The owners of 1,700 below-market apartments in New York City have struck a deal with their lenders and the state attorney general's office to rescue the portfolio from foreclosure and bring in new management, the Wall Street Journal reported yesterday. The so-called Three Borough Pool was the largest portfolio to face financial problems since a number of owners of low-cost apartments ran into trouble around the time of the recession, and its difficulties drew the attention of New York Attorney General Eric Schneiderman. The unusual settlement with the owners will provide each tenant with a $600 a month rent rebate — to compensate them for illegal fees and overcharges — and require the owner to resolve all building code violations within a year.
