Today, Mayor Zohran Kwame Mamdani, the New York City Housing Authority (NYCHA), the New York City Public Housing Preservation Trust and the New York City Housing Development Corporation (HDC) announced the financial closing for a $607 million comprehensive modernization of Nostrand Houses in Sheepshead Bay, Brooklyn - the first project to reach financial closing through the Trust.
The milestone follows a historic vote by Nostrand Houses residents in December 2023 to become the first NYCHA development to join the Trust.
The $607 million investment will address decades of capital needs at Nostrand Houses, fully rehabilitating 1,148 apartments and modernizing building systems across 16 residential buildings for approximately 2,000 residents. Renovations will include new kitchens and bathrooms, upgraded heating and cooling systems, new elevators, improved accessibility, lead and mold remediation, upgraded security systems and other critical improvements.
"For generations, NYCHA residents have been told to wait for the investments their homes deserve. The residents of Nostrand Houses took action: they voted to take a different path, and today that path is delivering," said Mayor Mamdani. "This $607 million investment means new kitchens, safer and healthier apartments, modern building systems and the dignity of a home that works the way it should. We are making historic investments in NYCHA and building a public housing system that delivers the excellence every New Yorker deserves."
"After decades of federal disinvestment, I was proud to sign legislation that promised to unlock additional federal funding that would lead to billions of dollars in renovations for all those who call NYCHA home," said Governor Kathy Hochul . "Today's milestone marks a major win for the residents of Nostrand Houses, with thousands of NYCHA residents set to have their homes fully rehabilitated and modernized. This is one way we are working to ensure NYCHA residents have access to the safe, quality, affordable housing they deserve."
"The New York City Public Housing Preservation Trust represents a new kind of public partnership, bringing residents together with NYCHA, the Trust and the City's housing finance agency to harness the power of our public institutions to deliver the improvements residents deserve. As the first public housing property to reach financial closing through the Trust, Nostrand Houses is both a historic milestone and a proof point for a new model-one that puts residents at the center while preserving public housing for generations of families to come," said Leila Bozorg, Deputy Mayor for Housing and Planning.
"Reaching our first financial closing is a defining milestone for the Trust and, most importantly, for the residents of Nostrand Houses who placed their trust in this new model a little over two and a half years ago," said Vlada Kenniff, President of the New York City Public Housing Preservation Trust. "This $607 million investment gives us the resources to deliver the modernization residents have been waiting for while keeping Nostrand fully public and preserving resident rights and affordability. We are grateful to our residents and partners who helped us reach this moment, and we are excited to move into construction and turn years of planning and partnership into lasting improvements for the Nostrand community."
"This first financial closing for the Public Housing Preservation Trust marks a major milestone in the work NYCHA and our partners have undertaken to stand up the Trust, and for delivering on the vision that Nostrand Houses residents set when they became the first to vote to join it," said NYCHA Chief Executive Officer Lisa Bova-Hiatt. "Through years of planning, partnership and resident engagement, we have worked to build the framework needed to unlock critical investment while preserving public ownership and permanent affordability through the Trust. With hundreds of millions of dollars of investment in Nostrand Houses, more than 2,000 residents will see decades of capital needs addressed through fully renovated apartments and modernized building systems. This closing demonstrates what the Trust can achieve when residents, NYCHA, and public and private partners come together around a shared vision. We look forward to continuing this work alongside Nostrand Houses residents as construction gets underway this fall."
"Today's first closing through the Trust represents the culmination of a years-long effort to deploy new and innovative solutions that will preserve New York City's public housing stock for generations to come," said HDC President Eric Enderlin. "We look forward to working with NYCHA to bring comprehensive renovations and major capital improvements to the more than 2,000 residents of the Nostrand Houses."
The Trust allows Nostrand Houses to access greater and more flexible federal funding than traditional Section 9 housing while keeping the development 100 percent public and preserving residents' rights, including permanently affordable rents. NYCHA will also continue to manage the property.
Created by legislation sponsored by State Senator Julia Salazar and then-Assembly Member Steven Cymbrowitz and signed into law by Governor Kathy Hochul in June 2022, the Public Housing Preservation Trust is a fully public entity designed to unlock billions of dollars in federal funding for comprehensive renovations at NYCHA developments.
The Mamdani administration has put NYCHA at the center of its housing plan, Block by Block, and included a historic $5.6 billion capital investment in public housing in its first budget - the most City capital for NYCHA in recent history. The plan strengthens repairs, expands resident participation in decision-making and reboots NYCHA's capacity as a public developer.
The financing closed September 29 and brings together partners from the public, private and labor sectors. The U.S. Department of Housing and Urban Development (HUD), the New York City Office of Management and Budget (OMB) and the New York City Housing Development Corporation (HDC) supported the project. Merchants Capital, Nixon Peabody and the AFL-CIO Housing Investment Trust provided financing and subsidy, with the Building and Construction Trades Council of Greater New York serving as labor partner.
Paired with a long-term ground lease between NYCHA and the Trust, the conversion unlocks a federal operating subsidy worth approximately twice what NYCHA currently receives for the development.
Nostrand Houses Upgrades
Following the financial closing, Nostrand Houses will undergo extensive renovations to individual apartments and building-wide systems.
Every kitchen and bathroom will be renovated down to the wall structure, with new finishes, fixtures and plumbing components. Apartments will receive new appliances, quartz countertops, durable scratch-resistant flooring, energy-efficient double-pane windows, and new intercom systems.
Living spaces will receive new window heat pump systems for resident-controlled heating and cooling, as well as dedicated laundry hookups. Renovated apartments will be remediated for lead and mold-related hazards, with mold-resistant materials and paint finishes incorporated into construction.
All 16 buildings will receive comprehensive upgrades to heating and domestic hot water infrastructure, electrical wiring and plumbing, along with new elevators.
Accessibility will be significantly enhanced, with 81 apartments upgraded for residents with mobility needs and 48 apartments upgraded for residents with visual or hearing impairments.
Security improvements will include upgraded access-control systems, expanded CCTV coverage and an on-site security guard.
Nostrand Houses will continue to be managed by NYCHA, with enhanced resources to support day-to-day operations and resident services. A new on-site property management office will provide a dedicated location for property management and maintenance operations, with more than 40 staff members.
Kings Bay Y, selected in coordination with residents, will provide social services including individualized case management, resource navigation, housing stability support and crisis intervention. Programs will also support physical and mental health, youth development, family support, senior programming and workforce development.
The Trust is also partnering with NYC Kids RISE to establish the Nostrand Houses Community Scholarship, marking the first recurring investment by a public housing entity in children's NYC Scholarship Accounts.
Under the program, the Trust will contribute $100 annually to the accounts of children living in Nostrand Houses through high school graduation to support future college and career training.
Residents Shaped the Modernization Plan
Nostrand Houses was the first development to vote to join the Trust in December 2023. Since then, the Nostrand Houses Modernization Plan has been shaped by years of resident engagement, including surveys, visioning sessions, community meetings, design workshops and a dedicated Construction Council that continues to guide the renovation.
Residents have helped set project priorities, reviewed a model apartment and selected interior design packages for their homes.
Additional Public Housing Preservation Trust Projects
Developments that vote to join the Trust are converted to Section 8, allowing them to receive greater federal funding while maintaining resident rights, including permanently affordable rents, automatic lease renewal, succession rights for household members and funding for resident associations.
In addition to Nostrand Houses, three NYCHA developments - Bronx River Addition, Unity Towers, and Hylan Houses - have voted to join the Trust, with additional elections ongoing.
Under the Trust legislation, no development can enter the Trust without an affirmative resident vote.
"We are incredibly proud to see Nostrand close as the first Public Housing Preservation Trust project. This new tool for NYCHA is truly a collaborative process starting with residents and remaining resident centered in its delivery," said NYCHA Chief Real Estate Officer Heather Beck. "Congratulations to our residents, the Public Housing Preservation Trust, our city partners, and the many teams at NYCHA who helped get to this historic milestone!"
"Nearly three years ago, residents at Nostrand Houses made history when they decided they were not going to wait years on end for much-needed repairs. Instead, the building became the very first NYCHA development to vote in favor of joining the Public Housing Preservation Trust. The residents' decision to join the Trust ensured that their homes would be funded, modernized, and still within their control," said State Senator Julia Salazar. "I'm so proud to have been the prime sponsor of the legislation that made today possible. I thank all of the residents for believing in this new partnership, and I look forward to celebrating the final results of the upcoming construction."
"After decades of Federal funding failing to materialize, too many urgent repairs going unrealized and NYCHA residents having to live with the consequences, the Trust represents the opportunity of a lifetime to preserve public housing," said former Assembly Member Steven Cymbrowitz.
"As a Nostrand Houses resident, I'm proud to see our community reach this milestone," said Miriam Rodriguez, Trust Board Member and Nostrand Houses resident. "Residents have helped shape these plans from the beginning, and now we are one step closer to seeing the improvements we've been waiting for become a reality."
"Merchants Capital is deeply honored to be part of this monumental first financial closing for the Public Housing Preservation Trust, marking a transformative investment that will preserve affordability and provide fully renovated homes and modernized buildings for approximately 2,000 Nostrand Houses residents," said Mathew Wambua, Vice Chair and Executive Vice President of Agency Lending at Merchants Capital. "This moment represents far more than a financial closing. It is the culmination of a shared vision, years of dedication and the extraordinary commitment of residents, public and private partners, and countless individuals who worked together to make it possible. We are immensely proud to celebrate this historic achievement and profoundly grateful to be counted among the partners who helped turn an ambitious vision for this community into a reality that will benefit generations to come."
"We are incredibly proud of the partnership that made the financing of Nostrand Houses possible - and the formation of the Trust, which will unlock vital funds to preserve, rehabilitate and maintain the long-term affordability of New York City public housing," said Joshua Canan, Senior Vice President of Originations at Merchants Capital. "This historic closing represents far more than a financial milestone. It is an investment in the future of Nostrand Houses and the residents who call this community home. We are honored to celebrate this achievement and the lasting impact it will have on the community."
"Financial asset ownership shapes the trajectory of a child's life and the opportunities available to them, and we are deeply grateful to the visionary leadership of Mayor Zohran Mamdani, Deputy Mayor for Housing & Planning Leila Bozorg and New York City Public Housing Preservation Trust President Vlada Kenniff for leveraging the NYC Kids RISE platform to expand asset ownership for the next generation alongside housing stability," said Debra-Ellen Glickstein, Founding Executive Director of NYC Kids RISE. "New York City is the only city in the country with a dedicated wealth-building infrastructure that enables government, housing entities, philanthropy, businesses, and tenant organizations to contribute directly into students' NYC Scholarship Accounts, expanding the Capital Stack of assets available for their future. By funding these accounts for Nostrand Houses students through high school graduation, the Mayor and the Trust are establishing a scalable model for public housing communities across the five boroughs-offering a tremendous opportunity to address wealth gaps and transform possibilities for the next generation of New Yorkers."
"This is an exciting day for Nostrand Houses residents, who were the first NYCHA residents to participate in the robust voting process established under the Public Housing Preservation Trust. The Legal Aid Society is proud to have helped shape the Trust and advocate for the residents who will benefit from these critical investments. The Trust provides a comprehensive path to preserving public housing, improving living conditions, and ensuring that public housing remains a vital, permanently affordable resource for New Yorkers," said Lucy Newman, Supervising Attorney of the Public Housing Unit at The Legal Aid Society. "We thank Mayor Mamdani and the City of New York for their commitment to strengthening public housing and for reaching this important milestone at Nostrand Houses."
"The Public Housing Preservation Trust shows that supporting comprehensive housing renovations and creating good-paying union jobs with healthcare and retirement benefits can go hand-in-hand. The Mason Tenders are proud to be a part of the improvements coming to Nostrand Houses and to Trust projects across the five boroughs," said David Bolger, Business Manager of the Mason Tenders District Council.
"The Community Service Society of New York would like to congratulate Nostrand Houses' tenants on reaching a major milestone on their path to preserving their homes. When we first began advocating for the NYCHA Preservation Trust in 2020, we knew it could secure investment in our aging public housing stock, without sacrificing its public nature or permanent affordability. We hope Nostrand Houses' experience becomes a model for other developments across the city," said David R. Jones, Esq., President and Chief Executive Officer of the Community Service Society of New York.
