Kavanagh Rallies with Tenants to Preserve Stuyvesant Town and Peter Cooper Village

January 31, 2010
On January 31, 2010, Assembly- member Brian Kavanagh joined U.S. Senator Charles E. Schumer, State Senator Tom Duane, City Council Speaker Christine Quinn, Councilmember Dan Garodnick, and hundreds of tenants in a direct appeal to the heads of Fannie Mae and Freddie Mac demanding that, as the largest of the creditors who now effectively control Stuyvesant Town and Peter Cooper village, they ensure that responsible new management is installed, building maintenance is kept up during the transition, and any future change of ownership is conducted in a manner consistent with keeping the complex affordable for middle-class families in the long term.

The weekend prior, the owners of Stuyvesant Town and Peter Cooper Village – one of the largest affordable housing complexes in the world – announced that they had turned over the massive complex to their creditors, after defaulting on their highly-leveraged, multi-billion dollar mortgage. CW Capital, the special servicer representing the creditors, is now in charge of operating the properties and will be responsible for hiring new management, and making decisions about the disposition of the properties. Fannie and Freddie, both of which are now in conservatorship and majority-owned by the federal government, are the largest and most senior creditors and stand to get paid first on any sale of the properties.

“I call on the creditors who are now taking ownership of the complex to work with me and the other elected representatives of the residents, and with the residents themselves, their great Tenants Association, and their attorneys to ensure that the new owners do not replicate the mistakes of their predecessors,” said Kavanagh at the press conference. “It is my hope that by closely watching and working with CW Capital, Fannie Mae, Freddie Mac, and other interested parties, this community can regain a sense of relative peace, stability, and long-term affordability.”