A New York Times review of municipal records has found that Domani Inspection Services faced repeated accusations of violating New York City rules governing building safety inspections. The findings raise questions about the reliability of private inspection firms that the city relies on to certify structural integrity across its aging housing stock.

The scrutiny comes as city records show a pattern of missed deficiencies at multiple sites, suggesting systemic lapses rather than isolated errors. For property owners and managers, the revelations could trigger reinspection costs, insurance complications, and potential liability if overlooked defects lead to structural failures. The Department of Buildings, which oversees the inspection regime, may face pressure to tighten oversight of third-party certifiers.

The case underscores a broader tension in New York's regulatory framework: the city delegates critical safety checks to private firms while retaining ultimate enforcement authority. When those firms fall short, the financial and legal burden often shifts to building owners who trusted the certifications. Investors in multifamily portfolios should assess exposure to properties inspected by Domani and monitor whether the city moves to suspend the firm's credentials.

If the violations are upheld, the fallout could accelerate a shift toward more rigorous municipal auditing of private inspectors — a change that would increase compliance costs but reduce systemic risk across the city's $1.5 trillion real estate market.