Sale of Brooklyn housing complex raises potential conflict of interest for Trump

New York

THE long-time owners of Starrett City, the sprawling Brooklyn housing complex overlooking Jamaica Bay, are selling the development for more than US$850 million - and among those who stand to benefit is US President Donald Trump, a partial owner.

Starrett City is the largest federally subsidised housing development in the country, and the sale will require the approval of the federal Department of Housing and Urban Development and state housing officials, raising potential conflicts of interest for Mr Trump and his family.

Mr Trump owns a 4 per cent stake in the complex; other members of the Trump family collectively own about 16 per cent.

The buyer is a joint venture of the Brooksville Co, a recently formed residential real estate firm, and Rockpoint Group, a private equity firm that invests in real estate. The pending deal, which is expected to close early next year, was announced to tenant…