The Real Deal New York

Battery Park City pact saves residents $279M

May 10, 2011 04:01PM

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An agreement struck today could prove crucial in ensuring existing Battery Park City residents can continue to afford their homes. According to Crain’s, the Battery Park City Authority, the public agency that manages the neighborhood, voted to pass a two-month old proposal to cut monthly ground rents for condominium owners in 11 buildings by $279 million over the next 30 years. Established in the mid-1980s, ground rents force owners to pay rent on the ground upon which their building stands and costs were scheduled to more than double over the next few years, and total $804 million through 2042. In 2012 alone, total rents paid were slated to increase 63 percent to $14.7 million. But under the new agreement, residents in the 11 buildings will pay $12 million next year and $525 million over the next 30 years. “Because of the agreement that was finalized today, families in Battery Park City will be able to stay in their homes and will not be hit with the crippling financial hardships they would otherwise be facing,” said Assembly Speaker Sheldon Silver, who helped broker the agreement. [Crain's]

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