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.

1 comment:

Michael T said...

There's so much conflict surrounding how this area is being managed. It seems like some like it, some love it, and many either hate it and are vocal about it. One thing is for sure...Everyone who either lives in Peter Cooper Village or Stuyvesant Town or is thinking about living there, or thinking about leaving...EVERYONE is being affected. I'm sure there are some who will consider moving out either by choice or by necessity. I lived in the City from 1984-1994 and applaud the life-style. Loved it and hope come back to visit all the time. Perhaps there are those who want to explore options outside of the City. The suburbs of New York, like Stamford and Norwalk, offer lots and lots of hi-rise options or low rise lofts at a fraction of the cost. Also, Darien, Greenwich, Fairfield, and Westport are all within an hour on the train and as of this morning, there were over 4000 houses, apartments or condos for sale or rent in thes towns. Certainly, there are a few residents who want to take control of their housing needs instead of continuing to be priced out of the lifestyle they desire. The suburbs isn't for everyone, but for those who are looking to Get Out Of Dodge.....