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| Before and After Photos of a rehabilitated property in Manhattan (Move mouse over image for after) |
What is Third Party Transfer?
The Third Party Transfer (TPT) program allows for the transfer of properties from owners who have seriously defaulted on their tax obligation to New York City to entities who have the capacity to stabilize, manage and rehabilitate them.
This is done in a three-step process. First, the City forecloses on a property. Second, the City transfers ownership of the foreclosed to Neighborhood Restore to oversee their stabilization, management and rehabilitation planning, with the assistance of designated qualified developers. Third, after the building has been stabilized and a development plan established, Neighborhood Restore transfers the property to the qualified developer, who will then own, rehabilitate and continue to manage the property as affordable housing.
What is Neighborhood Restore's Role in the Third Party Transfer Process?
During Neighborhood Restore's interim ownership, it works closely with qualified developers to ensure that the physical condition of the property is stabilized and that it is being effectively managed. Neighborhood Restore also assists the designated qualified developers with rehabilitation planning and final transfer of ownership.
Building Stabilization
Qualified developers work with Neighborhood Restore to assess the immediate repair needs of properties in TPT and ensure that the properties are in compliance with current building and safety codes. Building stabilization (such as repairs to major systems and security) is generally completed within the first three months of Neighborhood Restore's ownership, providing tenants with better security and sense of safety.
Management
Neighborhood Restore works with qualified developers who have a proven track record in property management. Qualified developers collect rents, make repairs, and address tenant concerns during the interim management period. Qualified developers maintain a consistent presence in the buildings and seek to be responsive to all tenants.
Rehabilitation Planning
An important objective of TPT is to have qualified developers plan for the future rehabilitation of the buildings assuring long-term safety and affordability. To achieve this, qualified developers assess the rehab needs of the properties and secure financing to cover the costs of rehabilitation. Along with HPD, Neighborhood Restore guides qualified developers through the financing and planning process. Once financing is secured and rehabilitation plans are finalized, ownership is transferred to the assigned qualified developer (or to a cooperative organized by the tenants) so that rehabilitation may begin.
