New York City’s cash-strapped public housing authority is nearing a deal to sell a 50% stake in close to 900 apartments to a pair of private developers, a spokeswoman for the agency confirmed.
Real estate giant L+M Development Partners and BFC Partners are expected to pay $150 million for the half-interest in the units, plus another $100 million for much-needed renovations in the six housing complexes, which are in Manhattan, Brooklyn and the Bronx.
“This is a creative way to preserve and maintain public housing for the future and to bring in much needed money for repairs,” a Housing Authority spokeswoman said. “(The city) is leveraging the value of its properties and tapping into new capital.”
The cash infusion would raise $100 million over the next two years and another $100 million through 2029, the city says.
The deal comes as the Housing Authority has been facing yearly deficits and a backlog of over $10 billion in overdue repairs.