Tuesday

07-15-2025 Vol 2022

New York City’s Basement Apartment Legalization Efforts Stalled by Regulatory Delays

Vanita Maloney is ready to welcome new tenants into her basement in East Flatbush, Brooklyn, but she is stuck waiting for city authorities to finalize regulations that would allow her to legally rent the space.

Despite her home having ample room for additional occupants, a pilot program aimed at legalizing and regulating basement apartments has not yet been implemented, rendering her plans on hold.

At 65 years old, Maloney, who lives with her daughter, wants to convert the basement into a rental space after conducting necessary repairs and upgrades.

“I’m waiting for the program to come into fruition because I can’t put anyone there until I’m authorized to do so,” Maloney said. “I have to wait for them to start the process and bring in the correct people to ensure it’s approved.”

The intention behind the pilot program, which took effect on June 16, was to provide legal pathways for homeowners like Maloney to create safe, regulated basement apartments in select community districts. However, key regulatory frameworks are still outstanding, preventing homeowners from applying and moving forward.

A year has passed since the state legislature sanctioned a five-year pilot allowing New York City homeowners in 15 specific community districts to easily make basement apartments compliant with health and safety standards. Basement apartments, often considered affordable housing, have been criticized for safety risks associated with flooding and fire hazards.

Advocates view this pilot program as a crucial step toward protecting tenants and homeowners by bringing unregulated living spaces into safety compliance. The five-year window for the pilot program runs until April 2029, and time is already running short.

Howard Slatkin, executive director of the Citizens Housing and Planning Council, noted that the year-and-a-quarter elapsed since the program’s announcement is concerning.

“We’re now 15 months into the five-year window, and that’s becoming increasingly a short window for homeowners to be able to act,” Slatkin remarked.

He further pointed out that the pilot program only reaches a fraction of the neighborhoods housing basement apartments, thus limiting the potential impact of legalization efforts.

Furthermore, those looking to legalize basement apartments not included in the pilot districts, as well as those that are newly constructed, are also experiencing delays due to regulatory issues.

The city’s Department of Buildings had previously announced that it would not issue building permits for these accessory dwelling units (ADUs) until related laws were enforced. However, implementing those laws requires final rules from multiple agencies that, to date, have not been finalized.

“City agencies are working through the appropriate steps and rule changes required to ensure this new form of housing is introduced efficiently and safely,” said City Hall spokesperson William Fowler. He also mentioned that the much-anticipated online portal for homeowners would launch later this year.

The push to regulate basement and other accessory dwelling units comes amidst a landscape of rising housing costs in New York City. Advocates argue that the upfront costs of making necessary upgrades to legalize a basement can be prohibitive for many homeowners.

The pilot program allows apartments in cellars, areas that are largely under curb level and typically prohibited for residential use in New York City, yet it grants leniency to homeowners attempting to make their basement apartments safe and legal.

Legislation underscores the importance of meeting basic health and safety standards, despite the financial burden that conversions may impose. The rules to be finalized await input from various city agencies, with the Department of Health and Mental Hygiene proposing regulations concerning radon and toxic chemical fumes and the Department of Environmental Protection creating maps marking flood-prone zones.

Matthew Sooknanan, a Basement Apartments Safe for Everyone (BASE) campaign organizer at Chhaya CDC, emphasized the need for clarity in rules for homeowners who wish to rectify existing violations or those operating outside legal frameworks.

He remarked: “You ask people, and they want to be legalized because it’ll give people accountability regardless of where they’re at, but people don’t want to get screwed over.”

In the meantime, many tenants remain in illegal basement apartments, facing safety risks and lacking standard renter protections.

There also exists a segment of homeowners interested in constructing new ADUs—be it in basements or attics—who are similarly hindered by regulatory delays. As examples, several new residential projects on Staten Island that aim to incorporate basement apartments are currently on hold as they undergo revisions and oversight by the Department of Buildings.

Among interested city residents is Giovi Collado, living with multiple generations of family in Richmond Hill, Queens. Eager for more personal space, the 32-year-old is contemplating the construction of a backyard cottage as a viable solution.

“I like to keep it close to the family. This is a good solution,” Collado shared. “You get to build, essentially, a home.”

Wil Fisher, the founding principal of Unit Two Development, has been in discussions with numerous homeowners interested in the ADU process, confirming that excitement surrounds the potential for increased affordable housing through conversions and new builds.

“People are excited. It’s really a game-changer,” Fisher said, stressing the importance of an efficient administrative rollout to ensure the success of the initiatives.

Despite the myriad of hurdles outlined, the urgency for a pathway to legalize basement apartments and ADUs remains apparent among homeowners and advocates alike. The pressing need for additional affordable housing in New York City further heightens the stakes as regulatory functionaries continue to navigate a complex web of rules and safety standards.

As the city is poised to open avenues for increasing housing options, apprehension lingers among potential homeowners about the often bureaucratic and convoluted process.

For now, as the regulatory weight hangs over the future of basement apartments and ADUs, both hopeful homeowners and tenants are left in a state of uncertainty, yet they await what many believe could be a transformative opportunity to improve housing security in the city.

image source from:thecity

Benjamin Clarke