Identifying unlawful statements in submissions to the DOB.

A Local Law to amend the administrative code of the city of New York, in relation to identifying unlawful statements in submissions to the department of buildings

This bill would (a) require the Department of Buildings (DOB) and the Department of Finance (DOF) to share information in order to identify cases of false statements regarding occupied and rent-regulated housing; (b) require DOB to request information from the Division of Housing & Community Renewal (DCHR) to identify false statements regarding occupied and rent-regulated housing; (c) require DOB to conduct an audit of an owner’s whole portfolio of properties using information obtained from DOF if the owner has been caught either failing to obtain a building permit or submitting false statements regarding occupied and rent-regulated housing on an application for a building permit; (d) require DOB to audit 25% of buildings on the Department of Housing Development and Preservation’s speculation watch list for their compliance with building permit requirements on an annual basis; and (e) require DOB to audit the whole portfolio of owners who have an unusually high number of amended building permits that indicate a change in occupancy, a change in whether the building contains rent-regulated units, or a change that would require the owner to submit an application for a new permit to the department. When DOB has made a finding that an owner made a false statement, the bill would also require DOB to: (a) send written notice to the NYC Council, the Department of Investigations, the Division of Housing and Community Renewal, and the Tenant Protection Unit; (b) refer the matter to the relevant District Attorney and the Attorney General for potential criminal prosecution; and (c) report on the punitive actions it took in every case in which it found evidence of a falsified application for a building permit.