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City fails to collect $1.5B in outstanding fines and violations

Spotlight put on Kushner Cos.

Mayor de Blasio (Credit: Office of the Mayor)

The City has failed to collect more than $1.5 billion in outstanding fines for various violations. Much of that sum is comprised of building code and construction violations. It doesn’t help that the statute of limitations on such fines expire after eight years

Part of the game… Most of the violations are issued by the DOB to landlords who own properties through LLC’s and view the fines as part of the business. Owners can continue to obtain permits from the city without paying their balance, so there is no incentive to write a check. 

Lost cause: Around half of the $1.5 billion has been deemed non-collectible.

The perils of political spotlight: Kushner Companies owes $500,000 for building code violations, which is a pittance relative to the $1.5 billion. AP was first to uncover the news.

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