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Pennrose Awarded 624 Additional Affordable Housing Units by New York City Housing Authority
June 25, 2018
Pennrose has been tapped by the New York City Housing Authority (NYCHA) to repair and upgrade an additional 624 units under NYCHA’s Permanent Affordable Commitment Together (PACT) program. In January, Pennrose, Hunt and Acacia Network were selected as one of three development partners selected to address over $400 million in capital needs across NYCHA’s portfolio. Mayor de Blasio announced the expanded redevelopment plans in a press conference held June 25.
Known as collectively as “Bundle III,” the project now includes 1,315 family and senior affordable housing units across 60 buildings: Bushwick II (Groups A, B, C and D), Bushwick II CDA (Group E), Palmetto Gardens, and Hope Gardens. The project includes some of NYCHA’s most challenging buildings, which are primarily scattered-site developments with low-rise buildings spread across many different properties.
“On behalf of the development team, we want to thank NYCHA for their trust and support in selecting us as a partner in this incredible program,” said Timothy I. Henkel, Principal and Senior Vice President at Pennrose. “We’ve seen firsthand how quality communities can benefit from well-planned rehabilitation and capital improvements, and we look forward to improving the livability, accessibility, performance and overall durability of these units. It is our top priority to work closely with NYCHA and residents to ensure we’re meeting the needs of the local community and future generations, while causing as little disruption as possible.”
The investments across NYCHA’s portfolio will upgrade heating systems, interiors and common spaces, and elevators for more than 4,000 residents. In addition, properties will receive extensive improvements to kitchens, bathrooms, building security and entry systems. All units will be rehabilitated according to Enterprise Green Communities standards to greatly increase energy efficiency.
Pennrose’s vision for the project includes creating safe, usable green spaces in the otherwise densely developed Bushwick neighborhood. Pennrose has hired WRT as landscape architects to upgrade the existing outdoor areas throughout Bundle III into beautiful open spaces, play areas and gardens. Acacia Network will supplement the Pennrose and Hunt development and management efforts with permanent, on-the-ground community services.
"Acacia Network is a proud partner in this collaboration with Pennrose and Hunt, working towards improved quality of life for these NYCHA residents, their families, and neighbors. After a thorough community outreach process, Acacia will provide tailored resources and referrals to much needed services, including but not limited to tenant in place rehab coordination, behavioral and primary care, workforce training, and after school care. We are pleased that this expansion will allow for even greater community impact," stated Raul Russi, CEO Acacia Network.
The conversions are part of NYCHA’s Permanent Affordability Commitment Together (PACT) program, which generates a sustainable funding source for extensive repairs and continued property management, while guaranteeing permanent affordability and maintaining tenant rights. PACT is New York City’s version of the Rental Assistance Demonstration (RAD) initiative, which was created by the Obama Administration for housing authorities to make improvements and ensure lasting affordability. Pennrose has in-depth experience with RAD projects, having executed nearly 15 RAD developments throughout the United States.
Under PACT, Bundle III will shift to project-based Section 8 funding. Pennrose will provide property management services, while NYCHA retains ownership.
Pennrose and NYCHA have partnered successfully with other projects in the Brooklyn area. Pennrose is currently working with NYCHA on the revitalization of Prospect Plaza, a 364 unit mixed use redevelopment effort that will include 284 affordable housing units, 80 units of NYCHA public housing, retail space and community and recreational facilities designed to support resident health in a rapidly developing area.