As Investment Firms Buy Up Buildings, Tenants See Bullies
Gretchen Morgenson investigates a disturbing trend known as "preditory equity" in the May 9th, 2008 issue of the New York Times. Investment firms are buying apartment buildings with rent-regulated tenants, and then trying get rid of them and replace them with market-rate tenants. The Trust's grantee, the Association of Neighborhood Housing Developers, is working to protect affordable housing and fight against preditory equity. Its deputy director, Benjamin Dulchin, is quoted in the article.
... “Predatory equity is undermining the best efforts of New York City and state elected officials to slow the loss of affordable housing,” said Benjamin Dulchin, deputy director of the Association for Neighborhood and Housing Development, a nonprofit organization. “Both the private equity funders and the lending institutions are aware, or should be aware, that harassment of tenants is taking place as a result of their financial models.”
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