Congratulations! You have obtained a residential Certificate of Occupancy for your IMD building and the Loft Board has issued a final rent order. It's time to celebrate!
However, don't forget to have your lawyer do three things as soon as possible:
(1) offer the first rent-stabilized lease to the IMD tenants,
(2) register the building with the Department of Housing Preservation and Development (DHPD), and, after receiving a registration identification number from DHPD,
(3) register with the Division of Housing and Community Renewal (DHCR).
Taking these steps as soon as possible is in your best interest as a building owner. If you fail to register with DHCR and DHPD, then you will not be able to maintain a nonpayment proceeding or a holdover proceeding against your IMD tenant. You may say: "What's the hurry? If my IMD tenant stops paying rent, then I'll register with DHPD and DHCR and then start my case." The problem is that it takes three to four weeks for DHPD to process an IMD owner's first registration statement. As a result, your case will be delayed for three or four weeks.
There are many form leases available for purchase. What form lease do you offer to your tenants? Unfortunately, there is no form lease available for purchase which is tailor-made for rent-stabilized tenants who were formerly IMD (loft law) tenants. In the absence of a tailor-made lease, you can use the Real Estate Board of New York (REBNY) form rent-stabilized lease. If you offer this lease to your tenants - or any other form lease available for purchase - don't be surprised if your tenants' lawyer objects and demands certain changes to the form lease! For example, most tenant attorneys demand that a "rider" to the lease reflect the fact that the tenant has the right to sell improvements which the tenant made to the tenant's loft. If your tenants' attorney objects to the lease you have offered, be sure to get your lawyer involved.
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