Residents of the Stuy Town apartment complex can stop wondering what their future will hold, for at least the next 20 years. On Tuesday, the city announced an agreement with Blackstone Group LP and Ivanhoé Cambridge, which will acquire the complex from CWCapital Asset Management, to protect more than 5,000 units of affordable housing at the East Village complex. Without this agreement, all but 1,500 of the 11,241 apartments would have been converted to luxury within 20 years, the city said. This comes only days after rumors that Blackstone was eyeing the complex.
The entire complex, known as Stuyvesant TownPeter Cooper Village (sometimes abbreviated STPCV), became subject to rent stabilization until at least 2020 (when the J-51 tax abatement period expires) as the result of a lawsuit against former owners Tishman Speyer and BlackRock Inc., which defaulted on the 80-acre site back in 2010. However, about half of them have already seen their rents rise to market rate—as high at $10,000/month.
The new agreement protects the approximately 5,000 units that are below market rate for the next 20 years. If the units are sold, they will be sold to those whose income qualifies them for restricted rents. Under the agreement, 90 percent of units must be rented to middle-class households earning no more than $128,210 for a family of three, and 10 percent of apartments must be rented to moderate-income families earning no more than $62,150 for a family of three. None of the new tenants will pay more than 30 percent of their income in rent. The City's Housing Development Corporation will fund a loan of up to $144 million to secure the affordability and protect STPCV's legacy as a mixed income community that anchors the city's middle class, the announcement said.
In addition to all of that, there are 1,400 units that were set to lose all rent protections in 2020. Those units will now be protected for an additional five years with rent increases not to exceed five percent each year.
The sale to Blackstone and Ivanhoé is expected to close by the end of the year. In a statement, Mayor de Blasio said, "This is an achievement that helps us ensure we can keep this a city for everyone."
· Beleaguered Stuy Town Complex Is Up for Grabs Again [Curbed]
· Stuyvesant Town - Peter Cooper Village [Official]
· All Stuyvesant Town coverage [Curbed]