HDFCs Under Attack
The Mayor has launched an all-out offensive against HDFC cooperatives on three fronts:
• Coercing all HDFCs to sign a 40-year regulatory agreement (pdf) that would allow the City to take control of our buildings.
The Cityand not us and our Board of Directorswould have final say over all major decisions, including sales, sales prices (price caps would be set), subletting and commercial space tenancy and lease terms).
• Pushing the NY City Council to immediately take away the DAMP property tax reduction from any HDFC that does not sign a regulatory agreement.
If our co-ops cannot afford to pay increased taxes, we'd be forced to sign a regulatory agreement and give up control of our homesor be unable to pay our bills!
• And to squash any further resistance, the Mayor asked the NY State Legislature to radicallyand retroactivelychange the nature of our HDFC corporations to take away our property rights, so that our private homes essentially become City-controlled public housing.
The shocking S-6543 de Blasio bill found an unlikely sponsor in Republican Betty Little, Chair of the NY State Senate Housing Committee. She got cold feet on Jan. 8, and pulled the plugat least temporarily. We expect it to be reintroduced when the pressure dies down.
For more issues and actions in all 5 boroughs,
LAWYERS WEIGH IN
A Summary and Survey of the draft Regulatory Agreement by Edward Joseph Filemyr IV, Aug. 31, 2016 (pdf)
Review and Analysis of the City of New York's Proposed Changes to the HDFC Program by Steven Siegel, Esq., Dec. 23, 2017 (pdf)
HPD's New Regulatory Agreement - 2018 update by Barry Mallin & Associates (pdf)
In the 1970s NYC teetered on the edge of bankruptcy. Hundreds of dilapidated buildings in poor neighborhoods had been abandoned by their landlords, who left behind a mountain of unpaid real estate taxes and thousands of distressed families. These buildings became the property of a financially exhausted City that didn't want them and couldn't sell them: there was no market for derelict buildings filled with poor people in "dangerous" neighborhoods. Continue...
S-6543 IN BRIEF
Temporarily off the table, the New York State Senate bill S-6543 would radically and retroactively change the nature of our HDFC corporations, allowing the City of New York to legally assume total control of all HDFCs, regardless of their tax status, their certificate of incorporation (whether incorporated under the Business Corporation Law or the Not-for-Profit Corporation Law), or any other specific characteristics.
For more information, see About S-6543, a quick primer).
Let's work together to fight back. The first step, contact us.