Regulatory Due Diligence

Sandman Malin PLLC conducts thorough regulatory due diligence for the acquisition, disposition, financing, and management of multifamily properties in New York City. Our services identify rent regulatory status, compliance risks, open violations, and agency enforcement issues that may affect asset value or operational stability. With deep experience in HPD, DOB, and DHCR matters, we deliver clear, actionable insights that support informed decision-making and smooth transactions.

Sandman Malin PLLC can assist with the following due diligence matters, among others:

Rent Regulation Analysis
- Determine rent-stabilized or rent-controlled status of units
- Review registration history and DHCR records
- Analyze rent roll accuracy and legal rent status
- Identify potential overcharges or regulatory exposure
HPD & DOB Violation Review
- Identify open Housing Maintenance Code (HPD) violations
- Assess Department of Buildings (DOB) violations and compliance issues
- Evaluate history of tenant complaints and inspections
- Review open orders, stop-work orders, and ECB fines
Regulatory History Review
- Analyze prior agency proceedings (e.g., MCI, harassment, rent reduction orders)
- Investigate HPD litigation and Housing Court history
- Identify past enforcement actions or settlements
Lease and Tenant Analysis
- Review form leases for regulatory compliance
- Assess preferential rent, renewal, and succession issues
- Identify regulated vs. unregulated tenants
Agency Filing & Compliance Status
- Check for compliance with 421-a, J-51, or Article XI programs (if applicable)
- Identify missing or lapsed filings that could impact eligibility or enforcement
Risk Assessment & Reporting
- Flag issue that may affect financing, acquisition terms, or long-term operations
- Provide summary reports and legal opinions for lenders or investors
Support Transactional Counsel
- Collaborate with deal teams to inform contract negotiation and closing strategy
- Provide tailored risk mitigation recommendations