DOB 2012 revenue surges $51M above forecast

Boost comes from increases in fines, along with higher fees and more filings

New York /
Sep.September 21, 2012 05:30 PM

The Department of Buildings took in $51 million more than it anticipated in fiscal year 2012, according to a city report released yesterday, as the agency stepped up enforcement, increased fees and saw a slight uptick in construction applications.

In budget discussions in March, the Bloomberg Administration estimated the profitable agency would take in $146.9 million in revenue. Instead, it took in $198.2 million, the highest in the agency’s history, and $33 million more than the previous record in fiscal year 2011, the city’s annual Mayor’s Management Report says. The city’s fiscal year ends June 30.

The DOB takes in far more than it spends, even as builders gripe that inspection delays can hold up projects.  The agency’s expenses were $95.8, in line with earlier estimates, the report says, giving the city a profit of $102.4 million.

The $33 million increase in revenue over 2011 was led by a $10 million jump in fines and penalties, a spokesperson for the DOB told The Real Deal. Revenue was also boosted $8 million through an increase in filing fees, $8.5 million through a slight increase in the number of permits and $7 million through an increase in construction materials, the spokesperson said.

The DOB reviews and approves construction plans for construction in the city, as well as enforces building codes with inspections and fines.

Louis Coletti, CEO of the Building Trades Employers’ Association, said contractors have been seeing an increase in penalties. “We have heard for a while that the Buildings Department has been very aggressive in enforcing the building code on construction projects,” he said.


Related Articles

arrow_forward_ios
Social Construct's co-founders Ben Huh and Michael Yarne (iStock)
Proptech startup Social Construct shutting down
Proptech startup Social Construct shutting down
L&L Holding’s David Levinson and Columbia Property Trust's Nelson Mills with a rendering of 261 11th Avenue (L&L, Columbia Property Trust, Terminal Warehouse)
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
L&L, Columbia Property Trust land $1.3B loan for Chelsea office project
Fires raging in the western United States are beginning to have a negative impact on lumber output. (Getty)
Raging wildfires threaten lumber market, home builders’ costs
Raging wildfires threaten lumber market, home builders’ costs
Home building slowing despite hot market
Home building slowing despite hot market
Home building slowing despite hot market
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
A condo building couldn’t collapse in NYC. Or could it?
A condo building couldn’t collapse in NYC. Or could it?
A condo building couldn’t collapse in NYC. Or could it?
Contract killers: Construction disputes spell disaster for projects
Contract killers: Construction disputes spell disaster for projects
Contract killers: Construction disputes spell disaster for projects
Nathan Reiber was the developer for Champlain Towers South in Surfside (Getty, Levitt-Weinstein Obituary)
Surfside condo developer faced legal trouble in Canada, found clean slate in South Florida
Surfside condo developer faced legal trouble in Canada, found clean slate in South Florida
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...