PUBLIC TESTIMONY
Testimony by Adam Roberts, Representative of New York Apartment Association (NYAA) on Intro 1063
2:55:04
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163 sec
Adam Roberts, representing the New York Apartment Association (NYAA), testified on the proposed changes to the 3rd party transfer program outlined in Intro 1063. He expressed concerns about the bill's potential negative impacts on property owners and the effectiveness of transferring ownership to tenants or nonprofits.
- Criticized the low threshold for unpaid tax liens that could put buildings at risk of seizure
- Highlighted issues with the formula used to identify at-risk properties, noting it doesn't account for building size or tax burden
- Argued that transferring ownership to tenants or nonprofits wouldn't solve underlying financial issues faced by rent-stabilized buildings
- Suggested alternative reforms, such as allowing rent increases to match inflation and implementing a diversion program in housing court for nonpayment cases
Adam Roberts
2:55:04
Thank you for holding this hearing.
2:55:06
I'm Adam Roberts testifying on behalf of the New York Apartment Association, also known as Naya.
2:55:11
Naya is a newly formed trade group representing multifamily housing providers across New York City.
2:55:16
Our members provide more than 1,000,000 units of rental housing, most of which are subject to rent stabilization built and built before 1974.
2:55:24
Meaning they do not receive 421a or other subsidies.
2:55:28
We like to thank the counsel for reevaluating 3rd party transfer program, though changes in the bill would not improve the program.
2:55:34
Regarding the specifics of the bill, the bill codify is one of the most unjust aspects of the program, which is the seizure property for tax liens.
2:55:41
The new definition of unpaid tax liens is dangerously low, only 1 year of the owner's annual tax liability.
2:55:48
This puts any building behind on paying their taxes in danger.
2:55:51
Additionally, this bill would increase the number of buildings at risk of being seized.
2:55:56
Bill requires HPD to maintain a list of no fewer than 500 properties.
2:56:00
Buildings are subject to the list based on multiplying the property's municipal debt by the property's total open hazardous and immediately hazardous maintenance code violations.
2:56:09
A formula which does not account for the size of a building as these are not violations per unit or resident.
2:56:15
It also fails to consider the tax burden such as the ratio of municipal debt to income.
2:56:20
While clear steps are set forth on methods secured, doing so will be impossible for most buildings.
2:56:25
The bill states that a default may be cured upon payment within 60 days from the date of default, but few buildings that go into default will be able to make such a payment so quickly since they're in default due to their inability to pay in the first place.
2:56:37
Based on how the previous program was run, the new tenant opportunity to purchase provisions in this bill is evident that the council seeks to transfer these buildings to tenant and nonprofit ownership.
2:56:48
However, transferring ownership will not change the fact that these buildings lack the income to pay taxes order bills and fixed violations.
2:56:55
Looking at HPD's AEP, 14% of buildings are subject subject to the program are HDFCs, 3% of all HDFCs are now in the AEP.
2:57:06
And 80% of HDFCs in the AP of rent stabilized units.
2:57:10
And so even if upon conversion, tenant owners face the same structural problems, other owners of rent stabilized housing face, and not surprisingly, 76% of buildings on the AP are rent stabilized.
2:57:22
I'll very quickly conclude that that structural reforms such as legalizing the ability to recoup the cost of renovations, allowing for rents to keep pace with inflation, shifting the tax burden away from rent stabilized housing, and collecting unpaid rent in housing court.
2:57:36
The new owners of these buildings will fail as the previous ones did.
2:57:40
Instead of pursuing this bill, the council should pursue things like a diversion program in housing court for nonpayment cases.
2:57:46
Thank you so much for holding this hearing today.
