By Josh Williams
BATTERY PARK CITY — Fannie Mae’s decision to stop backing mortgages for would-be homebuyers in Battery Park City due to complicated negotiations over the land the buildings sit on has made it virtually impossible to sell property in the neighborhood, Crain's reported Friday.
Battery Park City homeowners are required to pay rent on the land because it is owned by the Battery Park City Authority (BPCA), a state agency. The leases the individual owners have expire in 2011, when the rent on the land could more than double, Crain's said.
Fannie Mae's decision to stop backing mortgages has made it difficult if not impossible to sell property in Battery Park City unless aspiring owners can pay in cash.
Real estate sales in Battery Park City dropped 59 percent over the month of February as compared to the same month last year, Crain's reported. It was unclear when Fannie Mae stopped backing mortgages for properties in Battery Park City.
Assembly Speaker Sheldon Silver is meeting with the BPCA to discuss leases on 10 of the buildings, which house more than 2,000 residents, Crain's added.
Fannie Mae did not return calls for comment.