By the following June, Schumer and state officials had developed a memorandum of understanding on keeping the complex affordable, which it had been since its opening in 1974. Sources told GlobeSt.com that this considerably thinned the pool of potential buyers.

SCA took Starrett City off the block last February, blaming current market conditions and a lack of financing. Over the summer, both houses of the state legislature passed bills allowing SCA to refinance the complex while keeping it in the Mitchell-Lama program.

"This is something we've worked on for some time," an SCA spokesman told GlobeSt.com when the Assembly version of the bill was passed. "We've always intended to preserve Starrett City as affordable housing, and this is another way to do it."

Under provisions of the legislation, which Paterson signed into law in July, SCA was entitled to refinance the complex in excess of its actual project cost, provided that the group complies with Mitchell-Lama guidelines for 30 more years and does not increase rents to pay for "any subsequent debt produced by the project." The bill created a $40-million dedicated fund for capital improvements to the residential tower structures and to individual units, which comes out of the loan proceeds.

Among the capital improvements that will be paid for out of the fund are replacement of apartment unit refrigerators, dishwashers, kitchen cabinets, counters and bathroom vanities; replacement of damaged and older vinyl floor tiles in common areas; tower and garage structure repairs; and replacement of substandard windows. Tenants at Starrett City will have input into how the capital improvement money is spent through a series of bi-monthly meetings between elected officials, the project's owners and members of the residents' association. In addition, SCA must obligate the funds dedicated to capital improvements within three years.