Assembly approves Starrett City Refinancing


Bill would preserve vast complex’s affordable status but approval by dysfunctional senate is required.

Crain's Reports:

 By Amanda Fung

http://www.crainsnewyork.com/article/20090622/FREE/906229971#

Starrett City, the nation’s largest federally-subsidized apartment complex, is one step closer to a refinancing deal that would preserve its units as affordable.

Legislation that would allow the 5,881-apartment Brooklyn complex to refinance its debt and remain in the Mitchell-Lama program for 30 more years recently passed the New York state Assembly, announced Assembly Speaker Sheldon Silver and Rep. Vito Lopez, chair of the housing committee, Monday. Under the agreement, Starrett City Associates, the owners of the complex, can use at least $40 million of the funds raised for crucial repairs and improvements inside apartments and common areas. The agreement would also allow tenants to provide input on the use of funds.

“For years, so many of our hardworking city residents have called this development home and now will no longer fear being priced out of their community,” said Mr. Silver, in a press statement.

The legislation, which still requires Senate approval, would also allow the owners of the 153-acre complex to realize a $200 million in profit, according to published reports. Earlier this year, the complex’s owners decided not to sell Starrett City after two years of negotiations with investors and reports that they would pull out of the Mitchell-Lama program.

“Tenants can be assured that their homes will remain affordable and that much-needed repairs and improvements will be made,” said Mr. Lopez, in a statement.

Officials expect the bill to pass the Senate, especially since Starrett City falls within Senate Democratic conference leader John Sampson’s district. However, the Senate has not voted on a single piece of legislation since its Democratic leadership was ousted in a June 8 coup.

So the Starrett bill, which under normal circumstances would pass routinely, is in limbo until Senate Democrats and Republicans reach an agreement on who controls the chamber. Gov. David Paterson has suggested the Senate hold an extraordinary session to pass noncontroversial bills this week, but Senate leaders have so far rejected that notion. If such an arrangement is made, the Starrett bill could be placed on the agenda. If not, the bill could be stymied for months.

Starrett City, the 46-tower complex near Jamaica Bay in Brooklyn, has been seen as the most successful rental complex for low- to middle-income families under the Mitchell-Lama program, which was created in the early 1950s to subsidize middleclass housing.

“This legislation enables a refinancing arrangement to go forward that can hopefully become a model for preserving affordable housing not only at Starrett City—but at Mitchell-Lama buildings throughout the state," said Pat Boone, president of NY ACORN, in a statement. "This is a huge win for Starrett City tenants."


Refinancing May Save Affordable Housing at Starrett City


NY Times Reports:

April 16, 2009

By CHARLES V. BAGLI

For nearly three years, Starrett City, the 140-acre apartment complex on Jamaica Bay in Brooklyn, has been at the center of a citywide battle to preserve existing housing for working- and middle-class families.

Tenant groups and elected officials stymied efforts by the longtime owners to reap over a billion dollars through a sale of the complex during a wildly exuberant real estate market. And a second attempt to sell the complex earlier this year also failed.

Now the owners are working with federal, state and city officials to put together a deal that would enable the owners to reap a $200 million profit, while the 5,881 apartments at the complex would remain affordable for many New Yorkers for the next 30 years. The deal still requires state legislation and federal approval, but Deborah VanAmerongen, the state housing commissioner, said she was hopeful for a positive outcome.

Senator Charles E. Schumer said the proposal was “a way out of the woods” for Starrett City residents. “Despite the difficult economic times, this arrangement will ensure that Starrett City stays affordable for current and future tenants and allows for vital upgrades to the entire complex to be completed,” he said.

Mr. Schumer called it a “groundbreaking agreement” that could be applied to other subsidized housing complexes in the city. In recent years, tenant groups have bemoaned the loss of lower-income housing as private equity firms bought working-class housing in Harlem, East New York and Queens with plans to make a profit by converting rent-regulated apartments to market rents.

Starrett City, between Canarsie and East New York, has about 14,000 tenants. It is the largest federally subsidized complex in the nation, with its own post office, power plant, shopping center, synagogue and churches.

The owners of the complex, Starrett City Associates, are meeting with tenants and elected officials on Thursday to explain the tentative plan.

Under the terms of the deal, the owners would refinance the complex for roughly $500 million, or 80 percent of its value. That sum is far less than the $1.3 billion a potential buyer offered in 2007, before the buyer was effectively disqualified by federal officials. But it would enable the owners to pay off their old $234.4 million interest-free mortgage and other fees and take a profit estimated at roughly $200 million, according to housing officials and real estate executives.

Read More...


After Two Years of Trying, Owners Give up on Selling Starrett City!!


The owners of Starrett City, the country’s largest federally subsidized housing complex, have abandoned their heady dream of selling the property for more than a billion dollars.

The owners, a group of investors led by Disque Deane, cited the faltering economy and a lack of financing as the reasons. But the sale may have foundered over price, said Donald Cogsville, who until Monday led a consortium of nonprofit organizations and developers that had been negotiating to buy Starrett City for the past two months.

Neither side would discuss details of the proposed sale, although some real estate executives familiar with the talks said that the group had offered about $700 million. Mr. Cogsville said his consortium was unwilling to raise its offer to meet the seller’s demands.

“We weren’t prepared to offer a higher price that jeopardized either long-term affordability, or a commercial return,” Mr. Cogsville said.

Read the rest of the story in today's New York Times


Starrett City Sale is Down to One Bidder


Click Here for the full article:

http://www.nytimes.com/2008/12/20/nyregion/20starrett.html?ref=nyregion


Important Meeting Coming up...


Attention Starrett City Residents:

There is a very important meeting coming up this Tuesday, November 25th at 10:00 AM in the Starrett City Sports Club (1540 Van Siclen Avenue)

For the first time, New York State DHCR will be coming to Starrett City to discuss proposed rent increases.

Be sure to come!

DHCR va a tener una audiencia pública sobre la Determinación Preliminar de los Aumentos de la Renta para los 236 inquilinos y los inquilinos con tasa de mercado. Vamos a asegurarnos de que Starrett City permanezca asequible para TODOS.

Martes, 25 de Noviembre

 

¡¡A las 10:00 AM EN PUNTO!!

 

En el Centro Comunitario de Starrett City (Club Deportivo)

 

1540 Avenida Van Siclen (en el segundo piso)

 

 


Click Here for Flyer


flyer_25nov08.doc

Meeting with Developers on NY1 News


See the coverage here:

http://www.ny1.com/content/top_stories/86106/starrett-city-tenants-voice-concerns-to-prospective-buyers/Default.aspx


Update: Two Starrett City Bidders are Disqualified


http://cityroom.blogs.nytimes.com/2008/09/23/two-starrett-city-bidders-are-disqualified/


MEET THE FINALISTS!


Meet the four development teams who want to buy Starrett City and have made it to the final list! Make sure that whoever is chosen to be the new owner treats tenants fairly and maintains the services that we count on. Join Councilman Charles Barron & other elected officials to meet the developer who will own Starrett City.

SAVE STARRETT CITY MEETING

Monday, September 22nd

6:30 PM

@ PS 346 in the Auditorium

1400 Pennsylvania Avenue

 

For more information call ACORN: 718.246.7900 xt. 212

or STA: 718.642.3892

or Joy Simmons at Councilman Barrons Office: 718.649.9495


Download the Meeting Flyer!


flyer_22sept08.doc

Breaking News: Starrett City Will Remain Affordable!


AN AGREEMENT HAS BEEN MADE!

Starrett City will remain affordable no matter who the next buyer is thanks to an accord with the owners.

Legislation is still pending, see the New York Times article for today Monday June 2 (below)

'In New Sale, Starrett City Would Stay Affordable" www.nytimes.com/2008/06/02/nyregion/02starrett.html



Starrett City is Up for Sale!! Join the Fight to Ensure Starrett Stays Affordable!!


STA and ACORN members have formed a committee with residents from almost every building in Starrett to interview the developers who want to buy Starrett.  These committee members have been doing a lot of working preparing for these interviews and the timeline is very quick.  If you or one of your neighbors wants to be on the committee, contact Ann or Sheldon at the ACORN office immediately - TODAY -for the schedule of meetings and interviews in this week.  The phone number is 718-246-7900 x. 266 or x. 245.

 


Principles for Keeping Starrett City Affordable


Take a look.

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ACORN members, Starrett City Residents listen to testimony at July 10, 2007 Congresssional Hearing to Save Starrett City



Announcements!




A view of Starrett City.
Courtesy of runs brooklyn.

Help Everyone to Join in the Fight to Save Starrett City!!

True to its original intent as a haven for low and middle-income individuals, Starrett City, Brooklyn currently houses over 14,000 low and middle-income people.  With 5,881 units, Starrett City as a development became more than just a tax shelter for wealthy developers looking to make a profit off affordable housing in the tight market of the early 1970’s.  It became a neighborhood with its own schools, shopping centers, and religious facilities.  Help us make sure 14,000 people do not lose their rights to affordable housing!

Starrett City is the largest federally-subsidized complex in the country.  After over 30 years of participation in the New York State run Mitchell-Lama Program set up to subsidize mortgages in order to create affordable housing, Starrett City is now up for sale.  Residents and allies are getting together to fight to make sure that the buyer of Starrett City keeps it affordable.  Thirty years later New York City still needs decent, safe, affordable housing.

Come to SaveStarrettCity.org to get the Real Deal on the sale of Starrett City and what is being done to guarantee low and middle-Income housing in NYC.  

  • DO NOT REMAIN SILENT: If you are a resident of Starrett City share your stories and express your worries in the Tell Your Story portion of the website.
  • JOIN THE FIGHT: If you would like to join in the fight, contact us in the Join Us section or come to a meeting listed in the Meetings and Announcements section. 
  • STAY INFORMED: Check out news about the sale in the Newsroom.

AND REMEMBER…Starrett City is estimated to sell for over 1 billion dollars and the sales package alone goes for 200,000 dollars.  The well-being of 14,000 plus New Yorkers is certainly worth this much.  Join in the fight to make sure the current owners and whoever buys Starrett City know our futures are not to be bought and sold.