More tensions are rising over the city’s multifamily-transfer program

Elected officials have already called for a halt to the program

New York /
May.May 03, 2019 12:34 PM
19 Kingsland Avenue in Bushwick (Credit: Google Maps)

19 Kingsland Avenue in Bushwick (Credit: Google Maps)

A judge ruled that the city’s move to foreclose on a Brooklyn co-op building was “a grave injustice.” Now, the city is fighting back.

Attorneys for the city’s Department of Housing Preservation and Development are arguing that building owners are given ample time to catch up on back taxes before a foreclosure, according to The City.

One of the properties in contest is 19 Kingsland Avenue in Bushwick, where co-op owners received a a notice that Neighborhood Restore, a non-profit, would soon be managing the building. The building’s shareholders had been making payments on their $78,000 in owed taxes and fees as part of a planned agreement with the Department of Finance. State Supreme Court Judge Mark Partnow reversed HPD’s foreclosure of the property, calling it “a grave injustice” in a March 28 ruling.

The ongoing case — which involves a total of six Brooklyn properties — highlights problems with the Third Party Transfer program, created by HPD in 1996. The program allows the city to sell deeds of apartments that owe back taxes or utility bills to third party non-profit and for-profit developers who must maintain the property as affordable housing.

But some say that because of the high costs of maintaining a building, a low- to middle-income co-ops aren’t set up for success.

Partnow’s reversal comes after the DOF and Department of Environmental Protection foreclosed on 62 properties that owed on water and sewer bills, which is prompting calls from Brooklyn elected officials to put the breaks on Third Party Transfers until investigation and reforms. [The City] — Georgia Kromrei


Related Articles

arrow_forward_ios
Developer abandons troubled Hamilton Heights rezoning proposal
Developer abandons troubled Hamilton Heights rezoning proposal
Developer abandons troubled Hamilton Heights rezoning proposal
US household real estate values jump by record $1.2T
US household real estate values jump by record $1.2T
US household real estate values jump by record $1.2T
Valley National CEO Ira Robbins and Bank Leumi USA CEO Avner Mendelson (Getty, Valley National, Bank Leumi)
Valley National acquiring Bank Leumi USA for $1.1B
Valley National acquiring Bank Leumi USA for $1.1B
The inside of a Queens apartment damaged by Hurricane Ida (Getty)
Queens homeowners demand answers for flooding
Queens homeowners demand answers for flooding
Universal Rental Assistance would generate $8.5 billion for New York (Getty, Photo Illustration by Alison Bushor for The Real Deal)
Dream big: Fully-funded federal rent vouchers would bring billions to NY
Dream big: Fully-funded federal rent vouchers would bring billions to NY
(Getty, iStock/Illustration by Kevin Rebong for The Real Deal)
No-bid contracts ripe for corruption at NYCHA buildings: investigators
No-bid contracts ripe for corruption at NYCHA buildings: investigators
New York’s rent relief fund may run dry Monday
New York’s rent relief fund may run dry Monday
New York’s rent relief fund may run dry Monday
Sen. Chuck Schumer (Getty)
Chuck Schumer calls for $80B in public housing funding
Chuck Schumer calls for $80B in public housing funding
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...