By Heather Grossmann
DNAinfo Reporter/Producer
MANHATTAN — The 20,000 residents of Stuyvesant Town and Peter Cooper Village were put in a tenuous spot on Friday when the owners of the apartment complex missed a $16 million mortgage payment.
“A gem of a community once known for its stability is now in a period of uncertainty and upheaval,” Council Member Daniel Garodnick, who represents the area and lives in Peter Cooper Village, said in a statement.
“The tenants of Stuyvesant Town and Peter Cooper Village should not be the collateral damage of a real estate deal gone bad.”
Council Speaker Christine Quinn also weighed in on the mortgage default and said City Council would do everything they could to protect tenants.
"We remain committed to protecting affordability, and we will continue to closely monitor the legal proceedings to prevent any negative effect on residents," Quinn said.
Tishman Speyer and BlackRock Realty, the buildings’ owners, have already made cuts to the maintenance and service staff, and the tenant’s association has reported an increase in complaints to Garodnick’ office.
The management companies bought the buildings in 2006, anticipating an ample return on their $5.4 billion investment, but the recession and the court’s decision to return over 4,000 market-rate units to rent stabilization left the owners struggling to cover billions of dollars in loans.
For now, the default is technical in nature and the residents will continue to pay their rent in the same place.
Garodnick’s office said that they are looking into long-term solutions for the continued management of Stuyvesant Town and Peter Cooper Village as an affordable housing community.
“This was always intended to be a haven for middle-class people, and that is what it must stay for the long term,” Garodnick said.
