QUESTION
What professionals are part of the new compliance team in the Office of Development and what are their responsibilities?
0:23:14
·
124 sec
The Deputy Commissioner explains that the new compliance team monitors whether building owners receiving tax benefits like 421a and J51 comply with requirements like rent stabilization.
- The team was created over 5 years ago to monitor compliance with the 421a tax exemption program.
- It requires data sharing and coordination between HPD and the state's Homes and Community Renewal agency (HCR).
- If non-compliance is found, building owners are notified and given a chance to address the issue before enforcement action.
- The goal is to set up a similar compliance regime for the J51 program going forward.
Pierina Ana Sanchez
0:23:14
Can you can you just for a moment, share a little bit more about that new function.
0:23:18
So you said the office of development has a new compliance team.
0:23:22
Yeah.
0:23:22
What kind of professionals do we Yeah.
Kim Darga
0:23:24
So we There were you know, this originally came out of concerns around another, as of right, tax exemption program 421A, where there were concerns that owners were getting a significant city tax benefit without complying with regulations.
0:23:44
1st and foremost, the biggest one being rent stabilization.
0:23:47
And so the unit was created a little more than 5 years ago now in order to specifically ensure or set up procedures for complying with 420 ensuring compliance with 4 21a.
0:24:04
And the that requires a fair amount of data coordination between HPD and HCR.
0:24:12
Right?
0:24:12
HCR is the body that actually, you know, where owners enter units into rent stabilization.
0:24:20
They do their annual register duration process, HPD doesn't collect that data separately.
0:24:25
So for us to be able to monitor compliance, we have to have data sharing agreements with HCR, get that data, and then analyze it, compare it to the buildings that have received a benefit.
0:24:38
So We have some experience with that now for 421a, and our hope would be to set up similar types of compliance regimes for J51 going forward.
0:24:52
If we find generally speaking the way it works is that If we find eye compliance, once we've evaluated the data, we notify the building owner, and they have an opportunity to cure or address that compliance issue.
0:25:07
Our primary goal is always to get the building owner into compliance with the requirements of the program.
0:25:14
And if not, we would potentially then take enforcement action.
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What properties lost their J-51 tax benefits over the last 10 years and why?
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What is the current memorandum of understanding between the Department of Housing Preservation and Development (HPD) and the Division of Housing and Community Renewal (DHCR) regarding sharing rent registration information?