Union City NJ Multifamily outstanding violations

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Union City NJ Multifamily outstanding violations

Yaro L.
Flipper · Brooklyn, NY · Member since 2016 · 23 posts · 4 votes

Deal fellow BP'ers, 

I am working on a "as-is" multifamily deal in Union City NJ. "Buyer is responsible for obtaining CO & Smoke detector certs" is the language in the contract.   I've never deal with Union City NJ building department / housing authority and find it very confusing. Hope someone can help me out. 

Steps I've taken so far: 

1) Requested a report of any Violations / Pulled Permits / Tax Liens from the city. 

2) The files I've received capture the entire history of the building, with various Violations dating back to 2007.  (no idea how to tell which violations are still "opened")

3) Some amounts on the "Notice and Order of Penalty" forms are quite high. But I am not sure if they are "opened or closed" violations.   

There doesn't seem to be any tax liens on the property and no recent pulled permits. 

I'd appreciate any advice from anyone who's encountered / dealt with Union City Building department in the past. I want to be 100% comfortable with moving forward on this deal and not get smacked in the face with $100k in penalties after I close on the property. 

Appreciate your help in advance. 

Yaro

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  • Jessica Zolotorofe
    Attorney · NJ · Member since 2016 · 1k+ posts · 794 votes
    9y

    Believe it or not... the building department there is pretty helpful. You can call and just ask if they can tell you if there are any open violations. They will have to be paid at closing, so you'd have to decide whether the cost is worth it when added onto the other expenses of purchasing. You can also apply for a CO and they should provide you with a list of things you have to do in order to get one, which will probably mean closing all of the violations.

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  • Yaro L.
    OP
    Flipper · Brooklyn, NY · Member since 2016 · 23 posts · 4 votes
    9y

    @Jessica Zolotorofe Appreciate the suggestion. I actually did call them just now and was able to get some helpful feedback on the house. 

    Now, I need to call back and speak to a building inspector who can give me clarity on the house and if its a legal 3 unit or a 4 unit building (being advertised as 4 unit). 

    Some of the pulled violations have fine upward of $145,000 and there are several violations. Does anyone know if these penalty amounts are negotiable ? 

    1Reply
  • Yaro L.
    OP
    Flipper · Brooklyn, NY · Member since 2016 · 23 posts · 4 votes
    9y

    Can anyone else please chime in here.  

    So the multifamily in Union City NJ has 6 open violations dating back to early 2016 and penalties add up to $500k.  

    Few questions: 
    -One of the violations if for a basement apartment, which there was none there when I did a talk through. 

    -Another violation was for an illegal build out of a cottage behind the main house, (But there is a Certificate of Occupancy issued for that build out) 

    All these unknowns are keeping me in a limbo about my offer which I've submitted and I've never worked / dealt with Union City. What am I to expect, would I be liable to pay all the penalties ? or does the city have a reduced settlement? 

    Thx

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  • Brandon Arce
    Flipper/Rehabber · Union City, NJ · Member since 2016 · 25 posts · 8 votes
    9y

    If I could add my two cents, the violation is not payable unless you don't correct it. Eg, if there was someone living on basement at time the inspector took a look and now it is empty, the the violation has been corrected, just ask the inspector for a re-inspection and get it on writting, otherwise it stays open.

    If you have a CO for the cottage should be ok, I had a CO for a basement that was pass on to me from previous owner, the city official had to go thru the actual paper files to find the original, cot me $400 to transfer the CO to my name (the new owner) but they honored it.

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  • Yaro L.
    OP
    Flipper · Brooklyn, NY · Member since 2016 · 23 posts · 4 votes
    9y

    @Brandon Arce appreciate your input. 

    Given I am new to Union City and purchasing the building AS-IS + the burden of obtaining the CO is freaking me out. My biggest concern is not knowing what other "problems" the city can impose on to me.  I have an offer pending w/ the realtor, but clearly my calculation is incomplete until I have an idea how lenient the city will be with dismissing / resolving the violations / penalties. 

    Does anyone know if I have a CO for this cottage in the back of the house, but there are no records of "permits being pulled to build it", does it still qualify as "illegal" ? 

    Thx everyone in advance. 

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  • Alekhya Chinnu
    Member since 2023 · 1 post · 0 votes
    2y

    Hi , I am in a similar issue , can someone please let me know what was the final outcome @Yaro L.

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