The government is about to give away some prime Brooklyn real estate and David Yassky ain’t happy about it. Here’s the story: 381 Baltic Street and 381-A Baltic Street in Boerum Hill were part a failed federal housing program in the 1990s. The federal Department of Housing and Urban Development (HUD) took ownership of the properties after a contractor defrauded the government. In December 2006, after sitting on the properties, HUD transferred them to a private developer with the proviso that he rehabilitate and sell them at a fixed price. The prices?They were set at $540,000 for 381 Baltic and $440,000 for 381-A Baltic, a fraction of their current market value.

According to Yassky, HUD is claiming that these properties are affordable housing. The problem? They will be sold by a lottery that any New York resident, regardless of financial status. If you’re already salivating, it gets better: Now the City Department of Housing Preservation and Development (HPD) wants to give both properties a 20-year exemption from property taxes, a move that the Councilman (who is gearing up to fight the lottery) estimates will cost taxpayers at least $500,000.

“This is almost better than playing the Mega Millions lotto,” said Julie Miles, executive director of Housing Here and Now!, an advocacy group. “There’s really no need for New York City taxpayers to be subsidizing any buildings in Boerum Hill.” So where do we sign up?

Deals of a Lifetime [NY Daily News] GMAP P*Shark