Richard Ravitch struck a deal with the city that will keep about a quarter of the roughly 1,400 units at his Waterside Plaza apartment complex affordable for another 75 years.
In exchange, the city agreed to extend the ground lease on the Kips Bay property for another 99 years and reduce Ravitch’s rent payments, the New York Times reported.
“It’s a good thing for everybody,” Ravitch said. “The city is pleased. The tenants are pleased.”
The plan, which will preserve affordability for 325 units, still needs approval from the City Council.
Ravitch had approached the city about two years ago to negotiate an extension for the ground lease so that he could refinance the mortgage. Waterside Plaza residents voted 199 to 0 in favor of the deal Monday night.
Households earning gross income of lower than 165 percent of the area’s median income of $83,500 for a family of two will see a rent freeze under the deal. Those households earning more will see rent increases of either 2.25 percent each year, or the rate set by the Rent Guidelines Board, whichever is higher.
Rent-burdened residents — those who pay more than 30 percent of their income in rent — will have their rents reduced so that they will pay only 30 percent of their income.
Brookfield Property Partners as of last month was reportedly in talks to buy a stake in the residential complex, but sources said those talks fell apart and Ravitch is no longer selling a stake in the property. Ravitch denied a potential sale, and told the Times he had been in talks with other parties about financing. [NYT] — Rich Bockmann