L+M Development Partners

The Baychester-Murphy NYCHA (New York City Housing Authority) transaction has allowed for the substantial renovation of 722 public housing units in 14 buildings. It’s one of the first deals to convert public housing to more stable project-based Section 8 funding under the housing authority’s Permanent Affordability Commitment Together (PACT) program.

“With all of our PACT projects, we want to make sure we’re bringing comprehensive repairs to the developments,” says Jonathan Gouveia, executive vice president for real estate development at NYCHA. “We also continue to focus on community engagement. Every round that we do, we do better and better community engagement.”

Under PACT, NYCHA engages with private development partners to renovate public housing and make them healthier and stronger. The housing authority leases the developments, continues to own the land, and maintains oversight over all major decisions. Furthermore, contractual obligations ensure permanent affordability.

For the Baychester-Murphy project, NYCHA teamed with Camber Property Group, L+M Development Partners, and Mid Bronx Desperados Community Housing Corp.

L+M Development Partners

The scope of work varied from building to building, but general changes included upgraded kitchens and baths with low-flow fixtures and high-efficiency appliances, new windows, roof and façade repairs, building system upgrades, and a community center expansion.

The apartments range from one- to five-bedroom units, with PACT ensuring that public housing residents are not displaced because of the program.The larger neighborhood can also enjoy a renovated senior center and child care facilities, a newly renovated and expanded community center, and public spaces.

The developers worked with residents to establish the neighborhood’s first farmers market, a new tenant association, community events, and facilitated workforce/employment opportunities.

Financing for the $168 million project came from New York City Housing Development Corp. and Citi Community Capital.