Extract from above:
But the developments of last week provided some comfort—and breathing room—to both tenants and the officials on their side, leaving them all encouraged by Friday.
First, U.S. Senator Chuck Schumer was able to secure commitments from Fannie Mae and Freddie Mac—the nation's largest sources of housing equity—not to guarantee any deal that does not ensure long-term affordability for the roughly 6,000 units that are below market rate. He said they will not help any purchase that does not have the consent of both the city and tenants, “no ifs, ands or buts.”
“Without Fannie and Freddie's backing, it will be very hard for one of these rapacious lenders to come in and change the whole way Stuy Town is,” Schumer said at the rally Friday morning, where he drew many cheers from the crowd. “It will be very hard for them to say they are just getting rid of the affordability and charge any rate the market wants.”
Then, Alicia Glen, the deputy mayor for housing and economic development, was able to secure a commitment of her own: CWCapital agreed to give the city at least 60 days to find a way to support a sale that would indeed guarantee the long-term affordability for those 6,000 units. Andrew MacArthur, the managing director of CWCapital, put the agreement in writing by way of a letter dated last Wednesday. He said the plan has been for some time to begin “evaluating resolution alternatives in late 2014 or early 2015.”
“As such, we have no immediate intention of pursuing a resolution of the property and believe we should both commit the next 60 days to exploring structures that could ensure the continuance of some of the City's policy objectives, while also allowing us to satisfy our obligations to our investors,” he wrote to Glen.
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