Friday, March 02, 2007

It's Official: HUD Blocks Starrett City Sale

The handwriting has been on the wall since the day after the sale of Starrett City was announced on February 8. Since then, very few days have gone by without an objection being raised or a protest. Now, it looks like HUD--which does not have a track record of radical activism in recent year--is likely to block the sale. From the Times:
The federal housing secretary has rejected the proposed $1.3 billion sale of Starrett City, a working-class enclave of 46 apartment buildings in Brooklyn, because the prospective buyer has failed to supply adequate financial information or a plan for how the complex would remain “a viable community for New Yorkers of modest means.”

In a letter sent yesterday to lawyers for the buyers, the secretary of housing and urban development, Alphonso R. Jackson, left open the possibility that the deal could be revived. But he listed a series of issues and problems that must be addressed by the buyers, Clipper Equity L.L.C., a group led by the real estate investors David Bistricer and Sam Levinson.
It looks very unlikely the deal will be revived.

Starrett City Coverage:
Stick a Fork in Starrett City Deal
Feds Nix Starrett City Sale
Housing Agency Denies Sale of Starrett City [AP/Sun]


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