The Real Estate Board of New York to The City Council Committee on Housing and Buildings on the Third Party Transfer Program

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The Real Estate Board of New York (REBNY) is the City’s leading real estate trade association representing commercial, residential, and institutional property owners, builders, managers, investors, brokers, salespeople, and other organizations and individuals active in New York City real estate. REBNY thanks the City Council for the opportunity to submit comments on Intro 657 regarding the Third-Party Transfer (TPT) program.

REBNY supports the goal of ensuring that distressed properties are rehabilitated and that tenants live in safe, well-maintained housing. The TPT program can serve as an important enforcement tool in truly extreme cases where long-term neglect of properties threaten residents and neighborhoods. This legislation provides the opportunity to preserve affordable housing and ensure that property owners and residents are treated fairly.

We support the Council’s thoughtful approach revising the TPT program. The updated proposed program outlines a clear definition of distressed properties by evaluating buildings with the highest financial and physical distress based on tallying unpaid taxes and other obligations to the city and a high level of serious violations. The reforms also eliminate the “block pick-up" provision that led to non-distressed buildings being included in the program.
The reformed TPT program would include a distressed property portal to give property owners transparency and information about properties subject to the program’s enforcement process. REBNY supports this change, which will improve transparency and give owners clearer information about debt, violations, and the status of the property. The portal, in conjunction with the proposed dedicated ombudsperson to assist property owners facing tax-lien foreclosure, is a necessary improvement to the program. This addition will provide a single point of assistance for owners navigating violations, debt, and foreclosure risk.

Additionally, the inclusion of periodic policy review is an important aspect of the bill. This would require HPD to review the policy every three years and submit recommendations to the Mayor and Speaker for improving the in-rem foreclosure procedures established under the law.

Finally, it is critical that the reformed program includes clear statutory standards that could trigger a building’s eligibility. The ability of a city agency to include buildings in the program at its discretion would risk repeating the same mistakes of the past and would create significant risk and uncertainty for owners. Future revisions of the program should not expand agency discretion. Any formula used to qualify a property must be transparent, fixed, and narrowly defined. The current bill accomplishes this goal.

REBNY appreciates the opportunity to voice support for the revamped TPT program and looks forward to working with the Council to ensure the program remains an effective tool for addressing truly distressed properties and providing quality housing for New Yorkers.

Thank you,

CONTACTS:
Maddie DeCerbo
Director of Urban Planning
Real Estate Board of New York
Mdecerbo@rebny.com