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New York City Council
Establish a temporary program to resolve outstanding judgments imposed by the environmental control board
Read summaries and jump into the video at the segment start.
Council staff welcomes attendees to the Finance Committee hearing, asks that electronic devices be silenced, and instructs those wishing to testify to fill out appearance cards with the sergeant at arms.
Shaun Abreu, filling in for Finance Chair Lee, opens the hearing and acknowledges Councilmembers Phil Wong, Frank Morano, and others who have joined.
Abreu explains the pre-considered bill would require DOF to establish a temporary program resolving outstanding ECB judgments, with default judgments payable at base penalty without interest and adjudicated judgments at 75% of penalties. The program would last 90 days in FY2027 with a possible 90-day extension.
Abreu notes similar ECB amnesty programs were authorized in 2019, 2016, and 2021, collecting millions in outstanding debt, and states the committee wants to learn about prior results and how this program will increase collections and revenue.
Abreu recognizes additional council members who joined, thanks Finance Division staff including Deputy Director Edev, Chief Economist Dimnakou, analysts, and counsel for preparing the hearing, then introduces DOF Commissioner Richard Lee and Deputy Commissioner Annette Hill.
Committee Counsel Brian Sarfo swears in Commissioner Richard Lee and Deputy Commissioner Annette Hill before they begin their testimony.
Commissioner Richard Lee introduces himself and Deputy Commissioner Annette Hill, and explains the ECB Amnesty and Compliance Program aims to encourage resolution of ECB violations, increase compliance, and collect fines in an area difficult for the city to enforce.
Lee explains ECB violations are issued by over a dozen city agencies covering offenses like dirty sidewalks, littering, failure to remove snow, and working without permits. Issuing agencies include DOB, DSNY, FDNY, DOT, NYPD, HPD, DOHMH, DCWP, and PARCS.
Lee describes how ECB debt is referred to DOF upon OATH docketing of unresolved violations, explains that violations go into judgment after 100 days, and outlines that amnesty participants would receive a 25% reduction with interest waived and must resolve any violations requiring correction.
Lee notes the program is budgeted at $25 million and modeled on prior programs, explains it is useful where the city lacks strong enforcement mechanisms unlike the boot-and-tow program, and states idling violations are excluded because recipients are typically logistics companies less in need of amnesty.
Abreu asks how many outstanding ECB judgments are eligible and the total debt. Lee reports $573 million in potentially collectible debt and $744 million deemed uncollectible as of the start of FY2026.
Abreu asks how much DOF expects to collect through the amnesty program in FY2027. Lee states the budgeted ECB collection target is $100.76 million, including $25 million from the amnesty program.
Abreu notes the 2021 amnesty program brought in over $43 million but OMB only projects $25 million for this program. Lee says the $25 million is an initial projection that will be updated as results come in, working with OMB.
Abreu asks whether the amnesty will be available to building owners given many ECB violations relate to health and building maintenance. Lee says a large number of DOB-issued ECB violations will be eligible and the program aims to ensure better corrections.
Abreu asks about owners with long records of poor management and those in the city's Alternative Enforcement Program. Lee says DOF is in constant communication with sister agencies and only DOF-docketed OATH violations are eligible for the program.
Abreu asks when DOF plans to implement the program once the bill is adopted. Lee and Deputy Commissioner Hill indicate the anticipated start date is the beginning of October 2026.
Morano raises a fairness concern: one business owner pays a $1,000 violation while another waits and pays $750 under amnesty. Lee acknowledges the tension but says the goal is getting people into compliance, noting the program is run sparingly with no guarantee of future amnesties.
Morano questions whether the underlying problem is weak enforcement and asks what will prevent needing another amnesty in five years. Lee describes exploring policy changes including checking for ECB judgments when entities apply for permits and requiring cures before permit issuance.
Wong asks about the $573 million collectible and $744 million uncollectible debt figures and what the program fixes that current tools have not. Lee explains the program incentivizes respondents to cure violations and that DOF is working to convert some uncollectible debt to collectible.
Wong notes most constituents pay fines on time and asks why the city keeps rewarding those who don't. Lee says the program is an occasional opportunity to cure violations, not run every year, and aims for better outcomes for the city.
Wong raises awareness of defendants who default multiple times and asks whether the program addresses them. Lee says the program gives small businesses a chance to cure instances and is not differentiated by offender history.
Narcisse asks why respondents default and how many defaults are due to notices going to incorrect or outdated addresses. Lee explains defaults occur for various reasons including inability to pay, inability to identify respondents, and businesses going bankrupt.
Narcisse asks how many outside collection agencies are contracted with DOF and whether minority-owned businesses are used. Deputy Commissioner Hill confirms three agencies are contracted and MWBE requirements apply, though specific MWBE counts need to be confirmed.
Narcisse notes that in her district most ECB judgments sit with one- or two-family homeowners and small storefront businesses, and asks what share of eligible judgments are held by individual homeowners versus small businesses versus those holding 10 or more judgments. Lee says DOF can provide those statistics.
Narcisse asks whether DOF in-house staff have better collection rates for certain violations. Lee describes increasing resources for the internal Alternative Enforcement Unit and a new strategy of one-on-one engagement with top violators, starting with idling violations and Amazon.
Deputy Speaker Williams asks how many DOF collection full-time equivalents are on staff. Deputy Commissioner Hill reports five current staff, two vacancies, and five additional posted lines, intending to reach 12.
Williams asks about expected revenue from initiatives like DOB permit checks, license suspensions, and targeted outreach. Lee estimates about $10 million from permitting partnerships with DOB and DOT, and $1.5 million from increased outreach, with lien conversion estimates still pending.
Williams asks how long DOF uses in-house resources before engaging outside agencies, marshals, or the sheriff's office. Deputy Commissioner Hill explains the account executive unit works debt for 30-60 days before referring to outside collection agencies or legal for execution.
Abreu asks whether DOF has evaluated results of prior amnesty programs from 2009, 2016, and 2021. Lee says DOF has evaluated to some extent and offers to provide specific information.
Abreu asks about respondent participation and revenue in the 2021 program. Lee reports about 33,000 respondents participated over the six-month program, generating $33 million in the first three months and $14 million in the extension, totaling $47 million.
Abreu asks about 2009 and 2016 results and what percentage of eligible judgments were resolved. Lee reports $46 million collected in 2009 and estimates about 5% of judgments were resolved, with DOB and FDNY violations having the highest success rates.
Abreu asks how many resolved judgments were defaults versus adjudicated and whether DOF tracks repeat participation. Deputy Commissioner Hill reports 75% were from default and 25% adjudicated. Lee says DOF has not tracked repeat participation but is willing to look into it.
Abreu asks how DOF plans to notify the public about the amnesty program. Deputy Commissioner Hill describes plans for a webpage, FAQs, training materials, and coordination with outreach teams and council members.
Abreu asks whether there will be coordinated multi-agency outreach similar to prior programs and whether DOF will advertise through other agencies' websites. Lee confirms DOF will use all communication methods and work with partner agencies. Abreu also asks about proactive outreach to small businesses and eligibility assistance, which Lee says DOF can explore.
Councilmember Restler commends Commissioner Lee's responsiveness and advocates for a day fines model where fine amounts are tied to income levels, arguing it would improve both revenue collection and deterrence. Lee says DOF is open to discussing the idea.
Morano asks how DOF arrived at the $25 million budget projection and what participation rate it requires. Lee says it is an initial projection that will be updated, and notes DOF traditionally collects $75-80 million annually, with $88 million collected in FY2026.
Morano asks how DOF will verify corrections before granting financial benefits and whether someone could receive the discount first and fail to correct afterward. Lee confirms the issuing agency certifies compliance and that compliance must occur before amnesty is granted.
Morano notes that excluding idling violations because recipients are logistics companies implies need is a factor, and asks why that principle isn't applied more broadly to differentiate between multinational corporations and small businesses. Lee explains various exclusion categories but says the program is applied equally across eligible violations.
Wong notes DOF collected $88 million out of $573 million collectible and asks what contributes to this low rate. Lee explains respondents sometimes cannot be identified or businesses no longer exist, and describes efforts to recategorize uncollectible debt and employ new strategies.
Wong asks what stops a repeat offender with multiple default judgments from using the program the same way as someone with one honest mistake, and suggests a hardship standard to separate struggling homeowners from chronic violators. Lee says the program does not differentiate and is applied equally to all eligible violations.
Narcisse praises DOF's relationship with her office, asks about helping people pay from the start rather than waiting for amnesty, and raises a constituent case of a disabled homeowner whose exemption renewal was allegedly lost. Lee offers to look into the case offline through the tax exemptions unit.
Abreu asks how much DOF collected in FY2026 and what percentage of ECB judgments are collected through the judgment settlement program. Lee reports $88 million collected and about 33% through the judgment settlement program.
Abreu asks whether the $573 million collectible and $744 million uncollectible estimates are still current. Lee confirms those figures remain the current estimates.
Abreu asks what criteria DOF uses to deem ECB judgments uncollectible. Deputy Commissioner Hill explains cases that have cycled through all three outside collection agencies without collection, as well as deceased individuals and bankrupt businesses, are considered uncollectible.
Abreu asks about expected revenue from permit enforcement partnerships, lien conversions, and targeted outreach. Lee estimates $10 million from permitting partnerships, $1.5 million from outreach, and says lien conversion estimates are pending discussions with DOB on scope.
Abreu asks how DOF defines worst offenders, how many fall into that category, and the total debt associated with them. Lee explains that idling violations, judgments in criminal action, and those with sheriffs or marshals are excluded from amnesty, and DOF can explore additional exclusion categories.
Abreu asks about DOF collection FTEs and whether the number is sufficient. Deputy Commissioner Hill reports five current staff with plans to reach 12. Lee says DOF will work with available resources and use new staff for one-on-one outreach through the Alternative Enforcement Unit.
Abreu asks how many outside collection agencies are contracted and about the sheriff's action plan for ECB judgments. Lee confirms three outside agencies. Deputy Commissioner Hill explains referrals to legal for marshal execution when bank account information is available.
Wong raises concerns that putting information on a website is insufficient for people who don't check websites and asks whether DOF will proactively reach out to small businesses with outstanding ECB judgments. Lee says DOF will use all forms of outreach to connect with eligible respondents.
Abreu thanks the DOF witnesses and excuses the panel, then opens the floor for public testimony and provides instructions for members of the public on how to testify and submit written statements.
Upper West Side resident Sue Peters testifies about the banking system's role in creating money as debt, drawing from her career in data processing at a Wall Street bank, and urges council members to educate themselves and the public about how money creation works.
Abreu thanks public witnesses, checks for additional in-person and Zoom testimony, finds none, reminds attendees they can submit written testimony within 72 hours, and concludes the hearing.