NY A09802

Cities with a population of one million or more may establish local laws to legalize inhabited basements and cellars or convert other basements and cellars to legal dwelling units, provided safety is protected.

Local laws authorizing basement and cellar legalization programs may grant owners amnesty from prosecution for violations of housing, state, and local laws, and may waive applicable building codes and zoning requirements necessary for conversion.

Tenants occupying basements or cellars at the time the law takes effect who are displaced during legalization work have a right of first refusal to return to the unit once it becomes a legal dwelling unit.

Municipalities may provide loans and grants up to $60,000 per dwelling unit for rehabilitation of basements and cellars under the legalization program, with no dollar limit on loans for basement or cellar conversion specifically.

Cities cannot use an owner's certification of tenant occupancy as a basis for enforcement action, though cities may still issue vacate orders for hazardous conditions.