NYC Council Smooths the Way to Get Tenants into Buildings
Talita Isoton, CPA
12.17.20 | Industry Insights
As a small year-end gift to building developers, the NYC Council passed Int. 2033-2020 to ease the move-in process for owners and occupants. This bill allows the Department of Buildings (DOB) to issue Interim Certificates of Occupancies (ICOs) to authorize the occupancy of specific portions of a building—deemed safe for occupancy—prior to completion of all permitted construction work comprising the project. Importantly, no further DOB approvals are required following issuance of an ICO.
As a further benefit, the ICOs do not have to be renewed which means commercial and residential tenants can move in and not have to worry about the certificate expiring. Before Int. 2033 – 2020, newly constructed portions of buildings received a temporary certificate of occupancy (TCO) which expired after 90 days and had to be renewed until completion of the project and issuance of a final certificate of occupancy.
To qualify, the building owner must submit an application and show that the building meets certain requirements including noncombustible construction, an automatic sprinkler system, adequate means of egress, and that there are no outstanding objections relating to or affecting the occupancy of such portion of the building and, upon inspection, the portion of the building is deemed safe for occupancy.
The legislation does not apply to residential buildings with fewer than eight stories or fewer than two dwelling units, nonresidential buildings with fewer than five stories, mixed use buildings with fewer than four dwelling units, or parking structures. The Commissioner also has the authority to revoke or suspend an ICO if certain conditions exists, such as incomplete information provided to the DOB.
If you have any questions, contact Talita Isoton at 516.806.3461 | TIsoton@berdonllp.com or your Berdon advisor.
Berdon LLP New York Accountants