The country's largest federally subsidized housing development was sold today for $1.3 billion. Berkshire LLC bought Starrett City, and Starrett City Associates say the money would be deposited today.
Residents of the complex, which has over 5800 apartments over 140 acres, and community leaders recently had meetings to protest the sale, the fear being the new owners will eliminate the low- and middle-income housing. And even though there's potential for new development (new luxury development), there are some obstacles. From the NY Times:
Government has a great deal of leverage over a new owner. The state holds a $234.4 million, interest-free mortgage on the property. State and federal officials could approve or reject a new owner. City officials would have to approve any plans for large-scale development.
Shaun Donovan, the city’s housing commissioner, said there was little development potential at the complex without a lengthy public review.
“Because of limited market potential in the area,” he said, “we would expect any new development to require unusually large government subsidies to be economically feasible and that is unlikely to happen.”
It'll be interesting to see if the deal is approved. This Village Voice Neighborhoods article had this much to say about the commute: "Commuting to Manhattan will take over an hour. Bus: B83 through East New York to the Broadway Junction station; or B82 to the L terminus at Rockaway Parkway."
Additionally, here's the Save Starrett City website.
Photograph by Adam Rountree/AP