Q&A
Changes in HDFC cooperative petition process and recommendations for improvement
0:48:34
·
149 sec
Kim Darga explains the changes made to the petition process for HDFC cooperatives in the Third Party Transfer (TPT) program and recommendations for improvement.
- The petition process was changed around 2010-2012 due to concerns about effectiveness
- The working group recommends allowing coops to petition again, but with clear requirements and timelines
- Many HDFC coops in TPT had a majority of renters rather than shareholders
- Allowing petitions could potentially allow renters to become shareholders
- The goal is to balance giving a second chance with ensuring housing stability
Kim Darga
0:48:34
If they were foreclosed on.
0:48:36
That modification was changed And the intent would I mean, the reason it was changed is, a, we saw some co ops petition, could not meet the requirements, and it just dragged on, and we weren't able to stabilize the housing.
0:48:50
So to avoid that.
0:48:51
And, also, we think there were concerns that it didn't create the right incentive structure.
0:48:56
If you didn't have to pay, it could be for for closed on and then be a co op again under the same management.
0:49:02
Really, with problems.
0:49:04
Was it gonna actually result in a different outcome for the building?
0:49:08
So there were, I think, legitimate issues and concerns.
0:49:12
The working group strongly recommended the city rethink this and allow coops to petition again.
0:49:20
Honestly, if we look at the characteristics of the HDFC coops, most of them at all, but all in round 10, the majority of the residents were actually renters.
0:49:32
Mhmm.
0:49:32
They were not shareholders.
0:49:33
And so Interestingly, by allowing this, we may actually be allowing renters in those buildings to become shareholders.
0:49:43
The recommendation is that that we allow that, but make sure it is with clear requirements and timelines attached so that we don't end up in a situation where the properties are limbo trying to convert to cooperative in a way that potentially impacts the stability of the housing itself.
0:50:03
So I think we are supportive of that.
0:50:06
I think there's a a lot of that is in the draft legislation before us today.
0:50:10
The other thing that we really feel is important and they're a working group strongly reiterated is that we build out additional technical assistance for HDFC cooperatives in the city.
0:50:25
And so what does that look like?
0:50:29
There is a training and technical assistance contract today that is available for kind of governance and operating questions.
0:50:37
There are also loan and tax exemption programs.
0:50:40
This is really taking a step further and providing kind of a one on one type assistance to look at what is actually contributing, what is causing the issues in the buildings, and how can the coop actually address those issues?
0:50:57
Maybe it's some governance challenges, you know, only a few people that are involved in making decisions.
Gale Brewer
0:51:02
I'm very aware.
Kim Darga
0:51:03
Right.
