This week, the New York City Housing Authority (NYCHA) board announced the approval of a demolition and reconstruction project for two government buildings in Manhattan. The project is set to demolish approximately 2,000 existing apartments, affecting around 4,500 residents. In its place, 3,500 mixed apartments will be built, including about 1,000 units of permanently affordable housing, making it one of the largest government building redevelopment projects in New York City and even in the United States historical records.
According to the board meeting on Wednesday (October 30th), the project will encompass 18 buildings at Fulton Houses and Chelsea-Elliott Houses in lower Manhattan. The plan is to construct 6 residential buildings on the same sites, while also adding a majority of market-rate apartment units.
This project relies mainly on federal subsidies, as well as funding support from the city and state governments, and has attracted private developers like Essence Development to participate. These companies will be responsible for construction and management of the new buildings. The redevelopment plan aims to address the aging issues of public housing due to insufficient funds and management problems over the years by introducing private capital to improve the living environment.
NYCHA board chairman Jamie Rubin described this as a pivotal moment in NYCHA’s history, stating that only such a large investment can restore the public housing system in New York City to its former glory. The overall project will be phased and is expected to take approximately seven years to complete.
According to the meeting, the final environmental review for the project is expected to be completed by March 2025. Developers have pledged to replace existing apartments with more comfortable, permanently affordable housing on a one-for-one basis. 94% of residents will remain in their current communities while waiting for the new apartments to be constructed, minimizing the inconvenience of relocation. Additionally, property management at NYCHA will be enhanced during the construction process, including improved security, pest control, and building maintenance services.
New York City Mayor Eric Adams, the NYCHA board, and Fulton Houses Tenant Association President Miguel Acevedo all voiced their support for the project, believing that it will not only improve living conditions but also help alleviate the city’s housing shortage issue.
However, the Manhattan Community Board 4, Democratic community leaders in Chelsea, and some tenants have expressed concerns about the project. They have pointed out the lack of transparency in the project, fearing that it may disrupt the local community structure. Some tenants and activists are worried that residents may lose the right to pay rent based on income, and they are concerned that the project may include intentions of “land grabbing,” believing that the involvement of private developers may gradually erode the public service nature of public housing. Opponents have also submitted 939 signatures of dissent.
This controversial project was previously rejected by a resident-led group in 2021 but was revived in 2023 and has gained some residents’ support. An NYCHA survey shows that a majority of surveyed residents support the redevelopment of existing housing. The agency estimates that hundreds of projects across the city require approximately $78 billion in repair costs, and this project is expected to alleviate some of the financial pressures to a certain extent.