Monday, September 21, 2009
Irony - Peter Cooper Village Stuyvesant Town Suit
Frankly I hadn't read the actual suit, and really just hadn't thought about it much more detail than the WSJ provided initially. The sponsors of PCV/ST were sued for $200 mm (a bit shy of a single year's entire revenue) because they were taking advantage of a tax break for rent-controlled units, but actively deregulating the units. They lost, and a the case is currently in appellate court - it doesn't look good for the sponsors though.
However, the real irony is pointed out by the New York Observer's Eliot Brown - the winners of the suit are not the rent-regulated tenants at all! In fact, the winners will be the market-paying renters who replaced the recently kicked-out regulated renters - they will get paid back for any rent they have paid over the regulated level (we're talking $2k per month on most of these units)!
Hat Tip Deal Junkie.
Note: there are 11,227 units in the complex, not 13,000 as the linked story implies.