Even though HUD has shown some willingness to consider subsidizing at least a portion of assisted living housing costs through conversion of units
, as the situation exists now, residents still need to become nursing home-eligible in order for Medicaid to cover their personal care expense.
The loan sponsors, Tishman Speyer Properties, LP and BlackRock Realty, acquired the property with the intent of converting rent-stabilized units to market rents as tenants vacated the property; however, the conversion of units
has since been determined to be illegal by the New York State Court of Appeals.
Maloney and Financial Services Committee Chairman Barney Frank also sent a letter to the Acting Director of the FHFA urging the Agency to use its power to deny affordable housing goals credits for multifamily loans that facilitate the conversion of units
from affordable to a higher market rate.