• Agency: NYC Department of Housing Preservation and Development (NYC HPD)
• Status: Unavailable

The Department of Housing Preservation and Development launched the Overleveraged Properties Initiative (OPI) in 2010 as a way to identify and monitor multifamily properties showing signs of financial and/or physical distress. To do this, HPD created a system of indicators of distress based on a combination of factors including: mortgage related lis pendens filings or foreclosure actions; high sales price to income ratios; buildings placed in the Alternative Enforcement Program; the number of B and C violations per unit; and active comprehensive litigation cases. Properties identified by OPI were targeted for code enforcement to prevent a worsening of distress and were considered for a number of preservation programs and tools, with the goal of maintaining safe and comfortable living situations for tenants. The initiative was funded through a combination of acquisition financing available through the NYC Acquisition Fund and the NYC HDC as well as HPD’s preservation finance programs: the PLP program and 8A program. The City committed $750 million of resources to address the issue of overleveraged properties, targeted to assist responsible owners purchase notes and/or properties in addition to making needed repairs. OPI is no longer receiving applications.