By Laura Kusisto
Fannie Mae and Freddie Mac have agreed to consult with the city
and tenant groups before investing in a future deal for the
purchase of Stuyvesant Town and Peter Cooper Village, according to
officials familiar with the matter.
Jeffery Hayward, senior vice president and head of multifamily
at Fannie Mae, said the firm isn't currently evaluating a
transaction involving Stuyvesant Town. But he said that "if we are
asked to participate in such a transaction, we will work with the
city and respect the interests of the Stuyvesant Town
residents."
The assurance by the mortgage giants could help the city push
for a deal that would preserve affordable housing in the complex,
as demanded by tenants and lawmakers.
"We want a commitment from them that they will not use their
funds to support plans that destroy affordable housing in New York
or anywhere," said Daniel Garodnick, a City Council member and one
of the authors of a letter sent this week and signed by 39 members
of Congress, the New York state Legislature and City Council.
The letter, which was also signed by Rep. Carolyn Maloney,
Manhattan Borough President Gale Brewer and State Sen. Brad
Hoylman, among others, urged the firms not to back the purchase of
the Manhattan complex, home to about 11,200 residents, if it puts
affordable housing at risk.
Fannie Mae and Freddie Mac were seized by the U.S. government in
2008 to prevent a wider collapse of the housing market, and they
remain under government control. The letter is addressed to Housing
and Urban Development Department Secretary Shaun Donovan, Freddie
Mac Chief Executive Donald Layton, Federal Housing Finance Agency
Director Melvin Watt and Timothy Mayopoulos, president and chief
executive of Fannie Mae.
A spokeswoman for FHFA, which oversees the two firms, said,
"We've received the letter and will respond."
Fannie Mae and Freddie Mac invested in the $3 billion mortgage
tied to the complex, which was sold for $5.4 billion in 2006 to a
venture led by Tishman Speyer and BlackRock Inc. The venture moved
to renovate units and raise rents.
The partners defaulted on their total $4.4 billion in debt in
2010 and the property has been controlled since then by the senior
creditors, represented by CWCapital Asset Management LLC. They are
expected to move toward a sale of the property this year or
next.
Mr. Garodnick and other local leaders are exploring ways to help
keep rents in the complex low, including using city affordable
housing subsidies, tax incentives and legislation. The tenants also
have put together a plan to purchase the complex.
Eliot Brown contributed to this article.
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