Developers say DOB overhaul is suspect.

The New York City Department of Buildings (DOB) is well acquainted with allegations of corruption, particularly after last week's announcement that a task force will overhaul the embattled agency. Whether or not the DOB is "the most corrupt agency in city government," as the city's Investigations Commissioner has called it, the blame appears to be shared by the real estate community, according to others at the press conference.

Manhattan District Attorney Robert Morgenthau said that "the industry has to take some part of blame" at the press conference Sept. 28. Mayor Rudolph Giuliani condemned developers who, he claims, have done little to police their own work.

The task force was prompted by "serious and systemic corruption problems... in which not only private sector persons doing business have been charged, but also many DOB employees," according to the press release. The wording is significant to the real estate industry as a stalled DOB prepares to get reviewed, but in fact, only DOB officials have been indicted, thus fan

A rumor in circulation that members of the real estate community would be asked to join the task force is still unconfirmed, though many industry people who commented felt that their input' would be helpful, if not necessary, to revamping a beleagured DOB. Neither the DOB nor the Mayor's press office would comment on the task force's second week in existence.

"My understanding is that the task force will meet with the industry and we will have a working relationship," said Steven Spinola, the president the Real Estate Board of New York. Spinola added that, to the best of his knowledge, the agency will consist solely of city personnel.

As for the outside chance that industry members would serve on the task force, it "doesn't bother me if we are not on it," he said.

Several developers spoke, but on the condition of anonymity. One candidly said that "it would be suicide" to go on the record about the DOB.

"I've worked with the DOB for 20 years. Sure, the DOB gives preferential treatment and that is no good," said one developer. "And there is no commissioner in place now .... that just means more delays. The top-to-bottom review only makes the situation worse."

Another developer acknowledged that the problem was "in the DOB, not the private sector".

"The DOB needs to operate in a more efficient fashion," said the other developer. "When you have so much scrutiny of the DOB, you will have a cleansing action. It can only help."

Both felt that the real estate community should be involved in the task force, since they have worked closely with the DOB for a long time, but doubted that such representation would ensue.

Underscoring this development is another rumor that the DOB will be absorbed into the New York City Fire Department (FDNY). This surfaced weeks before the task force was announced and, to some, the task force is seen as an excuse for the Mayor to dissolve the DOB entirely.

The following is excerpted from an opinion piece that appeared in the Oct. 6 issue of the ChiefLeader, a weekly newspaper for the civil service trade:

"It is expected that the real estate industry will resist the transfer of responsibilities fiercely, making it less likely that the City Council will agree to amend the City Charter to allow the shift. Some city officials believe, however, that Mr. Giuliani could effect the change merely by amending the Administrative Code, and that painting the DOB as an irreparably corrupt organism can win him enough editorial support to make that move politically feasible."

Obviously, a consolidation would involve much time and effort by the Giuliani administration, which has just 13 months left to expedite such bureaucratic redux.

"Once you start to involve the Fire Department, you are obviously held to a higher standard," said one developer. "And that means additional delays are added to an already delayed process." This developer, however, said he did not see the task force as "a ploy to consolidate the DOB and the FDNY."

First Deputy Fire Commissioner William Feehan did not return repeated phone calls to comment.

A source within the fire department claimed that Fire Commissioner Thomas Von Essen "wants the real estate community involved in the task force."

"The possibility exists that a consolidation will occur," added the source. "But, frankly, nobody really wants the DOB."

This sentiment extends to talking about the DOB, it seems.

Whatever evolves from the top-to-bottom review, the real estate insiders said they will fight a consolidation of the two departments. That outcome, however, remains to be seen in the weeks and months ahead.