For the past two years, the New York City Department of Housing Preservation and Development (DHP), the Department of Buildings, the Fire Department, and the Department of City Planning have been working with city council members to legalize more basement apartment rental units, and this June the city took a major step forward. According to City Hall, “The City is using innovative strategies to unlock more affordable housing at every level – including the basement.”
Currently, thousands of people are occupying basement and cellar apartments deemed not fit for habitation. According to Council Member Rafael Espinal, “In East New York, I can comfortably estimate that over 75 percent of the basements are being rented illegally.” Also, they haven’t been properly registered with the Department of Finance.
Following an initial feasibility study, Mayor Bill de Blasio and Council Members Brad Lander, Rafael Espinal, and Inez Barron proposed legislation this summer to establish a three-year pilot program to facilitate the creation and renovation of apartments in the basements and cellars of certain one- and two-family homes in Brooklyn Community District 5. This demonstration program intends to provide clearer guidelines for landlords looking to make qualifying basements legally habitable. The de Blasio administration has invested $11.7 million in the new program.
According to a City Hall press release, “This innovative program will provide safe and legal housing options to more New Yorkers.” Modifications of existing construction codes are designed to improve health and safety standards for occupants while reducing the overall cost of conversions. Barron said, “This bill will enable landlords to make necessary structural adjustments to their basements so that these potential living spaces can be legalized and legitimized.”
The DHP is seeking a qualified community-based organization (CBO) to administer the program. The DHP will fund the CBO to assist landlords with completing low-interest loan applications and selecting approved contractors to complete the work. To qualify as a landlord, a homeowner must have an income at or below 165 percent of area median income and occupy the one- or two-family home as their primary residence. If the pilot program succeeds it will potentially expand to all five boroughs.