Saying they had “numerous concerns” with the arrangement, federal housing officials have reportedly blocked the sale of Starrett City.
Starrett City, in Brooklyn, is the nation’s largest federally-subsidized housing complex.
A high-level government official told NY1 Thursday that a letter was sent from the federal Department of Housing and Urban Development to the potential owners to tell them the sale is not taking place.
Federal Housing Secretary Alphonso Jackson said that Clipper Equity, the prospective buyer of the complex, failed to explain how it would remain an affordable community after the proposed $1.3 billion sale.
Citing similar concerns, the state attorney general’s office met with federal officials to talk about the sale’s impact on affordable housing.
Attorney General Andrew Cuomo has enforced a state Supreme Court injunction blocking the complex’s sale to Clipper Equity.
“We look forward to the opportunity of correcting certain underlying misinformation and to providing the secretary with the appropriate assurance he seeks,” said a spokeswoman for Clipper Equity in a statement.
The company has said they would continue to provide affordable housing
