1. 1. Top 10 Ways to Conquer Compliance Challenges and Save Money
2. 2. SiteCompli SiteCompli is a technology company that provides compliance monitoring solutions to NewYork 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
3. 3. THEWIDEWORLD OF COMPLIANCE
4. 4. Presentation Overview Goals of todays 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
5. 5. Quick Poll Which city agency is your biggest challenge?
6. 6. Know your Data Identify the information associated with your portfolio and understand how and when to respond
7. 7. KnowYour Data 1) Respond immediately to complaints Being vigilant will allow you and your team to look into complaints before an inspector has time to arrive on property The best offense is a good defense Have a response process in place Record all steps taken to assess any issues Investigating a tenants complaint as soon as youre aware of it greatly reduces the possibility of a violation being issued
8. 8. KnowYour Data 2) Know your building inside and out Boilers, 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 thats associated with your building is the first step to organizing testing dates and due dates
9. 9. KnowYour Data: ELEVATORVIOLATIONS PVTs DOB (ECB) Violations ADMINISTRATIVELY 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 hearing Dismissed 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
10. 10. KnowYour Data 2) Know your building inside and out Ensure old equipment has been properly decommissioned Communicate regularly with ground-level retail tenants Consider the entire lot, not just the building on top of it
11. 11. KnowYour Data: JOBS AND PERMITS
12. 12. KnowYour Data 3) Keep track of applications & associated work permits Jobs 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 PermitViolation can be issued if: Work continues beyond the permits 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 aWorkWithout a PermitViolation.
13. 13. Know your Compliance Identify different types of ECB related violations and understand how to handle them
14. 14. KnowYour Compliance 4) Know the ABCS of the ECB NYC agencies issue the actual violations to responsible parties ECB (Environmental Control Board) determines whether or not the party committed the infraction and should pay a penalty All 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
15. 15. KnowYour Compliance 4) Know the ABCS of the ECB Attending the hearing gives the named respondent an opportunity to present proof of compliance, or fight the violation entirely Not 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
16. 16. KnowYour Compliance 5) Know your FDNY and DOB NOVs Both 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 ideal To close a DOB or FDNY (ECB) violation: 1) Hearing 2) Fine 3) Correction
17. 17. KnowYour Compliance
18. 18. Quick Poll How do you handle sanitation violations?
19. 19. KnowYour Compliance 6) Clean up your Sanitation violations Why should you attend a hearing? Sanitation violation issuance has reached record levels Paying tickets without attending the hearing is an admission of guilt Admitting guilty to Sanitation tickets results in ECB inspectors automatically raising future fine amounts $25 $100 $300 $400 The time issue Administrative law firms can attend Sanitation tickets for as low as$30
20. 20. Stay Proactive Identify different types of ECB related violations and understand how to handle them
21. 21. Stay Proactive 7) Work closely with your building vendors Your vendors have thousands of devices to keep track of you want to be at the top of their priority list Because of the DOBs 3 - 6 month delay in filing inspection paperwork, most vendors move on to other buildings and work on alternate devices while waiting for results By the time the DOB updates an elevators status, possibly to Rejected or Unsatisfactory, it can be hard to backtrack and make needed corrections Keeping the lines of communication open with your vendor is key to making sure everyone is responsible for their part in the process
22. 22. Stay Proactive 8) Calendar your key dates Create a compliance calendar RSA has a key dates calendar on their website: http://rsanyc.net/calendar Know 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
23. 23. Stay Informed Understand the basics of handling compliance, including any alternatives, and stay aware of critical changes.
24. 24. Stay Informed 9) Know the steps to resolve violations Understand the basics for clearing HPD violations: eCertification/CIV-194 forms Be aware of alternatives for older violations, including Dismissal Requests andViolation 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 property Violation Reissuances give new self-certification due dates to violations over a year old
25. 25. Stay Informed 10) Keep tabs on agency changes Stay on top of recent adjustments to NYC compliance codes: Automatic PVT Clearances Facade Cycle 7 Amnesty period Local Law 45- HPD Housing Guide Notice Potential Charges for HPDViolations Keep in touch with community organizations (like RSA) to get updated information and network with your peers
26. 26. Top ten!
27. 27. Questions? Contact Us Email support@sitecompli.com Visit us at www.sitecompli.com