Q&A
Expected changes in property transfer rates under new criteria
0:40:40
·
107 sec
Deputy Commissioner Kim Darga explains the anticipated changes in property transfer rates under the proposed new selection criteria for the TPT program.
- The number of properties paying or entering payment agreements is expected to decrease
- Historically, less than 20% of properties transferred in the first 10 rounds of the program
- The new criteria are likely to result in worse characteristics for selected properties
- In the last TPT round, buildings had an average debt of about $250,000 per building
- The importance of city discretion in determining the number of properties is emphasized due to uncertainties in adopting new criteria
Kim Darga
0:40:40
I mean, I think we expect that if an app that was written today and we end up with criteria where there's no longer a block pickup and you're choosing financially the buildings that are the worst combined with buildings that have also high housing quote violations.
0:41:03
We are going to see the number of properties pay or entered payment agreements will probably drop.
0:41:13
Historically, in the 1st round 10 rounds of the program, the number of or the percentage of properties that transferred was below 20%.
0:41:24
So more than 80% on average were able did not transfer.
0:41:31
And so we do expect that will likely change.
0:41:34
And that's actually one of the reasons why we think it's important that the city have discretion around the number of properties because there's a lot we don't know about adopting the new criteria in terms of is it 30% of the properties that pay?
0:41:49
Is it 50% we don't really know right now?
0:41:54
So we do expect that the characteristics will be worse for, you know, context in the last round of TPT.
0:42:05
Buildings had, on average, about 250,000 ish in debt per building.
0:42:15
There were certainly properties that had a lot and would probably be on this list if we had the criteria that's being proposed, but there were also because of the block pick up a lot of buildings that had pretty limited debt.
