PUBLIC TESTIMONY
Testimony by Salvatore D'Avola, Executive Director of Neighborhood Restore Housing Development Fund Corporation, on the 3rd Party Transfer Program
2:32:22
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5 min
Salvatore D'Avola, Executive Director of Neighborhood Restore Housing Development Fund Corporation, testified in support of Intro 1063, which aims to reform New York City's 3rd party transfer (TPT) program. He emphasized the program's importance in addressing distressed properties and improving housing conditions for vulnerable residents.
- Highlighted Neighborhood Restore's 25-year history and success in managing 594 properties through the TPT program
- Acknowledged concerns about the program, particularly regarding HDFC cooperatives and small homes
- Stressed the need for balance in the legislation to protect struggling owners while preventing negligent landlords from exploiting the system
Salvatore D’Avola
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Working?
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Good.
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Good afternoon.
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My name is Salvatordevola.
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I'm the Executive Director of Neighborhood Restore Housing Development Fund Corporation.
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I'd like to thank chairperson Sanchez and the committee members for allowing me to testify today.
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The introduction of this bill is a critical step forward in creating a renewed path to addressing the needs of our most vulnerable residents who live in physically and financially distressed properties across New York City.
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For the past 5 years with a pause on municipal foreclosures.
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There have been limited options available to the city to take effective control of properties where negligent owners fail to provide essential services and continue to subject their tenants to hazardous and life threatening conditions.
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We're therefore thankful to Councilperson Sanchez and the city council for spearheading this effort.
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We support many aspects of the bill and look forward to continuing a dialogue on issues of concern as you seek input on the legislation.
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The last time the city of New York made significant changes to its full closure process was 28 years ago.
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Local law 38 1996 called for the city to transfer distressed properties directly to responsible new ownership without the city first taking title.
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The legislation was an outgrowth of a study commissioned by the Department of Housing, Preservation, Development, which showed that foreclosed or in REM properties remained in city ownership for far too long and that large city agencies were not effective in addressing the needs of the residents and distressed property.
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By transferring properties directly to a 3rd party, corrective action could be taken quickly and efficiently to address repair needs and provide safe and affordable homes for its residents.
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The effectuation of that legislation was a 3rd party transfer program.
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Neighborhood restores a twenty five year old mission driven nonprofit organization, specifically created to oversee the management of properties for closed upon by the city of New York through TPT.
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As a supporting organization of 2 nationally renowned affordable housing nonprofits, the local initiative support corporation or list and enterprise community partners.
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And with the support of HPD, neighborhood restore has improved the quality of life of thousands of low income families by ensuring that they're living in decent and safe homes.
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As the temporary as as a temporary steward of these properties, we work closely in collaboration with community based partners to ensure that the most urgent hazardous needs are addressed, and tenants are not displaced, and rents remain affordable.
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I just have another page.
2:34:41
Is that okay for me?
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Very quickly.
Pierina Ana Sanchez
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Would you like to continue?
Salvatore D’Avola
2:34:45
Yes, I would.
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Thank you.
2:34:49
Where was I?
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As the temporary steward of these properties, we work in close collaboration with our community based partners to ensure that the most urgent and hazardous conditions are addressed.
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That tenants are not displaced and that rents remain affordable.
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Neighborhood Restore brings a quarter century of experience and knowledge that makes it uniquely qualified to manage the most distressed housing in New York City.
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By taking title on an interim basis, Neighborhood Restore provides its community based organizations the time and opportunity to establish relationships with the tenants, assess the physical needs of the building, secure rehabilitation financing, and prepare for the final transfer where they oversee the construction and reoccupancy of the buildings by the existing tenants.
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During neighborhood restore's intramonorship, these organizations act as our property managers and handle the day to day management of these properties.
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Since 1999, 594 properties with over 75100 units of housing located throughout New York City's 5 bureaus have been included in the TPT program.
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To date, 34 properties remain in Neighborhood Restore's ownership with 544 properties having successfully transferred to long term, locally based for profit, community based nonprofit, and tenant based ownership.
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With the transfer of these properties to responsible qualified sponsor owners, the residents live in newly renovated homes with affordable rents that are regulated in perpetuity.
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While highlighting the achievements in transitioning physically and financially distressed properties, into affordable community assets.
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I would be remiss if I didn't acknowledge the concerns and criticisms raised about some aspects of the of the TBT program.
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While the vast majority of in rooms were closed properties on multifamily, privately owned occupied buildings, vacant land and vacant buildings that are blighted to their communities have also been included as of housing development fund corporation cooperatives more commonly known as HDFC coops and small homes.
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The inclusion of some properties during the last round of interim foreclosures in 20182019 led many elected officials, advocates, and community groups to stress the need to update various components of the program.
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A working group was convened to elicit ideas of up for operational improvements ensure that the program seeks to achieve the stabilization of properties in crisis and contemplate changes in the criteria for inclusion in TPT.
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I'm happy to see that this legislation includes some of the recommendations brought forth from the working group, and I'm hopeful that through continued conversations, additional findings are incorporated into a revamped program.
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We understand the difficulty in crafting legislation that seeks to address concerns related to different types of properties and ownership structures.
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It is important to provide safeguards to protect owners who find themselves in financial crisis and need time and assistance to get back on track to allow their properties to remain in their ownership.
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However, it's equally important not to create escape hatches for negligent landlords who take advantage of the system by forestalling foreclosure without any real effort at addressing their tenants' frame.
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The legislation must strike a balance with greater consideration for the needs and rights of residents living in deplorable conditions.
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Despite issues raised by the city's interim foreclosure process, the TPT program has been an effective anti displacement and anti abandonment effort that has increased the quality of affordable housing for New York City Low Income Families, and in turn, has fostered neighborhood stabilization.
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The proposed legislation is a good effort at improving the program by making it more responsive to the needs of the city's residence in neighborhoods.
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Thank you for your time.
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Interest in our work.
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I'm happy to answer any questions.
