So many fools live in the 42nd Council District. As you read the below post, you must keep in mind today’s date is April 1st. You’ll understand it better. It's very long but blame that on the subject not the writer. And please...don’t read the below alone. It pretty scary, and may damage you worse than watching Katie Couric's interview with Sarah Palin.Remind yourself after each paragraph that this is not real, much like these fools thought, so many years ago.
The second mortgage crisis has begun.
Same idea as the first crisis – bad bank loans, weak underwriting, and that risky practice of securitized mortgages – except this time it’s hitting large affordable apartment complexes in New York City.
From the Wall Street Journal on Aug. 15 (and also reported in Crain's): “The owners of the 1,230-unit, rent-controlled Riverton Apartments in Manhattan's Harlem neighborhood anticipate defaulting on the property's $225 million mortgage by next month, marking one of the housing bust's largest collapses of a New York City residential development.
Past rejection hasn't stopped Clipper Equities and David Bistricer from putting a new proposal on the table to buy Starrett City and turn it into luxury condos.
A recap first: The Clipper Equities development group led by David Bistricer proposed buying Starrett City, home to 14,000 people, for $1.3 billion. Analysts agree that a price tag that high means Bistricer intends to convert Starrett City to luxury condos. The proposed sale quickly became a proxy fight over affordable housing, and was initially derailed by an outpouring of community outrage.
Bistricer's latest proposal shamelessly calls for tens of millions of dollars in new public subsidies to Clipper Equities. In return, they'll convert Starrett City to luxury condos slowly instead of doing it right away.
The fight over affordable housing in New York is coming to a head in Starrett City. Here's a starting point on the players and where they stand.
Starrett City is home to 14,000 people and includes 46 towers, 5,881 apartments, schools, churches, synagogues, a shopping center, post office and power plant over 140 acres on Jamaica Bay in Brooklyn.
David Bistricer leads the development group that want to buy Starrett City for $1.3 billion. With a price tag that high, analysts agree that Bistricer intends to make his money back by converting Starrett City to luxury condos.
There used to be a time in NYC when the life-formula for a working man was simply this: out of the four weeks a month that you worked, one week was to pay your rent. If you don’t believe me, ask some old-timer on your block. The other three weeks of the month, you worked to pay for utilities; other bills of living-like credit cards and higher purchases; food, clothing and entertainment costs; and then you saved a few dollars for a lil vacation somewhere (like to Atlantic City before the casinos came, or to some lil spot on the Jersey Shore during the hot summer); and finally, you put aside a few more dollars for a rainy day. Since it was always pouring for black people in general, you didn’t see too many of us on the Jersey Shore in summer, but you could have glimpsed some of us on the AC boardwalk from time to time.