§ 8-03 Qualification and Selection of a Third Party.
RCNY § 8-03
(a)In an in rem foreclosure action, the court shall make a final judgment authorizing the award of possession of any parcel of class one or class two real property described in the list of delinquent taxes not redeemed or withdrawn from the in rem foreclosure action as provided in Chapter 4 of Title 11 of the Administrative Code and as to which no answer is interposed as provided in such chapter, and authorizing the Commissioner of Finance to prepare, execute and cause to be recorded a deed conveying full and complete title to such property either to the City or to a Third Party deemed qualified and selected by the Commissioner of HPD.
(b)Such Third Party shall be deemed qualified and shall be selected pursuant to such criteria as are established in these Rules. The Commissioner of HPD shall not deem qualified any Third Party who has been finally adjudicated by a court of competent jurisdiction, within seven years of the date on which such Third Party would otherwise be deemed qualified, to have violated any section of articles one hundred fifty (relating to arson), one hundred seventy-five (relating to offenses involving false written statements), one hundred seventy-six (relating to insurance fraud), one hundred eighty (relating to bribery not involving public servants, and related offenses), one hundred eighty-five (relating to fraud on creditors) or two hundred (relating to bribery involving public servants and related offenses) of the Penal Law or any similar laws of another jurisdiction, or who has been suspended or debarred from contracting with the City or any agency of the City pursuant to Section 335 of the Charter, during the period of such suspension or debarment.
(c)Other bases for disqualification of a Third Party may include, but shall not be limited to, any of the following: (1) Record of Housing Maintenance Code violations, including, but not limited to class B and class C violations, legal proceedings to enforce the Housing Maintenance Code including, but not limited to, litigation by HPD's Housing Litigation Bureau, or Emergency Repair Program charges with respect to any real property owned or managed by a Third Party or such Third Party's spouse or domestic partner, as defined in Section 1150(13) of the Charter, or by any Affiliate of such Third Party or of such Third Party's spouse or domestic partner; (2) Arrears on taxes, water and sewer charges, or other governmental charges or tax, mortgage, or lien foreclosure or enforcement proceedings with respect to any real property owned by a Third Party or such Third Party's spouse or domestic partner, as defined in Section 1150(13) of the Charter, or by any Affiliate of such Third Party or of such Third Party's spouse or domestic partner; (3) Arrears or defaults on other governmental obligations; (4) Default or poor performance on a government contract; (5) Re-designation or termination of negotiations after selection for a government project or contract; (6) Non-responsibility determination by a government agency; (7) Conviction or pending charges of fraud, bribery, grand larceny, any other felony, arson, or tenant harassment; (8) Any other similar facts which demonstrate to HPD that a Third Party is not qualified for selection.
(d)HPD may select a Third Party for conveyance of a property pursuant to the Third Party Transfer Process by any method which it determines will best meet the purposes of such process, including, without limitation, selection: (1) by a request for qualifications process; (2) by a request for proposals process; (3) from a pre-qualified list; (4) by a request for offer process; or (5) by a direct selection of an entity judged by HPD to be qualified.
(e)In selecting a Third Party, HPD shall consider: (1) residential management experience; (2) financial capacity; (3) rehabilitation experience; (4) ability to work with government and community organizations; (5) neighborhood ties; (6) ability to finance or obtain financing for the required rehabilitation; (7) whether the Third party is a not for profit organization or neighborhood-based-for-profit individual or organization; (8) intent and ability to improve, manage and maintain the property to be transferred; (9) whether an application has been submitted under sponsorship of a Third Party on behalf of the Tenants for eventual ownership by the Tenants of a property that is subject to an in rem judgment of foreclosure.
(i)Such an application must be submitted to HPD in such form as HPD shall approve, on or before the date that is specified by HPD in the written notice to Tenants made pursuant to subdivision (c) of 28 RCNY § 8-04; (ii) Such application must be sponsored by a Third Party and accompanied by a letter from such Third Party indicating that the Third Party is applying for transfer of the foreclosed property, is prepared to acquire, manage and rehabilitate the foreclosed property, and is sponsoring the Tenants in their effort to eventually own such property; and (iii) Such application shall only be considered where: (A) the foreclosed property contains at least 10 residential units, (B) such property is at least 50 percent occupied; (C) the application is signed by 80% of the Tenant households of such property; and (D) such property was not owned by a cooperative corporation formed by a Housing Development Fund Corporation when the foreclosure proceeding commenced; (10) any other factors that HPD deems relevant to such selection.
