By Sabina Mollot
In October of 2015, a grinning Mayor Bill de Blasio stood alongside other elected officials to declare that the sale of Stuyvesant Town and Peter Cooper Village to The Blackstone Group and partner Ivanhoe Cambridge was the “mother of all preservations deals.”
However, the Independent Budget Office of the City of New York (IBO) is now suggesting, in a report released Friday, that the amount of affordability preserved was inflated.
The IBO estimated that while the deal was supposed to preserve 100,000 “apartment years” (the equivalent of 5,000 apartments for 20 years), 64,000 of those apartment years would have remained affordable anyway through rent stabilization. This would mean the deal really only saved 36,000 apartment years, not 100,000. The report also noted that when the sale took place, just over 5,000 apartments were already renting at below-market rates due to rent stabilization.
While there has been plenty of debate over just how “affordable” the 5,000 apartments that are preserved and leased through a lottery system actually are, according to the IBO, only three percent of those 100,000 apartment years are reserved for low-income households. Twenty-seven percent are intended for middle income households while the remaining six percent of apartment years are units that will remain rent-stabilized longer than they would have without the deal. For its report, the IBO said it considered all of the newly created lottery apartments as well as ones that remain stabilized to be benefits to the city.
Additionally, the report indicated that the city used some misleading numbers at the time of the property sale.