At present, there are over three hundred (300) distressed HDFC cooperatives. Each of these HDFCs could be dissolved by the City government through it's Third Party Transfer (TPT) program. HDFCs with low performance rating: code violations combined with tax arrears that exceed 2500 per unit are vulnerable to TPT, and once these Corporations fails and enters TPT are immediately transferred to Neighborhood Restore, a nonprofit holding company HPD created to transfer failed HDFCs it acquired to private developers and owners from the for-profit and nonprofit sectors for a pittance with the understanding that the new owners would redevelop these "distressed" properties into mixed income rental housing. The former shareholders in these HDFCs lose all their equity, unfortunately and become rent stabilized or Section 8 renters..
This year marks the beginning of the Tenth TPT Round and there 113 buildings that have received Notices of Foreclose from the Department of Finance. While most of the buildings are in the Bronx and represent the lion share of the over sixth-two million dollars in tax and water HDFCs owe, there are a good many West Harlem and some gens Crown Heights. .
Using best practices in business as well as strategic and tactical planning, NYC HDFC will assist vulnerable HDFCs with identifying untapped revenue streams that will provide their organizations the means to remove the threat of dissolution and create a more sustainable foundation from which these organizations can fulfilling their public service of providing affordable housing to the City's low income earners.
We work with 'distressed" HDFC to pay municipal debt, begin capital improvements, and establish a reserve fund, by providing the managed care and training to eliminate the financial and physical distress that threaten these scare housing assets.