The Real Estate Board of New York to The New York City Department of Buildings on Draft Rules for Affirmation of Correction Elevator Violations

Download the Comments

REBNY appreciates this opportunity to testify on this draft rule regarding certain elevator violations.

Overview:

In late 2023, the Department of Buildings (DOB) issued a significant number of violations related to elevator testing, inspections, and the filing of Affirmations of Corrections (AOC), which attest to the fact that minor violations or other issues discovered during testing and inspections have been successfully remedied.

These violations were retroactive to 2018, and span two different building codes where violations were late- and non-filing of AOCs were handled differently. In the code period covering 2018 to mid-January of 2022, the late filing of AOCs carried a $150 monthly fee, capped at $3,000. If the AOC was not filed for a year, there was an additional $3,000 assessment per elevator. Following mid-January of 2022, when the most recent code update took effect, there was a two-week period to file AOCs, the $3,000 non-filing fee was assessed when that window was missed, and late filing carried the same capped $150 fine as well.

Notwithstanding DOB’s efforts to educate stakeholders, such as elevator contractors and building owners, about the changes in these violations, many were caught off guard by the number and cost of violations issued in late 2023. In some cases, these violations amounted to millions of dollars for a single company.

The draft rule clarifies this situation by providing relief for AOC violations issued in the first two years of the code cycle that went into effect on January 15, 2022. Under the proposed rule, AOC violations issued in 2022 will not be assessed for owners who filed their AOC by April 14, 2023. In addition, AOC violations issued in 2023 will not be assessed to owners who submit their AOCs by April 14, 2024. The existing timeframes for filing reports and AOCs under the 2022 code apply beginning with the 2024 inspection and test cycles.

Comments:

REBNY commends DOB for putting forward a fair and judicious remedy to this situation. This proposed rule prudently recognizes the significant confusion in the market that occurred when several years of financial penalties were assessed at one time. We applaud the Commissioner and DOB staff for working hard to find a reasonable remedy for buildings and contractors in a way that promotes compliance moving forward rather than punitively punishing past bad action.

To improve the proposal, we encourage DOB to provide a grace period prior to assessing the $3,000 non-filing charge. Currently that $3,000 penalty is imposed at the same moment as the first late fee is issued. We suggest that the non-filing fee should be assessed when the filing is over 6 months late.

Thank you for the opportunity to comment on the proposed rule.