCHA needs fiscal assistance to fix these problems. The federal government is the main source of support for capital needs at NYCHA, but this support has been declining over the past few years as the federal government cuts back on funds available for public housing. Most NYCHA development are more than four decades old, and a long term underinvestment in its stock has created a massive capital needs gap. NYCHA currently estimates that unmet capital needs are close to $18 billion.

One way in which the massive capital needs of NYCHA can be met is by giving private developers a stake in making resources available for the repair of NYCHA developments. One way this can be done is through the creation of a certificate program that will give developers a bonus on the size of the development they can carry out in areas being upzoned in return for conducting repairs of NYCHA projects. The New York City Planning Commission and NYCHA will work together to create such a program. NYCHA would create a list of necessary capital repair projects while the Planning Commission will be responsible for setting the value of possible FAR bonuses. NYCHA would provide certificates to developers once they completed repairs. Ownership of these repair certificates is transferable.

Prior legislative history

This is a new bill.

Fiscal implications

none

Effective date

This act shall take effect on the hundred eightieth day after it shall have become a law; provided however that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.