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Today, let’s take a look at two recent and important changes to the compliance code, both of them related to Local Law 158 of 2017.

1.) Penalties Doubling for Multiple Work Without a Permit Violations

The DOB has announced that as of May 30, 2019, any building that has received a violation for work completed without a permit on or after August 28, 2018, will be subject to doubling of the civil penalties for a second or subsequent work-without-a-permit violation within one year of the most recent violation.

In plain English, this means that if any of your buildings received a violations for work done without the proper permit since August 28, 2018, the date Local Law 158 went into effect, be extra cautious about not receiving another violation. A second, or third violation received for noncompliance with Local Law 158 means a double penalty.

There is one notable exception to this double-down on permit violations penalties: If the client can prove that that the prior work completed without a proper permit was performed on a part of the building owned by someone else, or was performed by a previous owner, they may be able to get the double penalty removed. To do so, they’ll need to request a waiver, submit an L2 form and choose NRV (no relationship to the violation) or BFP (bona fide purchaser).

2.) Restriction on Professionally Certified Filings

Beginning May 30, 2019, the DOB will also restrict professionally-certified filings on all buildings with a work-without-a-permit civil penalty issued after Local Law 158 went into effect. These buildings will be flagged in the Buildings Information System (BIS) Property Profile as “LL158/17 Pro Cert Restriction.” If the flag includes an “until” date, applications for plan approval must be filed as standard plan examination.

To put it in simpler terms, this means that any building that received a civil penalty for work done without a permit on or after August 28, 2018, will be flagged in the BIS Property Profile and will be restricted from submitting professionally-certified filings. The flag may or may not include an end date for the restriction.

Luckily, here too, there is an exception to the restriction. Applicants are allowed to submit professionally-certified filings on these buildings provided that the work completed without a proper permit was done in a part of the building that is not owned by the current building owner. This can also work if the building’s ownership has changed since the work was completed. In order to professionally certify a flagged building, applicants are required to meet with a DOB Project Advocate and present adequate proof that an exception indeed applies.

Still stressed about these changes? Give us a call at 718-855-6110 and we’ll walk you through any steps you need to take in order to remain fully compliant with the law.

At Jack Jaffa & Associates, we make compliance easy![/vc_column_text][/vc_column][/vc_row]

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What is the Alternative Enforcement Program?

Each year, on or around January 31st, 200–250 multiple-dwelling properties throughout the five boroughs are selected to be in the Alternative Enforcement Program (AEP). Criteria for selection in the program includes the number of open Class B and C violations as well as the dollar value of emergency repair charges sustained as a result of the work performed by the HPD. Owners of properties included in the program will be given instructions for correcting the qualifying violations.

Are all qualifying violations for the AEP acute?

In 2016, several amendments were made to the AEP. The program can now include buildings that are experiencing a gradual but steady decline in condition over a prolonged period of time. This means that a building that does not have any major Class B or Class C violations, but is in a state of overall neglect and disrepair, might also find itself included in the AEP.

How are building owners informed of their property’s inclusion in the AEP?

Wondering if your property is on the dreaded list? There’s no need for guessing games; there are three ways to find out whether your building is on the list:

1. All owners of properties included in the AEP are informed with the issuance of a Class I HPD violation.
2. A notice informing the building owner and tenants about the inclusion of their property in the AEP is posted in the building.
3. All properties included in the AEP are listed online at the AEP page on the nyc.gov website. You can access this year’s list and past year’s lists here.

What happens if a building owner fails to correct their building’s qualifying violations and charges?

Failure to correct the qualifying violations and charges within the first 4 months after the program inclusion can result in additional ERP charges, liens, fines, and hefty fees.

Here’s how things can go from bad to worse:

• After 4 months have passed without correction, the HPD will issue an AEP Order to Correct that lists the conditions that need to be fixed. The Order to Correct will be mailed to the owner, posted in the building, and filed with the County Clerk.
• If the owner fails to comply with the Order to Correct, the HPD may hire a contractor to fix the violations at the owner’s expense.
• If the owner fails to pay the contractor’s bill, a tax lien may be placed against the property.

If the threat of a tax lien isn’t enough to scare the building owner into compliance, there are also steep fees to cover. Buildings in the AEP that have failed to make the necessary corrections within 4 months are subject to the following fees:

• $500 per dwelling unit every six months, with a maximum total of $1,000 per dwelling unit during participation in the AEP.
• $200 for any complaint inspection performed in the property that results in the issuance of a Class B or C violation.
• $100 for each re-inspection pursuant to a Certification of Correction of violation(s) submitted to HPD where HPD finds that one or more of the violations have not been corrected.

Failure to pay these fees can also result in a tax lien or liens against the property.

How can I keep my building out of the AEP?

Don’t get caught in the AEP trap! Take precautionary measures now to keep your property out of the program. Here’s how:

• Make sure your building is fully up to code. Be sure to keep yourself informed about any amendments and updates to the NYC compliance code.
• Fix all maintenance and safety issues promptly.
• Remember to register your property with the HPD and to update your registration as necessary.
• Clear all HPD violations as soon as possible. Remember to request an inspection after a repair is made or to submit a Certificate of Corrections when necessary.

Don’t get stuck in a noncompliance nightmare! Avoid the AEP trap call, click, or stop by Jack Jaffa & Associates to have them order the violation dismissal inspection and reduce the violation count.

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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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Did you get all that? That means there are now exactly one hundred and five more inspectors making the rounds at NYC properties than there were just a few weeks ago. That’s a whole lot of newbie inspectors in town!

Does that thought give you the jitters? Worried that with all these new recruits the random inspections will start coming more often? After all, the DOB needs to keep all of these graduates busy! What does all this mean for your property?

No worries; it doesn’t quite work like that! The DOB’s random inspections are determined using a complicated algorithm and are in no way related to the amount of rookie inspectors waiting to get out into the field. It’s a bit more systematic than a supervisor sending a bored inspector to your building on a whim.

Aside from these surprise inspections, don’t forget that all licensees, registered architects, and professional engineers are required 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

When you requested the inspection yourself and you have more than enough time to prepare for it, it isn’t all that daunting. Random inspections, on the other hand, can be super scary.

Are you constantly looking over your shoulder anxiously awaiting that surprise inspection? Do you have nightmares about the inspector finding you neglectful in any of the hundreds of ways you need to abide by NYC’s compliance code?

Take a deep breath and relax; we’ve got you covered! Our next blog will cover the FAQs you need to know about DOB inspections, so you never have to feel unprepared again. And if you find complying with NYC’s safety regulations and all the accompanying laws overwhelming, just ask us how we can help. Jack Jaffa & Associates is committed to making compliance painless and simple.

With Jack Jaffa & Associates, you’ll never fear an inspection again!

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Once again, the Jaffa staff took part in an intensive training seminar to ensure that they are up to date on all NYC code, compliance laws, violation resolutions and the many updates to the Jaffa client software helping Jaffa clients TRACK. MANAGE & RESOLVE NYC compliance and violations.

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