BROOKLYN - Some state officials made their case Friday for the federal government to stop the sale of Spring Creek, the nation's largest government-subsidized complex.
Clipper Equity LLC recently purchased the property for $1.3 billion. The company plans to buy out of New York's Mitchell Lama program, which aims to keep rents low for middle-class families. Clipper maintains it will keep the 6,000 units affordable.
Housing and Urban Development Secretary Alphonso Jackson toured the complex, formerly known as Starrett City, Friday. Jackson later announced the government would consider blocking the sale, which he believes would displace many residents. Sen. Chuck Schumer (D-NY) and New York Attorney General Andrew Cuomo were on hand to voice concerns about the deal. Cuomo said Clipper's past business dealings are reason enough to stop the sale, while Schumer promised to propose legislation to block the transaction.
Meanwhile, Rep. Edolphus Towns (D-10th District) and Rep. Anthony Weiner (D-9th District) are calling for congressional hearings on the impact of the sale in New York and the far-reaching effects it could have across the nation.
Most tenants in the 30-year-old development pay up to $400 each month for a federally subsidized apartment. Eligible families have incomes between $20,000 and $40,000.