Home New York NewsProgram to Take Property From Negligent Landlords Will get Second Attempt in Council

Program to Take Property From Negligent Landlords Will get Second Attempt in Council

by Staff Reporter
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A controversial program to take derelict buildings away from negligent landlords might get a revamp.

The Third Celebration Switch program, created in 1996, took buildings from landlords who had been behind on both property taxes or water payments, and had amassed a big quantity of housing violations. 

Run by town’s Division of Finance and the Division of Housing Preservation and Improvement, this system turns run-down properties over to nonprofit entities, which work to bodily enhance and financially stabilize them as inexpensive housing. 

However this system ensnared many householders in majority Black and Brown neighborhoods, taking away their properties and key sources of generational wealth — resulting in its multi-year pause.

Councilmember Pierina Sanchez (D-The Bronx) needs to take a crack at reforming this system, with an intention of narrowing in on “the worst of the worst” offenders. Throughout a Metropolis Council committee listening to Monday, she stated the revamped effort would goal delinquent house owners of dilapidated buildings who owe years’ price of taxes and costs.

Sanchez proposed laws — generally known as the “Stability, Accountability, Honest Enforcement for Residents” or SAFER Act — that will change the distressed properties that may very well be included in this system. It could additionally give extra discover to property house owners and tenants, require repairs to be made to exit this system and permit house owners alternatives to keep away from the switch in some circumstances.

One provision of the present program allowed that if one property on a block certified for Third Celebration Switch, all properties on that block may very well be topic to foreclosures. Sanchez’s invoice seeks to do away with what she described as a “disastrous” provision..

The invoice has 32 council sponsors, simply two shy of a veto-proof majority — although Council Speaker Julie Menin will not be a type of sponsors and has not taken a place on the invoice, a spokesperson stated.

HPD officers on Monday indicated they largely assist the overhaul of the Third Celebration Switch program. 

Councilmember Pierina Sanchez (D-Bronx) holds a City Hall rally ahead of hearing on the city’s third party transfer system for neglectful landlords,
Attendees of the Metropolis Corridor rally for reforms to the Third Celebration Switch program maintain indicators, March 9, 2026. Credit score: Ben Fractenberg/THE CITY

Lower than 2% of town’s housing inventory have each in depth tax delinquency and severe housing violations, and solely a small variety of properties could be eligible for Third Celebration Switch, in response to metropolis officers.

“The Third Celebration Switch program is designed to give attention to a slender subset of those severely distressed properties the place different enforcement, outreach or preservation instruments haven’t resolved the underlying instability and the place residents want housing stabilization,” stated Rosa Kelly, HPD chief of employees.

“By reforming TPT, town can be certain that this highly effective program focuses on properties with essentially the most delinquent debt and up to date violations, in order that the buildings will be stabilized and enhance housing high quality for residents,” she continued.

A number of actual property and housing advocacy teams again the hassle to remake Third Celebration Switch, together with the Actual Property Board of New York, Open New York, Heart for New York Metropolis Neighborhoods and Group Service Society.

Lengthy Street to Reform

Sanchez, chair of the council committee on housing and buildings, has made remodeling the Third Celebration Switch program a precedence within the new 12 months, she advised THE CITY in an interview and in remarks final week at a New York State Affiliation for Reasonably priced Housing occasion.

The revamped program as outlined in her invoice would contain “just about throwing away the whole lot about how we used to do Third Celebration Transfers as town of New York,” she stated.

The town suspended Third Celebration Switch in 2019, after many Black and Brown householders, landlords and co-op shareholders complained this system unfairly stripped them of property rights after they owed solely a small quantity of property taxes. The town put collectively a process drive to determine learn how to modernize this system, however reforms by no means superior.

Sanchez pointed to a constructing in her district because the “poster little one” that will make an amazing candidate for a brand new model of Third Celebration Switch: 2201-2205 Davidson Ave. in The Bronx’s College Heights neighborhood. 

The owner owed tens of hundreds of thousands of {dollars} in unpaid taxes to town and racked up tons of of housing violations, data confirmed. For years, tenants handled persistent leaks, pests, elevator outages and different poor situations, and begged town to foreclose on the buildings and switch them over to nonprofit or cooperative possession.

Final 12 months, town used the Third Celebration Switch program to convey possession of the buildings to the nonprofit Neighborhood Restore and property administration firm Lemle and Wolff. The brand new house owners would restore the buildings and ultimately convert the flats into inexpensive cooperatives, so tenants would grow to be house owners. It was the primary time in seven years town eliminated property from its proprietor.

Within the meantime, different tenants residing in subpar situations rallied Monday morning in assist of the invoice to overtake the Third Celebration Switch program.

Angelette Waring, a tenant in The Bronx constructing, stated she resides with out warmth and sizzling water, with holes within the partitions and flooring and bubbled partitions. Her bed room ceiling collapsed a few weeks in the past and was repaired on Friday, she stated.

“It is a horrifying place to stay. This didn’t occur in a single day. It occurred as a result of our constructing was uncared for for years, and allowed to deteriorate like this,” Waring stated, pointing to the brand new laws as one that will enable town to step in “to carry dangerous landlords accountable and be certain that buildings are rehabilitated and preserved as secure, inexpensive housing.”

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