Fresh hope for StuyTown renter windfall

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StuyTown residents woke up this morning to a rather amazing letter posted in their lobbies from city council member and co-resident Dan Garodnick. "While this seems like a never-ending saga," he writes, "[w]e have reason to be hopeful." 

There were plenty of interesting messages. A few highlights:

  • "CW Capital [the current loan servicer, appointed after the default of the landlord, Tishman Speyer] has already expressed its support for doing a non-eviction conversion."  Translation:  It looks like renters will be able to continue renting, and those wishing to buy will likely be given the opportunity. (Cue champagne corks.)
  • "[A]ny successful plan will have to be a good deal for the tenants, and will have to protect renters who decide not to buy." Translation: Monthly carrying costs (mortgage, maintenance, taxes) will need to be roughly equivalent to current rents. 
  • "[W]e will work directly with CW Capital toward a negotiated outcome of all issues--including the claims in the Roberts v. Tishman Speyer case, which still entitle many tenants to considerable damages [for rent overpayments]."  Translation: Someone who has been overcharged by $2,000 a month for four years could be due $96,000--or more if the courts determine damages should be trebled. 

Related posts:

WINDFALL!! A look at StuyTown's proposed insider prices

StuyTown auction (and windfall dreams) delayed