By Suzanne Ma and Heather Grossmann
DNAinfo Reporter/Producers
EAST VILLAGE — Residents of Stuyvesant Town and Peter Cooper Village barely batted an eyelash over Monday's announcement that ownership of the complexes would be transferred to creditors, but it is clear that finding a solution suitable for all involved — the residents, the city and the owners — will be no easy task.
For now, the city's Dept. of Housing and Preservation is sticking by its statement on Jan. 8 — following the mortgage default of owners Tishman Speyer Properties and BlackRock Realty — that the city will keep a close watch on the properties.
"While residents may be understandably concerned about the future, the good news is that these properties continue to be well run and maintained," HPD Commissioner Rafael Cestero said in the statement.
"Since the 1940s Stuyvesant Town and Peter Cooper Village have served the housing needs of the hardworking middle-class families of New York, and it is our overriding concern that they remain a key component of the City’s affordable housing stock for generations to come.”
With over 20,000 residents and a high-profile reputation for being an affordable housing development, it is improbable that the city would allow for much alteration in the operations of Stuyvesant Town and Peter Cooper Village.
The realty companies purchased the 11,000-plus units for a record-breaking $5.4 billion in 2006, but the market crash combined with a court ruling making it illegal for them to convert rent-stabilized units into market-rate apartments made it impossible for Tishman and BlackRock to meet their financial obligations.
Both the city and residents of the affordable housing units were well prepared for the companies to relinquish ownership of the buildings.
"Most people that live here pretty much knew that Tishman Speyer was going to run into trouble from the very beginning because of the way they handled everything," said Walter Salzman, who has lived in the apartment complex for 33 years.
"This is not a surprise at this point."
Tenants hurrying to and from their apartments Monday morning in the rain told DNAinfo they hoped their rents would remain low and that the new management would invest more in the comfortable but deteriorating facilities.
Common areas like laundry rooms, garbage disposal units, and the local gardens have not been kept in the best of conditions since Tishman Speyer took over in 2006, tenants said.
Local politicians were also quick to respond to the news on Monday.
“Changes in Stuyvesant Town’s ownership must not be used as an excuse to hike rents and skimp on apartment services. The creditors must commit to upholding promises made to tenants, including maintaining all available services and current rent rates," Public Advocate Bill de Blasio said in a statement.
District 4 Council Member Daniel Garodnick agreed.
"There has been a history here. It's a stable and secure neighborhood which today feels like it has more questions surrounding it than anything," Garodnick told DNAinfo. "It's disappointing that tenants find themselves in this position."
Residents like Linda Fleming, who has lived in Stuyvesant Town for 30 years, said she and her neighbors felt vindicated.
Tishman Speyer "couldn't get rid of the old timers with the low rents. They were trying to take advantage of the new people who wanted to move in. It was just a bad play on their part," she said.
"It's a beautiful place to live. It really is it's the best place in New York."
