The entrance door was completely closed off due to a fire at the property which caused the door to burn down. A functioning door is required for entry.
In some cases, HPD decides to pay for the utilities on the property on behalf of the owner, rolling the utility charges with penalties to the real estate tax bill.
Typically, the charges can’t be negotiated and should be paid as part of the real estate tax bill. Also, the interest and penalties accrue if the violation is not corrected. On one of the properties we researched, the violations were close to $57,000.00 for repair, inspection fees, AEP (Alternative Enforcement Program) fees, utility fees and administrative charges.
The cost of repair is determined after the corrective work is completed. The work may be done by an HPD employee or a private vendor hired by the city. If the property is sold to a 3rd party, all existing HPD unpaid charges must be brought current, and the utility account payment on the property should be transferred from HPD to the buyer.
Every time the city does an inspection, the typical charge is roughly $200.00 and is charged through HPD.
The property tax bill breakdown should have the prior year HPD charges and penalty fees should the investor want to verify what charges were transferred from HPD to the Department of Finance. Typically, the current year charges are what investors need to worry about, in addition to tax delinquencies which are supposed to be prior HPD charges and water delinquency. As a part of the due diligence, your title search
should disclose the information if this search was performed.