Bank Not Responsible for Building Violations

LVT Number: #20056

DOB issued violation notices for failure to maintain the exterior of a condominium building in a safe condition. The violation notices were sent to the bank that held the mortgage for the sponsor of the condo conversion. The bank claimed that it wasn't responsible for the violations. The ALJ ruled against the bank and fined it $1,600. The bank appealed and won. Administrative Code Section 27-232 defines an "owner" to include a person holding legal title to a building or a mortgage holder or any other person having legal ownership or control of a building.

DOB issued violation notices for failure to maintain the exterior of a condominium building in a safe condition. The violation notices were sent to the bank that held the mortgage for the sponsor of the condo conversion. The bank claimed that it wasn't responsible for the violations. The ALJ ruled against the bank and fined it $1,600. The bank appealed and won. Administrative Code Section 27-232 defines an "owner" to include a person holding legal title to a building or a mortgage holder or any other person having legal ownership or control of a building. But there was no proof that the bank in this case had legal title or held a mortgage or legal ownership of the building. The Department of Finance listed the bank as a recipient of real estate tax bills for the building. The bank representative testified that its only connection with the building was that it was a lender for the owners of some of the individual condo units.

North Fork Bank: ECB App. Nos. 39447-8 (6/28/07) [2-pg. doc.]

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