The City’s Third Party Transfer program has primarily been used to stabilize distressed multifamily buildings. Few single family homes meet the definition of statutory distress that defines eligibility for TPT and single-family owner-occupied homes are typically subject to the tax lien sale and mortgage foreclosure proceedings when a homeowner is in deep distress.
However, the attention this hearing is drawing to mechanisms for the preservation of safe, affordable housing is critical to small homes in addition to large multifamilies. As the primary source of naturally occurring affordable housing in NYC, homeowners and the rental units they host are in need of our support.
When discussing TPT, it’s important to acknowledge that many NYC homeowners struggle to afford property tax, water, and other municipal charges. These charges can be a substantial burden for homeowners trying to keep their properties amid rising real estate values and maintenance costs. We recently surveyed homeowners in East New York, Brooklyn, a community home to thousands of working- and middle-class homeowners, most of whom are people of color. Only 18% of homeowners surveyed reported that they had income left over each month after paying all their bills, while 58% said they break even, and 24% reported that they have to borrow or use credit cards to cover their regular expenses.