NYS Legislature OKs Law Letting Syracuse Add Unpaid Housing Fines to Tax Bills

Legislation Update
June 21, 2018

Source: syracuse.com

Additional Resource:

New York State Assembly (A00416 full text)

ALBANY, N.Y. — State lawmakers Wednesday approved a law that would let the city of Syracuse add unpaid code violations to a property owner’s tax bill.

The law is intended as a tool to leverage bad landlords into fixing their properties or paying their fines. It does not apply to owner-occupied homes, and it includes protections for tenants.

If approved by Gov. Andrew Cuomo, the law would force persistent code scofflaws to pay for violations or face seizure of their property. It gives the city another tool to fight blight while saving time and resources often wasted on legal battles.

Currently, the city has to take a property owner to court to collect on unpaid code violations. There are about 8,000 outstanding violations in the city.

If a tax bill goes unpaid, the city can seize the property and transfer it to the Land Bank, which can re-sell it, renovate it or demolish it.

Those 8,000 outstanding infractions include exterior issues on vacant properties, which can have multiple violations for things like overgrown grass or broken windows. About one-third of the violations are interior, which include health and safety concerns.

In order to be added to the tax bill, a fine must be unpaid for at least one year, according to the legislature’s law. The total fine must be at least 5 percent of the assessed value of the property before it can be added to the tax bill.

The new law, if approved, would add to a series of more aggressive efforts in Syracuse to punish owners of derelict properties and fight neighborhood blight. In March, the Common Council passed a law mandating interior inspections for one- and two-family rental properties.
The city is also finalizing plans for a Municipal Violations Bureau, a sort of codes court for non-compliant property owners. It should be up-and-running in the next few months.
“This bill, together with our newly-created Municipal Violations Bureau, goes hand in hand in holding those who ignore health and safety violations more accountable and incentivize compliance from the start,” said Stephanie Pasquale, commissioner of neighborhood and business development.

The MVB will handle run-of-the-mill code violations, freeing up the city law department to more actively pursue the city’s worst offenders. Currently, dealing with minor violations chews up lots of time and resources for city lawyers.

State Sen. John DeFrancisco and Assemblyman William Magnarelli have been pushing the code violation law for at least three years. DeFrancisco sponsored similar bills that passed in the state Senate in 2015 and 2016.

“The goal of this bill [is] to hold landlords in Syracuse accountable who continuously ignore housing code violations,” DeFrancisco said in a statement. “It would also help the city enforce its collection of any associated penalties and fines, reduce administrative costs incurred in the process, and improve the quality of life in our neighborhoods.”

In prior years, the Senate bill fizzled in the state Assembly. This year it passed, Magnarelli said, because of changes to address some issues like concerns over tenants and owner-occupants.

The law was tweaked to protect owner-occupants and to require the city to make arrangements for tenants in a multi-unit property before seizing it. It also made sure to outline mandate adjudication of a violation before adding a fine to the tax bill.

“We’re not trying to take a senior citizen’s home because they failed to mow the grass,” Magnarelli said. “This is about absentee landlords.”

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties