You may be familiar with that defeated feeling that accompanies the receipt of a New York City Department of Buildings (DOB) notice of violation for unpermitted commercial construction work. What you may be less familiar with are the options you have for avoiding the penalties that normally accrue with a violation.
When Is a DOB Permit Penalty Incurred?
Penalties can be assessed for any number of permitting violations, including not having a required permit, working outside of permitted hours, and failing to abide by a stop-work permit.
How Are DOB Permit Penalties Calculated?
The base permit penalty is calculated according to the building’s occupancy type. As of the date of this post, base penalties generally follow this format:
Single-family and two-family dwellings: The greater of:
(a) $600, or
(b) six times the current cost of the permit, not to exceed $10,000
Any other type of dwelling: The greater of:
(a) $6,000, or
(b) 21 times the current cost of the permit, not to exceed $15,000
Working with an expired permit carries a flat $600 fee for single-and two-family projects and a flat $6,000 fee for all other projects.
If an owner “self-reports” the violation, the prevailing practice is to apply the lower fee instead of the greater fee.
When the DOB May Waive the Penalty Entirely
There are some situations in which the DOB has the discretion to waive the civil penalties:
- If the owner is a bona fide purchaser and the violating work was done under the previous owner. You’ll need to provide a copy of the deed and a notarized affidavit confirming there is no relationship between you and the prior owner, that the property was not received as a gift, and that you are not acting for the prior owner’s benefit. This documentation requirement is specific, but the waiver is available and worth pursuing.
- Where the violation for the unpermitted work has been dismissed.
- If the violation is for emergency work performed by the Department of Housing Preservation and Development (HPD) or another agency.
- If the work was emergency work and a permit was applied for within two days of the unpermitted emergency work.
- When a scaffold, fence, or other temporary construction equipment was installed pursuant to a valid permit and that permit has expired. (This does not apply to sidewalk sheds.)
- When a permit expired and no work was performed after the expiration.
- If a city, state, or federal government or public authority owns the property Inon which the work was performed.
- In a third-party transfer via HPD, in which a foreclosed property is transferred to a new owner.
- When multiple violations have occurred at the same property, provided that the initial civil penalty has been paid and the owner has accepted a Certificate of Correction.
- If the owner of the business has fewer than 100 employees and certain conditions are met (the business occupies the space exclusively, provides goods or services on-site, and has not previously received a small business waiver), it may qualify. Businesses primarily engaged in real estate, property management, construction, or expediting services are excluded.
When the DOB may override, reduce, or partially waive a civil penalty
Property owners may request that a penalty be overridden, reduced, or partially waived if they are not eligible for a full waiver.
As of March 30, 2026, DOB will only accept the updated L2 Form (Rev. 03/26) for Work Without a Permit civil penalty override, reduction, or waiver requests. Older form versions are no longer accepted.
This is a common pain point for contractors and owners: many don’t know the override process exists or that the form recently changed.
Evaluating Your Options
Permitting penalties are significant, so exploring options for relief are a good investment. If you’d like an assessment of your alternatives, reach out to us.
