Pennrose Awarded 624 Additional Affordable Housing Units by New York City Housing Authority

Pennrose has been tapped by the New York City Housing Authority (NYCHA) to repair and upgrade an additional 624 units under NYCHA’s Permanent Affordable Commitment Together (PACT) program. In January, Pennrose, Hunt and Acacia Network were selected to address over $400 million in capital needs across NYCHA’s portfolio. Mayor de Blasio announced the expanded redevelopment plans in a press conference held June 25.

Known as collectively as “Bundle III,” the project now includes 1,315 family and senior affordable housing units across 60 buildings: Bushwick II (Groups A, B, C and D), Bushwick II CDA (Group E), Palmetto Gardens, and Hope Gardens. The project includes some of NYCHA’s most challenging buildings, which are primarily scattered-site developments with low-rise buildings spread across many different properties.

The investments across NYCHA’s portfolio will upgrade heating systems, interiors and common spaces, and elevators for more than 4,000 residents. In addition, properties will receive extensive improvements to kitchens, bathrooms, building security and entry systems. All units will be rehabilitated according to Enterprise Green Communities standards to greatly increase energy efficiency.

Pennrose’s vision for the project includes creating safe, usable green spaces in the otherwise densely developed Bushwick neighborhood. Pennrose has hired WRT as landscape architects to upgrade the existing outdoor areas throughout Bundle III into beautiful open spaces, play areas and gardens. Acacia Network will supplement the Pennrose and Hunt development and management efforts with permanent, on-the-ground community services.

The conversions are part of NYCHA’s Permanent Affordability Commitment Together (PACT) program, which generates a sustainable funding source for extensive repairs and continued property management, while guaranteeing permanent affordability and maintaining tenant rights. PACT is New York City’s version of the Rental Assistance Demonstration (RAD) initiative, which was created by the Obama Administration for housing authorities to make improvements and ensure lasting affordability. Pennrose has in-depth experience with RAD projects, having executed nearly 15 RAD developments throughout the United States.

Under PACT, Bundle III will shift to project-based Section 8 funding. Pennrose will provide property management services, while NYCHA retains ownership.