Last week, no less than one Cabinet secretary, two Congressmen and two Senators vociferously and publicly chastized the $1.3 billion buy of Starrett City in eastern Brooklyn. Clipper Equity won the bidding in early February, prompting many to ask: How could the landlords ever turn a profit by keeping the apartment complex affordable?
Sen. Chuck Schumer was among those answering the question quickly last week, calling on the Department of Housing and Urban Development to nix the deal should Clipper not promise to keep the apartments cheap.
On Thursday, the Senator upped the ante:
Today U.S. Senator Charles E. Schumer demanded Starrett Associates go back to square one on the Starrett City sale. The Senator, who is chair of the Senate Housing sub-committee said today that the bid process was fatally flawed, having excluded the federal government, which has subsidized Starrett City for years so that it could maintain its affordability. Schumer noted that the Department of Housing and Urban Development has the right to approve the deal, and has expressed deep skepticism due to the potential of massive loss of affordable housing stock.
– Tom Acitelli
