Starrett City, located near East New York on Brooklyn’s Jamaica Bay, is the country’s largest Federally subsidized housing complex.  Since the complex went up for sale in 2006, community members and affordable housing advocates have been concerned about the future status of the 5,881apartments there, which house 14,000 residents.  In March 2007, HUD blocked a proposed $1.3 billion sale to investors Clipper Equity L.L.C., saying that the investors failed to show how they would retain the complex’s affordability, considering the high sale price.

Today, the New York Times reports that Starrett City’s owners have reached a deal with Federal, State, and City officials to ensure that the complex will remain affordable, no matter who wins the bidding process.  In exchange, the government has agreed not to block a sale.  In addition, Senator Charles Schumer has proposed legislation to convert the units to the federally subsidized, 20-year Section 8 housing program.  The legislation is expected to pass this summer.

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