Loft Board's Meeting of May 21, 2009

At the April meeting, the Loft Board asked its staff to obtain an opinion from the New York City Corporation Counsel on the question of whether an owner who allows a building permit to expire can still collect the 8% rent increase permitted by the Loft Law for securing a building permit. At the 5/21/09 meeting, the Chairman reported that Corporation Counsel advised that the 8% rent increase cannot be rescinded even if a building owner allows a permit to expire. Bear in mind that this is the opinion of Corporation Counsel, and now the opinion of the Loft Board, but a judge is free to decide differently. To the best of my knowledge, there are no court opinions on the subject.

Corporation Counsel advised the Loft Board that the Loft Board has the authority to draft and enforce a rule requiring all loft landlords to post a notice in their building about whether there building is in compliance with Article 7-B. The Chairman asked the Loft Board staff to draft a rule and bring it to the next meeting. It will take at least four or five months for the rule to become effective, because of various legal requirements, including publication of the proposed rule and a mandatory comment period.

Talks are continuing at City Hall about the transfer of the Loft Board's operations to the Department of Buildings. For the time being, Loft Board staff will remain at 100 Gold Street.

Loft Board staff said that at least 10 building owners called the Loft Board to express shock and dismay at the increase in registration fees up to $500 per unit.