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Starrett City Tenants Pack Hearing On Sale Bid
Hundreds of tenants filled the Starrett City Community Center for a six hour hearing last Friday in which they demanded that any sale of the federally subsidized housing complex east of Canarsie does not jeopardize affordable rents and that the current bid be struck down once and for all. In addition to the tenants, others who attended the meeting including local elected officials, who reassured their constituents they are actively working on their behalf to insure any sale does not adversely affect their residency. Ever since Starrett City Associates, owners of the 140-acre development, announced it had accepted a $1.3 billion dollar bid earlier this year from Clipper Equities, tenants began organizing and protesting, worried that rents could soar under new owners. For months, several tenants rights group have advised residents of their rights and options. Starrett City tenants have also partnered with the community activist organization ACORN (Associa-tion of Community Organizations for Reform Now) to form Save Starrett City.
State lawmakers are currently considering legislation to establish a subsidy for residents, even if the complex is sold and that will close loopholes that have allowed landlords to end rent stabilization. Last month, Mayor Bloomberg signed legislation that would provide incentives to allow Mitchell-Lama developments be eligible for tax breaks. On March 1, Alphonso Jackson, the federal Secretary of Housing and Urban Development, rejected the sale of Starrett City "unless a consensus can be reached among the various parties that a comprehensive plan exists to preserve affordability and the quality of life for project residents." Additionally, Clipper partner David Bistricer has been under a federal injunction since 1998 against selling cooperative buildings and apartments like Starrett City; New York Attorney-General Andrew Cuomo has declared that he will enforce the injunction. He has also been criticized for being cited for numerous violations at other properties he controls in the city. In response to HUD's rejection of the deal, Clipper Equities submitted a new bid, claiming it could trim operating expenses to keep housing affordable. New York State Department of Housing and Community Renewal Com-missioner Deborah Van Amerongen rejected Clipper Equity's second pro-posal last month. She stated that Clip-per's plan for rents to reach market rate after three years failed to adequate-ly protect residents and would require increased government subsidies to keep housing there affordable. In an effort to preempt Clipper Equity and Starrett City Associates, Senator Charles Schumer and state politicians are vigorously backing a bill to force Starrett City to remain in the Mitchell-Lama Housing Program, as both the buyer and seller have indicated they would opt out. When they earned the winning bid, Clipper Equities said that the complex has a great potential to develop new housing communities, both luxury and affordable. While the realtor has consistently maintained its commitment to keeping Starrett City affordable, housing advocates are concerned that current low- and moderate-income residents will eventually be forced out over time. As politicians make every effort to end Clipper Equities renewed bid, the realtor vowed to revise its proposal to influence regulators.
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