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Pol: Possible public housing windfall requires oversight

By David Freedlander, amNewYork Staff Writer
More stories | dfreedlander@am-ny.com

August 4, 2008

The New York City Housing Authority is sitting on millions of square feet of open space that could be worth billion of dollars, according to a new report.

And if the authority decides to start selling, there is nothing that could stop the cash-strapped agency from selling out to the highest bidder, creating deluxe high-rises throughout the five boroughs.

"We now know that NYCHA has been talking to developers at numerous sites about how to dispose of their excess development rights," said Manhattan Borough President Scott Stringer, whose office prepared the report.

Because NYCHA is subject to overlapping city, state, and federal jurisdiction, it does not have to go through the land-use procedures that other real-estate developments in the city must undergo, procedures that involve substantial community and government oversight. The agency has already looked into selling some of its open space and air rights for some of its properties in Chelsea and Hell's Kitchen.

City zoning laws from 1961 created unused air rights that building owners could sell off to neighboring locations, as well as vast open spaces that could be developed.

NYCHA is facing a $170 million deficit, and will be forced to close 205 senior and community centers.

"If this is done correctly we can realize hundreds of millions of dollars of potential revenue for NYCHA with the sale of these development rights, we can ensure that we create new affordable housing... or we can close our eyes and let NYCHA dispose of these development rights by themselves without a full vetting process," Stringer said.

Stringer added that he hoped to pressure NYCHA into sitting down with city officials to come up with a comprehensive plan for its unused property, with the hope that if new projects do get built, at least some of them will include substantial amounts of affordable housing.

In a statement, a NYCHA spokesperson said, "We welcome the borough president's analysis and recognition of NYCHA's efforts to develop a pipeline of 3,000 units under Mayor Bloomberg's historic plan to expand affordable housing in New York City. We will review the recommendations in the report and look forward to a continuing dialogue on these important issues."

Much of the New York's public housing was constructed in the 1950s under the watch of master builder Robert Moses, using the "tower in the park" model of a series of moderately sized towers set back from the street and surrounded by open space and parkland.

"You want to know, are they going to tear down playgrounds or where they have concerts," said Carmen Ithier, who grew up in public housing and is now a tenant activist. "What are they going to do? It's a big concern."