HUD Halts Brooklyn Apartment Deal

After foreshadowing his decision in public statements over the past few weeks, Department of Housing and Urban Development Secretary Alphonso Jackson has put a halt to Clipper Equity LP's attempt to buy Starrett City, a large apartment complex in Brooklyn, N.Y.HUD has jurisdiction "pursuant to Paragraph 22 of the Housing Assistance Payments Contract between HUD and Starrett City Associates, to grant or withhold consent to 'any sale, assignment, or conveyance or transfer' of Starrett City Associates' ownership interest in Starrett City," Mr. Jackson says in a letter to Clipper Equity. The letter lists a menu of items for the company to fix before approval could be considered. A number of politicians have come out against the sale, including former HUD secretary and current New York Attorney General Andrew Cuomo. Clipper's attorney could not be reached for comment by MortgageWire's deadline.