New York City has sold a percentage of its ownership in the city’s public housing to private developers. According to The Wall Street Journal, the city has sold a 50% stake in almost 900 NYCHA apartments to L + M Development Partners Inc. and BFC Partner. The sale reportedly garnered $150 million in immediate revenue.
The deal is said to still be “open,” and subject to further stipulations and negotiations. According to The Gothamist, NYC will receive an additional $100 million from the sale over the next 15 years, and $100 million in renovations.
The kicker is that the private developers are allegedly not only receiving tax credits, but they will also be able to receive the difference between the NYCHA rent and the market-rate from the federal government. Also, the developers will reportedly have the option of turning their purchased NYCHA apartments into market-rate apartments in 30 years.