NYCHA’s Coney Island Houses and Unity Towers Make Section 9 Decision
Residents of NYCHA’s Coney Island Houses and Unity Towers have spoken, making a significant decision that will shape the future of their housing development. The voting sessions, which allowed residents to choose their preferred funding model for the complex, concluded recently, with early tallies revealing diverse outcomes for the two sites.
Coney Island Houses, the first to hold elections regarding their housing model since NYCHA initiated the process last year, saw a majority of residents opting to remain under the federally-funded Section 9 development. In contrast, Unity Towers Houses, the adjacent complex, decided to join the Public Housing Preservation Trust model, aligning with two other developments set to transition to this innovative initiative.
The participation threshold required for results to be deemed valid, as mandated by legislation establishing the Trust, stands at 20 percent. At Coney Island Houses, an impressive 57 percent of heads of households exercised their right to vote, while Unity Towers witnessed a slightly higher participation rate at 59 percent.
Preliminary results were announced by Caleb Kleppner and Kenneth Mostern, principals of MK Election Services, the third-party company tasked with overseeing the tabulation process. At Coney Island Houses, out of the 406 votes cast, 239 residents chose to retain Section 9 status, 125 favored the Trust, and 42 voted for the PACT program. Additionally, four votes were deemed invalid due to errors in marking the ballot.
On the other hand, Unity Towers saw a total of 189 votes, with 106 residents opting for the Trust, 71 choosing to remain in Section 9, and 11 supporting PACT. Notably, two votes at Unity Towers were invalidated during the counting process.
Throughout the 30-day voting period, residents weighed their options among three distinct funding models. “Option 1” involved joining the Trust, a program signed into law by Governor Kathy Hochul in June 2022. Under this model, NYCHA would continue to manage the properties but transition them to a federally funded initiative called Project-Based Section 8, enabling alternative avenues for investment such as bonds and mortgages to fund necessary repairs.
Two other developments, Nostrand Houses in Sheepshead Bay, Brooklyn, and the Bronx River Addition Houses in Soundview, have already opted to join the Trust in previous votes. Conversions at these sites are anticipated to conclude by 2026, with construction commencing shortly.
“Option 2” entails participation in the Permanent Affordability Commitment Together (PACT) program, introduced in New York City in 2016. Similar to the Trust, properties under PACT are converted to Project-Based Section 8. However, under this model, a private management company assumes operational responsibilities, including building and campus maintenance, while NYCHA retains ownership of the land.
Lastly, “Option 3” allows residents to remain in Section 9, the federal government’s traditional public housing program. NYCHA has cautioned about funding limitations under Section 9, highlighting the annual capital funds of approximately $700 million from the federal government, restricting the scope of necessary repairs.
NYCHA has identified substantial capital repair needs at the Coney Island Houses, amounting to $110 million, while Unity Towers requires $42 million in repairs. Across the entire NYCHA portfolio, the authority anticipates a staggering $80 billion requirement over the next two decades to facilitate rehabilitation efforts.
As preliminary results are subject to change with the arrival of additional mail-in ballots postmarked by August 15, 2024, the final day of voting, Kleppner emphasized the importance of considering these incoming ballots before finalizing the results. The definitive vote outcome is slated for release on August 23, offering a conclusive verdict on the future funding model for Coney Island Houses and Unity Towers.