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FOR IMMEDIATE RELEASE: September 30, 2024
CONTACT: media@nycha.nyc.gov | 212-306-3322

NYCHA and Partners Announce $383.6 Million Financial Closing of PACT Project to Renovate Homes of More Than 1,200 Residents at the Frederick Samuel Apartments in Manhattan

This financial closing is a key milestone in renovating 660 apartments across 40 residential buildings

Comprehensive upgrades to apartments, shared spaces, grounds, and building infrastructure will dramatically improve residents' quality of life

New York – On Thursday, September 26, the New York City Housing Authority (NYCHA) closed on the financing for the Frederick Samuel Apartments, a $383.6 million Permanent Affordability Commitment Together (PACT) project that will bring comprehensive renovations for more than 1,200 residents living in 40 residential buildings in Harlem. The buildings have now converted to Project-Based Section 8 through the federal Rental Assistance Demonstration (RAD) program. This funding will allow the PACT partner team – Genesis Companies and Lemor Development Group, both Harlem-based Minority-owned Business Enterprises (MBE) – to address all the capital needs of the buildings and grounds and begin fully rehabilitating over 660 apartments, as well as shared spaces, grounds, and building infrastructure, to improve residents' quality of life. The PACT program also maintains residents' rights as the development transitions from Section 9 to Project-Based Section 8 and preserves affordable rents for all households. VPH Management Services LLC is now the property manager, and two dedicated social services staff will be on-site to assess residents' needs, connect them with resources and services, and provide community programming.

"This important milestone for the transformation of Frederick Samuel Apartments is a testament to the resiliency and strength of NYCHA residents," said Deputy Mayor for Housing, Economic Development, and Workforce Maria Torres-Springer. "Residents of Frederick Samuel Apartments have partnered with two MBE developers based in Harlem to create a plan to correct decades of systemic disinvestment. Together, residents and their PACT partners will renovate and rejuvenate over 600 homes in their community."

"Our administration's commitment to delivering long overdue investment for NYCHA tenants is reflected in the Frederick Samuel Apartments PACT closing," said New York City Executive Director for Housing Leila Bozorg. "Tenants, their partners in Genesis and Lemor, and NYCHA have guaranteed that future generations will live in healthy apartments, with beautiful shared spaces and services. Thank you to the Frederick Samuel residents and PACT partners for their work."

"The PACT program continues to be an invaluable resource for NYCHA to unlock funding and provide residents with comprehensive upgrades to apartments, building systems, shared spaces, and outdoor areas," said NYCHA Chief Executive Officer Lisa Bova-Hiatt. "Frederick Samuel residents – who have been working in close coordination with NYCHA and the PACT partner team throughout the planning phase of the project – will soon begin to see these sweeping renovations come to fruition."

"NYCHA's PACT program continues to show how true partnership with residents and development partners can bring comprehensive investment to our communities," said NYCHA Executive Vice President for Real Estate Development Jonathan Gouveia. "Residents at Frederick Samuel Apartments will soon see repairs that they have advocated for and deserve. We look forward to seeing the transformative work in this community begin."

"Today's announcement represents a critical step towards delivering comprehensive home renovations and guaranteeing affordability for more than 1,200 residents at NYCHA's Frederick Samuel Apartments," said New York City Housing Development Corporation President Eric Enderlin. "Thank you to all of the project partners and resident leaders whose hard work and dedication will further transform the quality of New York City's public housing stock."

"Frederick Samuel residents have been waiting for this day. A day when we can begin again to envision a safe, clean, and healthy environment for our families, for our seniors, for our children," said Frederick Samuels Tenant Association President Diana Blackwell. "With the additions of new and upgraded appliances, new flooring, hallway lighting, improved open spaces, greater pest control, new boilers and increased maintenance and security cameras, and access to social services providers, our residents will begin to receive the quality of life that they are deserving of. Envisioning healthy homes is just the beginning – now the real work begins. Together we will build a sustainable community creating a place to grow, build and elevate our ideas, families and future. We welcome this awesome opportunity to partner with our developers Genesis and Lemor and VPH Management, who will together help us build the future of affordable housing."

"It's been an honor and privilege to work alongside the residents of Frederick Samuel Apartments to plan out how we can transform their homes and provide the quality-of-life improvements they deserve," said President & CEO of Genesis Companies Karim Hutson. "Genesis's commitment to sustainable community development is at the core of everything we do, and we're thrilled to enter this new chapter alongside our partners at Lemor Development and NYCHA to bring these investments to life for the residents of Fred Sam and the surrounding Harlem community."

"We at Lemor Development Group are thankful for the opportunity to partner with Genesis and the residents of Frederick Samuels Apartments," said Co-Managing Member of Lemor Development Group Ken Morrison. "This is the start of a long-term partnership which will enhance the lives of the over 1,200 residents at Frederick Samuels Apartments. We are committed to making the upgrades, preserving affordable quality housing for our residents and improving the quality of life for our community."

The PACT partner team, which was selected in coordination with resident leadership, has worked closely with all Frederick Samuel Apartments residents and NYCHA to design every aspect of the development's renovation. After years of community-wide and development meetings, the plans for the large-scale renovation have been finalized, and the team has closed on the necessary financing to begin construction, which is expected to take approximately three years.

All apartments will receive new lighting, flooring, windows, closets and window air conditioners, as well as renovations to bathrooms and kitchens, including new appliances, fixtures, countertops, cabinets, tubs, and showers. The buildings will receive a new heating system, plumbing repairs, new energy-efficient hot water heaters, building envelope and roof repairs, ventilation improvements, improved insulation, façade repairs, new security cameras in all common areas, and broadband internet free of charge to all residents. Additionally, common areas – such as entrances, lobbies, mail areas, and hallways – will be renovated. The PACT partners will renew existing open spaces by providing a combination of passive park spaces, actively programmed urban farms and community gardens from Harlem Grown, and a revamped playground. Additional details on the planned investments and improvements are outlined in the Frederick Samuel Apartments Community Plan, which was developed through a collaboration between resident leaders and NYCHA and is being distributed to every household prior to the start of construction.

Genesis Companies and Lemor Development Group, both of which are Minority-owned Business Enterprises (MBE), will lead the project as co-developers; Monadnock Construction will be the general contractor; and VPH Management Services LLC will be the property manager. Two new on-site positions – a social services director and social services coordinator – will be hired to create tailored programming responsive to resident needs. Both Genesis Companies and Lemor Development Group have deep ties to the Harlem community. Genesis was founded in 2004 as a full-service real estate development firm. The firm has a portfolio of 49 developments in the Harlem area, and the average lifespan of those buildings is more than a century old. Lemor Development Group was established in Harlem in 2014 to manage the acquisition, development, and management of underperforming government and privately funded multifamily properties and projects. The company focuses on affordable and workforce housing in New York City, New Jersey and select markets throughout the country. The buildings that make up Frederick Samuel Apartments were constructed between 1910 and 1928. NYCHA assumed control and responsibility for managing the upkeep of the properties in 1994.

The PACT program transitions developments from traditional public housing assistance to the more stable, federally funded Project-Based Section 8 program – unlocking funding for designated PACT partners to complete comprehensive repairs. Overall, 138 NYCHA developments (representing over 37,000 apartments) are in pre-development, are under construction, or have completed construction through the program. The Authority is on track to include 62,000 apartments in the PACT program in order to bring the benefits of comprehensive apartment repairs and building upgrades, as well as enhanced property management and social services, to more than 142,000 residents. The New York City Housing Development Corporation (HDC), New York City's municipal Housing Finance Agency, is the key financing partner for PACT. In addition to providing or arranging the financing, HDC provides ongoing asset management and compliance support for PACT transactions.

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About the New York City Housing Authority (NYCHA)

The New York City Housing Authority (NYCHA), the largest public housing authority in North America, was created in 1935 to provide decent, affordable housing for low- and moderate-income New Yorkers. NYCHA is home to 1 in 17 New Yorkers, providing affordable housing to 528,105 authorized residents through public housing and Permanent Affordability Commitment Together (PACT) programs as well as Section 8 housing. NYCHA has 177,569 apartments in 2,411 buildings across 335 conventional public housing and PACT developments. In addition, NYCHA connects residents to critical programs and services from external and internal partners, with a focus on economic opportunity, youth, seniors, and social services. With a housing stock that spans all five boroughs, NYCHA is a city within a city.