Underlying Conditions Program

The Underlying Conditions Program (LL6) allows New York City Department of Housing Preservation and Development (HPD) to issue an administrative order to residential building owners to correct underlying conditions that have caused, or are causing, a violation of the Housing Maintenance Code. HPD selects approximately 50-100 buildings for participation in the program each year based on the number of apartments affected and the number and severity of the violations.

Selection

A building may be selected for LL6 if it has a class "B" or "C" violation on record related to the existence of mold or water leaks that was issued by HPD within the prior year preceding the issuance of the order that has not been properly certified as corrected by the owner, or that was corrected by HPD, and if the building:

Contains three to five dwelling units and at least 50% of the units have one violation
Contains six to nine dwelling units and at least 25% of the units have one violation
Contains 10 dwelling units or more and at least 15% of the units have one violation

HPD will prioritize selection of buildings meeting the criteria first by those buildings with conditions that may contribute to asthma outcomes and other relevant health indicators as determined by the Department of Health and Mental Hygiene, followed by those buildings with the highest total number of Class C and Class B violations relating to the existence of mold or water leaks.

HPD may exclude the building if it otherwise meets the criteria above but is:

A one- or two-family building
Already subject to an Alternative Enforcement Program (AEP Order to Correct, or to the appointment of a 7A Administrator
Subject to Comprehensive Litigation action by HPD
Conveyed to a new owner after an in rem judgment of foreclosure in favor of the city in the Third Party Transfer (TPT) Program within the last five years
The subject of a preservation loan made by HPD or the NYC Housing Development Corporation within the last two years

Requirements

Owners are required to investigate the cause of a leak or mold condition affecting multiple apartments in a building and to address the conditions and related violations within four months, or with HPD's approval, within an additional two months. To request a two-month extension, an owner must submit the following documentation to HPD within two months of issuance of the Order:

An affidavit from a NYS-licensed professional engineer or registered architect in a form approved by HPD, identifying the underlying condition that is the source of the mold or water leak, and
An affidavit from the owner of the building in a form approved by HPD stating that the underlying condition and related violations will be corrected, describing the work that will be performed to correct such underlying condition and violations, and stating that the work will be completed within the extended time period

Rescission

HPD will grant a rescission if an owner submits the following documentation.

If there are no underlying conditions, an owner must submit:

An affidavit from a NYS-licensed professional engineer or registered architect in a form approved by HPD, stating that there are no underlying conditions causing the mold or water leak violations, and
A completed Request for Rescission form

If the underlying conditions and related violations have been repaired, an owner must submit:

An affidavit from a NYS-licensed professional engineer or registered architect in a form approved by HPD, identifying the underlying condition that was the source of the mold or water leak violations, stating that the underlying condition and related violations were properly repaired, and identifying who repaired the underlying condition and related violations, and
A completed Request for Rescission form, and HPD inspectors must find that at least 80% of the mold and water leak violations have been repaired

Penalties

HPD may sue non-compliant owners in Housing Court. The civil penalty is $1000 for each dwelling unit with a minimum of $5000. If the owner fails to comply with the Order, HPD may hire a contractor to make the repairs at the owner's expense. HPD is subject to laws that may make such work significantly more expensive than if the owner contracted directly for the work. Failure to pay the bill may result in a tax lien being placed against the property which can be sold or foreclosed if not paid in a timely manner.

Data

Additional Resources

Contact

Contact an HPD Program Coordinator at 212-863-8865.