Lead Paint & Sidewalk Liability Legislation Will Burden New York City Building Owners in Years Ahead; Acts' Provisions Explained at Kaye Insurance Associates Seminar.
Business Editors
NEW YORK--(BUSINESS WIRE)--Jan. 27, 2004
The lead paint bill currently before the City Council and the sidewalk liability legislation passed in September 2003 will add financial and administrative burdens to New York City building owners for years to come.
That was the general consensus of an expert, six-person panel that addressed more than 115 real estate industry representatives at an educational breakfast - held today at the Princeton Club in New York - sponsored by Kaye Insurance Associates, Inc., a Hub International Limited (NYSE and TSX: HBG) company, a leading regional commercial insurance brokerage.
The purpose of the breakfast was to explain the intricacies of the legislation and discuss possible consequences and timing. Hub International Chief Operating Officer, Bruce D. Guthart, noted that: "You can't conceal the negative effect that these pieces of legislation will have on real estate owners. Their liabilities will increase and, as a consequence, so will their insurance costs. While the sidewalk legislation is a done deal, we can only hope that the City Council will understand the wisdom of Mayor Bloomberg's veto of the lead paint legislation and try to reach a more equitable compromise."
Joining Guthart on the dais were Joseph Strasburg of the Rent Stabilization Association of New York City, Harold Shultz of the NYC Department of Housing Preservation and Development, John McCarthy of the Community Preservation Corporation, Alan Kaminsky, a partner with Wilson, Elser, Moskowitz, Edelman & Dicker, LLP, and Damian Testa, President of Kaye Insurance Associates.
Most of the panelists focused their attention on the lead paint legislation, which was originally passed by the City Council on December 15 and vetoed by the Mayor four days later. The Council has until February to override the veto. The purpose of the bill, say supporters, is to protect the health of the City's children from lead paint poisoning, which often causes severe disabilities and even death. Supporters say landlords must bear some responsibility for avoiding these hazards.
Mr. McCarthy agreed that, while the bill provided some appropriate improvements to protect children, it also "adds provisions that are likely to cut off the rehabilitation of buildings that badly need upgrading. It will aggravate deterioration and decay in older housing in low- and moderate-income neighborhoods." The provisions that he referred to were those that would allow tenants to sue landlords for lead poisoning without having to prove they actually had lead in their apartments.
