sitecompli's top 10 ways to conquer compliance & save money
TRANSCRIPT
Top 10 Ways to Conquer Compliance Challenges
and Save Money
SiteCompli SiteCompli is a technology company that provides
compliance monitoring solutions to New York City commercial and residential owners and managers
Our core product aggregates information on a continuous basis from agencies such as the DOB, ECB, FDNY and HPD
We efficiently track and notify clients of compliance issues in one digital location through email alerts and our website
Our Client Services team are NYC real estate compliance experts ready to answer any tough questions that arise
THE WIDE WORLD OF COMPLIANCE
Presentation Overview
Goals of today’s webinar Identify high-risk areas of real estate compliance Key takeaways and best practices for managing
compliance data
Agenda Know your data Know your compliance Stay proactive Stay informed
Quick Poll
Which city agency is your biggest challenge?
Know your DataIdentify the information associated with your portfolio and understand how and when to respond
Know Your Data1) Respond immediately to complaintsBeing vigilant will allow you and your team to look into complaints before an inspector has time to arrive on propertyThe best offense is a good defenseHave a response process in placeRecord all steps taken to assess any issuesInvestigating a tenant’s complaint as soon as you’re aware of it greatly reduces the possibility of a violation being issued
Know Your Data2) Know your building inside and outBoilers, elevators, sprinkler/standpipe systems, AC units, or any other onsite equipment, are all risks for violations
They require regular inspections that carry steep penalties for failure to file or for expired permits
Many high cost violations are now being issued automatically and administratively
Knowing every piece of equipment that’s associated with your building is the first step to organizing testing dates and due dates
Know Your Data: ELEVATOR VIOLATIONSPVTs DOB (ECB)
ViolationsADMINISTRATIVELY ISSUED INSPECTION VIOLATION
LL 10/81 VCAT1 EVCAT1 ACC1
Issued by private inspector
Issued by DOB inspector
Issued for failure to file Annual Inspection(2008 cycle and earlier)
Issued for failure to file Annual Inspection (2009 cycle)
Issued for failure to file Annual Inspection (2010 cycle and later)
Issued for failure to file Affirmation of Correction (beginning with 2009 cycle)
$40 AOC filing fee
Penalty imposed after ECB hearing
$1,030/device $1,030/device $3,000/device $3,000/device
No hearing ECB Hearing No hearing No hearing No hearing No hearingDismissed with copy of violation and completed Affirmation of Correction OR administratively dismissed with subsequent, processed Cat-1 compliance
Cured if correction is filed before cure date, or closed after Certificate of Correction is filed. Hearing penalties may still be outstanding even if violation is closed.
Dismissed with penalty payment
Dismissed with penalty payment
Dismissed with penalty payment
Dismissed with penalty payment
Know Your Data2) Know your building inside and outEnsure old equipment has been properly decommissionedCommunicate regularly with ground-level retail tenantsConsider the entire lot, not just the building on top of it
Know Your Data: JOBS AND PERMITS
Know Your Data3) Keep track of applications & associated work permitsJobs stay open until they are signed off (closed / completed)
Keep track of filing applicants Any open jobs will affect the issuance of a final Certificate of
Occupancy, which may be critical to obtain during a sale or refinance
Permits expire automatically on their expiration date Work Without a Permit Violation can be issued if:
Work continues beyond the permit’s expiration date Work occurs outside the scope of the permit that was issued Work is being performed without a permit at all, the property can
be liable for a Work Without a Permit Violation.
Know your ComplianceIdentify different types of ECB related violations and understand how to handle them
Know Your Compliance4) Know the ABCS of the ECBNYC agencies issue the actual violations to responsible partiesECB (Environmental Control Board) determines whether or not the party committed the infraction and should pay a penaltyAll ECB-related violations are issued to a “named respondent”, not the building itself A representative of the named respondent is responsible for attending the ECB hearing as scheduled on the violation copy, plus making any corrections to the outlined infraction
Know Your Compliance4) Know the ABCS of the ECBAttending the hearing gives the named respondent an opportunity to present proof of compliance, or fight the violation entirelyNot attending an ECB hearing puts the violation into default, which can increase penalties exponentially
For example, fines on a defaulted FDNY violation can rise from $1,000 to $5,000 per infraction
We always recommend having a building representative or attorney attend the hearing to avoid increased fines
Know Your Compliance5) Know your FDNY and DOB NOVsBoth DOB and FDNY violations are issued for infractions related directly to the building
Structure, construction, equipment, or current building layout and safety regulations
Certificate of Correction must be filed with DOB or FDNY
Certifying by cure date is idealTo close a DOB or FDNY (ECB) violation:
1) Hearing 2) Fine 3) Correction
Know Your Compliance
Quick Poll
How do you handle sanitation violations?
Know Your Compliance6) Clean up your Sanitation violationsWhy should you attend a hearing?Sanitation violation issuance has reached record levelsPaying tickets without attending the hearing is an admission of guiltAdmitting guilty to Sanitation tickets results in ECB inspectors automatically raising future fine amounts
$25 $100 $300 $400The time issue
Administrative law firms can attend Sanitation tickets for as low as$30
Stay ProactiveIdentify different types of ECB related violations and understand how to handle them
Stay Proactive7) Work closely with your building vendorsYour vendors have thousands of devices to keep track of – you want to be at the top of their priority listBecause of the DOB’s 3 - 6 month delay in filing inspection paperwork, most vendors move on to other buildings and work on alternate devices while waiting for resultsBy the time the DOB updates an elevator’s status, possibly to Rejected or Unsatisfactory, it can be hard to backtrack and make needed correctionsKeeping the lines of communication open with your vendor is key to making sure everyone is responsible for their part in the process
Stay Proactive8) Calendar your key datesCreate a compliance calendarRSA has a key dates calendar on their website:
http://rsanyc.net/calendarKnow the city-wide due dates for inspections and filings
Make sure to include property-specific information like ECB hearing dates and HPD Self-Certification due dates
Stay InformedUnderstand the basics of handling compliance, including any alternatives, and stay aware of critical changes.
Stay Informed9) Know the steps to resolve violationsUnderstand the basics for clearing HPD violations: eCertification/CIV-194 forms Be aware of alternatives for older violations, including Dismissal Requests and Violation Reissuances, and know the difference between both:Dismissal Requests allow you to clear a mass amount of violations by inviting an HPD inspector to your propertyViolation Reissuances give new self-certification due dates to violations over a year old
Stay Informed10) Keep tabs on agency changesStay on top of recent adjustments to NYC compliance codes:
Automatic PVT ClearancesFacade Cycle 7 Amnesty periodLocal Law 45- HPD Housing Guide NoticePotential Charges for HPD Violations
Keep in touch with community organizations (like RSA) to get updated information and network with your peers
Top ten!
