Governor Andrew M. Cuomo announced an agreement with the owners of Starrett City, also known as Spring Creek Towers, to ensure the 46-building, 5,881-apartment Mitchell-Lama housing community in Brooklyn remains affordable through 2069.
The plan includes long-term protections for tenants and requires owners to make approximately $140 million in upgrades and repairs.
The agreement, which was made under the leadership of New York State Homes and Community Renewal, will improve quality of life for residents and preserve a critical source of housing that thousands of middle-income New Yorkers have relied on for more than 50 years.
Through an agreement with Brooksville Company and Rockpoint Group, HCR required that any such refinancing agreement would need to achieve three goals: extend affordability for residents, invest in building infrastructure, and continue the cap on rent increases. All three of those goals were achieved in this agreement.
Under the new financing agreement, HCR secured the following terms:
Continues the cap on rent increases for non-Section 8 tenants.
Requires owners to apply for an additional 15 years on Starrett City's Section 8 contract with U.S. Department of Housing and Urban Development, keeping the complex's 3,569 apartments for low-income residents affordable through 2069.
Extends affordability for the complex's 2,312 non-Section 8 apartments for an additional 15 years (assuming the HUD contract for the Sec. 8 tenants and the New York City tax exemption for the development are extended).
Requires owners to make an additional $140 million in capital improvements and repairs by 2030, bringing Starrett City's total capital commitment to the property since 2018 to $280 million.
Repairs include:
New kitchen appliances for every resident.
Renovating all lobbies and corridors.
Replacing the building's streetscapes and upgrading landscaping.
Upgrading playgrounds and outdoor sports areas
Creates a $10 million social services fund for residents to provide access to support services that may include: educational, health and wellness, and job training programs.
Creates a $10 million rent relief fund for residents facing financial hardship. ■