Senator Charles Schumer (left), City Council Speaker Christine Quinn

New York Senator Charles Schumer introduced controversial legislation
Friday that would create a federal program in which the refinancing of
over-leveraged, multi-family buildings would be based on the
apartments’ current rent roll. The bill targets buildings that are delinquent, at risk of default or
already in foreclosure, by providing refinancing capped at a level that
can be supported by the building’s income. The bill also requires that
a sufficient operating reserve be maintained in the refinanced
buildings, and would also allow the building to be transferred to
another owner, as long as the government considers the new owner
responsible. [more]