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AGENCY TESTIMONY

Formation and recommendations of the TPT working group

0:13:30

·

3 min

A TPT working group was convened in 2019 to suggest operational improvements to the program, ensuring it achieved its intended purpose of stabilizing properties in crisis.

  • The group included elected officials, HDFC coalition members, legal services providers, tenant advocates, developers, and community organizations
  • Key recommendations included enhanced outreach, additional technical assistance for property owners, and changes to selection methodology and eligibility criteria
  • The group suggested eliminating the block pickup approach and focusing on both physical and financial crisis conditions of buildings
Kim Darga
0:13:30
In response to concerns identified after the most recent round of TPT, a TPT working group was convened in 2019 with the purpose of eliciting ideas for operational improvements to ensure the program was properly focused and achieved its intended purpose to stabilize properties and crisis.
0:13:49
The working group included elected officials, members of the HDFC coalition, legal services providers, and tenant advocates, MWD developers, property management firms, and community based organizations, with information provided by HPD, the Department of Finance, the Department of Environmental Protection, and the Law Department.
0:14:10
The working group issued a report with recommendations in late 2021 suggesting that the program be modified to include community based organizations, the offices of elected officials, and other partners in the outreach program in addition to city agencies.
0:14:27
Consider providing additional technical assistance to property owners, including possible expansion of the homeowner help desk for 1 to 4 family homeowners to provide 1 on 1 technical financial and legal counseling and the creation of a new owner resource center to provide and expand direct technical assistance and financial support for multifamily properties, including rentals and HDFC cooperatives.
0:14:52
Enhanced proactive outreach to each applicable owner before initiating a TPT round and evaluate whether the amount of time provided to owners to address crisis conditions between initial outreach and foreclosure should be changed and standardized payment plan terms to be the same out the in ramp process to avoid overly complicated and confusing pathways to compliance.
0:15:18
The working group reviewed and weighed in on several options for selection methodology, the appropriate sources of data, and the criteria for selection, inclusion, and the TPT program.
0:15:30
While there were different opinions on many of the options provided, the following recommendations garnered the most support from the working group members.
0:15:39
Eliminate the current statutory block pickup which requires that all properties, the same tax class, and a block owing taxes for a certain period of time, be included in the action, and replace it with a more refined selection methodology.
0:15:55
Employ a selection methodology that balances considerations related to the physical and financial crisis, conditions of the building, with a focus on conditions of life and safety.
0:16:07
Include in the selection process all properties with debt in excess of 1 year for tax class 2 or 3 years for tax class 1 and coops of their tax liability.
0:16:19
With a threshold for inclusion based on a property's individual annual tax liability and not a city wide threshold.
0:16:26
Change the selection and inclusion criteria to apply to 1 to 3 family properties, tax class 1, multifamily rentals, tax class 2, and co apps if such properties exhibit crisis conditions, and excluding 1 to 3 family properties, tax class 1 that have certain homeowner property tax benefits or exemptions that require homeowner occupancy as filed with the Department of Finance.
0:16:53
Consider allowing HDFC coops to petition to have an opportunity to become an HDFC cooperative again upon meeting certain requirements after transfer, and explore transferring properties, in particular, class 1 properties to community land trust among other qualified organizations as the ultimate owner after the interim ownership stage.
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