Lucky for you, Jack Jaffa & Associates is here to make sure you never let any part of the NYC compliance code slip through the cracks.

Today, our friendly reminder is all about Local Law 26 of 2004.

It’s been a long time since this law was established – nearly a full 14 years. Local Law 26 requires a full system of automatic sprinklers to be installed in all office buildings and buildings classified in Occupancy Group E over 100 feet in height. Hopefully, you’re in full compliance with this part of the law and you have an efficient sprinkler system installed in all your buildings that fall within the above category.

There’s another part of the law that you may not remember: Sprinkler Compliance Reports must be submitted by all owners of buildings subjected to Local Law 26 of 2004 after 14 years. The deadline for this report is July 1, 2018.

With the deadline fast approaching, it’s time to brush up on Local Law 26 and file your report.

Here’s all you need to know about the Sprinkler Compliance Reports:

A Quick Review of Local Law 26

In October 2004, Local Law 26 went into effect. This law governed retroactive compliance with sprinkler, exit signs and photo-luminescent lighting in buildings. All upgrades are required to be completed by July 1, 2019.

As mentioned, the law requires a full sprinkler system to be installed in any building that is greater than 100 feet in height by July 2019. If there are plans to renovate a building within the year, the owner may install a temporary sprinkler loop and still be compliant with the law.

The only exceptions to this law are buildings that fall into the following categories:

1. Structural conditions make it impractical to install an automatic sprinkler system.
2. A part of the building is an interior landmark designated by the New York City Landmarks Preservations Commission.

The 14-year Reports

Every 14 years, all owners of NYC buildings that fall within the parameters of Local Law 26 must submit a report on their buildings’ sprinkler systems.

This is what your report needs to include:

• Certification by an architect or engineer detailing the percentage of the building in which sprinklers have been installed as of the date listed on the report.
• An implementation plan prepared by the architect or engineer specifying when and how the remaining portions of the building will be made fully compliant with Local Law 26.

If you’ve submitted a sprinkler report before the July 1^st deadline, you need not submit one again.

If You Need an Extension

If you haven’t installed a sprinkler system and you don’t have conclusive plans for installing one yet, you can still be on the right side of the law. You simply need to apply for an extension by providing evidence of undue hardship that is preventing your compliance with the law. Just make sure to file for an extension before July 1^st, 2018.

If you’re ready to submit your report, don’t delay; the deadline is almost here! You can email your report or your application for an extension to NYCDOBLL26@buildings.nyc.gov

Still worried about compliance with Local Law 26? Here at Jack Jaffa & Associates, we’re always ready to assist you with NYC compliance issues of any kind. Give us a call and we’ll guide you through the process, today!

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The listings will be updated quarterly on the City’s OpenData portal and will be triggered when buildings sell at an unusually high price, indicating that the new landlords plan on significantly raising the rents.

“Protecting New York tenants and affordable housing is a top priority,” the Mayor declared. “This legislation means we will, for the first time, shine a bright light on rampant speculation and greedy landlords who buy residential buildings with the goal of pushing New Yorkers out of their homes. This bill can stop tenant harassment in its tracks.”

As the mayor claims, the Speculation Watch List will alert the city and state agencies of potential tenant harassment while serving as a warning for tenants and tenant organizations. All tagged properties will be closely monitored by these agencies and all tenants in listed buildings will be provided with legal support.

“We need every tool in our arsenal to keep New Yorkers in their homes and safeguard the affordability of our neighborhoods,” said Housing Preservation and Development Commissioner Maria Torres-Springer. “This new Speculation Watch List uses data to capture the signs of potential harassment and distress, and help protect residents from the threat of predatory investment.”

This most recent law is the latest in a string of efforts to protect New York’s tenants from harassment and displacement. It follows closely behind the release of Housing New York 2.0, an initiative established by the mayor to build or preserve 300,000 affordable homes by 2026.

Another similar endeavor was the establishment of the Tenant Support Unit, an agency that goes door-to-door across the city, informing tenants of their legal rights, recording building violations, soliciting complaints linked to harassment and eviction, and providing tenants with referrals to free legal support.

As a NYC landlord, this new bill plays an important role in the way you manage your properties.

This recent law, among others, has made it extremely difficult for landlords to lawfully claim that units are ‘market units.’ It is imperative that every landlord be certain that they can indeed claim this status in order to avoid a potential violation of the law.

Additionally, while you are likely always careful to treat your tenants with utmost respect, from here on, it’s prudent to be extra careful not to take any actions that can possibly be misconstrued as harassment on your part.

It’s equally important to be on guard when considering the purchase of a new building. Always check out the going price of similar buildings in the area before closing on a sale. Is the price unusually high? Is the seller promising that you can easily raise the rents, thus profiting further from the deal? While this may have been a lucrative business proposition in the past, buying a building under these conditions will now be an instant trigger for the Speculation Watch List and will place you under scrutiny of various city and state agencies. Similarly, don’t raise the price on any buildings you are trying to sell or you will run a similar risk.

New law got you stressed? No worries! As always, Jack Jaffa & Associates is here to help you comply with NYC law in every circumstance. We’ll be glad to help you determine how you can conform to the Predatory Equity Bill and ensure that you stay within the confines of the law, at all times.

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Once that’s happened, here are your options:

1. Curing Violations

The best way to avoid paying a penalty is by fixing a DOB-ECB violation.  If this is offered as an option to you, you’ll find a cure date listed on your violation – you must fix the problematic area before this date. All Class 3 violations and some Class 2 violations have this option; Class 1 violations do not.

You’ll find your violation’s designated class on your penalty sheet.

Any violation marked as “Aggravated II” is not eligible for cures.

You won’t have to rush to fix your violation – the cure date is usually 40 days from the date the violation was issued. Be aware, though, that you’ll need to submit a Certificate of Correction (AEU-2 form) to let the DOB know that you are curing the violation. This means you are admitting to being guilty of the violation. Consequently, any future violations for the same issue may make you liable for additional penalties and may not be eligible for a cure date. The good news is that if you successfully fix this violation on time, you won’t have to pay a penny in fines and you won’t have to show up for your scheduled hearing.

2. Stipulations

Some violations are eligible for Stipulations. You’ll find this determination marked on your penalty sheet.

If you choose to enter into a Stipulation, you’ll only be liable for half of the imposed penalty amount. To do so, you’ll need to admit to the violation and to file a Certificate of Correction with the Department within 75 days of the pre-hearing or hearing Stipulation date. If you fail to do so, you will be held accountable for the full penalty amount.

Criteria for Stipulations are similar to that of cure dates – no Stipulations are offered for Aggravated II penalties.

3. Mitigations

If the fined party can prove the violation was corrected prior to the hearing date, they may be eligible for a mitigated penalty. As with cure dates and Stipulations, you can determine whether your violation is eligible for mitigation by simply checking your penalty sheet. Also, any violations classified as Aggravate II, are not eligible for mitigations.

What are Aggravated Penalties?

Now that you know what course of action you can take when issued a violation, let’s explore the subject of aggravated penalties. In short, this refers to a repeat offense. There are two categories of aggravated penalties.

Aggravated I Penalties are imposed when it has been proven that the same condition or charge under the NYC Construction Codes, or the previous charge under the laws in effect before July 1, 2008, was issued in a prior enforcement action against the same owner or responsible party during the last three years. In other words, the same person is being charged with a similar infraction within three years.

Aggravated II Penalties are imposed in any of the following situations::

1. The violation of law is accompanied by or results in an accident, or poses a significant risk of either occurrence.
2. The violation is accompanied by or results in a fatality or serious injury, or poses a significant risk of either occurrence.
3. The violation condition affects a large number of people.
4. The respondent or defendant withholds requested information necessary to determine the condition of a building or site.
5. The respondent has a history of non-compliance with DOB rules at one or more locations.

As mentioned above, Aggravated II penalties are not eligible for cure dates, Stipulations or mitigations and demand a hearing attendance. Both classes of aggravated penalties incur steep fines.

This all sounds a bit confusing to you or just too much to handle? As always, Jaffa can help you with any of these processes and reduce or eliminate any penalty you may have incurred.

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There’s just one glaring problem: with a tax code as complicated as NYC’s compliance code, finding which credits and deductions you qualify for can be a massive headache. You need to untangle the jargon of the tax code and then try to see if you fit the explicit criteria specified. Of course, no matter how well you do your homework, you’re always left wondering if you missed something important and you overpaid by thousands of dollars.

It’s hard not to get super-stressed just thinking about it.

No worries, though; we’re here to help! You already know that Jack Jaffa & Associates wants to make your life as a landlord as simple and profitable as possible, and you won’t be surprised to hear that tax prep is no exception. No matter how complicated you think your taxes and finances are, we’ve got you covered!

In the last three decades, our professional team has enabled hundreds of New York City developers to maximize their tax incentive values for properties ranging from new construction and preservation to major capital improvement projects; from luxurious high-rise condominiums to affordable housing projects; from commercial and manufacturing facilities to single family residences.

Since 1979, our team’s tax consulting services have  saved NYC property owners hundreds of millions of dollars.

Our years of experience in the field have granted us the unique opportunity to build strong, collaborative relationships with HPD, DHCR and the Department of Finance. This has helped us to identify, facilitate and secure benefits available through these agencies, specializing in a broad range of government incentive programs.

Here’s a quick rundown of some of the programs you may not be benefiting from that might be able to save you thousands of dollars:

1. 421-A

Partial Real Estate Tax Exemption Benefits Program which benefits developers of new multi-family residential housing buildings containing four or more dwelling units.

Are you working on a multi-family dwelling? Have you recently developed an apartment building? If yes, then you may be qualified for this exemption.

2. J-51

Tax Exemption Benefits Program which provides tax incentives for developers who’ve rehabilitated or executed major capital improvements in residential properties. It also provides benefits for any property whose status has been converted from commercial to residential.

This means, if you’ve successfully improved a dilapidated residential property or changed a commercial storefront to a residential dwelling, you qualify for this incentive.

3. ICIP/ICAP

Industrial and Commercial Incentives /Abatement Program which benefits newly constructed or modernized commercial or industrial properties. Please note that it is crucial that applications for these programs be filed prior to obtaining any permits.

Have you recently constructed or updated any kind of commercial property? As long as you’ve filed for these programs before acquiring your permits, this one’s coming to you!

4. MCI

Major Capital Improvement Rent Increase Program which allows landlords to recoup the cost of building-wide capital improvement expenditures.

Spent a ton on major improvements for your rental properties? You may just be able to put some of that money back in your pocket!

We don’t need to convince you how much you can save by capitalizing on every tax incentive you have coming to you. It’s more than just saving a buck, though – or even saving a few grand. By properly identifying and claiming the right advantages and incentives, you can significantly slash your operating costs. This, in turn, can help you secure better financing deals and create more attractive marketing conditions for all of your properties.

Here at Jack Jaffa & Associates, we are dedicated to helping each of our clients obtain the most incentives possible in the shortest amount of time. Call us today to find out how we can help you maximize your benefits this tax season.

You have nothing to lose and so much to gain!

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Q:What is DOB NOW?

A: In an effort to make the inspection process simpler for all those involved, DOB launched an online platform in 2015. You can now schedule virtually all of your inspections online, resulting in a more precise inspection schedule and a much improved tracking and notification system.

To make it even easier, you can also certify qualified objections electronically, thus eliminating the cost of re-inspections entirely. Money that stays in your pocket is always a good thing!

Q: Do I need to schedule my inspections via DOB NOW?

 A: All licensed professionals and property owners are now required to use DOB NOW. Snail mail and even email requests are so last century!

Remember, though, that in order to request and schedule an inspection, you must first register for an account. To register, simply visit the DOB NOW Inspections website, click on the link to register for DOB Now: Inspections, then click on “New Users: Register for an Account” and follow instructions until you’re all set up!

Important: Use the email address that is listed in Section 26 of your PW1 filings when registering for DOB NOW: Inspections. We know you keep changing your email address to escape those super annoying spammers, but the city needs to know exactly who you are.

Q: Which areas require development inspections?

A: You are obligated to request inspections in the following areas:

• Electrical Signs
• Fire Suppression
• Boilers
• Construction Cranes & Derricks
• Elevators
• BPP
• Oil Burning Equipment
• Sustainability
• Plumbing
• High Rise Initiative

Q: Are there any other kinds of inspections I can schedule through DOB NOW: Inspections?

A: You can schedule almost any kind of inspection you can think of, even if it isn’t required, including Builders Pavement Plans, Electrical, House Connections and more.

Q: Can anyone request an inspection?

A: Any NY citizen is allowed to register for an inspection, but all licensees, registered architects, and professional engineers are required to request inspections. Note the word exchange in the above sentence; it makes all the difference!

Q: I’m having trouble registering for the DOB NOW: Inspections. What can I do now?

A: No worries; you’re not the only one who is technologically challenged.

To help ease the hassle of inspections for those finding the process too complicated to navigate on their own, the DOB has set up kiosks in each Borough Office in NY. At these locations, you’ll find assistance from the DOB staff. They’ll guide you through the registration process and even help you link our PIN in DOB NOW: Inspections. It’s the perfect solution for those who prefer humans over machines.

Here’s where you’ll find these kiosks:

• The Bronx:

Bronx Borough Office

1932 Arthur Avenue, 5th Floor

Kiosk location: Old Certificate of Occupancy Room

• Brooklyn

Brooklyn Borough Office

210 Joralemon St, 8th Floor

Kiosk location: Application Processing waiting area

• Manhattan

Manhattan Borough Office

280 Broadway, 4th Floor

Kiosk location #1: Construction/Electrical/Plumbing Inspection waiting area

Kiosk location #2: Elevators/Boilers public waiting area

• Queens

Queens Borough Office

120-55 Queens Blvd

Kiosk location: Inspections Counter, 1st Floor

• Staten Island

Staten Island Borough Office

10 Richmond Terrace, 2nd Floor

Kiosk location: 3rd Floor Inspections

Q: Are there any other resources to assist me with using DOB NOW: Inspections?

A: While you can find many resources online, including from the DOB website itself, we’ve recently compiled everything you need to know about all NYC codes and inspections in our Compliance deFINEd, a comprehensive, yet easily understandable overview to help you navigate the complexities of NYC compliance. Download your free copy today!  Or just give Jaffa a call to clarify any questions you may have about your compliance or inspections.

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All that mystique, though, may soon be subject to change. Mr. James Vacca, a democratic City Council member from the Bronx, has recently introduced a bill that would require the city to publicize the codes that are utilized in making myriad government decisions. Mr. Vacca claims this move would end the secrecy behind these actions and bring back the fairness the code allegedly enforces.

Should this bill go into effect, NYC will become the first major city nationwide to offer complete transparency to its citizens. It’s probable that other major cities will follow suit, creating a massive change across the country.

Governments have access to an endless fountain of data. All that information is fed to the algorithm code, which then makes decisions based on the input. An algorithm may decide which school a child will attend, when garbage pickup will be in each neighborhood, and even which police precincts get the most officers.

The problem lies in the fact that the decisions this code produces are often nonsensical, or even discriminatory. One teacher was ranked at 97% in one class he taught, but only earned a 6% in another class. In a separate instance, ProPublica reporters studied the risk scores of 7,000 people as determined by the code, and found that blacks were more likely to be falsely rated as future criminals – at nearly twice the rate of whites. Algorithm decisions have also placed children in schools several districts away from their home, and have assigned jobs to city workers without accounting for lengthy travel time and personal preferences.

Revealing these codes won’t accomplish much; they are difficult to read and almost impossible to understand. However, researchers are discussing ways to include public participation before they are written. This way, the public will have a say in the decisions that affect their lives.

Since lots of the city’s codes are leased by private corporations, Mr. Vacca proposes that these codes be made available for “algorithmic audits.” These would allow the public to submit test data and review how the algorithm handles it.

As a NYC landlord, you can already appreciate the ramifications the proposed bill would have on your business life. With the algorithm code revealed, there will be no more secrets to any government decisions.

Most importantly, you’ll be able to anticipate when an inspection of your properties is scheduled. Naturally, this will take lots of the stress and the guesswork out of the process. If you know when the city inspectors are coming, you can prepare properly and make sure everything is in order. You’ll be granted the opportunity to do a quick scan of your properties and to fix any problems in order to avoid being issued a violation.

Of course, its best if your buildings are up-to-date with the latest laws and regulations at all times so that you never fear an inspection. We know how difficult that can be, though. That’s where Jack Jaffa & Associates comes in; we make navigating NYC’s compliance code simple. If you need compliance assistance of any kind, be sure to give us a call. We’re always happy to help!

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No worries, though. As always, Jack Jaffa & Associates is here to guide you through the latest amendment to our city’s complicated compliance code.

Going green is always in vogue. That’s why Local Law 84 was passed back in 2009. Since it took effect in 2011, owners of large buildings in NYC measuring more than 50,000 square feet, or groups of buildings on a single lot larger than 100,000 square feet, were required to annually measure, track, and report their energy, gas, water, and fuel consumption. This process is commonly referred to as benchmarking. Since these reports are made available to the public, it was anticipated that they would generate energy efficiency and a greener usage of resources.

If any of your properties were included in the criteria set for Local Law 84, you’ve likely grown accustomed to reporting your energy usage. But now this law is set to change.

Last October, NYC passed Local Law 133/16 amending the benchmarking law. The list of buildings required to benchmark has been significantly expanded and now includes mid-sized buildings measuring 25,000 square feet or larger. Owners of these mid-sized building must benchmark for the first time by May 1^st, 2018, and then by May 1^st of every succeeding year.

Another important change to Local Law 84 exempts owners of “garden apartments” from being required to benchmark. As of October 31, 2016, the list of buildings required to benchmark excludes all residential properties that consist of three stories or less, for which ownership and maintenance responsibility of the HVAC and hot water heating systems are held by each individual dwelling unit owner. In simpler terms, if there is no HVAC system or hot water heating system in the series of dwellings that serve more than two units, the properties are exempt from benchmarking.

To submit benchmarking reports, owners must register with the Environmental Protection Agency (EPA), and then enter their utilities data spanning from January 1^st to December 31^st of the previous year into the EPA’s Energy Star Portfolio Manager.

As always, failure to comply with the law will result in a violation.  Any property on the Covered Buildings List that has not submitted a benchmarking report by the May 1^st deadline will receive a Notice of Violation from the NYC Department of Buildings and be fined $500. Continued failure to benchmark will result in a $500 penalty being issued each quarter, up to a maximum of $2,000 fined per year.

To learn if you are required to benchmark, you can review your property tax bill from the Department of Finance. Look for a section marked “Greener, Greater Buildings Plan Compliance Notification.” You can also check the Covered Buildings List found on the GGBP website for your borough, block and lot (BBL) number. Please note, though, that the list of buildings covered by Local Law 133 had not yet been updated for 2018.  However, it is smart to start tracking your energy usage if you have reason to believe your properties may fall on this list.

The NYC compliance code can seem to change with the seasons. That’s why Jack Jaffa & Associates is here to keep you updated on the latest laws and amendments to the compliance code. We’ll always keep you in the loop!

The post What the Local Law 133 Means for You as a Landlord appeared first on Jack Jaffa & Associates.

Gas leaks are one such insidious peril. They can cause tremendous damage and often lead to a full-blown, catastrophic explosion. Landlords in NYC need to be extra vigilant about their gas lines, as the city hosts some of the country’s oldest gas lines, making them more susceptible to leaks.

As a landlord, it is your responsibility to ensure that your gas lines are running optimally and are in perfect shape. Sometimes, though, a tenant may suspect a leak. Do you have a procedure in place in the event of such an occurrence? Does your tenant frantically call your building’s Super? Should they first phone the police? When do they let the gas provider know about the problem? There is so much confusion at play that can cloud an already stressful time.

To that end, the government has passed Local Law 153 of 2016, effective as of June 4^th, 2017. The law requires all landlords to notify residential tenants about proper procedures to follow in the event of  a suspected gas leak.

This notification must be provided in two ways:

1.) Delivering personal notices

The owner must deliver a notice detailing proper procedure in the event of a suspected gas leak to every tenant and prospective tenant of all tenant-occupied units, including multi-family homes.

2.) Posting a notice

The owner must also post a notice containing this information a common area of the building. This notice may be posted alongside any other existing notices and must be maintained.

The notice should instruct your tenants to call 911 immediately upon suspicion of a gas leak. Next, the tenants should notify the gas provider, whose name and emergency phone number should be included in the notice. Only then, should the tenant contact the landlord or manager of their dwelling. These procedures are designed to minimize the damage caused by gas leaks and to ensure the safety of every  tenant.

The wording of the notice must meet with governmental approval. Until the law is finalized and the exact language is determined, owners are requested to post a notice issued by the government.

You can find a notice to use for your properties at this link: https://www1.nyc.gov/assets/buildings/local_laws/ll153of2016.pdf.

If you do not already have a notice hanging in a public area of your buildings, post one immediately. Similarly, if you have not yet delivered a notice to each of your tenants detailing proper gas leak procedures, do not hesitate to do so.  Failure to comply with this law can result in a violation, which can lead to heavy fines and tremendous aggravation on your part.

We know that NYC code compliance can be burdensome. Jack Jaffa & Associates is here to help you navigate the dozens of regulations and keep you updated on the latest laws. We want to make your life easier!

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