NYC Loft Boards Enforcement Plan Part 1: Available Tools and Current - PowerPoint PPT Presentation

NYC Loft Board’s Enforcement Plan Part 1: Available Tools and Current Practices By: Cynthia Leveille, Assistant General Counsel

Overview • Enforcement Proposal Objective • Milestone Categories Breakdown (Trishawn Raffington) • Enforcement Measures Types: – Legalization – General 2

Objective To induce compliance with the legalization requirements of the Loft Law and encourage overall compliance with the Loft Board’s rules. 3

IMD Buildings Milestone Overview 4

Legalization Enforcement • Cooperative and Punitive Measures – Cooperative Measures • No imposition of violations/fines – Punitive measures • Issuance of violations and subsequent fines • Litigation 5

Cooperative Measures (Legalization) • Informational/Warning Letters • Owner Informational Sessions • Legalization Conferences • Meet with owners and design professionals • Discuss legalization obstacles • Staff to answer questions 6

Legalization Related Enforcement Measure • Failure to Update Owner Contact Information or Change in Ownership • 29 RCNY § 2-05(b)(10) • Procedure: – Owners must notify the Loft Board of changes within 5 days – Staff issues notice of violation – Fine: $4,000 may be imposed via Staff Administrative Determination 7

Punitive Measures (Legalization) • Failure to Take All Reasonable and Necessary Action • Specific Performance Actions 8

Reasonable and Necessary Action: Inspections and Hearings • 29 RCNY § 2-01.1(b)(1) • Procedure: – Executive Director authorizes inspection – Inspector submits report – Staff issues Notice of Proceeding and referral to OATH or ECB • OATH ALJ/ECB Hearing Officer determines violation and fine per 29 RCNY § 2-11.1 • Fine: $1,000 per day up to $17,500 9

Reasonable and Necessary Action: Missed Deadlines - No Hearings Required • 29 RCNY § 2-01.1(b)(7) • Procedure: – Executive Director issues N.O.V. for failing to: • File Alteration 1 Application within 6 months of issuance of IMD number • Obtain Alteration 1 Permit within 3 months of issuance of Loft Board certification • Maintain an active Alteration 1 Permit • Maintain an active Temporary Certificate of Occupancy • Fine: $1,000 per day up to $17,500 10

Specific Performance Actions • MDL § 284(ix) – Where an owner fails to meet the code compliance deadlines by failing to take all reasonable and necessary action, the Loft Board may commence an action for specific performance. – Loft Board must make a finding before commencing the action – What kind of finding? • Prior Loft Board decisions for Failure to Comply with the Code Compliance Timetable (BV Docket) • Failure to Take All Reasonable and Necessary Action to Legalize (New Docket) 11

General Enforcement Measures • Failure to Timely Renew Building’s Annual Registration (FO Dockets) • Failure to Maintain the Minimum Housing Maintenance Standards • Failure to File Monthly Legalization Progress Report • Failure to Timely File Article 7-C Sales Filings • Failure to Post IMD Sign 12

Failure to File Monthly Progress Reports • 29 RCNY § 2-01.1(a)(1)(ii)(A) • Compliance checks conducted twice a year • Notices of Violation issued • Executive Director issues Administrative Determination imposing a $1,000 fine 13

Failure to Timely File Article 7-C Sales Filings • 29 RCNY §§ 2-10 & 2-07: require filing of sales documents within 30 days from the date of sale • Filings are reviewed for deficiencies and timeliness • Notice of Violation issued for late filing • Administrative Determination imposing a $4,000 fine 14

Failure to Post IMD Signs • 29 RCNY § 2-05(b)(13) • Owners must post IMD Signs in the lobby within 5 business days of issuance of IMD number • Inspector periodically conducts compliance checks • Staff’s window campaign • Non-compliance may result in $1,000 15

Schedule of Fines Type of Enforcement Applicable Loft Board Penalty Rule/Statute Failure to Take All Reasonable 29 RCNY § 2-01.1 $1,000 per day up to and Necessary Action $17,500 Failure to Timely Renew 29 RCNY § 2-11.1(b)(3) 1 year: $5,000 Building’s Annual Registration 2 years: $10,000 3 or more years: $17,500 Failure to Maintain the 29 RCNY § 2-04(e)(8) 1 st Offense: $750 2 nd Offense: $2,000 Minimum Housing 3 rd Offense: $3,000 Maintenance Standards Additional daily penalties $10-$125 Failure to File Monthly 29 RCNY § 2-11.1(b)(5) $1,000 per missing report Legalization Progress Report Failure to Timely File Article 7- 29 RCNY § 2-11.1(b)(6) $4,000 C Sales Filings Failure to Post IMD Sign 29 RCNY § 2-11.1(b)(6) $1,000 16

Conclusion • Enforcement Plan Part 1: – Cooperative and Punitive Measures – General Enforcement Measures • Enforcement Plan Part 2: – Discussion September 20, 2018 Meeting – Implementation and Staff’s Proposed Strategic Enforcement Plan • Loft Board’s Suggestions and Ideas 17

QUESTIONS??? 18