From the NY Times:
New York City has launched a new plan to rescue moderate-rent apartment buildings that were swept up by private equity firms during the financial boom, then left to deteriorate as they drifted toward foreclosure when the new owners were unable to repay their loans.
Under the program, the city’s housing agencies will have $750 million to lend over five years, to enable new, responsible owners to buy and repair buildings that are in the most financial and physical distress.
About $150 million will go toward quickly providing capital for new owners to acquire such buildings; $600 million in New York City Housing Development Corporation bonds and city capital go toward buying and repairing distressed buildings. The New York City Housing Development Corporation will issue mortgages itself.
The city, through the Department of Housing Preservation and Development, plans to concentrate on the most beleaguered apartment complexes in the city — 267 buildings containing 3,564 apartments that are deep in a state of disrepair and in or close to foreclosure. Roughly 100,000 apartments citywide are in buildings that are carrying too much debt, with the money owed on them greater than their current worth, according to the department.