How to Clear NYC HPD Violations and Protect Your Building’s Insurability

Worker installing Exit sign to illustrate the Dismiss HPD Violations in NYC post. — Clearing HPD violations in New York City requires current property registration. After that, it’s a matter of timing.

Why HPD Violations Put Your Building Insurance at Risk

A violation issued by NYC Housing Preservation & Development (HPD) is more than an annoyance or potential legal issue. It can also cause serious insurance problems.

Insurers thoroughly review both open violations and a property’s violation history, which can result in:

Higher premiums
Declined coverage
Declined renewals

Because insurers review open violations during initial underwriting and at renewal, building owners need to resolve them in a timely fashion, continuously, not just when applying for insurance.

The first step towards clearing violations and protecting insurance coverage is understanding both the violations and the deadlines for closing them.

How HPD Classifies Violations and Why the Timeline Matters

Not all violations are created equal. Depending on the severity of the violation, owners will have as little as one day, or as long as 90 days, to correct the issue. Once owners and managers receive violation notices, the clock starts ticking to certify correction of the violation.

HPD assigns violations to one of three classes, each with different deadlines:

Class A – Correct within 90 days
Class B – Correct within 30 days
Class C – Typically, a 24-hour certification period, except for lead-based paint, window guards, heat and hot water

Those violations and orders to correct cover three sets of laws and codes that govern housing quality and safety:

New York City’s Housing Maintenance Code
New York State Multiple Dwelling Law
Section 8 Housing Quality Standards, where applicable

Properties that accumulate unresolved violations may be targeted by HPD litigation or included in the Alternative Enforcement Program (AEP) or the Proactive Preservation Initiative (PPI). Any of these enforcement measures may result in liens or judgments against the property.

The Fastest Way to Certify Corrections and Get Back in Good Standing

Even if the deadline is 30 to 90 days away, clearing violations sooner rather than later has significant advantages.

First, it allows for more back-and-forth with HPD and more leeway if problems arise, without the stress of a looming deadline.

Second, owners have more options for clearing violations if they start the process quickly.

Third, waiting until the last minute to correct violations can cause insurance issues. If an insurer flags it, that open violation can result in increased premiums or non-renewal. Spending time, money, and energy on updating the insurer, or learning that the insurer’s decision is final, is a heavy price to pay for procrastinating.

Keep in mind that insurers want to avoid risk. If a building isn’t in good standing with the government due to open violations, an insurance company considers it riskier than a property in good standing.

HPD offers two options to certify corrections and clear the property profile:

Validly registered property owners and managing agents can submit certificates of correction for HPD violations and Housing Quality Standards (HQS) failures online. Violations and failures can be certified immediately.
To certify corrections by mail, owners and agents need to complete the Certificate of Correction of Violations form and mail it to the appropriate Borough Service Center.

HPD may inspect properties to confirm correction of the violations. For violations that do not involve lead-based paint, if no reinspection is performed, the violation will be deemed corrected 70 days after HPD receives the certification.

How to Request Dismissal and Clear Your Property Record

Requesting dismissal of violations varies for AEP and non-AEP buildings. The Alternative Enforcement Program, or AEP, is an HPD enforcement program for apartment buildings with numerous housing maintenance code violations. Owners of AEP buildings need to contact the AEP office directly at 212-863-8262. HPD will close corrected violations upon inspection.

For non-AEP buildings, after the certification period has passed, owners can mail or deliver a completed Dismissal Request form to the Code Enforcement Office in the appropriate borough. Mailed forms must include a certified check or money order for the dismissal request fee: $250 for a private dwelling (1-2 family) or $300 for a multiple dwelling with up to 300 open violations.

When Violation Reissuance Can Work in Your Favor

If a violation ages out of the certification window, property owners have an option that can save the day. HPD offers a one-time reissuance of violations, provided the property has no open violations in the past year and the property registration is current. Owners or authorized representatives can complete the Violation Reissuance Request form and submit it to the address on the form. If approved, owners can certify the violation using the above procedure. Reissued violations are treated like new violations, with new certification periods.

Staying Violation-Free: What Proactive NYC Landlords Do Differently

The best way to avoid violations and prevent potential insurance issues is to reduce risk through proactive maintenance. Being proactive also means checking for open violations regularly, at least every six months. Yes, notices are mailed to property owners, but checking HPD Online and the Buildings Information System (BIS) helps prevent surprises at policy renewal time. Understanding the critical risk management factors that influence insurance eligibility, pricing, and coverage goes a long way toward avoiding headaches.

It’s also important for building owners and landlords to understand the risks of open violations and how they can affect insurance premiums and renewals.

Finally, making a property more insurable starts by evaluating your property the way an insurance company does. Two side-by-side buildings, seemingly identical, can have widely varying insurance premiums for many reasons. It’s important to understand what those reasons are and how to correct them.

For more information on clearing HPD violations, visit the HPD website.

And don’t forget to keep track of all property upgrades. Building improvements can help your insurance partner negotiate better rates.

Call our office at 877-576-5200 or get a free insurance review to see how you can improve your risk profile.