If you own a multi-family building in Bushwick, you know the neighborhood has changed significantly over the last decade. What hasn’t changed is the intensity of NYC’s Department of Housing Preservation and Development (HPD). Every year, around January 31, HPD releases its "Alternative Enforcement Program" (AEP) list. If your building's address is on it, you’ve essentially been flagged as one of the most "distressed" properties in the city.
It’s a situation no landlord wants to be in. Being on the AEP list isn't just a blow to your reputation; it’s an expensive, bureaucratic nightmare that can lead to massive fines, tax liens, and even a loss of control over your property.
At Landlord Management (LLM), we spend our days keeping owners out of this exact situation. But if you’ve already received that dreaded notice for 2026, don’t panic. There is a way out: if you act fast.
What exactly is the HPD Alternative Enforcement Program (AEP)?
The Alternative Enforcement Program is HPD’s "tough love" initiative for buildings that have a high volume of serious violations. Think of it as a specialized task force. Instead of the usual inspection process, HPD identifies approximately 250 buildings each year (typically those with 3 or more units) for intensive monitoring.
Once you are in the AEP, HPD doesn't just wait for tenant complaints. They proactively inspect the entire building: every apartment, every hallway, the basement, and the roof. If they find issues, they issue "Orders to Correct." If you don't fix them, they hire their own contractors to do the work at your expense (often at 2-3x the market rate) and place a lien on your property.
How does a Bushwick building end up on the AEP list for 2026?
HPD doesn’t pick buildings out of a hat. They use a specific, data-driven formula based on the previous five years of history. While the exact thresholds can shift slightly each year, the 2026 selection criteria generally focus on:
- Hazardous (Class B) and Immediately Hazardous (Class C) violations: This is the big one. If your building has a high ratio of these violations per unit: typically 5 or more per apartment: you are a prime candidate for the list.
- Unpaid Emergency Repair Program (ERP) charges: If HPD had to step in to fix your boiler or restore water because you didn't, and those bills (plus interest) are still sitting there, you’re moving up the list.
- Building Size: The program specifically targets multiple dwellings. A 6-unit walk-up in Bushwick is much more likely to be flagged than a smaller 2-unit house.
(To put this in perspective, a 10-unit building with 50 open Class B or C violations over five years is almost guaranteed to be scrutinized for the AEP.)
Step 1: The 4-Month Sprint (Prioritize Class B/C Violations)
The moment you are notified of your AEP status, a four-month clock starts ticking. This is your "grace period" to get the building discharged before the heavy fees kick in.
To get off the list in this window, you must:
- Correct 100% of heat and hot water violations.
- Correct 100% of Class C (immediately hazardous) mold violations.
- Correct at least 80% of hazardous Class B mold violations.
- Correct at least 80% of vermin/pest violations.
- Correct at least 80% of all other open Class B and C violations.
In Bushwick, where many buildings are older, this often means tackling systemic issues like roof leaks that cause mold or aging plumbing that leads to tenant complaints. You can't just slap a coat of paint over these; HPD requires "safe work practices" and often requires proof from licensed contractors.
Step 2: Clearing the Financial Hurdle
Even if every single violation is fixed, HPD won't let you off the hook if you owe the city money. This includes any past Emergency Repair Program (ERP) charges, AEP fees, or inspection fees.
You have two choices here:
- Pay in full: Clear the ledger with the Department of Finance.
- Payment Agreement: If the total is overwhelming, you can enter into a formal payment agreement with the NYC Department of Finance (DOF).
As long as you are current on a payment plan, HPD can still discharge the building from the program. We often see landlords struggle here because they don't realize that even a small $200 inspection fee left unpaid can keep a building "trapped" in AEP status.
Step 3: Managing the Tenant-Access Logjam
One of the biggest hurdles for Bushwick landlords is getting into apartments to make repairs. If a tenant refuses access, your 4-month window can disappear quickly.
To protect yourself:
- Keep a paper trail: Document every attempt to schedule access. Send certified letters.
- Seek court intervention: If a tenant is consistently blocking repairs required by an AEP order, your legal counsel may need to file for a court-ordered access warrant in Housing Court.
- Communicate: Often, tenants are frustrated by the building's condition. Explaining that the building is in a special enforcement program and that you want to fix everything can sometimes break the ice.
Step 4: Formal Certification and Documentation
You fixed the leak? Great. But if HPD doesn't know you fixed the leak, the violation remains open. For AEP buildings, the certification process is more rigorous than standard violations.
You must submit the "Certification of Correction" forms to HPD. In many cases, HPD will then schedule a building-wide re-inspection to verify the work. If their inspector finds that the work wasn't done to code or was simply a "patch job," they will reject the certification. This is why proactive property management is so vital: having a team that knows exactly what HPD inspectors are looking for saves you from failed inspections and additional $100 re-inspection fees.
Step 5: Updating Your Property Registration
It sounds simple, but you’d be surprised how many landlords are denied discharge from the AEP simply because their annual property registration is out of date.
Every year, you must register your building with HPD. If your registration is expired, or if the "Valid Until" date has passed, you are technically in violation of the law. Before you even apply for AEP discharge, double-check that your 2026 registration is filed and the fee is paid.
Why is being on the AEP list a financial death trap?
If you fail to meet the discharge criteria within that initial four-month window, the costs escalate dramatically. Here is what you’re looking at:
- AEP Fees: You will be charged $500 per dwelling unit every six months. For a 6-unit building in Bushwick, that’s $3,000 every six months just for the "privilege" of being on the list.
- Inspection Fees: Every time a tenant calls 311 and HPD finds a Class B or C violation, you are hit with a $200 inspection fee.
- Insurance Spikes: Insurance companies hate risk. When they see a building on the AEP list, they see a massive liability. Your premiums will likely skyrocket, or worse, your policy might be canceled entirely.
- Sales Impact: If you’re looking to sell your Bushwick property, an AEP designation is a massive red flag for buyers. It complicates financing and often results in a lower sale price as the buyer builds the "compliance risk" into their offer.
How LLM Keeps Your Building Off the Radar
The best way to handle the 2026 AEP list is to never be on it. At Landlord Management (LLM), our entire philosophy is built around "operational risk protection."
We don't wait for the HPD notice to arrive in January. We monitor your building's violation status in real-time. If a Class C violation pops up, we don't just tell you about it; we coordinate the repair and ensure the certification is filed immediately.
Our approach in Bushwick and throughout Queens is rooted in real-world building operations. We understand that a 30-unit rent-stabilized building has different needs and risks than a 300-unit luxury condo. By focusing on the details: like keeping your boiler serviced and your common areas clear of debris: we ensure your building remains a high-value asset rather than a target for city enforcement.
Practical Considerations for 2026
If you've checked the HPD portal and see your building is currently at risk, here are your immediate next steps:
- Run a full violation report: See exactly how many open Class B and C violations you have.
- Audit your finances: Check for any outstanding ERP charges or unpaid "Notice of Violation" fines.
- Review your registration: Ensure your 2025-2026 HPD registration is active.
Staying off the AEP list isn't about luck; it's about staying ahead of the paperwork and the pipes. If you’re feeling overwhelmed by the 2026 compliance landscape, it might be time to stop being a "landlord" and start being an "owner" while we handle the management.