On Wednesday, Council Members Dan Garodnick, Jumaane Williams and Ritchie
Torres announced the formation of a coalition of over 40 elected
officials who are committed to keeping affordable housing from turning
into overleveraged housing.
Specifically, the Coalition Against Predatory Equity (CAPE) was
organized in an effort to avoid the type of massive debt deals that have
led to the loss of affordable housing like at Stuyvesant Town.
“We have a wide-ranging, diverse group and together we have some
powerful principles,” said Garodnick, adding that the coalition is
“strength in numbers.”
The four goals of the group are:
To get Fannie Mae and Freddie Mac to commit to not lending to any owner in a deal that puts affordable housing at risk.
Avoid investment of city and state pension funds in deals that harm tenants.
Stop offering tax abatements or subsidies to development deals that would lead to the loss of affordable units.
Come up with legislation aimed at limiting “the abuses of predatory equity, and assists tenants in over-leveraged buildings.”
More at the above link.
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