[File photo of Campos Plaza]
The New York City Housing Authority reportedly finalized a deal earlier this week to sell a 50-percent stake in six Section 8-subsidized developments to L+M Development Partners and BFC Partners for $360 million, plus another $100 million in additional renovation investments.
The sale comprises 10 buildings and 874 units, including Campos Plaza on Avenue C and East 12th Street and East 4th Street Rehab between Avenue B and Avenue C in the East Village.
The Observer has more on the deal, made final on Tuesday:
The sale, which places the properties in the hands of the newly-formed Triborough Preservation Partners, a public-private partnership ... was carried out as a means of opening a variety of funding streams to address the Section 8 facilities’ decrepit condition — they are estimated to require some $113 million in maintenance and repair over the next 15 years — in the absence of federal dollars, which mostly dried up in the 1990s.
Without the establishment of a public-private partnership, the new funding sources, which will supply financing for construction, operations and maintenance of reserves, would not have been available to NYCHA, which as a public entity is ineligible for the loans, tax credits and other financial instruments responsible for the fresh funds.
Shola Olatoye, the chair and CEO of NYCHA, said that her organization will retain approval and oversight rights with respect to all major decisions.
You can find more background on the story at Curbed. And The Wall Street Journal.