Feds reject Starrett City sale
March 02, 2007 12:00AM
Alphonso R. Jackson, the federal housing secretary, rejected Clipper Equity's current $1.3 billion bid to buy Starrett City. Jackson said the offer did not adequately address how Clipper would retain affordability at the 5,881-unit Brooklyn housing complex, which receives federal and state subsidies through the Mitchell-Lama program. Blocking the Clipper deal doesn't mean Starrett City will stay in the Mitchell-Lama program, however. Real estate experts say the complex's current owner, Starrett City Associates, is likely to take the property out of the affordable housing program if the sale falls through. more [NYT]
This morning, Sen. Chuck Schumer will join Jackson at a press conference in Washington, D.C., to announce HUD's formal rejection of the Starrett City deal. Later today, Schumer will appear at the Brooklyn housing complex to celebrate the decision with tenants, Attorney General Andrew Cuomo and Rep. Edolphus Towns. TRD
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