CM Nurse questions HPD on COPA funding streams and acquisition timing

Okay.

Last two questions, Chair.

One of the other criticisms made against COPA is that housing nonprofits just can't afford to acquire buildings, let alone renovate and maintain them.

So could you talk a little bit about the funding streams?

COPA purchasers could use, how big those funding pots are.

Also, if you could talk about how long it takes for HPD to approve an acquisition.

And if there's any other programs that might complement COPA if implemented.

I really appreciate the question.

I think what I would say is, first of all, the nonprofit affordable housing community is a fundamental, important partner to HPD.

So I do want to say that we have very lucky in New York City to have a huge, huge industry of affordable, not-for-profit housing developers who are critical.

I would say it is a fact that HPD cannot guarantee that we will be able to finance every deal that comes online for COPA.

That said, the preservation programs that we currently offer, our PLP program, our Article 11, these are tools that will certainly be available for COPA purchases as they come online.

There will be a question of timing.

It is true that we cannot move to, say, a capital loan acquisition very quickly.

while we can move more quickly potentially with the council's support on Article 11.

So I think we are thinking about two strategies.

One is just the timing and knowing if a building is coming and if it times well with our pipeline, then we will be able to sort of potentially come in in first instance.

The alternative is to think about ways to work with CDFIs and other lenders to establish a capital source.

That nonprofits could access, sort of like our acquisition loan fund in New York City, access that capital for the purposes of acquisition with HPD coming in in sort of a second stage.

That's my only questions on COPE.