AY developer gets $55M in federal tax credits

Bruce Ratner’s controversial Atlantic Yards project may soon benefit from $55 million in federal tax credits. The funds, which have been awarded to Ratner’s company Forest City Enterprises, are part of a $5 billion tax credit package announced by the Treasury Department last week. Though the credit is not earmarked for the Prospect Heights project, Bill Luecht, a spokesperson for the Community Development Financial Institutions Fund, which allocates the money, said it could be used in any low-income area. The Atlantic Yards site qualifies, he said. Forest City Enterprises is currently facing a lawsuit that argues against its right to force out current residents for the development, and also needs to sell $650 million in bonds and break ground before a Dec. 31 deadline for tax-exempt financing. [NYDN]