NYC data errors: thorn in industry's side

Real Estate Weekly, Sept 4, 1991 by Lois Weiss

NYC data errors: Thorn in industry's side

New York City real estate computer records have been so sloppily maintained that they cause constant problems for property owners. Aware of the problem, the Department of Finance is embarking on an ambitious project to correct at least the pre-1989 records.

Problems due to keypunch errors run the gamut, owners complain. Property ownership and mailing addresses are often improperly recorded so that taxes and other bills are sent to the wrong parties. Additionally, building owners complain they sometimes do not receive notices of in rem proceedings until the tenants themselves are notified to send rentals to the city. Real Property Income and Expense booklets go awry as do other updates and letters from the Department of Finance. Payments are often keypunched to the wrong blocks and lots and in the wrong amounts, and double payments, until now, were never used to offset later charges or charges from other accounts. Even banks paying taxes from escrow receive faulty information from the city.

"There is always a problem with getting accurate information from the city," said John Gilbert III, president of the Rent Stabilization Association, citing particularly the receipt of in rem notice.

Errors are numerous, but, even so, Department of Finance Assistant Commissioner Bob Huber said, "we don't consider it a problem.

"There are certainly instances where we haven't been maintaining correct information, but there are 900,000 properties in the city," Huber said. "It's not widespread, and I wouldn't categorize it as horrible or bad." He admitted, however, that even if only 2 percent of the property records were wrong, it could still create problems for thousands of properties -- 18,000 at that.

The history of payment records were in such poor shape that when the city released a list of credits under Finance Commissioner Carol O'Cleireacain's new open policy, they warned that approximately one in five were incorrect. Even so, 73,200 parcels received real estate credits totaling $33.4 million on their July tax bills. "We don't think we sent any money back that's fallen into the wrong hands," Huber said.

Attorneys who represent thousands of other parcels had to check histories and sign affidavits attesting to the credits being correct, but those properties are being sent refunds through the city's normal refund process, which can take over a year and which became even more backlogged because of the work created by the credit project.

A Department of Finance letter was to be mailed this week, apprising property owners of water and sewer credits and giving them an accounting of all double payments up to July 1, 1991. Huber, said in December, owners will receive an accounting for this fiscal year and, from now on, a general accounting stating all credits and charges will be sent out twice yearly.

Huber said those owners with outstanding water and sewer credits, even if represented by attorneys, may be getting a check if they are entitled to a refund, but, for the first time, credits will be applied against all open charges, including real estate taxes.

Old Owner Card

To Be Updated

In August, Huber said, the department made a decision to begin reviewing and revising pre-1989 records, however, they are still discussing how they will implement this project.

Prior to 1989, he said, the city would first send owner transfer cards to "audit enforcement for a desk audit." After that, the cards would go to keypunch for changes of ownership. "It sometimes took nine months," Huber said. "It could be lost, or the keypunch operators suddenly found 30,000 dumped in their laps at once."

Since 1989, Huber said, instead of going to the audit unit first, the card goes to the keypunch unit which, he said, now handles about 3,000 per month. There is also a quality control check system whereby people with a hard copy randomly check the keypunchers' data. But not every entry is checked, Huber admitted.

Additionally, because of a new law, the cards are always provided and must be filled out at closings, Huber noted. "We assume there is not a problem with post-1989 records, but if there is an error they can refile a card or call taxpayer assistance to find out the procedure," he said.

Nevertheless, owners who sent in updated cards, even a year ago, complain their bills are still being sent to wrong addresses and a thorough data checking system would be more than welcome.

The Reality and Human Tragedy

"People don't know about changing these addresses, said one property manager who recently spent time waiting at Central In Rem to pay off the taxes on a property whose owner had not filed a change of address.

"It's not just the landlors," he said after speaking with his fellow "waiters." "It's the little people, the immigrants, and the single-family homeowners who just don't know they have to fill out these forms."

Another large property owner, John Werwaiss, for the second year in a row, had the same property go in rem because of a water charge that was sent elsewhere. Carolyn Harris, office manager of Werwaiss & Company, said she spent last fall filing new owner registration cards on all of their properties after the first fiasco.