SYRACUSE – New York State Assemblyman William B. Magnarelli (D-120th) announced passage of a bill yesterday in the Assembly that would make limited liability companies more accountable to municipalities (A8948). Magnarelli’s legislation aids the City of Syracuse’s effort to combat absentee property owners on code violations, enforce ordinances and to collect taxes and judgments levied against properties.

“There are numerous economic benefits from the limited liability law that must be preserved, but the law must be amended to address the serious concerns regarding properties owned by limited liability companies with absent owners,” Magnarelli said. “These owners are responsible to the City, community and their tenants to address violations and judgments.”

Many rental properties owned by limited liability companies are in violation of building and safety codes, in disrepair and create serious quality of life problems in Syracuse and Central New York. Some of these property owners have neglected to pay property taxes or other utility bills. In some cases, the City of Syracuse has been unable to locate the owners of these properties to enforce codes or to collect on judgments.

This legislation opens the door to the names of the individuals behind the limited liability companies, aiding the City in tracking them down. Up until this legislation, the individuals affiliated with the limited liability companies were hidden behind their companies, ensuring complete anonymity. Prosecuting violating companies was challenging, at best.

Magnarelli said that some limited liability companies with properties in Syracuse work tirelessly to maintain their properties. This bill only targets the absentee landlords with derelict properties.

“This problem is not unique to Syracuse or Central New York,” Magnarelli said. “This bill will help other New York cities combat similar issues, and ultimately, restore the quality of life of tenants and the surrounding communities. I urge the Senate to take up this legislation swiftly.”