What's happening
This bill establishes a two-year moratorium on New York City's third party transfer program for housing.
Why it matters
Suspending the third party transfer program for two years gives policymakers and communities time to assess its impact. including concerns that the program may have contributed to displacement or loss of affordable housing by transferring properties from current owners to outside parties.
This moratorium may allow existing property owners, especially small landlords or non-profits, to address housing code violations or financial issues without the immediate threat of losing their properties. , potentially stabilizing communities and reducing involuntary displacement.
By pausing new transfers, the city and advocates have a window to review, reform, or redesign how distressed properties are managed. , possibly ensuring that future interventions better protect tenants’ rights and neighborhood affordability.
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Who cares
New York City Department of Housing Preservation and Development
The bill would require its commissioner to place a two-year moratorium on the third party transfer program, starting immediately upon the bill taking effect.
Property owners affected by the third party transfer program
The bill would pause the program for two years.
Prospective third-party recipients of properties under the program
The moratorium would halt the program through which they could receive properties for two years.
Headline styles
Pause Third Party Transfers
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to housing, construction and community development
- Referred to housing, construction and community development
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3217
2019-2020 Regular Sessions
IN SENATE
February 4, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development
AN ACT to establish a two year moratorium on the third party transfer program run by the department of housing preservation and development in the city of New York
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The commissioner of housing preservation and development is hereby directed to place a two year moratorium on the third party transfer program, effective as of the date this act takes effect.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06791-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to establish a two year moratorium on the third party transfer program run by the department of housing preservation and development in the city of New York
Purpose or general idea of bill
The purpose of this legislation is to prevent the City of New York from unnecessarily, arbitrarily and mistakenly foreclosing on residential properties via the third party transfer program run by the department of housing preservation and development. This will be done by placing a moratorium on the third party transfer program for two years.
Summary of provisions
Section 1. This directs the commissioner of housing preservation and development to place a two year moratorium on the department's third party transfer program.
Section 2. Establishes the effective date.
Justification
The third party transfer program has seemingly been misused by the city of New York, threatening the stability of long time homeowners. The third party transfer program allows the city of New York to seize distressed proprieties, typically those with outstanding charges to the city or poor physical conditions, and transfer ownership to not-for-pro- fit organizations or other groups working with the department of housing preservation and development. The city maintains that seizing ownership of these residential properties allows new management to improve the condition of the property and establish rent regulations for future tenants.
Recent press accounts have uncovered multiple instances of the depart- ment of housing preservation and development seemingly seizing residen- tial property from longtime homeowners for minor housing violations or outstanding financial charges at court proceedings without notifying the homeowners. Said homeowners are overwhelmingly people of color who own their homes outright, without a mortgage, and have established long ties to their communities. In some of these instances, the homeowners paid money to the city for outstanding property tax arrears or other charges, as verified by records, but this money paid was never credited to home- owners' accounts. Some of these homeowners have worked to pay off charg- es against their homes or improve physical conditions while ownership of the house has already been transferred to not-for-profit or other organ- izations working with the city. These homeowners are often not notified about the change in ownership until after it has occurred. The city of New York alleges it has maintained proper communications with homeowners over every action it takes, but some property seizures have occurred with little to no public notice. Several homeowners facing home seizures have described difficulty navigating multiple city agencies involved to make sure the finances and physical conditions of their homes are in order, including the department of housing preservation and
development, the department of finance and the department of environ- mental protection.
Many of the homes that were recently seized under the third party trans- fer program are located in neighborhoods where the appraised values of similar residential properties exceeds one million dollars as demand for the residential real estate market grows. The seizure of these homes from people of color in such gentrifying neighborhoods seemingly without due process is a troubling sign.
The city of New York has resisted calls to rethink or temporarily halt the program ahead of further review. To investigate potential wrongdoing by the city and discuss the future of the third party transfer program, the legislature moves to act with a two year moratorium.
Prior legislative history
This is a new bill.
Fiscal implications for state and local governments
There are no fiscal implications associated with the passage of this legislation.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.