City Secured $607 Million for Nostrand Houses

The massive renovation project will modernize 1,148 apartments across 16 buildings in Brooklyn.

Updated on Sept. 30, 2026 in Home Renovation

Isometric editorial illustration showing a repetitive series of red-brick apartment building facades, representing an urban public housing complex. — New York City finalized a $607 million financing deal to renovate 1,148 apartments at the Nostrand Houses in Sheepshead Bay. AI Illustration. Upload story photo >

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New York City has finalized a $607 million financing deal to overhaul the Nostrand Houses in Sheepshead Bay. The project aims to improve living conditions for the approximately 2,000 residents currently residing in the complex.

Why it matters

The investment utilizes the Public Housing Preservation Trust, which allows developments to secure more flexible federal subsidies while maintaining public ownership. This approach is central to the city's strategy to address the massive repair needs of the aging NYCHA housing stock.

The overhaul covers 1,148 apartments across 16 buildings, with plans to complete the work in six phases over five years. The development is shifting from Section 9 to Section 8 subsidy programs to unlock funding.

The players

Public Housing Preservation Trust

This public entity was created in 2022 to facilitate the modernization and repair of New York City public housing developments.

NYCHA

The New York City Housing Authority manages the city's public housing portfolio and faces an estimated $78 billion in capital repair needs.

The details

The project represents a significant step in the city's effort to move 25,000 apartments into the Public Housing Preservation Trust. By converting these units, the city intends to bypass some of the funding limitations that have historically stalled critical maintenance.

The Public Housing Preservation Trust was established in 2022.
Nostrand Houses residents voted to join the Trust in December 2023.
The $607 million financing deal closed on September 29, 2026.
Construction is expected to begin in the fall of 2026.
The renovation project will occur over a five-year period.

Roadmap

The transition to the Public Housing Preservation Trust represents a major shift in how the city manages its vast public housing assets. This model moves away from traditional Section 9 funding to secure larger, more flexible revenue streams for long-term infrastructure improvements.

Residents of the Nostrand Houses can expect major renovations to their buildings over the next five years, improving the physical quality of their homes. These upgrades are part of a larger plan to modernize the city's public housing infrastructure.

The takeaway

The Nostrand Houses project highlights the city's reliance on new funding mechanisms to tackle a massive backlog of deferred maintenance. Success here will likely dictate the pace of future renovations for other developments under the public housing umbrella.