Lenders and borrowers in New York City must be cautious of a requirement that can add significant time and costs to development projects. The New York City Department of Building mandates in BC Section 3309 that the entity undertaking the construction or demolition work protect adjoining buildings. However, in order to provide the protection, whether it be underpinning or roof protection, written approval to access the neighboring properties must be obtained from the owners of the those properties. Many property owners will demand payment to provide the required access to the developer. Of course, financial compensation may be warranted if a neighboring property is negatively impacted by a construction project, but more often than not building owners see the “access agreement” or “license fee” as an opportunity to receive a large payoff or even block construction.
Indeed, the requirement is prone to abuse, and can add risk for lenders and developers by adding unforeseen costs and delays to construction projects. In an ongoing court case, for example, a prominent real estate developer is accused of extortion and purposely stalling a construction project.
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May 16, 2025
May 2025—Torrance, CA—Partner Engineering and Science, Inc. (Partner), is pleased to announce that its founder and CEO, Joseph P. Derhake, PE, was selected as a finalist in the 2025 LA Times Studios LA Executive Forum and Leader Awards.
May 16, 2025
Partner experienced significant growth in 2024 despite challenges in the CRE market, with annual revenue increasing to $334,204 from $279,640 in 2023 (19%). To support this growth and in anticipation of increasing demand, Partner increased its staff from 1,300 employees in 2023 to over 1,400 at present.
May 12, 2025
Survey Insights into the Construction Industry’s Response to Tariffs By Robert W. Barone, R.A., LEED AP, Director of Construction Services at Partner Engineering and Science, Inc. | Published May 12th, […]
