How Open Violations Can Create Risks for NYC Property Owners
Open violations can cause problems for landlords when renewing the building’s insurance policy, even if they still have time to correct and certify the violation before the agency deadline.
As part of our annual review process, we request property reports from the New York City Department of Housing Preservation & Development (HPD) and other municipal agencies as a courtesy. We conduct the same due diligence when securing quotes for new policies. Why? Insurance companies review these reports to evaluate risk when issuing or renewing policies.
Open violations may also indicate larger property maintenance concerns, including water intrusion, unsafe electrical conditions, pest activity, façade deterioration, or deferred repairs. Left unresolved, these issues can contribute to tenant complaints, operational disruptions, increased repair costs, and long-term building risk.
Too often, we discover open violations, which require last-minute scrambling. Sometimes the property owner is unaware of the violations and must now correct the non-compliant conditions. Sometimes, corrected violations have not been updated by the issuing agencies. Either way, open violations can have a negative impact on property insurance, resulting in higher premiums, potential coverage gaps, or even policy cancellation.
How to Check for Open Violations in NYC
Building owners should receive Notices of Violation (NOVs) in the mail. These notices are mailed to the managing agent on record based on the most recent property registration.
In addition, building owners in New York City should check the following websites for open violations every six months:
Users can search for property records by street address or by entering the Block and Lot numbers. If any violations appear for which NOVs were not received, the owner should update the property registration.
For a fee, New York City building owners can also request printouts of all outstanding HPD building violations by contacting the local Borough Service Centers. The Division of Code Enforcement, which handles housing code violations, is open from 9:00 a.m. until 4:00 p.m. most weekdays, except Wednesdays.
How the NYC Violation Correction Process Works
The correction and certification process can be complex and time-consuming, depending on the nature of the infraction and the associated agency. NOVs include the violation type and class, as well as the following information:
- Deadline for violation correction
- Deadline for owner certification of correction
- Civil penalties associated with failure to certify correction by the deadline
- Special instructions for correction
- Instructions and forms for paper certification
- Information on online certification
Some violations can take weeks to correct. Then, building owners must certify the correction. Certain violations—such as those related to lead-based paint, mold and pests—cannot be certified online. Paper certifications must be notarized and submitted to the agency on or before the certification date indicated on the NOVs.
How to Clear Violations Faster
HPD may inspect properties to confirm corrections. If no inspection is performed, HPD will consider the violation “Deemed Corrected” after 70 days. With an insurance renewal—or some other pressing property matter—on the line, this wait period may be too long.
After completing the building repairs, certify the correction online using HPD’s eCertification system or mail a completed Certification of Correction of Violations form to your Borough Service Center. (NOTE: If you use eCertification, save or print a copy of the confirmation screen for your records. You won’t receive a confirmation email.)
Then, call your Borough Service Center and request an inspection to verify the correction and clear the violation sooner. There’s no guarantee, however, that HPD will be able to accommodate your request, so we strongly encourage you to check for property violations as part of ongoing due diligence.
What Happens if NYC Violations Remain Open?
Failure to correct and certify violations by the specified deadline can subject New York City building owners to civil penalties, inspection fees and additional enforcement. Immediately hazardous violations may be corrected through HPD’s Emergency Repair Program (ERP). All expenses incurred under the ERP are charged to the building owner.
But the potential consequences of open violations don’t end with city agencies. As mentioned earlier, insurance companies regard open violations as red flags signifying increased risk. Depending on the nature and number of violations, an insurance policy may not be renewed due to open violations.
To avoid potential cancellation of your building’s policy, set a reminder once or twice each year to check HPD and DOB violation records online and start clearing open violations well before your insurance renewal date.
Why NYC Property Owners Should Address Violations Quickly
Conversely, by checking for and promptly correcting open violations, building owners will find that other business goals run more smoothly.
Correcting violations quickly can help you:
- Avoid problems or surprises if you decide to sell or refinance your property
- Maintain or increase the value of your property
- Improve the safety and security of your building
- Ensure tenant satisfaction
- Lower the risk of lawsuits from an uncorrected violation
- Reduce underwriting concerns that may affect insurance renewals or premiums
- Avoid fines, penalties and emergency repair costs if you’re not able to correct and clear certain open violations by the deadline
Protect Your Building and Coverage with Help from City Building Owners Insurance
Since 1976, Stu Cohen and his team at City Building Owners Insurance have partnered with owners of brownstones, mixed-use properties, and small apartment buildings to reduce their risk profile and qualify for lower insurance rates. They offer risk management expertise to building owners year-round, helping to identify maintenance and operational issues before they become violations, claims, or larger property problems.
For a free, no-obligation review of your current building insurance policy, please call us at 877-576-5200.
