Starrett City Associates is working with federal, state and city officials to put together a deal that would let the owner make a $200 million profit while keeping the 5,881 apartments in Starrett City affordable for the next 30 years. In the deal, the owner would refinance the complex for $500 million, allowing it to pay off the $234.4 million interest-free mortgage and other fees, in addition to making a $200 million profit. The owner would also set aside $40 million for building improvements, and would keep the housing complex in the Mitchell-Lama program. Starrett City Associates plans to submit legislation that would amend the state’s housing laws, allowing owners of Mitchell-Lama complexes to refinance for a sum greater than the original project cost.
Deal could keep Starrett City affordable
April 16, 2009 09:18AM