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Timeline and future costs for implementing the new TPT program

0:58:59

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Deputy Commissioner Kim Darga outlines the timeline for implementing the new Third Party Transfer (TPT) program and discusses potential future costs. She explains that the first round of the program would not commence until mid-2026, with major costs occurring in later years.

The first round of costs, mainly staffing and early engagement, would likely occur in mid-2026
Support for Neighborhood Restore and capital needs would not be incurred until actual transfers or foreclosures happen, potentially 2-3 years later
Darga highlights uncertainties in future costs, particularly related to the redemption rate, which could drop from the historical 80% if criteria are refined
Council Member Restler seeks clarification on the fiscal year implications of the timeline

Kim Darga

0:58:59

first round would not commence until mid next year because it would be after the lien sale.

0:59:07

And so we would expect that the first round of costs for the program would likely be staffing costs and then some of the early engagement and technical assistance with property owners, which would not really occur until mid twenty twenty six.

0:59:24

So we have a little bit of time to still work through some of the budget.

Lincoln Restler

0:59:27

Mid calendar year '26, so like potentially FY '27.

Kim Darga

0:59:31

So calendar year, mid calendar year 2026, we would expect probably to start incurring the first cost.

0:59:37

And then the technical or so the support for Neighborhood Restorer and the capital needs, we would not expect to incur until the actual transfers or foreclosures happen, which would be a couple years later.

0:59:50

At least two years, if not three years later.

0:59:54

So those costs we would expect to be out year costs.

0:59:58

And I think one of the biggest unknowns that we still need to work through or that could shift depending on where the final eligibility criteria land is what we expect the redemption rate to be going forward.

1:00:16

Historically, it's been 80%.

1:00:18

And so we do expect if the criteria refined and we're focused on more troubled buildings that that redemption rate could drop.

1:00:28

And so that's one of the uncertainties that I think we still need to work through.

Lincoln Restler

1:00:32

Great.

1:00:33

Thank you, deputy commissioner.

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Deputy Commissioner Darga details costs of previous TPT rounds and staffing estimates

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Council Member Restler questions HPD officials on budget allocations and state funding for housing