TARP Funds May Backstop NYC Foreclosures

new york city tbi

Think Washington will only bail-out Wall Street fat cats and incompetent Detroit carmakers? Think again.

An extra $2 billion in TARP funds may go to stop low-income building foreclosures in New York City. It’s called the “TARP for Main Street Act.”

New York Post: A bill winding its way through Congress proposes to prop up deteriorating apartment complexes by injecting $2 billion from the Troubled Asset Relief Program into an effort to stabilise multifamily properties in default or foreclosure.

The bill, which is called the TARP for Main Street Act and was sponsored by House Financial Services Committee Chairman Barney Frank (D-Mass.) and Rep. Nydia Velazquez (D-Brooklyn and Manhattan), would use TARP funds that have been returned by banks and plow it into programs that, according to the bill, would create “sustainable financing” for the complexes as well as provide funding for property rehabilitation.

This, of course, would also be a bailout for the speculating developers who bought public housing a few years ago, hoping to kick all the poor people out and flip them to hugely-profitable market-rate units. Then that whole Greatest Recession thing happen.

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