$732M repair package for NYC public housing

The city has raised $732 million in bond proceeds to fund repairs to public housing.
Mayor Michael R. Bloomberg announced that the latest capital project bond issuance has generated the largest among ever raised for public housing authority capital funds.
Of the $732 million, some $476 million will fund repairs to deteriorating building exteriors and systems at 24 public housing developments with 32,000 residents. Work has begun at two locations in Brooklyn.
Another $220 million in bond proceeds serves to refund and lower the interest rate on bonds that were issued in 2005, the proceeds of which had been used by NYCHA for repair work.
The remaining proceeds are being used to finance a debt service reserve fund and pay the costs of issuing the bonds.
The financing plan was approved by HUD under its Capital Fund Financing Program. NYCHA is participating in the program to accelerate its efforts to modernize and improve the city’s public housing stock.
The program will allow NYCHA to plan and carry out multi-year construction programs to comprehensively address critical maintenance and rehabilitation needs.
Mayor Bloomberg called the bond program a “creative way” to generate much-needed capital and reduce a backlog of repairs in the city’s housing stock.
Work has begun at Kingsborough and Kingsborough Extension in Brooklyn, where 1,349 households with 2,700 residents live.
In the coming days, contractors will begin more than $30 million in repair work including roof renovation and brickwork at each of the 17 Kingsborough buildings; and improvement to the water tower at the Kingsborough Extension high-rise.
NYCHA also has scheduled work at additional public housing developments of the 24 that will receive capital repairs.
“Mayor Bloomberg is committed to preserving and strengthening public housing in New York City,” Deputy Mayor for Economic Development Robert K. Steel said.
“With the proceeds of this innovative transaction, NYCHA residents in communities in all five boroughs will see immediate improvements to their homes.”