NYCHA Selling A Stake Of Its Apartments For Fast Cash

New York City’s public housing authority is operating on a $77 million budget deficit. That’s not counting the $18 billion dollars it needs to repair its decrepit housing stock. In order to raise revenue that’s not coming from the state or the federal government anytime soon [PDF], NYCHA is selling a 50% stake in 900 apartments to L+M Development Partners Inc. and BFC Partner for $150 million, plus $100 million in revenue over 15 years and another $100 million in renovations.

“We have to think about supporting those units differently,” Shola Olatoye, the NYCHA chairwoman told the Wall Street Journal.

“Talk to HUD. What our primary funder is pushing is encouraging housing authorities to think strategically about how they manage their property for the benefit of their residents because the federal money is just not there.”

The NYCHA complexes affected by the deal are Section 8 units in the Bronx, Brooklyn, and Manhattan, including Campos Plaza and East 4th Street Rehab.

After the apartments are renovated (at a cost of $80,000 a unit), the developers would be able to receive the difference between the NYCHA rent and the market-rate rent from the federal government; in addition to receiving tax credits, after 30 years, the developers will be allowed to turn the apartments into market-rate units, though the details of the deal apparently allow NYCHA to make the final decision.

“NYCHA is in control here,” a city spokesperson ominously told the Daily News.

Councilmember Rosie Mendez, who represents the residents of the Campos Houses and East 4th Street Rehab, put it this way: “I view it as a road to privatization.”

Wealth Accumulation

You first learn to survive, then you learn to prosper.

by Jeffrey Whaley

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You should know where you are starting from on your journey to wealth accumulation.

Start with a net worth analysis. You add up all you assets less your liabilities. This will give you a starting point on your road to a better life. Once you know where you are starting from now you can decide how to budget better, and save.

Without a basic understanding of how to budget, and save, you will never get to invest.

I hear people say they do not budget. You may not have a written budget, but you definitely should have at least a mental budget in your head.

A budget is the marching orders for your money. You are telling your money where

to go in order to cover monthly expenses, and be able to save for the unexpected.

Startup Stock Photos

After you have saved a minimum $1000, for the unexpected, along with 3 month of leaving expense, you are now ready to start on the road to wealth accumulation by investing the rest in a 401k at work, mutual funds, index funds, ETFs, or my personal favorite real estate.

Based on the book the millionaire next door, by Thomas J. Stanley, and William D Danko. there are three type of wealth accumulators,

PAWs (Prestigious Accumulators of Wealth) – You accumulate twice the wealth formula

AAWs (Average Accumulators of Wealth) – You accumulate at or above the amount in the wealth formula.

UAWs (Under Accumulators of Wealth) – You accumulate half or lower the wealth formula.

How wealthy should you be?

Multiply your age times your realized pretax annual household income from all sources except inheritances. Divide by ten. This is what your net wealth should be.

Leroy the bus driver is 50 years old, earns $110,00 a year, and has investments that return another $10,000, he would multiply $120,000 by 50. That equals $6,000.000.

Divided my 10 equals $600,000. So a PAW would have $1,200,000, or trice the AAW, and the UAW would have $300,000 or half the AAW or lower.

This formula is mainly of people 40 years or older. So if you are in your 20s or 30s don’t despair. Most people don’t reach these number until their 40s or 50s. The idea is to stay clear of things that rob you of your wealth like credit card debt, buying high-end clothing, cars, and homes. Your best investment starting out is investing in your self. Improving how you think, and adjusting your philosophy when it comes to money.