Q&A
Discussion on fees and financial aspects of the TPT program
0:54:16
·
79 sec
Kim Darga provides details on the fees and financial aspects of the Third Party Transfer (TPT) program, particularly related to Neighborhood Restore's operations.
- The fee for Neighborhood Restore has recently been modified to $17,500 per unit
- This fee is used to establish a reserve for costs that the building cannot address during the interim ownership stage
- The reserve covers critical operating needs such as insurance and emergency repairs
- Neighborhood Restore reviews and approves requests for draws from this reserve for necessary expenses
- The fee structure is designed to ensure the stability and maintenance of properties during the interim period
Pierina Ana Sanchez
0:54:16
Just to follow-up on that, what what is the fee?
Annette Hill
0:54:19
I
Kim Darga
0:54:20
we just modified it.
0:54:21
I think it's 15,000 per unit now.
0:54:25
I'd have to double check.
Pierina Ana Sanchez
0:54:28
And and sorry.
0:54:29
So that is that is for neighborhood restores, just staffing and operations, or is that being No.
Kim Darga
0:54:36
They so any cost that the building cannot address during that interim ownership stage, they use that fee to establish a reserve, and then they draw on the reserve to cover those costs.
0:54:49
So for example, insurance.
0:54:51
Right?
0:54:52
If the roof is leaking and it can't wait for the full renovation, then they will the spot the sponsor and property owner will submit a request saying there's not enough money in the accounts of the building.
0:55:07
We need to replace the roof.
0:55:09
We are requesting a draw.
0:55:12
Basically, a neighborhood restore then covers the cost of those interim kind of critical stabilization activities.
0:55:19
So it is really anything that the building can't cover from current revenue that is a critical operating need of the building.
Pierina Ana Sanchez
0:55:28
Got it.
0:55:28
Thank you.
0:55:29
Deputy Commissioner, now I want to turn it over to council member Resley.
Kim Darga
0:55:32
Sorry.
0:55:32
It is 17,500 now.
Paula Segal
0:55:35
Thank you.
