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QUESTION

What are the new enforcement mechanisms for the J51 program?

1:46:52

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The Deputy Commissioner explains that the new J51 program iteration has much more expansive enforcement options compared to the previous version.

HPD can revoke benefits if owners fail to comply with rent stabilization requirements, engage in tenant harassment, or commit other substantial violations.
HPD can extend the restriction period or increase the number of qualifying rent units.
HPD can impose fines or appoint a receiver.
There is potential criminal liability for unauthorized property uses like Airbnb rentals, with possible misdemeanors, fines, or imprisonment.
Tenants now have a right of private action.

Pierina Ana Sanchez

1:46:52

How are the enforcement mechanisms in this iteration of the program different from the previous version?

Kim Darga

1:46:57

Mhmm.

1:46:58

These are much more expansive, and let me just pull it because I have a there's a long list of things year.

1:47:06

So historically, our main enforcement option was around revocation.

1:47:13

And now there's a lot of interim other options that we have available to us.

1:47:19

So We can revoke if the owner fails to comply with rent stabilization requirements, engages in tenant harassment, or commits other substantial violations of the program requirements.

1:47:32

HPD can also though extend the restriction period, increase the number of qualifying rent units impose a fine or a point of receiver.

1:47:42

And we also there is ability to look at criminal liability for unauthorized uses of the property, which could include renting units.

1:47:57

Through Airbnb, for example.

1:48:01

Also possible misdemeanor with possible fines of two times the value from unauthorized use or 90 days imprisonment.

1:48:12

And we also now have there is an ability for a tenant right of private action as well.

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What assistance or help will HPD provide for residents who want to pursue a private right of action?