Stuy-Town Tenants Say Foreclosure Could Lead To Rent Hikes
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Concern is growing at Manhattan's Stuyvesant Town and Peter Cooper Village on word the banks that oversee billions in mortgage debt on the apartment complex are moving to foreclose.
The Wall Street Journal says the banks have scheduled a public auction for the complex in October.
The banks last month sued in State Supreme Court to prevent another group from launching its own foreclosure proceeding.
A judge is expected to rule this month on which side will get to move forward.
Earlier this year the complex's owners, Tishman Speyer and Blackrock Realty, turned it over to creditors after running out of cash. While foreclosure likely will not mean much to residents, some are worried that their rents could soar.
"The banks want to get back as much money as they can and tenants are looking to keep the place somewhat affordable and I just don't see those two sides coming together. The banks have more than $3 billion I think in mortgages so it's just hard to see how they can recover that and keep this place sort of at an affordable level," said one Stuyvesant Town tenant.
In a statement, City Councilman Dan Garodnick -- who lives in the complex -- said, "The tenants...are prepared to work with any partner in pursuit of a stable, permanently affordable future for this property. All the parties currently jockeying for control have expressed support for the tenants’ goals because they recognize that meeting them is the only path to success."