Dealing with Inherited Violations
Does anyone know what our risks are if inspectors come and see we are using as a 3 family with a 2 family c/o?
We have discovered that there are about 2 dozen 6 year old violations still on the books for our property. Almost all are in the range of “broken lock” missing bathroom door” etc that were common as the property descended to crack house in the late 90’s. in
The dilema is the c/o is for a 2 family but has been used (and taxed) as a 3 family for decades. We bought the property already renovated (and truly ignorantly with the violations still on the books.) but now are at the 11th hour of a refinance and don’t know if we can close with the viloations.
Does anyone know what our risks are if inspectors come and see we are using as a 3 family with a 2 family c/o?
Tremendously grateful in advance,
EJ
I’m the original poster, we are closing the laon today (knock wood) but have to sign an affadavit that we will submit the application to HPD w/in 30 days. On the app. it’s very clear that we need to write the “Multi-unit resigstration number” or the application will not be processed. On our list of violations it’s very clear that we have “NO registration number” –obviously because we are not a multi family…I wonder how we ended up with violations at HPD without being under their jurisdiction.
It also says that if the inspector can see 75% of the building and the violations there are clear that the others in the part of the building not seen will be forgiven. I may try to use this tactic if the inspector comes….not let him into one unit so he does only see 2 apartments.
Would love to know what happens to the previous poster.
We have a similar problem. We recently bought a 3 unit building. The tax records showed a 3 unit; HPD records show a 2 unit. There were 6 HPD violations on the building – all but one were very minor. The bank financed the building but requried a substantial escrow. We need to get the violations removed to get the escrow back. The form for requesting an inspection requires that we state the number of units. We need to state 2 to get the inspection. Will an inspector care that there are 3 units rather than 2?
HPD is awful to deal with, sorry to say. As you’ve discovered, they don’t answer the phone. I had to go all the way out to Euclid Ave by JFK to get some info on a brownstone I wanted, but there is also an office in Brooklyn Heights that may have what you need.
when we bought our place there were several rather low grade violations, the result of a contentious relationship between the former owner and a tenant (tenant called in violations for things like a broken fence). our bank just had us put aside a small amount of $ in escrow which we get back upon resolving the violations. honestly, i’m not planning on getting them resolved, our place is in great shape, but i’m not too keen on a city inspector making the rounds.
So far the bank’s attorney is acting like it is not at all a done deal. Found out more since I posted this AM. We have no violations with Buildings dept. but all are with Housing Preservation (HPD) on of NYC’s most archaic and inefficient. Infact in the past 2 years (i.e. AFTER we purchased) they have just begun to put records on a computer which is why these violatons showed up now and not when we bought. It looks like I will have to go stand on line at the office, since no one answers the phone,to arrange for an inspection which will take at least 30 days (long after my rate lock runs out). And pray that the bank will look at the pictures on the appraisal and realize these violations exist on paper only.
As far as the c/o issue yeah, it’s a risk. but between getting these vilations cleared vs. the risk of having to rent it as a 2 family…I would rather clear the violations.
Thanks for input. Happy for more especially if anyone has dealt with HPD.
Yes, I know lots of people who use their 2 family C/O building as a 3. Illegal but done all the time. In addition I see lots of 2 family buildings used as rooming houses. The city clearly is lame about inspections. I often wonder why? I guess it’s easy money for the city to put all their time in traffic law. I’ve passed up on some nice 2 family buildings that I could have made the numbers work really well. The above poster is right ” Your insurance company may not pay out if a fire starts” and imagine if a tenant dies because of that fire! Imagine that! If only I was a risk taker. I could make so much more money if I had the guts…….. or do they call that “true grit”? Anyway, breaking the law and leaving myself open for a great deal of liability is not my thing. But I do sleep well at night.
The violations aren’t an issue, they are easy enough to get dismissed if the problems have been corrected. The only ones a bank may be concerned about are ‘C’ violations which are the most serious ones and even then they may not care.
Now the other issue you have, using a 2-fam as a 3-fam, that can be a very serious issue. Your insurance company may not pay out if a fire starts in the illegal apt and if the DOB finds out about the extra unit they can fine you and force you to rip out the apt (basically the kitchen.)
Most likely the bank won’t even know unless you are claiming the rental income from the extra unit to qualify for the loan. Even then it may slip past them.