Clipper Realty Inc. entered into a 40-year regulatory agreement with the New York City Department of Housing Preservation and Development (HPD) for its 2,500-unit Flatbush Gardens property. The agreement stipulates multiple conditions such as a real estate tax exemption of approximately $7.4 million annually, three-year capital improvement plan costing about $27 million, clear guidelines on rent control, and an increase in pay rates for non-union employees; and makes the company eligible to receive enhanced reimbursements for tenants receiving assistance up to approximately $8 million per annum.