Statement From Council Member Garodnick Re Tishman Speyer's Impending Default on STPCV
“The tenants of Stuyvesant Town and Peter Cooper Village should not be the collateral damage of a real estate deal gone bad. A gem of a community once known for its stability is now in a period of uncertainty and upheaval.
“But in this moment of transition, there is also an opportunity to take Stuyvesant Town back to its roots and to reclaim New York’s proud legacy of providing housing for middle-class people. Preserving the affordability of these 11,000 apartments would be an enormous victory for the City and needs to be its top housing priority.
“We have seen this coming since 2006, when the property was sold for $5.4 billion based on the unreasonable expectation that it could be transformed into a luxury community in a very short period. We were forced to fight, apartment by apartment, to protect those people whose residencies were improperly challenged. This cannot continue to be a place where there is a culture of fear and conflict.
“Tenants should know that a default will trigger changes that, for the near term, will be merely technical in nature. After a default, they will continue to pay their rent to the same place, and they will continue to call the same number for service complaints until further notice. Along with my colleagues in government and the Tenants Association, I will be watching closely to ensure that there is no drop-off in maintenance or security.
“And for the long term, we are already exploring multiple avenues to ensure the affordability of this community, to guarantee proper maintenance, and to save open spaces from development. We will insist on having a seat at the table in any restructuring, and on cooperation from Fannie Mae and Freddie Mac, who own considerable portions of the most senior debt.
“Let us look forward and learn from the mistakes of the past. This was always intended to be a haven for middle-class people, and that is what it must stay for the long term.”