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Breakdown of main costs in administering the TPT program
2:09:19
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158 sec
Deputy Commissioner Kim Darga provides a detailed breakdown of the four main costs involved in administering the Third Party Transfer (TPT) program.
- Staffing costs for multiple city departments, including HPD, Department of Finance, DEP, and the city law department
- Costs incurred by Neighborhood Restore for ongoing administration after taking title to properties
- Capital costs, which were $164,000 per unit in Round 10 but are expected to increase to about $250,000 per unit
- Future costs may include additional technical assistance and support for at-risk buildings, including the creation of an owner resource center
Kim Darga
2:09:19
Yeah.
2:09:19
Think so.
2:09:20
There are four main costs if we look back in administering the program.
2:09:26
There are staffing costs, and that's not just for HPD.
2:09:29
It's Department of Finance, DEP, and the city law department.
2:09:35
In addition to staffing costs, there are costs incurred by Neighborhood Restore once they take title to the property.
2:09:45
That's ongoing administrative costs.
2:09:47
There was a lot of seed capital initially in the early grounds, and now there's a small amount that we allocate for utilities fuel, but most of the cost comes from kind of ongoing fees that they generate when we finance projects.
2:10:07
And so that is built in really largely to the capital budget at this point in time.
2:10:12
And then the next major cost historically came from capital, which the commissioner just mentioned, was 164,000 per unit in round 10 thus far.
2:10:24
We do expect going forward that we'll increase, like costs have increased across the board, and we'd be probably closer to about 250,000 per unit now.
2:10:34
We also believe that going forward, we and this came up a lot in the discussions around round 10, that we need to make sure we're building in more technical assistance and support for buildings that are at risk of TPT or that are in the interim action.
2:10:58
And so there was a lot of discussions as part of the TPT working group about creating an owner resource center, and that is something that we are really committed to make sure happens going forward.
2:11:10
There are some wild cards out there too.
2:11:12
So as we talk about reform of the program, I think there are a lot of questions about how extensive we want the outreach to be.
2:11:21
There are questions around how we look at value of property and what process we're using that could certainly add costs.
2:11:32
And there are other legal questions we're still working through, and as we work through those questions with city council and the city law department, there may be other costs that we have to be able to manage.
2:11:44
And so I think we have the basic understanding of the past, and I think there's still some questions about as we work with counsel to finalize what the program looks like, what that will be going forward.