“NYC’s ‘Bad Actors’ Bill – Withholding of Permits and Increased Disclosure Requirements”
The New York City Council is considering a bill, INT 0379-2010 (the “Proposed Bill”) that would prevent the issuance of permits for any property in the City that has, in the aggregate, outstanding fines, fees, taxes and/or charges in excess of $25,000. As indicated by its popular name – the “Bad Actors Bill” – the Proposed Bill is intended to discourage the non-payment of property-related fines, fees, violations, taxes and/or charges by property owners and to induce owners who have failed to pay such amounts, to bring their accounts up to date.
The Proposed Bill might also be called “The Law of Unintended Consequences,” as its effects potentially could filter through to every property owner in the City, even to those that would not be considered “bad actors.”
This Stroock Real Estate Practice Group Special Bulletin examines the Proposed Bill and its potential implications.