Speaker Menin asks if HPD requires owners to exhaust refinancing before increases
Menin asks whether HPD requires owners to demonstrate they've exhausted all HPD/HDC refinancing options before approving increases. Phillips confirms HPD takes a holistic view of expenses, income, and existing debt.
So does HPD require an owner to demonstrate that they have exhausted all HPD HDC refinancing options before HPD approves a rent or carrying charge increase to fund repairs?
And if not, why is that not a precondition?
No, we absolutely do that.
When a rent increase comes in, we take a broader view of what is happening at the development.
We're analyzing the expenses.
We're analyzing the income.
We're taking a look at the existing debt and how we can refinance or restructure some of that existing debt.
So when the...
The increase comes in.
We're not just looking at only the expenses.
We're looking holistically at the entire project to figure out what is going to be the best stabilization outcome for the development.