Third Party Transfer (TPT) In Rem Program
The Third Party Transfer Program is a public-private partnership created by New York City local law to rehabilitate buildings with significant delinquent municipal charges and poor housing conditions, and to ensure that residents remain in place with affordability and rent stabilization protections.
Under the program, DOF and the Department of Housing Preservation and Development (HPD)
work together to resolve a property’s outstanding charges and violations. If the charges cannot be resolved, the property is subject to foreclosure, after which ownership is transferred directly to a non-profit organization and an affordable housing developer is identified.
Your property can become subject to foreclosure under the Third Party Transfer Program if:
- Your property taxes and other property-related charges are unpaid for an extended period of time.
- Your property is deemed to be a distressed property by HPD. A property can be deemed distressed if it is in tax class one or two and:
- It is subject to ECB tax liens of an amount greater than or equal to 25 percent of the property’s value; or
- The amount of tax liens on the property is greater than or equal to 15 percent of the property’s value and the property has one of the following:
- An average of five or more hazardous or immediately hazardous violations of the housing maintenance code per dwelling unit; or
- $1,000 or more in unpaid Emergency Repair Program charges.
TPT In Rem Foreclosure Process
1. If you have outstanding charges and are at risk of foreclosure, the Department of Finance will send you numerous notices before the commencement of a foreclosure action.
- Notices are sent to your mailing address and to anyone else who has registered to receive your property’s tax bills.
- The list of properties that are at risk of foreclosure is published in the City Record and two other newspapers.
- Notices are also posted at DOF’s business centers, the county clerk’s office, and the county courthouse.
- Notices include detailed contact information so that you can respond easily.
- You can avoid additional penalties and the foreclosure of your property if you contact the Department of Finance during this time.
- You can pay the full amount you owe or enter into a payment agreement.
2. If we do not receive a response, your property is included in a foreclosure action filed with the New York State Supreme Court.
- You can still enter into a payment agreement once the foreclosure process has begun, but it will be more expensive.
3. Notice of Final Judgment
- The property will be transferred to a third party if you do not take action.
- You can still stop the foreclosure if you enter into a payment agreement.