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11/29/2012 11:59 PM

Stuy Town, Peter Cooper Village Residents Reach Settlement With Former Owners

By: NY1 News

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A major legal settlement has been reached between residents of Stuyvesant Town and Peter Cooper Village and their former building owners.

The tentative deal is the latest decision in the ongoing legal battle over excessive rents at the sister housing complexes.

Current owner CW Capital will pay out most of the $140 million settlement as part of its purchase of the buildings.

The settlement will also stabilize rents until June 2020.

"I think it's going to help a lot of people sort of move forward with their lives," said John Sroka, a Peter Cooper Village resident. "A lot of people were caught in limbo and just wondering what the settlement would bring, so I think it's just going to help our community as a whole."

"I think with rent stabilization and everyone being protected under rent stabilization, you'll have the opportunity to have long-term neighbors, and that's really what builds the community," said Dawn Davis, a Stuyvesant Town resident.

In 2009, a judge found former owners Tishman Speyer and Metlife illegally deregulated the apartments and overcharged for rents.

Tishman Speyer eventually defaulted on its mortgage, leaving tenants to find another owner.

The settlement will face a final approval next year.