NYC's Stuy Town Can Be Foreclosed, Says Judge: Tenants to Make Bid

The saga of a massive New York apartment complex in default is one step closer to a happy ending for its tenants. A federal court ruled on Monday that Manhattan's Stuyvesant Town-Peter Cooper Village can be foreclosed on and sold at auction.

This action paves the way for the tenants association to bid the complex.

"This was totally expected and is fine for the tenants," said Daniel Garodnick, a New York City councilman and lifelong resident of the complex. "We are working on a proposal for the senior lenders that will address all of the issues that we have identified, as well as the concerns specific to stakeholders."

The tenants association is working to develop a plan that offers tenants the option of purchasing their apartments, while also allowing an option for those who want to remain as renters, without fear of eviction.

This latest ruling, by U.S. District Judge Alvin Hellerstein, paves the way for bids to be made for the complex. The tenants association, which is looking for investment partners, will be required to put down a $100-million deposit in order to bid on the property.

Garodnick is confident that the tenants association will be able to put together a winning bid. "We have shown that the tenants are organized and able to put together a deal," said Garodnick. "We are in a very good position, and we hope to deliver the right outcome here."