NYCHA closes on financing for $92.5 million East Village apartment renovations

The New York City Housing Authority (NYCHA) closed on financing last week for a $92.5 million renovation project for two apartment buildings in Manhattan’s East Village, taking the city one step closer to a comprehensive renovation of the housing complex.

The Feb. 5 closing, which allows construction to start, comes after years of negotiations between residents and the city over the renovations. The development will deliver reliable heating and cooling, safety and security equipment, playground equipment, and a new senior center to the buildings’ 450 residents.

Deputy Mayor for Housing and Planning Leila Bozorg said in a news release that the achievement “marks another step forward in our work to deliver the safe, stable, and well-maintained homes that all New Yorkers deserve.”

The city is aiming to have all repairs and renovations completed within three years, with more urgent repairs beginning immediately.

NYCHA is partnering with Permanent Affordability Commitment Together (PACT) for the two buildings at Campos Plaza II, which have now been converted to Project-Based Section 8 housing through the federal Rental Assistance Demonstration (RAD) program. PACT’s partner team for the project includes L+M Development Partners and Type A Projects.

“Type A Projects is honored to work alongside the residents of Campos Plaza II to shape a scope of work and social services program that reflects the needs of this diverse and tightly knit community,” Type A Projects Principal Annie Tirschwell said.

PACT allows transitions from Section 9 to Section 8 housing to unlock funding from resident-selected PACT partners to complete comprehensive repairs while enhancing property management.

“The work with NYCHA through the PACT program reflects our continued commitment to engage with residents and deliver thoughtful revitalization plans that will benefit generations to come,” L+M Development Partners President of Development Spencer Orkus said. “We’re grateful to our public and private partners for their crucial support and look forward to bringing these renewed spaces to the East Village.”

The closing puts C+C Apartment Management, L+M’s property management subsidiary, in charge of day-to-day building management and security — improvements to safety will include the deputization of more security guards and the implementation of CCTV cameras around the buildings.

Campos Plaza II Tenant Association President Christine Bookin cheered the closing in a news release.

Campos Plaza II is getting renovationsPhoto via Google Maps

“After a yearlong survey of Campos Plaza II residents about whether to enter PACT, and years of meetings, negotiations, and planning, we now have a project based on our needs and what we want to see happening here in our homes,” Bookin said. “We are looking forward to this next era for the Campos Plaza community.”

Section 8, officially called the Housing Choice Voucher program, provides government assistance to eligible low- and moderate-income New York City families renting housing in the private market. Section 8 has become increasingly strained under high demand in recent years, leading the City Council to push the Mayor’s office to expand CityFHEPS, another housing voucher program.

In addition to opening up funding through Section 8, the renovations will be partially funded by a $19.5 million sale of air rights in 2024 to Madison Realty Capital, which owns 644 East 14th Street, to construct a 196-unit building with a 25% preference for NYCHA residents.

The New York State Energy Research and Development Authority will provide $1.3 million in grant funding for the purchase of window heat pump units for Campos Plaza II residents.

NYCHA Executive Vice President and Chief Real Estate Officer Jonathan Gouveia said in last week’s news release that the city is “proud to have used several tools at our disposal” to make the development a reality.

“We look forward to delivering comprehensive renovations that have been outlined with the residents themselves, including upgrades to building infrastructure, reimagined landscaping and shared spaces, and improved security and social services,” NYCHA Chief Executive Officer Lisa Bova-Hiatt said. “These investments in resident priorities will enhance quality of life for the Campos Plaza II community for generations to come.”

Building work will include façade repairs and roof upgrades, window replacement, elevator repairs, ventilation upgrades, the construction of a new access control system, a new security room, and fully renovated building lobbies with accessible mailboxes, according to NYCHA. Renovations to individual apartment units will include a conversion from steam to electric heat, bathroom and kitchen upgrades, new lighting and flooring, and fresh paint.

The city will support the construction of a new senior center for older residents and enhance youth services at the neighborhood’s Cornerstone Community Center.

The project builds on NYCHA’s Clean Heat for All program, first launched in 2021, which aims to bring sustainable, functional heat pumps to apartments across the city.