New York City has agreed to a proposed $60 million settlement for hundreds of people who lost ownership rights through its Third Party Transfer program, ABC7 reported Tuesday. The agreement still requires court approval.
The program transferred buildings deemed physically or financially distressed to nonprofit operators. Residents of a Bronx housing cooperative told ABC7 that a 2018 transfer turned them from owners into renters with little or no notice and no compensation.
Across three decades, the program affected more than 500 properties. According to the investigation, a City Council review found that most were in minority communities and that half of the selected properties did not meet the legal definition of distress.
The proposed settlement follows litigation begun in 2019 and covers people affected by the latest transfer round, rather than everyone impacted by the program.
City housing officials said the administration and City Council are working on reforms to preserve safe, stable housing. Attorneys representing residents oppose continuing the program.
For affected families, compensation remains pending as the agreement awaits approval.
