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Sale of Brooklyn Housing Complex Would Benefit Trump
Sale of Brooklyn Housing Complex Would Benefit Trump
By CHARLES V. BAGLI SEPT. 6, 2017
Starrett City is the largest federally subsidized housing development in the country, and the sale will require the approval of the federal Department of Housing and Urban Development and state housing officials, raising potential conflicts of interest for Mr. Trump and his family. Mr. Trump owns a 4 percent stake in the complex; other members of the Trump family collectively own about 16 percent.
The buyer is a joint venture of the Brooksville Company, a recently formed residential real estate firm, and Rockpoint Group, a private equity firm that invests in real estate. The pending deal, which is expected to close early next year, was announced to tenants, employees and elected officials on Wednesday.
Representatives Hakeem Jeffries, whose district includes Starrett City, and Elijah E. Cummings, a member of the House Committee on Oversight and Government Reform, highlighted the potential conflict of interest in July when rumors circulated in New York that Starrett City would be refinanced. ... “The president is on both sides of the negotiation — he oversees the government entity providing taxpayer funds and he pockets some of that money himself,” they wrote in a July 7 letter to the Donald J. Trump Trust, which holds the president’s business interests, and Ben Carson, secretary of the Department of Housing and Urban Development.
Mr. Trump’s share of the proceeds — after the partners pay off their mortgage, transfer taxes and other transaction costs — could be about $14 million, according to real estate executives familiar with the details who spoke anonymously because they have no authority to disclose them.
By CHARLES V. BAGLI SEPT. 6, 2017
Starrett City is the largest federally subsidized housing development in the country, and the sale will require the approval of the federal Department of Housing and Urban Development and state housing officials, raising potential conflicts of interest for Mr. Trump and his family. Mr. Trump owns a 4 percent stake in the complex; other members of the Trump family collectively own about 16 percent.
The buyer is a joint venture of the Brooksville Company, a recently formed residential real estate firm, and Rockpoint Group, a private equity firm that invests in real estate. The pending deal, which is expected to close early next year, was announced to tenants, employees and elected officials on Wednesday.
Representatives Hakeem Jeffries, whose district includes Starrett City, and Elijah E. Cummings, a member of the House Committee on Oversight and Government Reform, highlighted the potential conflict of interest in July when rumors circulated in New York that Starrett City would be refinanced. ... “The president is on both sides of the negotiation — he oversees the government entity providing taxpayer funds and he pockets some of that money himself,” they wrote in a July 7 letter to the Donald J. Trump Trust, which holds the president’s business interests, and Ben Carson, secretary of the Department of Housing and Urban Development.
Mr. Trump’s share of the proceeds — after the partners pay off their mortgage, transfer taxes and other transaction costs — could be about $14 million, according to real estate executives familiar with the details who spoke anonymously because they have no authority to disclose them.
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Retweeted by David Fahrenthold: https://twitter.com/Fahrenthold
Helluva piece by Charles Bagli: Sale of Brooklyn Housing Complex Would Benefit Trump
Link to tweet
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Previously at DU:
Dems question Trumps conflict of interest in housing complex
