North Hempstead offers discounts to rectify building permits issued 'in error'

The Town of North Hempstead is offering discounted fees for homeowners who were awarded certificates of occupancy in error nearly two decades ago and require new ones due to the overbuilds.

The discounts aim to rectify an issue dating back to the early 2000s, when some town residents bought homes built larger than North Hempstead's code allows, officials have said. The town's building department granted certificates of occupancy, many of which involved homes in the Roslyn Country Club area, officials have said.

Now, some homeowners in the Roslyn Heights neighborhood are having difficulty selling their homes because the properties do not conform to town code. The homeowners must obtain new certificates to bring the properties into compliance, and fees for that could range in the tens of thousands of dollars, officials said.

The town board on July 8 approved a 35% fee discount for the new permits.

There are 22 homeowners eligible to apply, most of whom are in the Roslyn County Club community, Town Attorney Richard Nicolello said. About 40 of the town's property owners previously rectified issues with their properties.

The reduction is not 100% because town officials said some residents may have known the homes were overbuilt. The 35% discount was a middle ground, officials said. Some members of the town board back more targeted proposals over the flat, 35% discount.

Officials may weigh a measure in which property owners can plead for greater discounts during individual hearings.  

Homeowners in limbo

Ralph and Jennifer Schrader bought their home in Roslyn Heights about 20 years ago, they said in an interview. Then, in 2008, they received a letter from the town saying their certificate of occupancy had been issued "in error." The letter called on them to submit a survey, including the square footage of the property, an electrical certificate and other documents. It said the family could bring their home into compliance if they received a variance from the board of zoning appeals, modified the house or paid a penalty of $170 per square foot over the town's code.

"We are 100% innocent victims, and my husband and I should not be paying anything," she said.

Jennifer Schrader said the family is not in the market to sell, but they want to leave it to their college-age children one day with all the permits and paperwork in order. The issue prevents them from taking a line of equity against their home, she said.

The couple would need to pay $67,000 in fees to conform to the code, she added, even with the new 35% reduction. The town should give them a new certificate of occupancy, she insisted, as well as an apology — with no fees attached.

Asked why homeowners who were unaware of the scheme still need to pay fees, Supervisor Jennifer DeSena declined to address that criticism in a statement to Newsday.

She said, "this solution allows for affected homeowners to bring their homes into compliance without removing the illegal portions of their home."

Homeowners can "retain the added home values they’ve benefited from over that time at a fraction of the cost through our large fee discount," she added.

In June 2006, the town halted construction or revoked occupancy permits for 30 homes as then-Supervisor Jon Kaiman acknowledged that Nassau prosecutors were investigating the building department, Newsday reported at the time. The town ultimately issued 100-plus cease-and-desist orders stopping construction on properties that did not conform to the town code or had other issues, Newsday reported.

The following year, a former building department commissioner and three employees were arrested for participating in what then-Nassau District Attorney Kathleen Rice called a "systemic ring of greed and corruption."

By November 2008, the controversy had cast a dark cloud over the Roslyn County Club community, with some massive, unfinished homes towering over others, Newsday reported that year.

Approach too broad?

Some council members say the measure approved during the July board meeting is overly broad. It's impossible to know if the homeowners were aware of the overbuilds, some officials said.

Ed Scott, a councilman who represents the area, said the town should take a more targeted tack. He proposes a plan in which homeowners can petition for greater discounts on a case-by-case basis, Scott told Newsday in an email.

Homeowners have until July 2026 to apply for the discounted certificates of occupancy and must pay the fees by August 2028, Nicolello said. If they do so, they won't have to remove portions of the home that don't conform to the town code.

A 2008 effort to bring homes into compliance allowed affected homeowners to pay a fee so their permits could be reapproved, Newsday reported then. By November of that year, six residents had been granted a re-approval for permits issued between 2002 and 2006.

The recommendations came from the Legacy Issue Resolution Committee, which the town established last fall.

During the board meeting, Ralph Schrader stepped to the dais and delivered an impassioned plea to the town board.

"Imagine I'm 33 years old buying a new construction house in good faith," he said. "I've never heard, in any case, where the victims are responsible. You guys are supposed to be responsible for the integrity of this town."

By Joshua Needelman

joshua.needelman@newsday.com

Joshua Needelman covers the Town of North Hempstead for Newsday. A Long Island native and University of Maryland graduate, his work has appeared in publications including The New York Times and The Washington Post.