The Lifecycle of Predatory Equity

The New York City Urban Homesteading Assistance Board (UHAB) has a new report out that examines the “lifecycle” of predatory equity—a practice where real-estate speculators over-leverage buildings with the intention of forcing tenants out.

The report points to a potentially alarming cycle where banks, looking to stabilize their balance sheets, sell notes in foreclosure to the highest bidder at face value:

Not only has this debt-level already proven to be unsustainable, it does not account for the already deteriorated conditions. Thus, affordable housing stock in NYC is being swept into a second round of Predatory Equity. Tenants suffer throughout the process.”

Click here to read the report. UHAB follows predatory equity developments on its blog, The SurRealEstate.


Matthew Brian Hersh served as senior editor at Shelterforce from March 2008 to October 2012. He studied English at Rutgers University and has spent his professional career in journalism, policy, and politics.


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