EAST NEW YORK - Tenants living in the Starrett City housing complex can rest easy Monday night.
The U.S. Department of Housing and Urban Development (HUD) rejected the final proposal by Clipper Equity to purchase the affordable housing complex. The developer had proposed plans to purchase the complex for $1.3 billion.
In a letter to Clipper Equity, the HUD said it did not think the company would be able to ensure affordable housing for the long run.
Starrett City is an affordable housing complex with 2,000 tenants. It is the largest federally subsidized housing complex in the U.S.
Many tenants are relieved their rents will not be increased.
Related Information:Opponents of Starrett City sale pack hearing Tenants gear up for round two against Starrett City purchase Starrett City residents claim victory after government blocks sale HUD strikes down Starrett City sale to developer