APTS TO RENT: $2B
TARP SURPLUS MAY GO TO STOP BUILDING FORECLOSURES
First it was the banks and automakers that got a helping hand from Uncle Sam -- and soon some New York City apartment complexes could get one, too.
A bill winding its way through Congress proposes to prop up deteriorating apartment complexes by injecting $2 billion from the Troubled Asset Relief Program into an effort to stabilize multifamily properties in default or foreclosure.
The bill, which is called the TARP for Main Street Act and was sponsored by House Financial Services Committee Chairman Barney Frank (D-Mass.) and Rep. Nydia Velazquez (D-Brooklyn and Manhattan), would use TARP funds that have been returned by banks and plow it into programs that, according to the bill, would create "sustainable financing" for the complexes as well as provide funding for property rehabilitation.
The House is considering the measure, which focuses on apartment buildings with units that are either rent stabilized or receive government subsidies.
Many developers during the housing boom bought rent-regulated apartments by borrowing against the properties themselves and betting they could make hefty returns by converting them into market-rate buildings.
However, thanks to the recession and the collapse of the real estate market, many developers are now struggling to make mortgage payments, let alone finance repairs and upkeep of the properties they own.
"Just about everyone who purchased an asset in 2006 and 2007 is under water, especially the rent-stabilized complexes bought in upper Manhattan, the Bronx and Brooklyn," said Dan Fasulo, managing director of Real Capital Analytics, a real estate research and consulting firm.
nypost for full article
*let's be clear, this bill helps their developer friends NOT renters!
I heard Peter Schiff say it so eloquently last night on CNBC's Fast Money, that what the Fed has done during this crisis is to mount our DEBT higher and higher so Congress could bide their time (since they really are to blame for the mess in the first place, and yes, that includes these two hoodlums). This just makes me angry.
If helicopter Ben just gave us all $500,000 checks, most of us could have paid off our debt and started our spending spree all over again. Instead, they have given OUR fucking money to those who ABSOLUTELY don't deserve it while the rest of us stand around holding our lah lah's wondering what the hell happened.
Pitchforks and Shovels. And will someone pleeeaaase....get rid of that Barney Frank.
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