NY A01075

Cities with populations of one million or more may establish local programs to legalize inhabited basements and cellars currently unlawfully occupied as residences or convert other basements and cellars to legal dwelling units.

Local laws authorizing these programs are exempt from environmental review under the Environmental Conservation Law and do not require additional land use review.

Property owners converting basements or cellars or abating illegal occupancy may receive amnesty from prosecution for prior violations of state law, local law, zoning regulations, and relief from outstanding civil judgments issued before the program's effective date, provided they apply within ten years.

Tenants occupying basement or cellar units at the program's effective date who are removed due to legalization work have a right of first refusal to return as tenants in the legally converted unit and may sue for compensatory damages (capped at one year's rent) if wrongfully denied this right.

Local programs must include protections against eviction and limitations on rent increases for legalized basement and cellar units, including for tenants exercising right of first refusal to return.