Mamdani Offers Amnesty Program to Clear Building Violations

Building owners have a chance to clear longstanding violations for less under a new amnesty program. But not every violation is covered.

Called “Debt Demolisher,” the program from the Mamdani administration provides up to 75 percent off penalties stemming from the Department of Buildings and other agencies as an incentive to resolve the infractions. Landlords, along with small business owners and homeowners, now have a 90-day window to resolve outstanding debt accrued from city fines and stave off future Environmental Control Board penalties or Department of Finance tax liens.

The city expects Debt Demolisher to bring in $25 million in unpaid penalties after waiving accrued interest and resolving debts at a discounted rate, which would have otherwise gone uncollected, according to the announcement.

“Resolving open violations helps property owners protect the safety of their tenants and other occupants while bringing their buildings into compliance,” Buildings Commissioner Ahmed Tigani said in a statement.

Violations related to faulty boilers, broken elevators and facade repairs are among the types of infractions that landlords and homeowners can seek to resolve for reduced penalties until Jan. 10, 2027, but only those that have gone through the ECB judgment process.

Penalties related to missed inspections and other violations handled directly by the DOB itself aren’t eligible for amnesty under the program. The amnesty program also doesn’t apply to ECB judgments entered after July 15, violations that are subjects of criminal investigations or any judgments being handled by the city marshal, sheriff’s office or corporation counsel. Penalties issued following a citizen’s complaint related to infractions like idling and noise violations are ineligible as well.

Property owners who opt to take part in the amnesty program will either pay a base fine or save up to 75 percent off the original penalties after certain fines and interest have been waived.

“We were anticipating them giving us a little advance notice,” Mark Hertz, CEO of professional expeditor outfit Mark Hertz Group. “No, this morning we came in and we got notice that this was going into play.”

Judgments that require both payment and corrective action are only eligible if the property owner can obtain a certificate of correction from the issuing agency, which could create bottlenecks if a large volume of applicants suddenly seek documentation to comply with the amnesty program’s eligibility criteria. Delays could make the amnesty deadline a tight turnaround.

“Paying the penalties within the 90-day window is no big deal,” Adina Goldbrenner of Mark Hertz Group said, noting that the DOB typically takes four to five weeks just to certify a violation has been corrected. “As soon as they get hit with that volume of people who need to be certified, it’s not going to be four, five weeks anymore. That response time is going to slow down immensely.”

Distressed buildings with violations at risk of converting into tax liens may benefit from the amnesty program, which could keep them out of foreclosure. Violations that have already been converted to tax liens aren’t eligible for the program.

The city had $573 million in outstanding fines from ECB judgments at the start of fiscal 2026, plus $744 million more that are “uncollectible,” according to testimony by DOF Commissioner Richard Lee at a City Council hearing on the amnesty program in August.

Overall, the budgeted ECB collection target was more than $100 million for fiscal 2027, which includes the $25 million expected collections from the amnesty program. A prior amnesty program administered in 2021 brought in more than $43 million in additional revenues, Majority Leader Shaun Abreu noted at the Council hearing.

“Anything that’s greater than $25,000 does not get docketed by ECB, and that’s a quirk of the New York State law,” Hertz said. “It would have been a benefit for [the city] to conquer their $5.4 billion deficit that they’re running by doing the same thing for more DOB penalties.”