City officials agree that this property seizure program is not working in its current form. Change appears to be on horizon.
When he was Brooklyn borough president, Eric Adams railed against the third-party transfer program and demanded an investigation into how properties were selected. As mayor, he vowed to take a close look at the program.
Third-party transfer has been on ice since the last round of property transfers ended in 2018. The program is intended to hand distressed, tax delinquent properties to private and nonprofit developers.
It is billed by the city as both an incentive for owners to pay property taxes and fees and as a housing preservation program, because transferred properties are renovated and converted to rent-stabilized and affordable housing.
But delinquent taxes go uncollected by the city and the property’s value is handed over entirely to the new owner, free of charge. Properties do not have to be distressed to enter the program.
Kim Darga, a deputy commissioner at the Department of Housing Preservation and Development, indicated that changes to the program are on the way, saying that the agency looks forward to discussing recommendations with the City Council in “the near future.”
How near is anyone’s guess. The recommendations were made nearly two years ago.
City Council member Pierina Sanchez, who chairs the Committee on Housing and Buildings, said in a statement that “design flaws” in the program led to foreclosures at properties with “nominal issues,” a practice that disproportionately affected homeowners of color.
“I look forward to continuing reform discussions started in recent years, to ensure the next version of TPT incentivizes owners to keep properties safe, habitable, and healthy, to stay up to date on municipal bills, and to seek help immediately when they run into problems.”
She indicated that protecting homeownership and ensuring the creation of truly affordable housing will be priorities in crafting the next iteration of the program.
HPD has indicated that the so-called block pickup rule — in which properties that owe taxes but are not necessarily distressed can be sucked into third-party transfer if another building on their block is distressed — is ripe for reform. The city is also focused on ramping up notification and assistance for shareholders in Housing Development Fund Corporation co-ops.
What we’re thinking about: How will the new Airbnb rules affect the hotel market in NYC? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: It may be 95 degrees outside, but the Real Estate Board of New York announced today that summer is indeed over. Ok, not literally, but it did put in my head that industry holiday parties are just around the corner.
The trade group revealed on Tuesday that its annual gala will be held Jan. 18. In recent years, the banquet was held in the spring, but the group is returning to tradition in 2024. Before the pandemic, the event was held in the winter and was the apotheosis of the end-of-year industry schmooze fests.
Elsewhere in New York…
— The NYPD has agreed to new rules for public protests as part of a 2020 settlement related to its response to Black Lives Matter demonstrations, the Associated Press reports. The changes include having fewer officers respond to protests and ending the practice of kettling.
— Reports of major crime dropped 9 percent this Labor Day weekend, compared with the same time last year, Gothamist reports. “Not only was this past weekend a historic success, one most recent crime stat shows that we are making significant progress on lowering crime overall,” Mayor Eric Adams said.
— Former Department of Buildings Commissioner Eric Ulrich wrote a children’s book this summer, Politico New York reports. Ulrich, who is facing indictment, self-published “If Pets Could Vote…” The book touches on justice-related themes. “How cute would it be to see 12 little fluffy canines sitting in the courtroom? Surely, they would give shelter dogs a second chance,” he wrote. “Polly would pardon all her feathered friends and set them free from their cages.”
Closing Time
Residential: The priciest residential closing Tuesday was $5.7 million for a condo and parking space at Fortis Property Group’s Olympia Dumbo, 60 Front Street.
Commercial: The most expensive commercial closing of the day was $3.7 million for a vacant lot at 624 Metropolitan Avenue in Williamsburg.
New to the Market: The priciest residence to hit the market Tuesday was a penthouse at 151 East 58th Street in Sutton Place asking $58 million. Compass has the listing.