AGENCY TESTIMONY
Analysis of potential properties eligible under new criteria
0:19:27
·
4 min
HPD conducted an analysis of NYC residential properties to understand the impact of the proposed eligibility and selection criteria for the TPT program.
- Out of 770,000 Class 1 and Class 2 residential properties, 80% have no outstanding municipal charges or recent hazardous violations
- About 20,000 properties meet the minimum criteria for eligibility
- The top 500 properties in the analysis have an average of $1 million per property in tax and water arrears
- These properties also average 16 B and C violations per unit
- Nearly 40% of the properties in a potential TPT round would also be in enhanced enforcement programs like 7A and AEP
Kim Darga
0:19:27
However, HPD recommends that the number of properties included in TPT rounds and the frequency of these rounds be determined by HPD rather than statute.
0:19:38
There are about 770,000 Class 1 And Class 2 Residential Properties, excluding condos in New York City.
0:19:48
As shown on Slide 3, Good to bounce.
0:20:04
Is it stuck?
0:20:06
Okay.
0:20:06
Alright.
0:20:09
80% of residential properties do not owe property tax or water sewer charges and did not have any hazardous violations issued between 20202023.
0:20:21
That remain open.
0:20:23
Slide 4 shows the frequency and level of arrears and violations for residential properties.
0:20:30
Of the 770,000
Pierina Ana Sanchez
0:20:32
properties, a property.
0:20:34
Are we looking at the right slide?
Kim Darga
0:20:36
Yeah.
0:20:36
Okay.
0:20:37
If you could go back 1 for a second, so just gonna pause.
0:20:42
This is showing the distribution of the 770,000 properties.
0:20:47
You can see in the green that is represents the 80% of those properties that have no outstanding municipal charges and no recent hazardous and immediately hazardous violations.
0:21:01
So we can keep going to the next slide.
0:21:04
So this is slide 4, showing the 770,000 properties, and then you can see the breakdown of those that have arrears.
0:21:14
And then meet the minimum eligibility criteria discussed by the working group and included in the proposed legislation.
0:21:21
And then the top bit of that pyramid is the 500 top 500 for arrears Immunis pull sorry, municipal charges and violations.
0:21:30
That is the analytical sample we'll be talking about.
0:21:34
Okay.
0:21:35
So of the 770,000 properties, approximately 16% of property tax and water arrears to the tune of $2,100,000,000.
0:21:46
5% have B and C housing violations issued between 20202023 that remain open.
0:21:56
2.6%, about 20,000 properties meet the minimum criteria for eligibility.
0:22:03
That is, again, the 1 or 3 years of the property's own tax debt depending on property type.
0:22:11
Based on current conditions and an analytical sample of 500 properties in the this balance model would include properties with the following characteristics.
0:22:22
So based on the TPT analytical sample, The properties included in the program would have approximately $492,000,000 in DoF and DParrears, representing about a quarter of all arrears among the relevant class 1 and class 2 properties.
0:22:40
Okay.
0:22:40
Let's move to slide 5.
0:22:44
As shown on slide 5, properties have an average of $81,000 per unit and an average of $1,000,000 per property in the in property tax and water arrears.
0:22:56
Let's advance the next slide.
0:22:59
On the housing quality index, properties have 27,000,000 in emergency repair charges and 54,000 B and C housing code violations issued between 20202023 that are still open, representing over 10% of all such violations among the relevant class 1 and class 2 properties.
0:23:21
Advance to slide 6.
0:23:24
As shown on slide 6 properties with an average of 16 B and C violations per unit, an average of 109 B violations per unit.
0:23:33
And on slide 7, we show the size of the round could be less than 500 properties and be effective at capturing.
0:23:43
We can go back one slide.
0:23:44
Sorry.
0:23:45
There we go.
0:23:47
Less than 500 properties and be effective at capturing buildings with high amounts of municipal debt along with housing code violations, reflecting a cohort for selection with both higher municipal debt and physical distress than in the last round of TPT.
0:24:03
The final slide, the advance, shows that the balanced model captures buildings that are included in HPD's enhanced enforcement programs such as 7A and AEP.
0:24:15
If a TPT round were commenced today, nearly 40% of the properties in the round would also be an in enhanced enforcement programs.
