First financial closing through Public Housing Preservation Trust will renovate 1,148 apartments serving about 2,000 residents.
Our Bureau
New York, NY
Mayor Zohran Kwame Mamdani, the New York City Housing Authority (NYCHA), the New York City Public Housing Preservation Trust and the New York City Housing Development Corporation (HDC) have announced the financial closing of a $607 million comprehensive modernization of Nostrand Houses in Sheepshead Bay, Brooklyn, the first project to reach financial closing through the Trust.
The milestone follows a historic vote by Nostrand Houses residents in December 2023 to become the first NYCHA development to join the Trust.
The $607 million investment will address decades of capital needs at Nostrand Houses, fully rehabilitating 1,148 apartments and modernizing building systems across 16 residential buildings for approximately 2,000 residents.
The renovations will include new kitchens and bathrooms, upgraded heating and cooling systems, new elevators, improved accessibility, lead and mold remediation, upgraded security systems and other critical improvements.
“For generations, NYCHA residents have been told to wait for the investments their homes deserve. The residents of Nostrand Houses took action: they voted to take a different path, and today that path is delivering,” Mamdani said. He said the investment would provide new kitchens, safer and healthier apartments, modern building systems and “the dignity of a home that works the way it should.”
Governor Kathy Hochul said the milestone followed legislation intended to unlock additional federal funding for NYCHA renovations.
“Today’s milestone marks a major win for the residents of Nostrand Houses, with thousands of NYCHA residents set to have their homes fully rehabilitated and modernized,” Hochul said.
The Public Housing Preservation Trust is designed to allow Nostrand Houses to access greater and more flexible federal funding than traditional Section 9 housing while keeping the development 100 per cent public and preserving residents’ rights, including permanently affordable rents. NYCHA will continue to manage the property.
Created by legislation sponsored by State Senator Julia Salazar and then-Assembly Member Steven Cymbrowitz and signed into law by Hochul in June 2022, the Trust is a fully public entity designed to unlock billions of dollars in federal funding for comprehensive renovations at NYCHA developments.
The financing closed September 29 and brings together partners from the public, private and labor sectors. The U.S. Department of Housing and Urban Development, the New York City Office of Management and Budget and HDC supported the project. Merchants Capital, Nixon Peabody and the AFL-CIO Housing Investment Trust provided financing and subsidy, with the Building and Construction Trades Council of Greater New York serving as labor partner.
Paired with a long-term ground lease between NYCHA and the Trust, the conversion unlocks a federal operating subsidy worth approximately twice what NYCHA currently receives for the development.
The modernization will extend beyond individual apartments. Every kitchen and bathroom will be renovated down to the wall structure, with new finishes, fixtures and plumbing components. Apartments will receive new appliances, quartz countertops, durable scratch-resistant flooring, energy-efficient double-pane windows and new intercom systems.
Living spaces will receive new window heat pump systems for resident-controlled heating and cooling and dedicated laundry hookups. Apartments will also be remediated for lead and mold-related hazards, with mold-resistant materials and paint finishes incorporated into construction.
All 16 buildings will receive comprehensive upgrades to heating and domestic hot water infrastructure, electrical wiring and plumbing, along with new elevators. Accessibility will be enhanced through upgrades to 81 apartments for residents with mobility needs and 48 apartments for residents with visual or hearing impairments. Security improvements will include upgraded access-control systems, expanded CCTV coverage and an on-site security guard.
Nostrand Houses will continue to be managed by NYCHA, with enhanced resources for day-to-day operations and resident services. A new on-site property management office will provide a dedicated location for property management and maintenance operations, with more than 40 staff members.
The modernization plan also includes social and educational support. Kings Bay Y will provide individualized case management, resource navigation, housing stability support and crisis intervention, along with programmes supporting physical and mental health, youth development, family support, senior programming and workforce development.
The Trust is also partnering with NYC Kids RISE to establish the Nostrand Houses Community Scholarship. Under the programme, the Trust will contribute $100 annually to the accounts of children living in Nostrand Houses through high school graduation to support future college and career training.
Residents have helped shape the modernization plan through surveys, visioning sessions, community meetings, design workshops and a dedicated Construction Council. They have helped set project priorities, reviewed a model apartment and selected interior design packages for their homes.