Monthly NYC Compliance Roundup: January 2025

While it’s been a slower month from the City Council & Agencies, there are a few noteworthy new laws in our NYC Compliance Roundup for January 2025.

Here’s what you should know:

Passed & Signed: Basement/Cellar Unit Conversions

The city is establishing a pilot program to convert existing basement or cellar apartments to habitable dwelling units. This will be known as Local Law 126 of 2024.

Based on the new law, the following units are considered “eligible” for the program:

The term “eligible basement or cellar residence” means a basement or cellar in an existing dwelling within the program area, unlawfully arranged to be occupied as an apartment with acceptable kitchen and sanitation facilities as described in department rules, and which apartment was in existence prior to April 20, 2024.

Here are the neighborhoods (CDs – Community Districts) included in the program area:

  • Bronx CD 9
  • Bronx CD 10
  • Bronx CD 11
  • Bronx CD 12
  • Brooklyn CD 4
  • Brooklyn CD 10
  • Brooklyn CD 11
  • Brooklyn CD 17
  • Manhattan CD 2
  • Manhattan CD 11
  • Manhattan CD 12
  • Queens CD 2
  • “and such other [CDs] as may be authorized pursuant to section 289 of the multiple dwelling law”

To participate in this temporary residence program, owners of eligible basement or cellar residences should apply “for authorization for temporary residence pursuant to section 28-507.4 on or before April 20, 2029.” Applications may not be made where the eligible residence is located within the 10-year rainfall flood list area or the coastal flood risk area (except as otherwise allowed pursuant to the NYC zoning resolution). More information sure to come on how owners can actually apply for this program.

Authorization may be granted based on the following criteria:

  • The basement or cellar referenced in such application is an eligible basement or cellar residence;
  • Such eligible basement or cellar residence contains an apartment that was in existence prior to April 20, 2024; and
  • Such eligible basement or cellar residence has been inspected, and:
    • Would not pose an imminent risk to the life or safety of occupants;
    • Contains a battery-operated or hard-wired smoke detector and carbon monoxide detector;
    • Contains at least 1 means of egress directly to the outdoors in accordance with the construction standards of chapter 10 of the New York city building code, including access to a public way. Such means of egress shall be an exterior door that swings inward and is provided with landings on both the interior and exterior sides in accordance with section 1010.1.6 of the New York city building code; and
  • Has a minimum clear ceiling height in accordance with section 202.5 of appendix U of the New York city building code.

Eligible residences cannot be occupied by more than 1 family maintaining a common household, and cannot be used for short term rentals. Authorizations would expire 10 years after the issue date, and require a CO or TCO following that timeframe. There are also specific requirements that must be completed within 3 months, 1 year, and 2 years following authorization. Certain fees preventing specific work from being completed may be waived to ensure the unit is safe for occupancy.

The law goes into effect 180 days after signing – in this case, June 2025. By that time, HPD will likely have more guidelines and instructions in place for owners who wish to apply for authorizations here.

Click here to see the full legislative details.

Passed & Signed: Ancillary Dwelling Units

The newly signed Local Law 127 of 2024 would establish eligibility and design requirements for Ancillary Dwelling Units (ADUs) in 1- or 2-family dwellings. Here’s a brief overview of the requirements:

  • ADUs must have separate utilities from the primary dwelling
    • Including heating, ventilation, air-conditioning, electrical, and gas systems
  • Require ADUs to have separate entrances
    • Basements must have at least 1 means of egress, and cellars must have at least 2
  • Specific fire prevention methods required, including fire separation, automatic sprinklers, smoke alarms, and exit stairways
  • Detailed requirements for light, ventilation, window size, emergency service access to units, and occupancy

Click here to see the full legislative details.

Laid Over: Increased DSNY Penalties For Chain Businesses

This proposed law would increase penalties on “chain business owners” (including franchises) for failing to properly remove snow, ice, and dirt from sidewalks following a snowfall. New penalties would replace existing ones, and be structured like this:

  • $500 – $1,000 for the first violation
  • $1,000 – $3,000 for the second violation within any 12-month period
  • $3,000 – $5,000 for the third or subsequent violations within any 12-month period

If this sounds familiar, it’s because this bill was first brought up in March 2024. After nearly a year, the Committee on Sanitation and Solid Waste Management held a hearing, but hasn’t taken any additional actions.

Click here to see the full details on the proposed law.

Stay tuned for next month’s roundup, and any new regulations that come up in the meantime!

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About the Author

Kristen Hariton

Kristen Hariton is the Vice President, Product Engagement at SiteCompli, focused on exploring new solutions and innovations in property operations tech. When she's not sharing the latest industry trends, changes, and updates, she's planning her next adventure to Walt Disney World.