NEW YORK, January 26, 2012 – Jack Jaffa & Associates, NYC’s best-known and largest property violation removal firm, announced today that it set a new record in 2011 by processing nearly 7,300 Department of Building violations and more than 18,000 Environmental Control Board violations on behalf of its clients. According to company executives, Alert Service, the firm’s acclaimed violation tracking software, greatly contributed to the Brooklyn-based company’s unprecedented growth.  At year’s end, more than 20,000 buildings throughout New York City were enrolled in the monitoring program, designed to immediately alert users of any damaging complaints or violations entered against their registered property on any city agency database.

“We’re always trying to pioneer new initiatives that blend our considerable expertise with cost- effective solutions that our clients expect from us,” stated Chief Executive Officer Jack Jaffa. “In addition to providing fundamental services that are essential to the economic well-being of our clients, we strategically collaborate with various city agencies to help eliminate their crippling bureaucratic backlog.” Within the last year alone, Jack Jaffa & Associates was credited for enabling the city to receive millions in previously uncollected debts, while at the same time, allowing the firm’s clients to substantially trim down accruing non-compliance charges and penalties.

The success of the Alert Service monitoring software, coupled with the firm’s recent expansion of its talented staff, including the addition of former ECB judge and prosecuting attorneys, has propelled the company’s reputation as the gold standard for NYC property owners and managers seeking a one-stop shop for their consulting needs.

“For us, the benefits of using Jack Jaffa & Associate’s Alert Service Plus have been profound. By bringing all city agencies’ sites onto a single, easy to use platform, our organization can extract the beneficial information required for timely and cost effective administrative compliance,” stated Lewis Barbanel of Barberry Rose Management. “This reduces paperwork, headaches and phone time with city employees. Most importantly, Jack Jaffa & Associates’ up-to-date emails ensure that we catch the complaint before it turns into a violation.”

A majority of large NYC management companies already utilize Jack Jaffa & Associates’ services. The firm’s staff has a reputation city-wide for dealing the most efficiently with a wide range of real estate-related services, including ECB hearing representation, managing DOB, HPD and FDNY violations, negotiating settlements, navigating through the complexities of 421-a tax exemptions, J-51 abatements, MCI rent increases and ICIP/ICAP tax incentives, lead-paint testing and property related Criminal Court proceedings.

“Looking forward, we are enthusiastic about our prospects ahead, as we expect not only to replicate our past records, but to surpass them with the support of our valued clients and our incredible staff,” Jaffa said.

Jack Jaffa & Associates, NYC’s best-known and largest property violation removal firm added two new associate attorneys to its staff. The firm proudly welcomes former Environmental Control Board Judge Linda March, Esq., and former Environmental Control Board prosecutor Dawn Falco, Esq., both dedicated and celebrated professionals within their fields, who will help serve NYC property owners as the firm continues to grow.

Judge Linda March’s legal career spans over 25 years, serving the last 8 of those years as an Administrative Law Judge at ECB. Judge March held positions with NYC Department of Finance and NYC Taxi & Limousine Commission as an ALJ as well. In addition, Ms. March has served as a legislative attorney for the NYC Department of Consumer Affairs. Her experience within the diverse realms of law administration ranged from conducting hearings on violations issues, adjudicating violations and drafting decisions, as well as adjudicating appeals and drafting appeal decisions.

Dawn Falco has established herself as an exceptional hearing attorney in NYC’s Department of Buildings Administrative enforcement unit.  Throughout her half-decade tenure at DOB she has effectively participated in proceedings where property owners were charged with a wide range of infractions.  Her experience has earned her an unparalleled success record in representing the City’s interests. In addition, Ms. Falco consistently performed investigative research for the agency and presented oral arguments relating to the NYC Administrative and Zoning Code Draft. Throughout her career she prepared numerous appeals for the NYC ECB Appeals Unit dealing with building code and zoning violations. She prepared witnesses, analyzed violation documentation for hearings, in addition to supervising and training Building Department attorneys.

“We are honored to welcome these esteemed individuals to our team of resident experts,” said Chief Operating Officer Michael Jaffa in a statement. “With the addition of such seasoned veterans, our clients can expect to have even greater advantages in presenting the most victorious defenses structured with the multi-angled perspective of a judge, a prosecutor, and experienced attorneys. Their broad expertise should bring extensive value to Jack Jaffa’s clientele.”

Combined with their acclaimed violation tracking software, Alert Service, Jack Jaffa & Associates now has all that any NYC property owner can wish for when dealing with their violations – a “one-stop-shop” using the latest technology, employing a seamless process, and a defense strategy constructed with the help of a “dream team” of litigation experts. Recent technological breakthroughs and the hiring of additional experts has propelled the company’s reputation to even greater heights, with the majority of large New York City management companies employing Jack Jaffa & Associates for their litigation services in one form or another. According to Jaffa, most landlords find it convenient to use the alert software in tandem with the company’s other professional services. Whether the client needs assistance in ECB hearing representation, managing their DOB, HPD, and FDNY violations, settlements, or navigating through the complexities associated with 421-a tax exemptions, J-51 abatements, MCI rent increases and ICIP/ICAP tax incentives, lead-paint testing, or property related Criminal Court proceedings, the firm’s staff is well equipped to deal with any challenges that arise.

Lewis Barbanel from Barberry Rose Management attests to the claim, stating that “for us, the many benefits of using Jack Jaffa & Associate’s Alert Service Plus is a no brainer.  By bringing all city agencies’ sites onto a single, easy to use platform, our organization can extract the beneficial information required for timely and cost effective administrative compliance – this reduces paperwork, headaches, and phone time with unhelpful city employees. Most importantly, Jack Jaffa & Associates’ up-to-date emails ensure that we catch the complaint before it turns into a violation.”

With the addition of Judge March and Dawn Falco to its current staff of more than 45 professionals, Jack Jaffa & Associates solidified its title as NYC’s premier real estate consulting firm, saving New York’s landlords time and money all the while keeping the city’s tenants the safest they’ve ever been

As part of ongoing efforts to save New York City building owners money on energy, Bright Power, a New York City-based energy efficiency company, is pleased to announce a partnership with Jack Jaffa & Associates, a pre-eminent real estate consultancy and violations services provider, to help clients comply with NYC’s new energy mandates.

Jack Jaffa & Associates provides a full range of advisory services to help property owners meet today’s violation removal and property tax liability challenges. With an in-depth knowledge of compliance requirements, state-of-the-art violations tracking technology, and a powerful network in the field, Jack Jaffa & Associates provides real results for property owners dealing with violation and property tax issues.

Bright Power is proud to join Jaffa’s network of alliances, and will help Jaffa‘s clients address three new requirements for New York City building owners:

• Local Law 84 of 2009 mandates that all buildings over 50,000 square feet in area perform annual energy benchmarks.

• Local Law 87 of 2009 requires the same building owners to perform comprehensive energy audits and implement retro-commissioning measures every 10 years.

• A new DEP rule requires that buildings burning #6 fuel oil switch to #4 oil, #2 oil or to natural gas.

Bright Power’s services will help Jaffa’s clients to both comply with these requirements and clear violations. In addition, Bright Power can provide Jaffa’s clients with design and installation for solar electric and solar thermal systems, specification-writing services and energy efficient design.

We look forward to helping the clients of Jack Jaffa & Associates save money and energy and comply with New York City regulatory requirements!

For more information on Bright Power’s services please contact Phil Vos at 212-803-5868 or pvos@brightpower.com.

GOVERNMENT RESPONSIBILITY -  Depending on the nature and magnitude of the emergency at hand, government agencies have always played a vital role in administering organized and immediate action.  Despite many past instances where total dependence on actual governmental response proved to be ineffective and inadequate, government agencies have still remained as the most reliable “go-to” sources for preparedness information. Currently, most local and state government websites offer information covering all types of emergencies, important contact numbers, news updates, and sample readiness plans for buildings, businesses, and homes. As a starting point it is a good idea to enroll in public alert notification programs such as those offered by these official government websites:

NOTIFY NYC DOB WEATHER ADVISORIES FLOODSMART.GOV

Additionally, the following websites promoting disaster awareness should be tapped for helpful emergency management: For centralized assistance information from multiple Federal Agencies click here. For instructions from NYC Office of Emergency Management click here and for useful preparedness directives go to www.ready.gov.

PLAN AHEAD -  Whether the crisis is nationwide, citywide, building-wide, or confined to a single unit within a building, a well thought out plan can help alleviate the potential for devastation.  Although there is really no such thing as a perfect plan, the key to mitigating extensive property damage lies in being prepared before the emergency occurs.  An important consideration is the likelihood that the building’s owner, managing agent or staff member will most probably be the first responder in a developing crisis.  While a government response will ultimately occur, all emergencies and disasters concentrate at a local level so a well thought out preparedness plan may require the ability to sustain control of the situation for an extended time before adequate help arrives.  Although different types of real estate properties may require different types of considerations, the following universal tips would apply in a variety of situations:

• Re-evaluate insurance policies as most of them often do not include flood or terrorism coverage.
• Secure your property records, have all vital documents and information backed-up in a protected off-site location.
• Proactively vet disaster restoration contractors by thoroughly interviewing them in advance and finding out about their emergency response times and policies.
• Prepare a contact list which includes phone numbers and email addresses of all employees and tenants.
• In cases of advanced warning inspect your property immediately, secure all non-stationery items to ensure their immobility in extreme weather situations and unclog any backed up drains around the property to aid run-off.
• Besides the customary stocking up of essentials like water, non-perishable foods, working flashlights and battery operated radios, don’t forget about replenishing the first-aid kit and having some cash available in case credit cards can’t be used due to extended power interruptions.
• Should any property damage occur, have a camera ready to take pictures – insurance claims can be expedited when conditions such as rising water levels, downed trees and power lines, open holes and missing shingles are adequately documented.

DISASTER AFTEREFFECTS – With so many incredibly large issues already facing the real estate industry, it isn’t comforting to know that things could get even more complicated with the onset of disasters. The wide-spread property damage that occurred as a result of Hurricane Irene for example, prompted many banks, mortgage lenders and potential buyers to demand new property inspections compounding potential impediments and delays in securing real estate deals. Such setbacks could cause additional financial losses in an industry that has yet to recover from its economic anxieties of the previous years. Sweeping changes can also be expected in adjustments to the new building codes. Present arguments consist of considerations whether all new one and two-family homes should include installation of sprinkler systems and whether high-rise building owners should be required to provide special elevators for fire evacuations, being that some people are not physically capable of walking many flights of stairs in emergency situations. Should any significant changes in building codes actually occur, we hope to address them in our future newsletter publications.

Of course, a lot has changed in the City since 1971 prompting the program’s critics to argue that the incentive plan has become a needless subsidy mainly benefiting developers of luxury housing units and forfeiting millions of dollars from City coffers in tax revenues.  What most media reports failed to indicate was perhaps the most important aspect of the program, which until now served as a primary vehicle for creating tens of thousands of affordable housing units throughout the City during both exuberantly optimistic and painfully challenging economic times. As things stand now, the 421-a program expired at the end of 2010 leaving the fate of thousands of planned units in doubt. Current legislative debates on whether to extend the program by restructuring it in efforts to promote creation of a higher percentage of affordable housing units or whether to eliminate new construction benefits in their entirety are expected to continue into the summer months.

We will keep you apprised of any changes in this program.  In the meantime, this topic gives us a great platform for a discussion on other, much lesser known money saving incentive programs available to renters, homeowners and developers. These incentives range from programs that offer location-based tax exemptions to programs that reward applicants for participating in energy-saving practices.

“FRESH” PROGRAM – A recent study conducted by the Mayor’s office showed that as many as 3 million New Yorkers reside in communities that do not have enough supermarkets or groceries, and provide limited access for residents to fresh produce. Rising rents and lower profit margins are significantly contributing to the steady disappearance of supermarkets city-wide. In response to this decline, the City has established the Food Retail Expansion to Support Health, or FRESH Program, which promotes “the establishment and retention of neighborhood grocery stores in underserved communities” such as South Bronx, Northern Manhattan, Central Brooklyn and Jamaica Queens neighborhoods.  Retailers who meet eligibility criteria are entitled to zoning and financing exemptions, such as real estate tax abatements, deferral of mortgage recording tax, and sales tax exemptions on purchases of materials used to acquire property or to construct, renovate or equip the newly created stores. Zoning incentives include additional development rights, reduction in parking requirements, and construction of larger as-of-right stores in light manufacturing (M-1) zoning districts. To access detailed information on the FRESH Program click here.

NYCEDC INCENTIVES FINDER – The New York City Economic Development Corporation provides a myriad of expert business and strategic advice to the City’s private and public sectors. The organization offers numerous initiatives that promote economic growth across various industries. Among other things, it shares responsibility for helping to create affordable housing, redeveloping shopping areas, and revitalizing waterfronts and public spaces.  Since it offers cross disciplinary partnerships with other City agencies it often serves as a great source for information and an ideal starting point for businesses seeking incentives advice. Click here to view details about what qualifying incentives are currently available for entities conducting business in NYC.

PARKING TAX EXEMPTION – Under current state laws, drivers who park their cars in Manhattan are charged an 18.375% tax on rental parking spaces. Manhattan residents who apply for a Manhattan Resident Parking Tax Exemption are eligible to get an 8% break on this tax.  In order to qualify for such benefits, Manhattan residents must be able to demonstrate that their current primary address is indeed in Manhattan, they own or lease a motor vehicle for a term of one year or more, their vehicle is registered to a Manhattan address and it is exploited for personal rather than business related use. Upon determination of eligibility, the Department of Finance issues a Parking Tax Exemption Certificate which is valid for two years. Click here to review more details about the program and here to apply for this program online.

CASH REBATES FOR NEW AIR CONDITIONERS – This year ConEdison is extending the Energy Star Rebate Program for residential customers who replace their old room air conditioners with Energy Star models. Customers who purchase newer, more efficient models between May 2, 2011 and September 6, 2011, will be eligible to receive a $30 rebate for each unit purchased. The offer is limited to only two rebates per account. Click here to learn more about terms and conditions of the rebate programs and to apply online.

DOB PUTS QUICK RESPONSE CODES ON BUILDING PERMITS – The square barcodes that are popping up on advertisements and consumer products everywhere have also found their way to construction permits posted at sites throughout New York City. Smartphone users who have QR Code scanning capabilities will now be able to have a plethora of information at their fingertips with details on the project’s scope of work, property owner’s identity, violations relating to the site and more. Basically, these codes will link users to a mobile version of the Department of Buildings Information System which will also enable them to initiate calls to the city’s 311 system where they’ll be able to voice their concerns and register complaints. Although the DOB Information System is an unexplored domain for average New Yorkers, the site has been averaging a million hits a day even before the introduction of the advanced technology format. The site is expected to become even more popular as the program expands to include all buildings and construction sites in the city. The QR Codes project is a part of the Simplicity Plan recently introduced by Mayor Bloomberg which he describes as “a comprehensive initiative to make government smarter, more efficient and more consumer-friendly.” Other city agencies are also experimenting with this technology and are expected to follow suit in the near future. Click here for a video about the system’s debut.

CITY COUNCIL PASSES LEGISLATION FOR HARSHER PENALTIES AGAINST LANDLORDS – Long stretches of arctic weather conditions are prolonging the perennial heat wars between the city’s landlords and tenants. As temperatures dip and the chilling winds continuously beat against windows, most tenants don’t hesitate to place a call to the city to complain if their apartments don’t feel warm enough. Often aging boilers and mechanical equipment failures are to blame. Rising energy costs can also compel many landlords to keep heat settings at the HPD mandated minimums which seldom satisfy the tenants’ comfort levels. Since the beginning of the 2010-2011 heating season which commenced last October, HPD’s Daily Heat Complaints Department has received 177,113 complaints against landlords, in comparison with a season total of 173,752 received in the previous year. Since the heating season doesn’t end until May 31, the number of complaints is likely to climb by another several thousand. In response to this sharp rise in complaints, the City Council passed a bill aimed to increase enforcement options against landlords who fail to provide tenants with adequate heat and hot water during the cold winter months. Currently, existing law allows for a maximum fine of $500 per unit per day for a first violation and a maximum fine of $1,000 per unit per day for subsequent violations within the same calendar year. The new legislation would extend the one calendar year period stipulated in the current law to two years during which a maximum $1,000 per unit per day fine can be implemented.

DEP LAUNCHES A MONEY SAVING PROGRAM FOR CUSTOMERS – The Department of Environmental Protection controls the City’s water supply and provides more than 1 billion gallons of water each day to 8 million NYC customers. This week, the agency initiated a new program which would alert homeowners of any potential leaks in their water distribution system. The Leak Notification Program will enable DEP customers to take action more rapidly and attend to possible leaks once the agency notifies them of a significant rise in water use. Customers who sign up for the alert service will be notified within a few days if their water consumption spikes to unusually high levels. The agency plans to install 835,000 wireless water meters throughout the city to aid the city in administering the new plan. Incidentally, this program is also a part of the NYC Simplicity Plan proposed by Mayor Bloomberg in efforts to improve consumers’ experience, streamline city operations and save money. Click here to learn more about the program and to sign up for the new service.

SHARP PROPERTY TAX HIKES EXPECTED FOR NYC CO-OP AND CONDO OWNERS – A few days ago the Bloomberg administration released a preliminary assessment roll for the 2012 fiscal year. In general, property taxes are based on a set of complex laws that require cautious attention to detail influenced by data collected by Department of Finance appraisers. As is usually the case, this year’s assessment numbers vary by property and location. In the new fiscal year, property owners can look forward to steep tax hikes attributed to higher market values. The report indicates that co-op and condo owners are expected to be the hardest hit as the City anticipates a raise in condo taxes by 9.6% and co-op taxes by 7.5% respectively. Multi-family residential rental buildings will most likely be hit with 8% to 9% increases, while office landlords are expected to be charged an additional 7.5% increase. Single-family homeowners would have to pay 2.8% more than last year. All increases are scheduled to take effect in July as the new fiscal year begins and changes are expected to bring in an additional $900 million in tax revenues.

ALBANY CONSIDERS CAP ON PROPERTY TAXES – Even prior to his inauguration, Governor Cuomo has not made a secret of his intentions to push for a cap on property taxes. His plan consisted of proposing a limit on the total amount of property tax dollars that could be collected annually by a school district or municipality by capping the increase in the local tax levy at 2% or the rate of inflation, whichever was less. Currently, New York State property owners are one of the most heavily taxed in the country. A report released in 2010 by the Tax Foundation, a non-profit and a non-partisan group, ascertained that the median property tax in New York State was $3,755, compared with $1,917 which is the median in the general United States. The Republican led State Senate has already thrown its support for such a cap, and although members of the Democratic-controlled State Assembly have also voiced their support for the plan, it is likely to come with strings attached. Since rent regulation laws and tax breaks such as the 421-a exemption are set to expire in a few months, many Democrats are already looking into identifying potential bargaining chips which could favor their constituents down the road. Click here for the latest information from Albany.

U.S. HOUSE OF REPRESENTATIVES CONSIDERS REPEALING 1099 FORM PROVISIONS – The much-trumpeted massive health care overhaul laws which were approved this past March contained a three-paragraph provision which had absolutely nothing to do with doctors, hospitals, drugs or anyone’s health. Despite of their insignificant size, these three paragraphs managed to create nightmares for business owners. New rules which are slated to go into effect in 2012 concerning 1099 Form filings require companies to report to the IRS payments of more than $600 a year to any vendor or service provider. What does this mean for businesses in real terms? Thinking of spending more than $600 a year for basic things like buying computer equipment, FedEx shipments, office cleaning, or cell-phone services? Don’t forget to obtain tax ID or Social Security numbers of the corporations or individuals providing such services or goods, or look forward to facing stiff IRS penalties. While the provision affects all companies, small businesses are expected to get slammed the hardest because they often lack compliance departments and legions of accountants on staff. Thankfully, both Democrats and Republicans in Washington agree that at least this provision of the health-care laws should be softened in order to save the already struggling small businesses from mountains of paperwork. We will keep you informed of any new developments on this issue as they become available.

PROPERTY TAX BENEFITS INFORMATION AVAILABLE ONLINE – New York City Property owners who wish to see if their property is receiving any tax exemption benefits can view such information online. Available information includes description, classification, dimensions and different values of the property as determined by the Department of Finance. If there are any exemptions on record, the site indicates the type, calculations and duration of benefits remaining. Click here to view the site.

POLITICAL REORGANIZATION – While riding waves of voter frustration over the economy, the resulting outcomes of the November elections helped the Republican Party sail into a majority position in the Senate. But it wasn’t long after the election that the “lame duck” Congress had to be summoned back to Washington for key votes on legislation extending the Bush-era tax cuts. Feeling the urgency of the matter, the White House rushed to craft a tax deal with the Republicans, which would extend the tax reductions for all income levels. The negotiated compromise ended up receiving tremendous criticism from members of both parties. Many rank-and-file politicians voiced deep opposition over the extension on the grounds that it disproportionately benefited the well-to-do Americans, while others argued that the tax cuts did not go far enough. As the proposed legislation made its way through the Senate, its members proved more resolute in passing the deal. The House of Representatives struggled to reach passage due to a persistent protest from lawmakers incensed over the deal’s continued benefits for the nation’s wealthiest earners. As it turns out, weeks of acrimony over the measures and convoluted debates over the plan’s extension produced hesitant but much needed bipartisan collaboration. The new legislation is expected to broaden through 2012 all of the tax cuts on income, capital gains and dividends that were enacted in 2001 and 2003 and which were set to expire at the end of the month. In addition, the bill is slated to expand unemployment insurance benefits through 2011, cut payroll taxes by 2% during 2011 and let businesses write off 100% of capital investments between September 9, 2010 and December 31, 2011. It will be interesting to see to what extent the cooperation between the parties will carry on into the next year. Could the bipartisan collaboration be considered a blueprint for compromise in a new era of divided government? We shall see. In any case, it should be noted that the spirited debates over the Bush-tax cuts will be revisited again in 2012 as the extension will only last for two years.

FORECLOSURE FRAUD – Throughout the nation, a record inventory of unsold homes still hangs over the housing market. The stockpile is continuously being compounded by homes going into foreclosure. In actuality, the number of foreclosure cases has gone down in recent months. However, economists are not attributing this decline to improved economic conditions, but rather to an evolving fraud crisis, which is currently impairing the entire lending industry in the U.S. It seems like the law finally caught up with the foreclosure mills, which forced so many Americans to lose their homes. As some of the biggest lenders and mortgage services have conceded, they’ve mistakenly filed for foreclosure based on fraudulent documents. In some firms, employees routinely robo-signed thousands of legal documents and affidavits submitted in foreclosure proceedings without personal knowledge of the underlying facts or verification of loan file information, and without even reading the documents they signed. As a result of such widespread illegal practices, 23 states including New York have placed various forms of moratoriums on foreclosure proceedings. The industry hasn’t reached a consensus on how to proceed. In the meantime, title insurance companies are taking more time to examine documents to pick up any errors in order to ensure proper chain of title for their clients. This situation is currently responsible for massive legal challenges, which may result in a prolonged housing depression.

BEDBUGS, AGAIN? – By now, you’re probably tired of hearing about them and although we’ve covered their NYC invasion on numerous occasions in our past issues, it seems like we haven’t heard the last about these creepy crawlers just yet. We already know that bedbugs have a way of showing up anywhere, anytime and without any notice, which makes eradicating these pests an immensely arduous task. Just in case their elimination didn’t seem challenging enough, in response to these bugs’ unrelenting reproduction throughout the city, the Department of Sanitation decided to come out with new guidelines for getting rid of apartment furnishings – especially mattresses. As of December 3, 2010 any mattresses left on the curbside for disposal need to be wrapped in plastic. Failure to comply with this rule can set you back $100. Although the rule is already in effect, it will not be fully enforced until January 3, 2011. Click here to view more information on this topic.

TECHNOLOGY TO THE RESCUE – It wasn’t so long ago that personal computers and laptops revolutionized the way real estate business was conducted. These days, the limelight has been stolen by smart phones and mobile devices such as Netbooks and iPads. Thus, for example, some Co-op and Condo Boards are embracing iPads for their convenience of providing communication services and for supplying Board members with necessary reports and presentations. Given the time and costs expended in order to conduct their all too important meetings, many Boards find that such devices cut down the limited resources and time wastefully spent in preparing for them. The customary lengthy reports presented at Board meetings are now being replaced with touch-of-a-button accessible documents available on colorful screens. Furthermore, innovative technical services such as Skype and Facetime often eliminate the frequency and necessity to have Board meetings in the first place.

Apps for these mobile devices also continue to be all the rage as new ground-breaking applications are constantly created to reduce hassles previously incurred for complicated business and management operations. One of the most practical apps introduced this year was Square technology, which was designed to bring credit card accepting capabilities to the masses. This app quickly became a useful tool for property owners with tenants behind on rent payments since this technology enabled landlords willing to make impromptu visits to their site with the ability to collect payments on the spot, even if tenants could not pay with checks or cash. Click here for more information on this technology or watch an early product review video below.

Today, as the novelty and hype of building green continues to spread and as achieving LEED (Leadership in Energy and Environmental Design) status becomes an industry standard throughout the city, many consumers remain skeptical of benefits of such commitments due to economic considerations. While there’s certainly no shortage of affluent buildings in the city, a significant portion of the buildings are home to residents of modest means where often the slightest operating changes end up causing financial hardship. Fortunately, there are a few cost-effective environmental initiatives that can be undertaken to improve a property’s ecological impact without breaking the bank. Rethinking a building’s basic design and function can result in paying enormous environmental and economic dividends for property owners down the road

CAPITAL GAINS DEBATE CONTINUES  -  Capital gains and losses are a necessary and often misunderstood aspect of the overall tax generating system. As a seller, there are several repercussions one must consider when accepting an offer on a property, the costliest one being tax liabilities. During this busy mid-term election season, extension of the so called “Bush tax cuts” has become an important campaign issue. Current tax cuts are due to expire on December 31, 2010 unless Congress acts. Although most cuts implemented in the Bush-era retain bipartisan support, some members of Congress are adamantly against extending across-the-board cuts in their entirety. Republicans are pressing to extend all of the existing tax cuts for everyone, thereby sustaining the current maximum federal capital gains rate at 15%. They maintain that any increase in the capital gains tax rate will only serve to deter further investment and slow down fragile economic growth as Americans struggle to recover from the crippling recession. Most Democrats only favor extending cuts for individuals earning up to $200,000, or $250,000 for couples. This would allow reductions for higher income earners to lapse, thereby letting the capital gains tax rate increase to 20%. For some investors, uncertainty about the extension of current tax rates will likely contribute to their year-end financial strategies as they rush to sell their properties or assets before 2011 in order to capitalize on the benefits of securing the lower tax rate.

DHCR BECOMES PART OF A BROADER STATE AGENCY -  Division of Housing and Community Renewal (DHCR) Commissioner Brian Lawlor and Governor Peterson announced consolidation of a number of housing agencies under a single leadership structure which is now called New York State Homes and Community Renewal (HCR). It will include DHCR, HFA, SONYMA, AHC, HTFC and others under its umbrella. According to their joint press release, with the strategic integration of the state’s affordable housing and community renewal programs, the agency is expected to leverage different partnerships, implement a range of various affordable housing issues, simplify application processes, and maximize opportunities for community development of affordable housing projects throughout the state. As an added benefit, officials anticipate increased efficiency and reduction of operating costs in the wake of the state’s escalating budget deficit. Click here to view details of the press release.

DOB REVEALS DANGERS OF ILLEGAL CONVERSIONS  -  Mayor Bloomberg and other city officials revealed results of an undercover investigation into illegal building conversions, warning landlords of severe consequences  for those found in violation of safe occupancy laws. Apparently, this investigation began in May, when undercover agents posing as apartment hunters searched Craigslist ads to find lawbreaking landlords. Mayor Bloomberg repeated the longstanding mantra for the current administration’s efforts to increase affordable housing units for NY residents. Although non-conventional apartments in basements, cellars, garages and attics have often constituted legitimate sources of affordable housing for the poor, immigrants and student populations, the issue is that such dwellings now need to be brought up to code. The Mayor stressed that in addition to creating dangerous living conditions for the occupants of illegally subdivided residences, landlords also put the lives of neighbors and first responders at risk.

Many landlords complain that the City’s current building code requirements are so strict and complicated that they feel discouraged from even attempting legal alterations. Most property owners don’t even know the difference between cellars and basements and which one of the two could even meet the criteria for legalization. A cellar is typically more than 50% below ground and a basement is more than 50% above ground. However, mere distance from the ground is not an adequate determinant for legal and safe utilization – providing adequate air circulation, proper lighting and suitable means of egress are just some of the circumstances vital for the legalization process.

Of course, all conversions should begin with a review of the most recent Certificate of Occupancy so that usage of residential units conform with indicated designation. Whether the next step involves an erection of a dividing wall, or installation of plumbing or electrical systems, proper plan and work permits should be filed with the DOB and necessary sign-offs obtained thereafter. It should also be noted that in practice, it is not the contractor’s responsibility to obtain adequate permits, but rather the owner’s. Penalties for non-compliance can generate fines anywhere from $2,000 to $24,000. Click here or below to view details of the investigation.