Mayor Bill de Blasio is preparing a revised plan to raise money for the troubled New York City Housing Authority by working with private property managers and developers. And a major change to the blueprint involves trimming the amount of affordable housing that will be created—something that would have been anathema to the mayor just three years ago.
The city's plan, which officials said will be released by the end of the year, will be called Nycha 2.0 and will consist of increasing the number of developments managed by private companies, selling air rights and building new apartment towers on vacant or underused land, according to Politico New York, which first reported the initiative. Officials believe they can raise nearly $22 billion, which would take out a significant chunk of the authority's current $32 billion capital needs.
One key element of the plan is developing new apartments on Nycha-owned land that would generate income for the agency, something that was first proposed under the Bloomberg administration. Under that initiative, the buildings would have been 80% market-rate and 20% affordable.
"The idea was to generate money to repair the existing buildings and create significant new affordable housing, though the buildings would not have been 100% affordable," said Fred Harris, a former Nycha executive who helped draft the plan.
However, de Blasio criticized the Bloomberg plan as "a pure giveaway to wealthy elites" and in his NextGen plan proposed buildings that would be entirely affordable or split evenly between affordable and market rate.