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Manhattan Luxury Condos Try FHA Backing in `Game Changer'

By Oshrat Carmiel - Aug 13, 2010 3:33 PM CT Fri Aug 13 20:33:22 GMT 2010


Ryan Serhant, vice president of business development for Nest Seekers International, which handles the marketing for the 99 John Deco Lofts condominiums. Photographer: Ramin Talaie/Bloomberg

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Aug. 13 (Bloomberg) -- The Federal Housing Administration is providing a lifeline to new Manhattan luxury condominiums after sales stalled. Bloomberg's Monica Bertran reports. (Source: Bloomberg)


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Aug. 13 (Bloomberg) -- Randall Zisler, chief executive officer of Zisler Capital Associates LLC, talks with Bloomberg's Julie Hyman about the implications of the Federal Housing Administration insuring mortgages for luxury apartments. The FHA, created in 1934 to make homeownership attainable for low- to moderate-income Americans, is providing a lifeline to new Manhattan luxury condominiums after sales stalled. (Source: Bloomberg)


A view of Manhattan Bridge, rear, and Brooklyn Bridge, as seen from the roof terrace of the 99 John Deco Lofts condo building in New York. Photographer: Ramin Talaie/Bloomberg


The 99 John Deco Lofts condo building stands in New York. Photographer: Ramin Talaie/Bloomberg


A one-bedroom apartment is pictured at the 99 John Deco Loft condo building in New York. Photographer: Ramin Talaie/Bloomberg



Whitney Gollinger, marketing chief for a Manhattan condo building with an outdoor movie theater and panoramic city views, is highlighting a different amenity to spur sales: the financial backing of the federal government.

The Federal Housing Administration agreed in March to insure mortgages for apartments at the 98-unit Gramercy Park development, known as Tempo. That enables buyers to make a down payment of as little as 3.5 percent in a building where apartments are listed at $820,000 to $3 million.

“It’s a government seal of approval,â€