Feds urged to reject plan to sell troubled Chinatown building for low-income seniors
As the Federal Housing Administration turns away requests to sell its troubled Chinatown property, the agency is losing millions in HUD funding because of the uncertainty surrounding the sale of the complex, according to sources familiar with the process.
A sale could save the agency tens of millions of dollars, but as the troubled complex teeters on the verge of losing its FHA funding it appears the agency is losing valuable opportunities to recoup the money it has spent rehabilitating the complex and is in danger of losing money from future projects in the area, the sources said.
“We have to move quickly to find an alternative partner because we’ll lose funding for [two other properties] if we don’t have a successful sale here tonight,” the sources said.
Federal officials are under increasing pressure to move quickly to turn over a property in a tough market as more than a dozen projects in the area are vying for FHA and public financing, according to sources familiar with the complex.
Even as the Trump Administration has made it clear he does not want the troubled complex to lose its federal assistance it is at risk losing in the process.
“The federal housing agency has a responsibility to deliver an outcome that is good for all stakeholders—including the public—and the public’s confidence,” a HUD spokesman said in an email.
But in the process of trying to find a new buyer, HUD would have to pay even higher prices than the current asking price for the property, according to the sources.
And, sources said that HUD needs to be careful and not rush to a decision on how to proceed in the case of a new buyer; a rush to a decision could cost tens of millions of dollars.
The troubled property, which has been in foreclosure for years, has had to contend with numerous issues that have slowed its
