Mayor Adams proposes new rules for legalizing basement, cellar apartments in NYC

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Tuesday, November 11, 2025
Mayor Adams proposes new rules for legalizing basement, cellar apartments in NYC

NEW YORK CITY (WABC) -- Mayor Eric Adams announced a pilot program to let landlords bring illegal underground units up to code.

Under the proposed plan, people would be allowed to remain in illegal units in cases where property owners were making necessary changes.

Adams says the change will not only keep people from being displaced, but also increase property values.

"For too long, too many New Yorkers have been forced into dangerous basement and cellar set-ups just to find a place to live. This pilot program will help us change that - turning illegal, unsafe apartments into legal, safe ones," Adams said.

The proposed rules provide clear standards for participation, compliance, and enforcement for this new Authorization for Temporary Residence (ATR) pilot program, authorized by Local Law 126 of 2024.

The public hearing for the proposed DOB rule will be held by at 11 a.m. on December 11, for stakeholders and members of the public.

Once the final rules are in effect, DOB will be able to start accepting applications for the pilot program.

To be eligible for the ATR pilot program, the basement or cellar apartment must have existed before April 20, 2024, be located in certain community districts set out in Local Law 126, and be equipped with basic safety features to protect the people living in these apartments.

These safety features include, but are not limited to, smoke alarms, gas alarms, central heating, access to appropriate egress, and adequate wall separation between the apartment and any boiler equipment. Properties in flood-prone areas of the city are not eligible to apply for inclusion in the ATR pilot program. The owner must apply to participate in the ATR pilot program before April 20, 2029, by submitting an application to DOB's website.

Property owners who are accepted into the ATR pilot program will be able to legalize existing illegal apartment units without penalty, provided that they follow a series of steps to bring the units into full compliance with the city's Codes and zoning regulations over a ten-year period of time.

The owners will be required to meet specific milestone deadlines throughout the legalization process, while the tenants are still living in the apartment, in order to stay in the ATR program.

The proposed rules announced specifically cover the legalization of existing unpermitted basement and cellar apartments in one and two-family homes.


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