HUD Decision Puts Sale Of Starrett City in Doubt
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The attempted purchase of the low- and middle-income Starrett City housing complex was issued a potentially crippling blow yesterday, as the federal Department of Housing and Urban Development rejecteda$1.3 billion private transaction for the development. Bidder Clipper Equity has been pursuing the 5,800-unit complex east of John F. Kennedy International Airport for months, and in February reached an agreement to buy it from owner Starrett City Associates. The high price tag immediately became a magnet for criticism among numerous elected leaders and advocates of “affordable” housing, who feared the buyer would be forced to remove the buildings from existing affordable housing programs in order to turn a profit.
HUD rejected the sale in March. Clipper Equity then revised its bid with more detailed plans for maintaining affordability, but HUD again refused to approve the sale on grounds that the company would not be likely to preserve affordability long-term.
A spokesman for Starrett City Associates said the existing contract with Clipper Equity runs into August, and the company has not yet decided how to proceed. A spokeswoman for Clipper Equity declined to comment.
