More than 6,000 New York City public housing residents have revitalized homes thanks to the PACT Brooklyn Bundle II redevelopment.
The work, which began in March 2020 and continued through the most difficult periods of the COVID-19 pandemic, involved 2,625 units across 39 buildings and nine developments throughout Brooklyn.
Multiple development partners—Omni New York, The Arker Cos., Dabar Development Partners, and Bedford Stuyvesant Restoration Corp.—joined forces on the massive and complex transaction.
“It’s a very impactful project that will improve the quality of life for thousands of New Yorkers,” says Elizabeth Moronta, senior vice president of development at Omni New York, citing sweeping changes that have taken place across the entire portfolio.
First, the deal revitalized aging public housing developments, including several that were deemed obsolete, without displacing residents. The properties underwent a substantial rehabilitation, incorporating improvements or replacements of common areas; community facilities; building systems; and full renovations of apartments.
In addition, units were converted from public housing to project-based Section 8 through the federal Rental Assistance Demonstration (RAD) program. The project is the New York City Housing Authority's largest RAD transaction and part of the agency’s Permanent Affordability Commitment Together program, which helps renovate properties and enhance social services.
“We’ve hired resident service coordinators and social workers who work directly with tenants to expand and create more meaningful services on the site, helping build a stronger sense of community and enabling residents to thrive,” Moronta says.
Financing for the $992 million deal included a New York City Housing Development Corp. loan. Six of the nine sites are in Opportunity Zones (OZs), so the development team was able to contribute OZ equity.