Are Buildings With Expired Permits In Compliance?

At today's Loft Board meeting, members decided to ask Corporation Counsel for a legal opinion on the question of whether owners of buildings with lapsed building permits (and no residential Certificate of Occupancy) are out of compliance with the Loft Law. The Loft Board will also ask Corporation Counsel whether the owners of such buildings should continue to collect the 8% rent increase permitted when a building permit is obtained. In addition, Mr. Delaney, the tenants' representative on the Loft Board, wants Corporation Counsel's opinion as to whether a lapsed building permit is a tenant defense to a nonpayment proceeding. In other words, are IMD tenants of buildings with lapsed permits free to stop paying rent? The Loft Board hopes to receive the Corporation Counsel's opinion in time for its May meeting.

If the Corporation Counsel believes that such owners are out of compliance, then the Loft Board may initiate proceedings against these owners seeking to collect a penalty. But this is nothing compared to the hardship IMD owners would endure if the tenants of such buildings begin withholding their rent.

If you have allowed your permit to lapse, by all means, now is the time to renew your permit.

In addition, the Chairman of the Loft Board asked Loft Board staff to draft a regulation requiring owners of buildings who have not achieved compliance with Article 7-B (that is, have not completed legalization work), to post a notice in their building to the effect that the building is not in compliance with fire and safety requirements. Owners who don't post notices would then be penalized by the Loft Board.

I will, of course, attend the May meeting and then post my blog.