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How to Avoid the Alternative Enforcement Program

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Posted By Kristen Hariton

There are plenty of exclusive clubs in NYC, but there’s at least one you don’t want membership in – the Alternative Enforcement Program. HPD’s AEP (say that five times fast) is an enforcement tool for regulating distressed properties in the five boroughs. Buildings are selected for inclusion in the AEP each January based on specific selection criteria.

Since the AEP began, approximately $60 million has been collected in ERP and AEP charges and fees.

The selection criteria have evolved since the first AEP Round of properties (established via LL 29/07). Here’s some key things to remember based on the most recent amendments to the statute:

  • While the round size used to be 200 properties per year, it has since increased to 250 buildings per year
  • Selection criteria is now more flexible, and can be adjusted based on the number of eligible buildings

General selection criteria for Round 8:

If building >= 20 units: A ratio of 3+ open class B & C violations per DU issued in the past 5 years AND paid or unpaid ERP charges >= $2,500 incurred in the past 5 years

If building >=3 and <20 units: a ratio of 5+ open class B & C violations per DU issued in the past 5 years AND paid or unpaid ERP charges >= $5,000 incurred in the past 5 years

Stats about buildings selected for the AEP in Round 8:

  • Average size: 13.9 units/building
  • Average open B & C violations from past 2 years: 5.9
  • Most frequently issued Order to Correct: Replace Roof
  • According to HPD, many buildings in the AEP were first identified in PPI – the Proactive Preservation Initiative

Program recommendations included limiting the amount of smaller properties in the AEP – in Round 8, 111 buildings with >=6 units were selected, compared to 25 buildings of the same size for Round 9. That said, larger properties account for a higher percentage of discharged buildings after the first 4 months. For more AEP Statistics, read HPD’s 2016 report to the City Council.

The best way to avoid inclusion in the AEP is to close open B & C violations, and pay outstanding ERP charges.

What do I do if my property is selected for the AEP?

Selected buildings have 4 months to close open violations, confirm property registration, pay outstanding ERPs, and submit affidavits for mold and lead correction (if applicable). Failure to comply may result in Orders to Correct, significant fines, burdensome inspections and repairs, and ultimately tax liens on the property. Click here to find out more about AEP rules.

Kristen Hariton

Kristen Hariton is the Product Marketing Strategist at SiteCompli. A member of the SiteCompli team since March 2013, Kristen has learned more about compliance and property operations than she ever thought possible. When she's not sharing the latest industry trends, changes, and updates, she's planning her next adventure to Walt Disney World.

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