STARRETT CITY — Two days after the passage of a significant housing bill, Senator Hillary Clinton made an appearance in Brooklyn yesterday for a press conference at Starrett City held by Congressman Edolphus Towns (D-Brooklyn). Also in attendance were Congressman Anthony Weiner, Borough President Marty Markowitz and Assemblyman Vito Lopez.

“I have made it clear that the sale of Starrett City must reflect our deep commitment to protecting the interests of our city’s working and middle-class families,� said Senator Clinton.

Starrett City, a Mitchell-Lama development just east of Canarsie, is the nation’s largest federally subsidized housing development, with 140 acres and nearly 6,000 units in 46 buildings. It was put up for sale in 2006, and last year, concerns were raised after Clipper Equity LLC, led by David Bistricer, bid for Starrett City. At the time, Clipper said the rents would reach market rates within three years, although tenants would be eligible for further subsidies. That bid was rejected by the state and the federal government.

Within the past 10 or so years, many Mitchell-Lama rental developments’ owners have opted to “go private� as their original certificates expired. In one month in 2007, for example, Coney Island lost 3,180 of its 9,000-plus Mitchell-Lama apartments.

Another former Mitchell-Lama, the converted Peaks Mason Mints candy factory at 20 Henry St. in Brooklyn Heights, went private, was “emptied� of its original tenants and is now being renovated as a luxury condominium.

After the initial purchase of Starrett was blocked by HUD and other state and city housing agencies twice last year amid a great deal of public acrimony, the current owners, Starrett City Associates, began working with HUD, the NYS Division of Housing and Community Renewal, the NYS Housing Finance Agency, and the NYC Department of Housing Preservation and Development on a plan that would allow the current owners to sell the property while ensuring that the housing units remain affordable.

This plan came to fruition on Wednesday, July 23, when H.R. 3221, which includes the legislation introduced by Rep. Towns to preserve Starrett City, passed on the House floor by a vote of 272- 152. The Senate passed the measure on Saturday, July 26, by a vote of 72-13 with great bipartisan support.

The bill is expected to be signed into law by President Bush early this week.

The bill creates the conditions necessary for purchasers of Starrett City to secure the long-term financing necessary to maintain the affordability of the units.

“Thanks to the leadership of Congressman Towns and the cooperation of officials on all levels, we are able to ensure our residents’ concerns, including maintaining affordability, are heard loud and clear,� said Clinton. “As we struggle to address a disturbing national trend of rapidly declining affordable housing, Starrett City stands as a model of cooperation that proves affordability and profitability are not mutually exclusive.�

Congressman Towns said, “I am concerned that so many Brooklyn families are stressed and stretched during these turbulent economic times of rising unemployment and record high prices for everything from gas to food.

“With a shortage of affordable housing in Brooklyn, it is urgent now more than ever that we preserve the affordability of Starrett City because tenants deserve protections like the ones extended to homeowners to safeguard against the ills of our struggling housing market and economy.�

Last week, the list of bidders on Starrett City were narrowed down to four. According to The New York Times, they are the NHP Foundation, a non-profit housing developer, in partnership with The Related Companies; The Rev. Floyd H. Flake’s Greater Allen Cathedral Housing Corporation, along with JPMorgan Chase; the Housing Partnership Development Corporation, along with the Cogsville Group, the Clarett Group, the Christian Cultural Center and Aimco; and the Metropolitan Council on Jewish Poverty with the New York City Central Labor Council, Westbrook Partners, Phipps Houses, Provident Resources and possibly Touro College.

“I am encouraged by the four finalists looking to purchase Starrett City,� said Borough President Marty Markowitz.

“I’m confident we will prove that New York City is indeed a ‘proud home to everyone from everywhere’— and we’re going to make sure it stays that way.�

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