Operations and Improvements of the Department of Buildings

Task Force on Operations and Improvement of the Department of Buildings

October 16, 2007

Good afternoon. My name is Jennifer Barrett, and I am the Policy and Research Associate of the New York Industrial Retention Network (NYIRN). NYIRN appreciates the opportunity to suggest ways to improve the operations of the Department of Buildings.

NYIRN is a citywide economic development organization that works with manufacturers to promote a diverse economy and to provide employment opportunities for all New Yorkers. Since 1997, NYIRN has worked with 2,200 industrial businesses, most of which seek our help with real estate assistance. The current real estate market in New York is incredibly tight; vacancy rates for industrial space are less than 5%, making it increasingly difficult for businesses to remain in the City.

Effective enforcement of the Building Code and Zoning Resolution is essential to job creation and a decent quality of life for many vulnerable New Yorkers. In short, DOB needs to be more aggressive and pro-active in its enforcement efforts, but DOB must be given adequate funding to fulfill its mission.

By working to prevent illegal building uses and conversions, the Department of Buildings can help to save jobs. The Mayor’s 2005 industrial policy highlighted the importance of stable real estate conditions to job creation, and established some preliminary steps for industrial retention, including Industrial Business Zones (IBZs) and the Office of Industrial and Manufacturing Businesses (IMB). In addition, Local Law 37, which was signed two months ago, allows DOB to increase fines for illegal conversions.

A report released by NYIRN in 2004 documented the significant loss of industrial space due to illegal conversions in the East Williamsburg Industrial Business Zone. The study found that 27 industrial buildings had been illegally converted, representing a loss of 500,000 SF of manufacturing space (or enough space to house 1,000 jobs). The study also revealed a significant loss of revenue to the City due to lenient actions or uncollected fines. For example, 2 of the 27 buildings with illegal conversions, only 14 had received fines and of those, only 4 had received multiples fines, although DOB could have done so in every case. More information from this study is also summarized in an Appendix that is attached to our written testimony.

We believe that the Department of Buildings has taken very positive steps to increase compliance with City regulations, including stricter review of building plans and additional resources for inspection. We encourage DOB to continue to enforce regulations by:

1. Implementing Local Law 37 to raise penalties and issue fines for illegal uses and violations of Certificates of Occupancy or the Zoning Resolution.

Enforcement should include:

a. Conducting building inspections, especially after the completion of building renovations (currently DOB is not required to do so unless requested by the owner);
b. Issuing repeat violations for non-compliant building uses;
c. Facilitating the collection of fines by the Department of Finance; and
d. Making fines a lien on a building.

Second, NYIRN believes that DOB can enforce regulations by:

2. Working with other agencies to further deter illegal conversions including the Board of Standards and Appeals (which is responsible for variances to change a building’s use) which needs to tighten its review process, the Environmental Control
Board (ECB) (which imposes fines), the Department of Finance, and the Mayor’s Office of Industrial and Manufacturing Businesses (which oversees the City’s Industrial Business Zones).

In closing, leniency and lax enforcement of regulations threaten the effectiveness of zoning, and thereby undermine a community’s ability to shape its land use and to preserve the jobs of many New Yorkers. We encourage the committee on the Operations of DOB and other agencies to continue to address these issues.

Thank you.