"What they want to do is to implement a market-rate rent for allthe units," housing commissioner Deborah Van Amerongen is quoted assaying. But her words merely echo those of US Housing and UrbanDevelopment Secretary Alphonso Jackson last month, when HUD firstnixed the deal.

"The Starrett City sale would quickly displace most, if not all,of the residents here," GlobeSt.com quotedJackson at the time. "Those who leave will have nowhere togo, because of the shortage in affordable housing. So if theresidents of Starrett City are displaced because they are pricedout, then we confront a human tragedy: the destruction of one ofthe safest, most friendly communities in New York City."

Clipper Equity, however, is reportedly hanging tough in itsresolve, and AP quotes company spokespeople as saying that the firmis "in this to stay. We are confident that we can and will maintainaffordability for current and future tenants."