Some New York City families say that after years of trying to buy into co-ops, they ended up losing the homeownership they believed they had secured.
Here's what to know
According to a TikTok report by ABC7NY (@abc7ny), residents say the city used its third-party transfer program to move deeds for their buildings, leaving them as renters with little warning. Those buildings were concentrated in minority communities, and a proposed $60 million settlement includes some of the affected households.
@abc7ny Hundreds of families in minority communities say they were stripped of their home ownership with little to no warning and now some of them are part of the largest civil rights settlement locally in recent history. Dan Krauth investigates.
♬ original sound - ABC7NY
Under the "third party transfer" program, the city can shift a building's deed after classifying it as distressed because of physical or financial issues. Residents say the change affected hundreds of buildings, not a single property.
"Hundreds of families in minority communities say they were stripped of their homeownership with little to no warning, and now some of them are part of the largest civil rights settlement locally in recent history," the video's caption reads.
People interviewed in the report said they were given little or no notice, received no compensation for the transfer, and had no say in the decision.
"It's a loophole in the system they need to close," one commenter wrote. "It's happening all over the country."
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More background
ABC7NY highlighted one woman who said she spent years saving to buy into a co-op, lived there for years, and then abruptly went from owner to renter.
"None of us knew what was going on or what was happening," she said.
The report said the city categorized her building as distressed because of physical or financial problems and then transferred the deed to a nonprofit operator.
What's being done?
For some of the affected residents, the city has agreed to a proposed $60 million settlement.
The report said New York City intends to keep the third-party transfer program in place, but with reforms instead of shutting it down entirely.
Where can I learn more?
Questions about who really controls a home come up in co-ops, homeowners associations, and city housing rules, too, as these stories examine.
• In one New York co-op, residents say a board blocked an induction stove despite safety concerns.
• In Colorado, an HOA sold residents' homes without warning and forced families out.
• Homeowners in several states banded together against HOA rules to push for landscaping protections.
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