HUD Announces Historic Transaction: Transforming Over 2,000 Affordable Rental Homes in New York City

Date Published: 
July 11th, 2023

From HUD's press release:

 The U.S. Department of Housing and Urban Development’s Office of Multifamily Housing is announcing today it recently closed a $930 million Rental Assistance Demonstration (RAD) transaction with the New York City Housing Authority (NYCHA) at its Edenwald Houses property. This transaction will allow NYCHA to provide much needed upgrades and renovations to 2,035 affordable rental homes. Through RAD, these homes will be converted to Project-Based Section 8 housing using a RAD/Section 18 Blend, a component of RAD that allows for higher levels of funding to directly support improvements to resident homes. This is the largest transaction to date under the RAD program.

Edenwald Houses, built in 1953, is located in the Bronx and is the largest and oldest public housing development in New York City. It is home to nearly 5,000 residents. To ensure quality housing and appropriately address the needs of the community, HUD worked closely with residents and a NYCHA partner team for over two years to thoughtfully design each aspect of the transformation of these homes for current and future generations.

The RAD conversion will support the rehabilitation of the site’s 40 residential buildings with updated features and amenities. In addition to repairs to the building exterior, the project will include upgraded kitchens, bathrooms, heating and cooling systems, and mechanical systems, while also addressing lead and asbestos hazards.

Energy efficiency is a key component of the renovation plans, which will be achieved through new energy-efficient windows, electric panels, LED lights, and resilient flooring throughout each home. The project will also include onsite amenities such as a fully renovated senior center, new laundry facilities, improved waste management, free wireless internet, outdoor green spaces, security, and the development and implementation of a social services program.

The total rehabilitation cost for Edenwald Houses is $480 million ($236,000 per home) and is fully financed through RAD using:

  • Debt provided by the New York City Housing Development Corporation
  • Federal and State Rehabilitation Tax Credits
  • New York City Housing Preservation and Development funding
  • Developer equity contributions

Read HUD's press release.

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