Brooklyn NYCHA complex to sell air rights in first-of-its-kind deal

The
Ingersoll Houses public housing complex in Fort Greene. | Max Touhey

The deal is expected to generate $25 million for repairs, but
the complex has an estimated need of $159 million over the next
five years

The New York City Housing Authority (NYCHA) is about to close on
its first air rights deal to fund repairs at one of its Brooklyn
developments, the
Brooklyn Daily Eagle
first reported.

The move is part of Transfer to Preserve, one of the de Blasio
administration’s NYCHA 2.0 strategies to overhaul the embattled
agency, which seeks to raise $1
billion
for several NYCHA developments, including the Ingersoll
Houses in Fort Greene and the Fulton Houses in Chelsea.

At the Ingersoll Houses, the deal involves transferring 90,634
square feet to a nearby planned residential tower developed by
Maddd Equities and Joy Construction, in exchange for almost $25
million for repair work at the NYCHA development.

Under the deal, Madd Equities and Joy Construction would be
permitted to build up to 400 units for its two towers (up from an
initial 187 apartments). Of those, 25 percent will be set aside as
affordable at or below 60 percent of the area median
income—approximately $45,000 per an individual.

Jonathan Gouveia, senior VP for real estate at NYCHA, told the
Daily Eagle that the deal is expected to close this month.

“This is good for Fort Greene, because we’re increasing the
supply of permanently affordable housing, and it’s increasing
community space,” Gouveia told the newspaper. “The proceeds
from the sale of the rights will go toward chipping away at the
capital needs we have at Ingersoll.”

But the $25 million that will go toward repairs at the Brooklyn
complex is a long way off from the $159 million NYCHA estimates the
development will require over the next five years, and a staggering
$300 million cumulatively over the next 10 years, according to city
estimates.

A laundry list of fixes for the complex includes upgrades to the
development’s shoddy heating and electric systems, interior
renovations, repairing busted sidewalks, and much more.

The state of the Ingersoll Houses mirrors public housing
complexes across the city, with the authority facing a staggering
five-year capital need of more than $32 billion. That deficit is
why the city is looking to leverage its developable assets to
generate investment from private developers to pay for public
housing repairs.

If the air rights transfer goes through, Ingersoll would be the
first development to see such a deal and another complex, the

Fulton Houses in Chelsea
, could soon see a similar deal.

Source: FS – NYC Real Estate
Brooklyn NYCHA complex to sell air rights in first-of-its-kind deal