The City Council yesterday held its first hearing on the city’s basement legalization pilot program.
The program is part of legislation that City Council members Brad Lander (D-Park Slope, Windsor Terrace, Kensington), Rafael Espinal (D-East New York, Bushwick) and Inez Barron (D-East New York) introduced earlier this year to establish a three-year demonstration program to facilitate the creation and renovation of apartments in the basements and cellars of certain one- and two-family homes in East New York.
The program offers loans from the Department of Housing Preservation and Development (HPD) to homeowners whose rented-out basement units are not up to code. These loans aim to ease the financial burden of conversion for the homeowner, while offering current tenants safer conditions and secure leases for affordable units.
Eligible homeowners must have an income at or below 165 percent of the area median income (AMI), and occupy the home as their primary residence.
Tenants in illegal basement and cellar apartments typically have no lease, limited rights, and live in substandard conditions. While, homeowners can currently be fined up to $10,000 if found illegally renting their basement as an apartment.
“Many of the families who currently lease their basements have reasonable agreements with their tenants that allow them both to make ends meet. The aim of this program is to enforce this balance with rents that reflect the low-income of the tenants, and the needed income from the homeowner,” said Espinal.
Espinal went on to note that renting out a basement apartment can be an integral part of a homeowners’ income, and ability to continue to own their home.
There are 22,700 fewer black homeowners in Queens now than there were in 2005. In Brooklyn, Latino home ownership has decreased 18% despite a 2% growth in population from 2008-2017. As the city is rampant with development and gentrification, it is racial minorities that are often displaced first. Those who don’t own homes are most vulnerable to being forced out of their communities, according to Espinal’s office.
“When New Yorkers think of homeownership, they think of real-estate tycoons. Like in so many other issues, low-income black and brown people are left out of the conversation. Last year we saw more foreclosures in the City than we have since 2009. We need more programs to support families whose homes are their only financial asset,” added Espinal.
The City will allow for the creation of new apartments in this area through the modification of existing Housing Maintenance Code, Fire Code and Construction Code standards, coupled with existing allowances for home conversions and the allocation of funds to assist with these renovations.
Modifications of code standards include minimum ceiling heights and window sizes in basement and cellar spaces and strengthened requirements for emergency egress and fire safety. Each proposed modification to the code standards for this program took into account the obligation to preserve the health and safety for the occupants of these apartments. The changes will modify requirements in order to reduce costs and facilitate conversion of new residential units.
This innovative pilot program aims to provide safe and legal housing options to more New Yorkers.
The basement conversion pilot program was a commitment made under the East New York Neighborhood Rezoning Plan, and is the result of a study conducted by a working group convened in October, 2016. This working group was comprised of administration officials, council officials including Espinal, community groups, residents and housing advocates. The Administration has invested $11.7 million in this three-year program.
