QUESTION
How is HPD assisting owners with renovations to bring units back to the market?
1:09:36
·
5 min
The NYC Department of Housing Preservation and Development (HPD) is actively assisting owners in renovating units to bring them back to the market.
- In 2023, 30% of all units off the market are being renovated at the time of the survey.
- Renovations include new appliances installation, with 27% of units getting new refrigerators and 26% new stoves.
- HPD offers targeted assistance programs for multifamily housing, including updates for lead hazard, health home regulatory requirements, and green improvement.
- The preservation term sheet presented by HPD works with owners to ensure compliance and offers funding for units needing repositioning or major system restorations.
Pierina Ana Sanchez
1:09:36
I think that the question is trying to get at an understanding of using 1974 as a proxy also for who receives tax benefits subsidy versus versus not and and what are the condition the differences in conditions between those buildings.
1:09:51
Okay.
1:09:52
So there there were 41270 units undergoing or awaiting renovation where no other reason was also applied statistically similar to the 37,320 units in 2021.
1:10:04
What is HPD doing to assist owners.
1:10:06
We're applicable to make renovations in these units and bring them back to the market.
1:10:11
And do we know anything else about these these renovations?
1:10:15
Has you mentioned that the survey methodology compares administrative data from different agencies.
1:10:21
Do we have information about DOB permits versus these renovations and what timelines might be.
Elyzabeth Gaumer
1:10:28
Sure.
1:10:29
So I can maybe start, and then I'll pass it over.
1:10:32
Would
Oksana Mironova
1:10:33
you mind
Elyzabeth Gaumer
1:10:33
we're just going to pull up another slide.
1:10:35
It's in our initial findings on page 31, it's figure 11, but we'll see if we can share and pull it up on the screen while I'm giving this.
1:10:45
So one of the important things that I think we were concerned about in 21.
1:10:52
Counsel member wrestler had right has brought this up, is whether these units that were off the market were in fact sort of just not they were just sitting empty.
1:11:02
There was no intention of bringing them back online.
1:11:04
They were going to be long term, right, all of those kinds of questions.
1:11:08
And those are very, very important questions for a variety of reasons.
1:11:12
So for our 23 report, and here on the screen now, thank you.
1:11:17
We dug into units that were off the market, So this is not looking at units that were available for rent, although we might be able to do that if that's of interest.
1:11:26
So these are units that were just off the market.
1:11:28
And we looked at whether we asked questions and collected data and whether they were renovated.
1:11:34
Right?
1:11:35
So This is so 2 separate measures here on the left, what we found is that a full 30% of all units that were off the market in 2023.
1:11:46
We're being renovated at the time we were doing those interviews.
1:11:49
So at that one moment, we said our is this currently being renovated?
1:11:52
And the answer was yes for 30% of those units.
1:11:56
That's, of course, not counting ones where there was already renovation work that had been completed or anticipated in the future.
1:12:03
Separate from that, we also asked for some specific items about upgrades that we understand or sometimes needed are important.
1:12:12
Right?
1:12:13
So we asked if new appliances had been installed since the prior occupant left.
1:12:18
Again, these are all units that were not available for rent in 2023.
1:12:24
Full 27% said that they had they had replaced the refrigerator.
1:12:27
Was a new refrigerator in the unit.
1:12:29
These are off market units.
1:12:31
26% had installed a new stove.
1:12:34
22% had installed new kitchen cabinets, and 21% had installed new kitchen countertops.
1:12:43
So that's And again, this is a very short period of time.
1:12:47
This is units that are are not available for rent or for sale, and it's clear to us that there is a lot of work being done to those units, presumably so that they can be brought back into the active market and occupied in the near future.
1:13:02
As we had seen with what happened in the units that were off market in 21.
Ahmed Tigan
1:13:06
I think the only thing I would add here is, again, for these for multifamily housing, we have targeted term sheets, some of which deal with administrative or regulatory.
1:13:17
So many are coming up to date with lead hazard and healthy home regulatory requirements.
1:13:24
We do have a preservation term sheet to work with those owners.
1:13:28
We can layer that in with, you know, efficiency electrification and and and green greening improvements to our green housing, participatory programs, We have both multifamily housing that's geared toward project based voucher projects that allow us to leverage both the voucher and the capital investment that we put in to cover both in unit major system restorations We make that available also to buildings of different sizes and different financing histories.
1:14:05
Some some come through like tech and that year 15 need to reposition and need funding.
1:14:11
We have programs that gear toward them specifically.
1:14:14
We have and support larger multi phase buildings as well.
1:14:20
We do this all targeted toward those buildings will also extend the affordability given how critical that is as a return on the public investment.
Pierina Ana Sanchez
1:14:31
Do you have any sense of how long the units that were highlighted on that slide?
1:14:36
How long they were offline?
1:14:38
Does HPD keep track?
Elyzabeth Gaumer
1:14:42
Sure.
1:14:42
I don't have information on the length of vacancy with me today.
1:14:47
But certainly we can work we can come back to you with other questions answers to other questions, and we can make sure that that's on our list.
Ahmed Tigan
1:14:56
Just one other thing I want to add.
1:14:58
So a lot of our outreach happens proactively through member organizations.
1:15:02
Through information we put out there, but we also get a lot of successful contacts through our elected official sponsored event.
1:15:10
So we do through our landlord ambassador program, our community events, we have we hold property owner roundtables, we would welcome any interest by council members or elected officials to do that as well.
1:15:24
So just putting that out there through