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Brooklyn, NY - HUD Denies Approval for Starrett City Sale

Published on: March 1, 2007 09:02 PM
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Brooklyn, NY - Federal officials have denied approval for the $1.3 billion sale of Starrett City in Brooklyn.

Alphonso Jackson, secretary of the Department of Housing and Urban Development, will announce that the current deal will not pass muster.

The decision comes after HUD lawyers met with deputies of New York state Attorney General Andrew Cuomo to discuss government worries about the purchase of the 6,000-apartment complex by real estate company Clipper Equity LLC.

HUD notified Clipper Equity on Thursday that the agency will not approve the sale because of a lack of certain information the agency believes is critical and because certain details of the transaction—such as the sale price—lead them to believe the complex may not remain affordable housing, according to sources.

The notification from the U.S. government also indicated the sale could be salvaged if Clipper Equity can provide more information about its credit standing and answer some of the challenges posed by critics.

Senator Charles Schumer (D-NY), who had vowed to block the deal, said he was happy to hear of Jackson's decision. "HUD is doing the right thing.  Now we can get back to the drawing board to craft a deal that preserves middle-class housing and supports the tenants," he said in a statement.  [WABC]


U/D: 03/02/07. 15:11
HUD just announced, that While the letter to the buyers seemed to leave the door open for the deal to be revived, the housing secretary added today that the “door is not open, the door is actually closed.” [NY Times]

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Read Comments (9)  —  Post Yours »


 Mar 02, 2007 at 12:53 PM Anonymous Says:

Can someone explain why would the Times want to bring Bistricer down. If you want to be in thebig leauges you better know how to handle the publicity and pressure. I wonder how much money Bistricer standss to lose if this deal dosent go through for him


 Mar 02, 2007 at 11:34 AM Anonymous Says:

i want to know why this is different from the stuyvesant city and cooprstown deal in manhattan? just greedy politicians and communist i.e.acorn antisemites


 Mar 01, 2007 at 11:46 PM Anonymous Says:

All the politicians should be ashamed of themselves for playing politics here.

and they know it, its a fact that one of the politicians said to his aide he never gave us money to our campaign, will fix him now.

Where is Scmuck schumer on the cell tower issues?


 Mar 01, 2007 at 11:34 PM B.A. Mentsch Says:

At the end of the day, the sale will go through. The question is only "for how much?". The balance of the questionable number can be "hidden" in some fine print like impossible conditions that can't be met.
These kind of "deals" are a common practice in the commercial real estate investment business.


 Mar 01, 2007 at 11:34 PM Anonymous Says:

It will stay "affordable"....

The people living in Stareet city or almost the "new boro park" only pay 220.00 a month.

This is pothetic. I know paying 2,000 is crazy but 220.00 a month is pothtically low and Shmuck Shumer should stick his nose somewhere else and stop ptotecting people who do not know how to get off their behinds and work for a living.

I wish my mortage was 220.00 a month.


 Mar 01, 2007 at 11:12 PM Anonymous Says:

Dovid caused No chilul Hashem what so ever, the media made it so. they claimed FALSE info.

Especially the NY times they wanted to bring him down for a personal reason they have against him, the insiders knows this.


 Mar 01, 2007 at 11:02 PM Anonymous Says:

Dovidd will fight this


 Mar 01, 2007 at 11:01 PM Anonymous Says:

With a name like "Clipper" . It obvious they were only asking for troube and agav they also caused a chillul hashem in the process hopefully this fiasco will soon be forgotten


 Mar 01, 2007 at 10:59 PM Anonymous Says:

Bistricer has to be crazy to still pursue the property. he will be under such scrutiny that there is no way he will make a go of this or any of his other prperties. Reb doovid nice try, you got too much attention from this. It was impressive to see that you have this type of money .


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