The document outlines an agenda and information for a pre-submission conference for qualified monitors of housing development fund cooperatives. The conference covers the Affordable Neighborhood Cooperative Program (ANCP), Third Party Transfer - Tenant Petition (TPT-TP) program, existing housing development fund cooperatives (HDFCs), regulatory requirements, the monitor role and responsibilities, qualifications for applicants, application procedures, and deadlines. Over 150 buildings will be converted to HDFC cooperatives through ANCP and TPT-TP, requiring substantial rehabilitation and a monitor during the regulatory period. Monitors are responsible for ensuring compliance with regulatory agreements and providing support to HDFCs.

1. Request for Qualifications:
MONITOR OF HOUSING DEVELOPMENT FUND
CORPORATION COOPERATIVES
Pre‐Submission Conference
December 16, 2016

2. Agenda
I. Program/HDFC Overviews
i. Affordable Neighborhood Cooperative Program
ii. Third Party Transfer – Tenant Petition
iii. Existing HDFCs
II. Regulatory Requirements on HDFCs
III. Monitor Role & Responsibilities
IV. RFQ Qualifications
V. Application Procedures
VI. Deadlines & Dates
VII. Questions & Answers
New York City Department of Housing Preservation & Development

3. ANCP Overview
ANCP Rehabs TIL Buildings to Convert to HDFC Cooperatives
 Over 150 buildings in TIL pipeline
 Located in Manhattan, Brooklyn and the Bronx
 Most properties will require substantial rehabilitation and
will be converted to HDFC Cooperatives
 Properties range from 4 units to 63 units (average 16 units)
 Program is ramping up, and expected to convert over 25
co-ops in the next 3 years
 Regulatory agreement requires each co-op to hire a Monitor
during regulatory period
New York City Department of Housing Preservation & Development

4. TPT‐TP Overview
Third Party Transfer- Tenant Petition
 Rental properties foreclosed on through Round 10 in rem action
will need 80% of tenants to sign and submit Tenant Petition
 Located in Manhattan, Bronx, Brooklyn, and Queens
 Most properties will require substantial rehabilitation
 Tenants must meet the Milestones and Responsibilities in
order to be converted to HDFC Cooperatives
 Properties can range from 4 units to 130 units (average 45 units)
 Regulatory agreement requires each co-op to hire a
Monitor during regulatory period
New York City Department of Housing Preservation & Development

5. Existing HDFCs
Overview
 1,048 low-income coops throughout Brooklyn, Manhattan,
and the Bronx
 About 20% have current Regulatory Agreements; 80% are
currently unregulated
 Average size is 20 units
 Buildings that sign a new Regulatory Agreement that is not
finalized would be required to enlist the services of a monitor
New York City Department of Housing Preservation & Development

6. HDFC Regulatory
Requirements
 Must retain third-party Property Manager & third-party Monitor
 Annual board elections
 Annual maintenance increase (at least 2% per year)
 Sale prices must follow affordability threshold formula
 Income and asset restrictions on purchasers
 Flip tax requirement upon sales of shares
 Shareholder owner occupancy requirement
 Leasing or subleasing only in very limited circumstances
 HDFC must keep full and accurate books and records,
submit required reports to Monitor, Manager and/or HPD
 Trainings for board members and new shareholders
 Oversight of regulated reserve accounts by Monitor and HPD
New York City Department of Housing Preservation & Development

7. Monitor Role &
Responsibilities
Monitor terms of the HPD Regulatory Agreement
 Review and approve sales of shares (proposed sale price, eligibility of buyer)
 Review and approve leases or subleases, if applicable
 Review HDFC’s annual budget and financial statements
 Review HDFC’s requests to use restricted reserve funds
 Monitor annual board elections
 Review reports and records to be submitted to Monitor annually, including:
 Annual training plan and report
 Shareholder owner occupancy certifications
 Certification of maintenance increase
 List of sales, leases, and subleases from past year
 List of all shareholders and tenants
 Provide routine updates and feedback to HPD, alert HPD to any issues
New York City Department of Housing Preservation & Development

8. Monitor Role &
Responsibilities
Monitor provides support and technical assistance to HDFC
 May assist in creating annual budget
 Review annual training plan and assist in modifying plan to meet
HDFC’s needs, if necessary
 Provide guidance and oversight on setting sale prices, evaluating
prospective tenants, etc.
 Ensure annual elections run smoothly
 Develop relationship with HDFC to ensure long-term stability and
health of cooperative
New York City Department of Housing Preservation & Development

9. RFQ Qualifications
Applicants must demonstrate capacity to monitor property in a
professional manner on a scale commensurate with the needs and
regulatory requirements of HDFC cooperatives.
Relevant experience may include:
 Property management experience
 Experience monitoring properties for compliance with LIHTC, HOME,
Section 8 or Inclusionary Housing requirements, or other government-
subsidized or regulated program
 Technical assistance and training experience
 Real estate marketing and rent-up experience
 Asset Management
 Accounting
 Auditing
Applicant must demonstrate adequate staffing capacity and financial
resources to fulfill the duties required of qualified monitors.
New York City Department of Housing Preservation & Development

10. Application Procedures
Pages 12 – 15 of RFQ outline Application Procedures
 Applicants must submit:
 One original bound application
 One bound application copy
 One electronic copy on USB flash drive
 Application fee of $100 ($50 for not-for-profit applicant) – certified
check or money order to “NYC Department of Housing Preservation
and Development”
 Requirements differ for applicants with and without monitoring
and/or property management experience
 Read RFQ & instructions carefully – incomplete applications will not
be scored
New York City Department of Housing Preservation & Development

11. Deadlines &
Dates
 RFQ Submission Deadline:
Tuesday, January 17, 2017 by 4PM
 Expected Review Completion:
Spring 2017
 Expected Re-Release (Rolling RFQ):
July 2017
New York City Department of Housing Preservation & Development

12. ANCP& TPT-TP
Question &
Answers
New York City Department of Housing Preservation & Development