How to Clear NYC OATH Violations and Reduce Your Insurance Risk
This article is part of a series on resolving property violations in New York City. See also: How to Clear NYC Property Violations – HPD and How to Clear NYC Property Violations – DOB.
Why OATH Violations Are a Bigger Insurance Risk Than Most Landlords Realize
Building owners often see OATH (NYC Office of Administrative Trials and Hearings) violations as annoyances, and minor ones at that.
Many don’t realize that a series of seemingly small matters can have a big impact on insurance. An underwriter evaluates the cumulative effect of multiple minor violations as an indication that the building may not be well managed. The result can include higher premiums, policy cancellations, or non-renewals.
What OATH Violations Actually Are and Who Issues Them
Building owners in New York City must maintain their properties in safe condition and in compliance with current zoning regulations and construction codes. Failure to do so can result in violations. Open—or uncorrected—violations can prevent an owner from selling, refinancing, or obtaining a new Certificate of Occupancy or Letter of Completion.
The Office of Administrative Trials and Hearings (OATH) is an administrative court that schedules and conducts hearings for violations related to NYC’s “quality of life” laws. As a judicial entity, OATH itself does not issue violations. Respondents may challenge violations at an OATH hearing, and they may face penalties if found in violation.
The most commonly issued violation is the OATH Notice of Violation. Municipal and state agencies issue these violations, including the Department of Buildings (DOB), Department of Sanitation, and Fire Department of New York (FDNY). DOB issues OATH violations when a property does not comply with New York City Construction Codes and/or Zoning Resolution. Owners who receive DOB-issued OATH violations are required to correct the condition and certify the correction to the DOB, unless the summons is dismissed at an OATH hearing.
DOB-issued OATH violations fall into three classes:
- Class 1 (Immediately Hazardous)
- Class 2 (Major)
- Class 3 (Lesser)
Building owners have options for resolving violations, depending on the class. Understanding how each strategy affects insurance coverage matters.
Your Three Options for Resolving OATH Violations Without a Hearing
Building owners who resolve an OATH violation without an OATH hearing can save time and money and may also realize insurance benefits. If an insurer’s review uncovers hearings, it may conclude that either the building or the owner is a higher risk. If a violation is upheld during an OATH hearing, it can lead to penalties that may affect insurance coverage and premiums as well.
Keep in mind that owners may be required to disclose unresolved OATH violations when applying for or renewing insurance.
Building owners have three options for resolving OATH violations without a hearing.
- Cure – Zero Penalty. This option is available for Class 3 and certain Class 2 violations. The respondent must correct the violating condition(s) and submit an acceptable Certificate of Correction by the Cure Date printed on the summons. If DOB approves the cure request, the respondent does not have to appear at the hearing or pay an OATH penalty. Curing a violation avoids an OATH hearing and penalty but does not erase the violation from the property’s compliance history. If the respondent misses the Cure Date, they must attend the scheduled hearing or admit to the violation and pay the applicable penalty.
- Stipulations. For certain violations, DOB may offer a stipulation agreement that gives respondents additional time to correct the condition in exchange for admitting the violation. Accepting an eligible stipulation before the hearing eliminates the need to appear and generally reduces the OATH penalty by half. Respondents typically receive 75 days to correct the condition and must submit an acceptable Certificate of Correction by the deadline specified in the agreement. Resolving the violation quickly, rather than taking the full 75 days, can avoid insurance issues.
- Admit Option – Standard Penalty. Respondents can admit to a violation and pay the standard OATH penalty by the scheduled hearing date. No hearing is required, and the penalty is not reduced. Respondents must still certify to the DOB that they corrected the violating conditions. Again, resolving the violation promptly can mitigate insurance issues.
How to Submit a Certificate of Correction and Resolve an OATH Violation
Building owners, or their representatives, must correct the violating conditions and submit a Certificate of Correction request online through DOB NOW. The online application requires information about the correction, electronic attestations, and supporting documentation, such as photographs, receipts, or permits. Owners must also provide proof that any applicable DOB civil penalties have been paid or waived.
DOB reviews the submission and determines whether the violation has been satisfactorily corrected. If the Certificate of Correction is approved, the violation is resolved in DOB’s records.
This handy NYC DOB user guide offers step-by-step instructions to help building owners navigate the process. Owners with questions can find most answers at the DOB Certificate of Corrections FAQs.
Owners can submit a Certificate of Correction after correcting the violating condition. The hearing and certification processes are separate.
For more information, visit the DOB website. Owners who are new to the process should start with these convenient DOB resources.
How Resolving OATH Violations Strengthens Your Insurance Position
The more a building owner can reduce risk, the more favorably an insurer will evaluate the building. Avoiding OATH violations, or resolving them quickly, can go a long way toward that goal.
For related information that can help building owners resolve other types of NYC violations, see How to Clear NYC HPD Violations and How to Clear NYC DOB Violations.
