does a nyc rental apartment need to have a certificate of occupancy?

September 15, 2008 1:19 PM

nycfilter: is it legal to rent a newly-renovated apartment in an old residential building that doesn't have its certificate of occupancy yet?

i know you are probably not a lawyer and even if you are, you're not my lawyer, but: i'm thinking about signing a lease on an apartment that was completely renovated recently. the building it's in is over a hundred years old and the former landlord was a slumlord who preferred to eat fines rather than fix it up to code; the new landlords bought it for a song and have spent money to bring it up to code, and they renovated two apartments that didn't have rent-stabilized tenants in them, one of which i'm looking to rent.

the apartment is configured as an open loft but i'd like to split up one end of it with pressurized walls to make two bedrooms—the landlord told me it would be okay as long as the walls didn't go all the way up to the ceiling because they hadn't had their inspection for the CO yet (electrical and plumbing inspections are already done) and the plans they filed for it were as an open loft, and that it would probably happen in a few months time and i could do whatever i wanted after that. is it legal to sign a lease on an apartment without a CO? should i be asking for reduced rent till then?

p.s. this is anonymous because my friends read ask mefi and i don't want them all up in my business.

posted by anonymous to law & government (7 comments total)

I'm surprised the landlords are even willing to let you move in prior to the C of O inspection. As bradbane pointed out in the NYC lofts thread yesterday, they're putting themselves in a very bad position by doing so.
posted by JaredSeth at 1:41 PM on September 15, 2008

A certificate of occupancy is exactly that. It certifies that the space is habitable. You're not supposed to be there until they have one. That said, if you want to negotiate a deal you could use it as leverage.

Also, what are pressurized walls?
posted by electroboy at 1:52 PM on September 15, 2008

You're assuming a small-but-significant risk if you do this (namely, that there's some issue with getting the CofO- it's NYC and you're looking at a century-old building, you never know). Not in terms of fines (the landlord is on the hook for those), but in losing your pad.

The odds of something bad actually happening are quite low, but why risk it? If you're serious about this place, I'd push for a commitment letter that says you agree in principle to a $X/month lease contingent on the landlord receiving a CofO by date Y. If the landlord won't agree to that, take it as a sign to walk away.
posted by mkultra at 2:08 PM on September 15, 2008

electroboy: google says: Pressurized Walls

I think they stay in place by pushing against the floor and ceiling is why they're called that?
posted by aubilenon at 2:10 PM on September 15, 2008

No, it isn't. Read about this DUMBO building whose residents were forced out for months after code violations were discovered. As a practical matter, many buildings skirt this requirement, but you're taking a risk by playing along.
posted by dhartung at 2:32 PM on September 15, 2008

No. Read about 1717 Troutman. I used to live there and moved out about a year before this shit went down, many of my friends got screwed because of it. Basically, the landlord never had the right to rent the lofts as living space, and did so anyway.
posted by piratebowling at 2:45 PM on September 15, 2008

You can sign a lease. You just can't move it. This isn't as bad as it sounds, as you can sign a lease that has a clause that (a) lets you move in once the CofO has been approved, and (b) lets you terminate the lease on a particular date if the CofO hasn't been approved. This is called a contingency clause, and it's very standard. This would let you lock in the apartment, would let the landlord be sure of having a tenant as soon as it's legal, and wouldn't bind either of you if the CofO is denied or delayed significantly.
posted by Capri at 3:41 PM on September 15, 2008