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  HPD inspections jump from $135 to $300

Multi-family housing owners are protesting New York City's decision to raise the fee for an on-site inspection from $135 to $300.

These inspections are usually requested by owners to clear previous violations and are needed for many housing court cases, for Maximum Base Rent (MBR) and Major Capital Improvement (MCI) applications and for loans or sales of buildings.

"Apart from the fact that an increase of more than 100 percent is outrageous even for the City of New York," said Dan Margulies, executive director of the Community Housing Improvement Program (CHIP), "and considering they told us the $135 was set to cover expenses in full just two years ago - if in fact their costs have more than doubled, that tells us all to run from the city."

The new Dismissal Request Program cost of $300 is based on the actual cost to Housing Preservation & Development (HPD) providing this service, as was determined after an analysis, said spokesperson, Roz Post. Under this program, an inspector comes within 45 days.

The price increase, signed by Housing Preservation & Development Commissioner Felice L. Michetti on Sept. 22, goes into effect Nov. 9 said Post. HPD is in charge of administering code violations. Post said according to an attorney in their legal department, if a request comes in for an inspection before Nov. 9, the cost will be $135.

"I urge anyone who knows they need a reinspection for refinancing or another reason in the next few months to get it done right away," said Margulies.

John J. Gilbert III, president of the Rent Stabilization Association said, "It's indicative of the way New York City government looks at property owners - and that is they act as if property owners will be there forever no matter what onerous or burdensome regulations are put on."

Margulies explained it will now cost an owner a month's rent to establish that previous violations have been cured.

"They have gutted this program for smaller owners and have made it cost prohibitive," Margulies said.

Gilbert calls the fee rise a "prescription for disaster" because it ignores the 270 percent increase in rem actions over the last four years.

"This is not the only way to get violations removed," Post insisted. When violations are placed, they are supposed to be certify within a certain period of time, for which extensions are available. "If they certify on time and the city is unable to reinspect, in the computer it will indicate |deem complied'," Post said.

That system has only been in place for the last three years, however, and, Margulies said there are still literally hundreds of thousands of violations in the computer for conditions corrected years ago because for a long time, owners' certifications were ignored.

There is still a large number that remain uncertified, Margulies said, including new violations that for multiple reasons, cannot be certified in a timely manner.

Margulies expects a sharp cutoff in the number of requests. "They are going to have half as many jobs and that will prolong the use of bad data." he added.

I. Scott Edelstein, a partner with the Bronx-based law firm of Novick Edelstein Lubell Reisman Wasserman & Leventhal, P.C., believes the cost will not reduce the number of inspections.

"You need it for a comprehensive case to show that the violations have been removed," he said, "and when applying for a loan or refinancing you don't want the violations. They are going to be forced to swallow the costs.


 
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