New York City Mayor Eric Adams announced a pilot program on November 10 that allows landlords of one- and two-family homes to convert existing illegal basement units into compliant living spaces. Under this initiative, if landlords undertake necessary renovations within a 10-year period while tenants are occupying the space, the tenants can be permitted to continue residing in the previously illegal unit.
Adams highlighted that this initiative not only prevents residents from being displaced but also enhances property values.
“For too long, too many New Yorkers have been forced to live in dangerous basements and cellars in their search for housing. This pilot program will help us change this situation – transforming illegal, unsafe apartments into legal, safe ones,” stated Adams in a press release.
The proposed rules establish clear standards for participation, compliance, and enforcement of this new Temporary Living Permit (ATR) pilot program.
The New York City Department of Buildings (DOB) will conduct a public hearing on the proposed rules on December 11 at 11 a.m., open to stakeholders and the public.
Upon the finalization of the rules, the New York City Housing Agency will begin accepting applications for the pilot program.
To qualify for the ATR pilot program, basement or cellar apartments must have existed prior to April 20, 2024, be located within specific community districts designated by Local Law 126, and be equipped with basic safety measures to protect tenants. If temporary relocation is necessary, tenants wishing to retain their units will have priority to return after the completion of renovations.
These safety measures include but are not limited to smoke alarms, gas detectors, central heating systems, adequate exit routes, and sufficient wall separation between the apartment and any boiler equipment.
Note: Properties located in flood-prone areas do not qualify for participation in the ATR pilot program. Landlords must submit applications through the DOB website by April 20, 2029, to be considered for the Legalization Reconstruction (ATR) pilot program.
Landlords accepted into the ATR pilot program will be exempt from penalties for legalizing their existing illegal apartment units if they complete a series of steps to bring them into full compliance with city regulations and zoning ordinances within ten years. Landlords must meet specific requirements on time to remain in the ATR program while tenants continue to reside in the apartments.
The proposed rules announced specifically address illegal basement units in existing single and two-family dwellings.
In September of this year, the city government officially opened the application portal for apartment owners without Accessory Dwelling Units (ADUs) to apply for constructing new ADUs.
The Department of Buildings and the New York City Housing Preservation and Development Agency (HPD) will collaborate with other organizations to establish standards for expanding this legalization pilot program to apartments illegally converted in multi-family residential buildings.