Useful Links

------------------------------------------------------------------------------------------------------------------------------------------------------

Wednesday, January 28, 2015

Not Freddie Mac, Not Fannie Mae, Not The Usual Others

This community should be under no illusions about whether or not it will receive any outside help with respect to ongoing efforts to force long time residents out of ST and PCV.  It will not.

In spite of their stated missions to aid affordability in housing & rental markets, Freddie Mac and Fannie Mae will not help out in any new ownership deal that the community will like.  They have already shown their stripe as well has the Federal Housing Finance Authority that has oversight responsibility for the FMs.  I say this because the FMs and the FHFA know full well about the student rentals that have occurred here and know about all the MCIs that have occurred over the past 3 years that have served to jack up rents.

It is the FMs and the FHFA that are in the real driver's seat here, not CW/CR.  But obviously the FMs and the FHFA have done nothing to stop legal rents from getting jacked up via student rentals and have done nothing to stop the MCIs.

Now, outside of talking a good game and making promises, in the past 10 years of disruption here what have any of our politicians delivered for us with respect to affordability?  What have de Blasio, Glen, Schumer, Maloney, Hoylman, Kavanagh or Garodnick done that has changed anything here?  Actually changed and improved affordability here.  I believe the answer to that is nothing.  Why would anyone believe this will change in the future?  Kindly note, we were supposed to have heard something from de Blasio/Glen last August.  Six months late and counting.

What has the TA done with respect to student rentals or MCIs?  I'm aware of no organized effort to challenge or defeat any of these landlord moves that clearly have occurred as part of a coordinated strategy to jack up rents and make STPCV less affordable.

Unless something happens within the community itself to mount challenges to this landlord/developer strategy that's been in effect for the last 3-4 years, it's inevitable that more and more of us will get forced out.

2 comments:

  1. Fannie/Freddie guaranty debt supporting middle class housing. They don't enforce the diverse universe of housing regulations. Jerry Speyer pulled strings procuring Fannie/Freddie endorsements that should not have been provided for a business plan that could not possibly succeed without booting the middle class out of ST-PCV. The improper Fannie/Freddie backing gave Speyer's purchase an investment grade bond rating that suckered in large investments from the pension funds, sovereign funds, etc. subsequently wiped out when Speyer defaulted.

    Speyer's 1st mortgage is the Fannie/Freddie backed debt + late interest and fees. It's already there. Ostensibly, CWC works for the bond investors holding it. Every prospective owner wants to assume it. Schumer restricted it to sales approved by ST-PCV tenants and NYC. Tenants kept uninformed in the dark don't realize what they have and how they can use it.

    ReplyDelete
    Replies
    1. "Sales approved by ST-PCV tenants & NYC". Very curious how that's supposed to work. How will tenant approval be determined? Referendum? What Garodnick says? What the TA board says? Who's running the show to determine the method of choice? I assume the mayor will speak for the city. For argument sake, let's just say there's a referendum (hah!). Suppose the tenants reject the deal & the mayor likes it. Then what?

      Delete