§ 2-01 Code Compliance Deadlines, the Narrative Statement Process, Code Compliance Work and Removal from the Loft Board's Jurisdiction.

(a) Code compliance timetable for IMDs. The Owner or Responsible Party of any Building, structure or portion thereof that meets the criteria for an IMD set forth in § 281 of Art. 7-C and Loft Board coverage regulations must comply with the Code Compliance Deadlines set forth below. Any Building or unit that is not covered by Art. 7-C because of the denial of a Grandfathering application or expiration of Study Area status is not required to be legalized pursuant to these regulations, unless either the area in which the Building is located is rezoned to permit residential use or a unit or units at the Building qualify for coverage pursuant to MDL § 281(4), § 281(5) or § 281(6). However, the Building must still comply with all other applicable laws and regulations.

Code Compliance Deadlines. The failure of an Owner or Responsible Party to meet any of the Code Compliance Deadlines provided below does not relieve the Owner or Responsible Party of its obligations to comply with these requirements nor does it relieve the Owner or Responsible Party of its duty to exercise all reasonable and necessary action to so comply.

Paragraphs (1) through (4) of this subdivision implement the initial Code Compliance Deadlines that applied pursuant to § 284(1)(i) of Art. 7-C before the enactment of later amendments, and paragraphs (5) through (8) reflect those amendments, as set forth in § 284(1)(ii) through (v).

The deadlines set forth in paragraphs (1) through (8) of this subdivision do not apply to a Building or a portion of a Building subject to Art. 7-C pursuant to MDL § 281(5) or MDL § 281(6).

Paragraphs (9), (10), (11) and (12) of this subdivision implement the current Code Compliance Deadlines set forth in MDL § 284(1)(vi) for Buildings or portions of Buildings subject to Art. 7-C pursuant to MDL § 281(5).

Paragraph (9) implements the current Code Compliance Deadlines for a Building or portion of a Building covered by Art. 7-C pursuant to Chapters 135 or 147 of the Laws of 2010.

Paragraph (10) implements the current Code Compliance Deadlines for a Building or portion of a Building covered by Art. 7-C pursuant to Chapter 4 of the Laws of 2013.

Paragraph (11) implements the current Code Compliance Deadlines for a Building or portion of a Building covered by Art. 7-C pursuant to Chapter 20 of the Laws of 2015.

Paragraph (12) implements the current Code Compliance Deadlines for a Building or portion of a Building covered by Art. 7-C pursuant to Chapter 41 of the Laws of 2019.

Paragraph (13) implements the current Code Compliance Deadlines set forth in MDL § 284(1)(vii) for Buildings or portions of Buildings subject to Art. 7-C pursuant to MDL § 281(6).

(1) Deadlines for filing Alteration Applications.

(i) Code compliance timetable for Buildings in which all Residential Units are as of right. The Owner or Responsible Party of an IMD that contains only Residential Units in which residential use is permitted as of right under the Zoning Resolution must have filed an Alteration Application by March 21, 1983.

(ii) Buildings with three (3) or more as of right units and additional units eligible for Grandfathering. The Owner or Responsible Party of an IMD that, on December 1, 1981, contained three (3) or more Residential Units as of right and one (1) or more units eligible for coverage by use of one of the Grandfathering procedures set forth in § 281(2)(i) or (iv) of Art. 7-C:

(A) Must have filed an Alteration Application for all covered as of right Residential Units by March 21, 1983, and

(B) Following the Grandfathering approval of any additional Residential Units, the Owner or Responsible Party must amend the existing Alteration Application to reflect approval of the Grandfathering application for the additional unit or units within a Month from such approval or within a Month of the effective date of these regulations, whichever is later.

(iii) Buildings with fewer than three (3) as of right units and additional units eligible for Grandfathering. The Owner or Responsible Party of an IMD that, on December 1, 1981, contained fewer than three (3) Residential Units as of right and one (1) or more units eligible for coverage by use of the Grandfathering procedures set forth in § 281(2)(i) or (iv) of Art. 7-C:

(A) Must file an Alteration Application for all covered Residential Units within nine (9) Months after approval of the Grandfathering application of the unit that becomes the third covered Residential Unit, and

(B) Following the Grandfathering approval of the unit that becomes the third eligible Residential Unit, the Owner or Responsible Party of a Building with additional units eligible for Grandfathering must amend the existing Alteration Application to reflect approval of the Grandfathering application for the additional unit or units within a Month after such approval or within a Month after the initial timely filing of the Alteration Application referred to in 29 RCNY § 2-01(a)(1)(iii)(A) above, whichever is later.

(v) Buildings in Study Areas rezoned to permit residential use with three (3) or more as of right units and additional units eligible for Grandfathering. The Owner or Responsible Party of an IMD that is located in an area designated by the Zoning Resolution as a Study Area and that, as a result of rezoning, contains three (3) or more Residential Units as of right and one (1) or more units eligible for coverage by use of one of the Grandfathering procedures set forth in § 281(2)(i) or (iv) of Art. 7-C:

(A) Must file an Alteration Application for all covered as of right Residential Units within nine (9) Months after the effective date of such rezoning, and

(vi) Buildings in Study Areas rezoned to permit residential use with fewer than three (3) as of right units and additional units eligible for Grandfathering. The Owner or Responsible Party of an IMD that is located in an area designated by the Zoning Resolution as a Study Area and that, as a result of rezoning, contains fewer than three (3) Residential Units as of right and one (1) or more units eligible for coverage by use of one of the Grandfathering procedures set forth in § 281(2)(i) or (iv) of Art. 7-C:

(2) Deadlines for obtaining permits.

(i) Code compliance timetable for Buildings in which all Residential Units are as of right. The Owner or Responsible Party of an IMD that contains only Residential Units in which residential use is permitted as of right under the Zoning Resolution must take all necessary and reasonable actions to obtain a building permit within six (6) Months after the effective date of these regulations.

(A) Must take all necessary and reasonable actions to obtain a building permit for all covered Residential Units within six (6) Months after the effective date of these regulations, and

(B) Following the Grandfathering approval of any additional Residential Units, the Owner or Responsible Party must take all necessary and reasonable actions to obtain approval of the amended Alteration Application for the additional units within six (6) Months after such Grandfathering approval or within six (6) Months after the effective date of these regulations, whichever is later.

(iii) Buildings with fewer than three (3) as of right units and additional units eligible for Grandfathering. The Owner or Responsible Party of an IMD that, on December 1, 1981, contained fewer than three (3) Residential Units as of right and one (1) or more units eligible for coverage by use of one of the Grandfathering procedures set forth in § 281(2)(i) or (iv) of Art. 7-C:

(A) Must take all necessary and reasonable actions to obtain a building permit for all covered Residential Units within six (6) Months after the effective date of these regulations or within six (6) Months after the timely filing of an Alteration Application, whichever is later, and

(B) Following the Grandfathering approval of the unit that becomes the third eligible Residential Unit, the Owner or Responsible Party of a Building with additional units eligible for Grandfathering must take all necessary and reasonable actions to obtain approval of the amended Alteration Application for the additional units within six (6) Months after such Grandfathering approval or within six (6) Months after the effective date of these regulations, whichever is later.

(iv) Buildings in Study Areas rezoned to permit as of right residential use. The Owner or Responsible Party of an IMD located in an area designated by the Zoning Resolution as a Study Area that is rezoned to permit Residential Use as of Right must take all necessary and reasonable actions to obtain a building permit for all covered Residential Units within six (6) Months after the effective date of these regulations or within six (6) Months after the timely filing of the Alteration Application, whichever is later.

(vi) Buildings in Study Areas rezoned to permit residential use with fewer than three (3) as of right units and additional units eligible for Grandfathering. The Owner or Responsible Party of an IMD that is located in an area designated by the Zoning Resolution as a Study Area and that, as result of rezoning, contains fewer than three (3) Residential Units as of right and one (1) or more units eligible for coverage by use of one of the Grandfathering procedures set forth in § 281(2)(i) or (iv) of Art. 7-C:

(B) Following the Grandfathering approval of the unit that becomes the third eligible Residential Unit, the Owner or Responsible Party of a Building with additional units eligible for Grandfathering must take all necessary and reasonable actions to obtain approval of the amended Alteration Application for the additional units within six (6) Months after such Grandfathering approval.

(3) Deadlines for Art. 7-B compliance. The Owner or Responsible Party of an IMD must comply with the fire and safety standards of Art. 7-B of the MDL for all covered Residential Units within eighteen (18) Months after a building permit has been obtained or within eighteen (18) Months after the effective date of these regulations, whichever is later. Or the Owner or Responsible Party may elect to comply with other local building codes or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B (pursuant to § 287 of Art. 7-C) within eighteen (18) Months after a building permit has been obtained or within eighteen (18) Months after the effective date of these regulations, whichever is later. Where an Owner or Responsible Party is required to amend the existing Alteration Application to reflect approval of Grandfathering applications for additional units pursuant to 29 RCNY § 2-01(a)(1)(ii)(B), (iii)(B), (v)(B) or (vi)(B) above, the Owner or Responsible Party must comply with the fire and safety standards of Art. 7-B, or with alternative building codes or provisions of the MDL for the additional grandfathered unit or units within eighteen (18) Months after the timely approval of the amended Alteration Application or within eighteen (18) Months after the effective date of these regulations, whichever is later. Issuance of a temporary certificate of occupancy shall be considered the equivalent of Art. 7-B compliance or compliance with alternative building codes or provisions of the MDL.

(4) Deadlines for obtaining a final certificate of occupancy. The Owner or Responsible Party of an IMD must take all necessary and reasonable actions to obtain a final certificate of occupancy as a class A multiple dwelling for all covered Residential Units within six (6) Months after compliance with the fire and safety standards of Art. 7-B, alternative building codes or provisions of the MDL has been achieved, or within six (6) Months after a temporary certificate of occupancy has been obtained. The Owner or Responsible Party of an IMD that contains additional units subject to 29 RCNY § 2-01(a)(1)(ii)(B), (iii)(B), (v)(B) or (vi)(B) above, must take all necessary and reasonable actions to obtain a final certificate of occupancy as a class A multiple dwelling for the additional unit or units within six (6) Months after the date such unit or units come into compliance with the fire and safety standards of Art. 7-B, alternative building codes, or provisions of the MDL, or within six (6) Months after the date such unit or units are covered by a temporary certificate of occupancy.

(5) Notwithstanding the provisions of paragraphs (a)(1) through (4) of this section, the Owner or Responsible Party of an IMD who has not been issued a final certificate of occupancy as a class A multiple dwelling for all covered Residential Units on or before June 21, 1992 must:

(i) File an Alteration Application by October 1, 1992; and

(ii) Take all reasonable and necessary action to obtain a building permit by October 1, 1993; and

(iii) Comply with the fire and safety standards of Art. 7-B of the MDL for all covered Residential Units by April 1, 1995, or within eighteen (18) Months after an approved Alteration Permit has been obtained, whichever is later. The Owner or Responsible Party may, alternatively, elect to comply with other building codes or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B (pursuant to MDL § 287) by April 1, 1995 or within eighteen (18) Months after an approved Alteration Permit has been obtained, whichever is later; and

(iv) Take all reasonable and necessary actions to obtain a final certificate of occupancy as a class A multiple dwelling for all covered Residential Units by October 1, 1995, or within six (6) Months after achieving compliance with the fire and safety standards of Art. 7-B, alternative building codes, or provisions of the MDL, whichever is later.

(6) Notwithstanding the provisions of paragraphs (a)(1) through (a)(5) of this section, the Owner or Responsible Party of an IMD who has not complied with the requirements of MDL § 284(1)(i) or (ii) by June 30, 1996 must:

(i) File an Alteration Application by October 1, 1996; and

(ii) Take all reasonable and necessary action to obtain an approved Alteration Permit by October 1, 1997; and

(iii) Comply with the fire and safety standards of Art. 7-B of the MDL for all covered Residential Units by April 1, 1999 or within eighteen (18) Months after obtaining an approved Alteration Permit, whichever is later; and

(iv) Take all reasonable and necessary action to obtain a certificate of occupancy as a class A multiple dwelling for all covered Residential Units by June 30, 1999, or within three (3) Months after achieving compliance with the fire and safety standards of Art. 7-B of the MDL, whichever is later.

(v) As an alternative to complying with the requirements of subparagraph (iii) of this paragraph, an Owner or Responsible Party may, pursuant to MDL § 287, elect to comply with other local building codes or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B by April 1, 1999 or within eighteen (18) Months after obtaining an approved Alteration Permit, whichever is later.

(7) Notwithstanding the provisions of paragraphs (a)(1) through (a)(6) of this section, the Owner or Responsible Party of an IMD who has not complied with the requirements of MDL. § 284(1)(i), (ii), or (iii) by June 30, 1999 must:

(i) File an Alteration Application by September 1, 1999; and

(ii) Take all reasonable and necessary actions to obtain an approved Alteration Permit by March 1, 2000; and

(iii) Comply with the fire and safety standards of Art. 7-B of the M.D.L. for all covered Residential Units by May 1, 2002, or within twelve (12) Months after obtaining an approved Alteration Permit, whichever is later; and

(iv) Take all reasonable and necessary action to obtain a certificate of occupancy as a class A multiple dwelling for all covered Residential Units by May 31, 2002, or within one (1) Month after achieving compliance with the fire and safety standards of Art. 7-B of the MDL, whichever is later.

(v) As an alternative to complying with the requirements of subparagraph (iii) of this paragraph, an Owner or Responsible Party may, pursuant to MDL § 287, elect to comply with other local building codes or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B by May 1, 2002 or within twelve (12) Months after obtaining an approved Alteration Permit, whichever is later.

(8) Notwithstanding the provisions of paragraphs (a)(1) through (a)(7) of this section, the Owner or Responsible Party of an IMD who has not complied with the requirements of MDL § 284(1)(i), (ii), (iii) or (iv) by June 21, 2010 must:

(i) File an Alteration Application by September 1, 1999; and

(ii) Take all reasonable and necessary action to obtain an approved Alteration Permit by March 1, 2000; and

(iii) Comply with the fire and safety standards of Art. 7-B of the MDL for all covered Residential Units by June 1, 2012, or within twelve (12) Months after obtaining an approved Alteration Permit, whichever is later; and

(iv) Take all reasonable and necessary action to obtain a final certificate of occupancy as a class A multiple dwelling for all covered Residential Units by July 2, 2012, or within one (1) Month after achieving compliance with the fire and safety standards of Art. 7-B of the MDL, whichever is later.

(v) As an alternative to complying with the requirements of subparagraph (iii) of this paragraph (8), an Owner or Responsible Party may, pursuant to MDL § 287, elect to comply with other local building codes or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B by June 1, 2012 or within twelve (12) Months after obtaining an approved Alteration Permit, whichever is later.

(9) 2010 code compliance timetable for Buildings subject to Art. 7-C pursuant to MDL § 281(5) as a result of the 2010 amendments to the Loft Law. The Owner or Responsible Party of a Building, structure or portion of a Building or structure that is covered by MDL § 281(5) and became subject to Art. 7-C pursuant to Chapter 135 or 147 of the Laws of 2010 must:

(i) File an Alteration Application by March 21, 2011; and

(ii) Take all reasonable and necessary actions to obtain an approved Alteration Permit by June 21, 2011; and

(iii) Comply with the fire and safety standards of Art. 7-B of the MDL for all covered Residential Units within eighteen (18) Months after obtaining an approved Alteration Permit; and

(iv) Take all reasonable and necessary action to obtain a final residential certificate of occupancy for all covered units by December 21, 2012.

(v) As an alternative to complying with the requirements of subparagraph (iii) of this paragraph (9), an Owner or Responsible Party may, pursuant to MDL § 287, elect to comply with other local building codes or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B by no later than eighteen (18) Months from the issuance of the Alteration Permit.

(10) 2013 code compliance timetable for Buildings subject to Art. 7-C pursuant to MDL § 281(5) as a result of the 2013 amendments to the Loft Law. The Owner or Responsible Party of a Building, structure or portion of a Building or structure that is covered by MDL § 281(5) and became subject to Art. 7-C pursuant to Chapter 4 of the Laws of 2013 must:

(i) File an Alteration Application on or before June 11, 2014; and

(ii) Take all reasonable and necessary actions to obtain an approved Alteration Permit on or before September 11, 2014; and

(iii) Comply with the fire and safety standards of Art. 7-B of the MDL for all covered Residential Units within eighteen (18) Months after obtaining an approved Alteration Permit; and

(iv) Take all reasonable and necessary action to obtain a final residential certificate of occupancy on or before March 11, 2016.

(v) As an alternative to complying with the requirements of subparagraph (iii) of this paragraph (10), an Owner or Responsible Party may, pursuant to MDL § 287, elect to comply with other local building codes or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B by no later than eighteen (18) Months after obtaining an Alteration Permit.

(11) Code Compliance Deadlines for Buildings subject to Art. 7-C pursuant to MDL § 281(5) as a result of the 2015 amendments to the Loft Law. The Owner or Responsible Party of a Building, structure or portion of a Building or structure that is covered by MDL § 281(5) and became subject to Art. 7-C pursuant to Chapter 20 of the Laws of 2015 must:

(i) File an Alteration Application within nine (9) Months of either the date of the initial coverage Application, or within nine (9) Months of the date of issuance of an IMD number or within nine (9) Months of the service date of a pleading in a court action, whichever is earlier, and

(ii) Take all reasonable and necessary action to obtain an approved Alteration Permit within twelve (12) Months of the date of the initial coverage Application or within twelve (12) Months of issuance of the date of an IMD number or within twelve (12) Months of the service date of a pleading in a court action, whichever is earliest, and

(iii) Comply with the fire and safety standards of Art. 7-B of the MDL for all covered Residential Units within eighteen (18) Months after obtaining an approved Alteration Permit. As an alternative to complying with the fire and safety standards of Art. 7-B of the MDL, an Owner or Responsible Party may, pursuant to MDL § 287, elect to comply with other local building codes or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B by no later than eighteen (18) Months after obtaining an Alteration Permit, and

(iv) Take all reasonable and necessary action to obtain a final residential certificate of occupancy within thirty (30) Months of the date of the initial coverage Application or within thirty (30) Months of the date of issuance of an IMD number or within thirty (30) Months of the service date of a pleading in a court action, whichever is earlier.

(12) Code Compliance Deadlines for Buildings subject to Art. 7-C pursuant to MDL § 281(5) as a result of the 2019 amendments to the Loft Law. The Owner or Responsible Party of a Building, structure or portion of a Building or structure that is covered by MDL § 281(5) and became subject to Art. 7-C pursuant to Chapter 41 of the Laws of 2019 must:

(i) File an Alteration Application by March 25, 2020, which is within nine (9) Months of June 25, 2019, the effective date of Chapter 41 of the Laws of 2019, and

(ii) Take all reasonable and necessary action to obtain an approved Alteration Permit by June 25, 2020, which is twelve (12) Months from June 25, 2019, the effective date of Chapter 41 of the Laws of 2019 that amended MDL § 284(1)(vi), and

(iii) Comply with the fire and safety standards of Art. 7-B of the MDL for all covered Residential Units within eighteen (18) Months of obtaining an Alteration Permit pursuant to 29 RCNY § 2-01(a)(13)(ii) or December 25, 2020, which is eighteen (18) Months from June 25, 2019, the effective date of Chapter 41 of the Laws of 2019 that amended MDL § 284(1)(vi), whichever is later. As an alternative to complying with the fire and safety standards of Art. 7-B of the MDL, an Owner or Responsible Party may, pursuant to MDL § 287, elect to comply with other local building codes or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B by no later than eighteen (18) Months after obtaining an Alteration Permit, and

(iv) Take all reasonable and necessary action to obtain a final residential certificate of occupancy by June 25, 2022, which is thirty-six (36) Months from June 25, 2019, the effective date of Chapter 41 of the Laws of 2019 that amended MDL § 284(1)(vi).

(13) Code Compliance Deadlines for Buildings subject to Art. 7-C pursuant to MDL § 281(6) as a result of the 2019 amendments to the Loft Law. The Owner or Responsible Party of a Building, structure or portion of a Building or structure that is covered by MDL § 281(6) and became subject to Art. 7-C pursuant to Chapter 41 of the Laws of 2019 must:

(i) File an Alteration Application by March 25, 2020, which is within nine (9) Months of June 25, 2019, the effective date of Chapter 41 of the Laws of 2019, and

(b) Extensions of time to comply with the amended code compliance timetable.

(1) Extensions of current deadlines. Pursuant to MDL § 284(1), an Owner of an IMD Building may apply to the Loft Board for an extension of time to comply with the Code Compliance Deadlines provided in MDL § 284 in effect on the date of the filing of the extension Application. An Application for an extension must be filed before the deadline for which an extension is sought, except as provided in (i) through (iv) below:

(i) Where title to the IMD was conveyed to a New Owner after the Code Compliance Deadline has passed, the New Owner may file an extension Application for the passed deadline within ninety (90) days from acquiring title. Before making a determination, the Executive Director may request additional information relevant to the extension Application including, but not limited to, information regarding the applicant's claim to be a New Owner.

(ii) Where the IMD is found to be covered under Art. 7-C or registered as an IMD after the Code Compliance Deadline has passed, the Owner may file an extension Application for the passed Code Compliance Deadline within ninety (90) days after either a finding of Art. 7-C coverage by the issuance of a Loft Board order, a court of competent jurisdiction or the issuance of an IMD registration number, whichever is first. If an Owner appeals a finding of Art. 7-C coverage, the Owner may file an extension Application within ninety (90) days after the final determination of the appeal.

(iii) Reserved.

(iv) The IMD Owner described in (i) and (ii) above may file an Application for an extension of time of up to one (1) year to comply with the most recently passed deadline.

(2) Statutory standard.

(i) The Executive Director will grant an extension of the Code Compliance Deadlines in MDL § 284(1)(ii), (iii), (iv), (v), (vi) or (vii) only where an Owner has demonstrated that it has met the statutory standards for such an extension, namely, that the necessity for the extension arises from conditions or circumstances beyond the Owner's control, and that the Owner has made good faith efforts to meet the code compliance timetable requirements. Examples of such conditions or circumstances beyond the Owner's control include, but are not limited to, a requirement for a certificate of appropriateness for modification of a landmarked Building, a need to obtain a variance from the Board of Standards and Appeals or the denial of reasonable access to an IMD unit.

In the case of an IMD Owner described in 29 RCNY § 2-01(b)(1)(i) and (b)(1)(ii) above, the Executive Director may consider any action the Owner has taken from the date that the title transferred to the New Owner, or from the date of the determination of Art. 7-C coverage, up to the date the Owner filed the extension Application when making a determination of whether the Owner has exercised good faith efforts to satisfy the requirements.

The existence of conditions or circumstances beyond the Owner's control and good faith efforts must be demonstrated in the extension Application by the submission of corroborating evidence. For example, copies of documents from the Landmarks Commission or the Board of Standards and Appeals, or an architect's statement, may be filed with the extension Application to show the existence of conditions or circumstances beyond the Owner's control and good faith efforts. Proof of the date that the title was transferred to the Owner or proof of when the Building was deemed covered under Art. 7-C should be submitted with the extension Application. Failure to include corroborating evidence in the extension Application may be grounds for denial of the extension Application without further consideration.

(ii) Pursuant to MDL §§ 284(1)(i), 284(1)(vi), and 284(1)(vii), upon proof of compliance with Art. 7-B, the Executive Director may twice extend the deadline for obtaining a final certificate of occupancy issued pursuant to MDL § 301, for a period of up to twelve (12) Months each, upon proper showing of good cause.

(3) Administrative Determination on the extension Application. The Owner of an IMD may apply to the Loft Board's Executive Director for an extension to comply with the amended code compliance timetable. The Loft Board's Executive Director will promptly decide each Application for an extension. Where the Loft Board's Executive Director determines that the Owner has met the statutory standards for an extension, the Executive Director must grant the minimum extension required by the IMD Owner. Applications for extensions of Code Compliance Deadlines will be limited to one extension per deadline in the amended code compliance timetable.

The Executive Director's Administrative Determination will be mailed to the Owner and to the Affected Parties identified in the extension Application submitted pursuant to paragraph (4) of this subdivision below, and may be appealed to the Loft Board upon Application by such Owner or Affected Party.

An appeal of the Administrative Determination must be filed in accordance with 29 RCNY § 1-33.

(4) Form of application, filing requirements and occupant responses.

(i) An extension Application filed pursuant to this subdivision (b) of 29 RCNY § 2-01 must be filed on the approved form and must meet the requirements of this subdivision, and 29 RCNY §§ 1-21 and 2-11 except as provided in this paragraph. An Application for an extension must include a list of all residential IMD units in the Building and must specify a date to which the applicant seeks to have the deadline extended. Failure to so specify in the extension Application shall be grounds for dismissal of the extension Application without prejudice.

(ii) The original extension Application and two (2) copies must be filed with the Loft Board. Before filing an extension Application with the Loft Board, an Owner must serve a copy of the extension Application upon the Occupant of each IMD unit in the Building in the manner described in 29 RCNY § 1-21. Any Occupant of an IMD unit may file an answer to such Application with the Loft Board within twenty (20) days from the date service of the extension Application is deemed complete, as determined below in subparagraph (iv).

(iii) The Occupant(s) of an IMD unit must serve a copy of the answer upon the Owner before filing the answer with the Loft Board. Each answer filed with the Loft Board must include, at the time of filing, proof of service in the manner described in 29 RCNY § 1-22.

(iv) Service of the extension Application by mail is deemed completed five (5) days following mailing. While an extension Application filed under this subdivision is pending, an Owner may amend the extension Application one time to request a longer extension period than was originally sought in the extension Application.

(1) The Loft Board, on its own initiative or in response to complaints, may commence a proceeding to determine whether an owner has violated the provisions of § 284(1) of the MDL or these code compliance rules. In addition, a residential occupant of an IMD building may file with the Loft Board an application seeking a Loft Board determination on whether the owner of the occupant's building is in violation of the provisions of § 284(1) of the MDL or these code compliance rules.

(2) An owner who is found by the Loft Board to have violated the code compliance timetables set forth in MDL § 284(1) or any provision of 29 RCNY § 2-01(a): (i) may be subject to a civil penalty in accordance with 29 RCNY § 2-11.1 for each missed deadline; (ii) may be subject to all penalties provided in Article 8 of the MDL; and (iii) may be subject to a specific performance proceeding as provided in paragraph (4) below.

(3) Upon demonstration by an owner of insufficient funds to proceed with code compliance, the Loft Board may consider the lack of sufficient funds in mitigation of any fine to be imposed against the owner upon a finding of noncompliance. To obtain the benefit of the defense of insufficient funds, an owner must supply the Loft Board with an income and expense statement for the building verified by an independent certified public accountant, a written estimate of the cost of compliance with the cited deadline or requirement from a registered architect. If the funds generated by the building are not sufficient to cover the costs of the necessary compliance work, the owner must also supply a letter from two separate banks or mortgage brokers refusing to offer sufficient funds to comply, accompanied by copies of the owner's applications for such funds, or if the lenders refuse to provide a written rejection, then the owner shall file an affidavit setting forth the basis for the owner's belief that the applications have been rejected.

(4) If the Loft Board finds an owner in violation of the code compliance timetable set forth in MDL § 284(1) and 29 RCNY § 2-01(a), the Loft Board or any three occupants of separate, covered residential units in the building may apply to a court of competent jurisdiction for an order of specific performance directing the owner to satisfy all code compliance requirements set forth in this section.

(5) The owner of an IMD who is found by the Loft Board to have willfully violated the code compliance timetable of these regulations or to have violated the code compliance timetable more than once may be found to have harassed occupants with respect to such IMD in a harassment proceeding before the Loft Board.

(6) If any residential occupant of an IMD building is required to vacate its unit as a result of a municipal vacate order that has been issued for hazardous conditions as a consequence of an owner's unlawful failure to comply with the code compliance timetable: (i) The occupant, at its option, will be entitled to recover from the owner the fair market value of any improvements made or purchased by the occupant and will be entitled to reasonable moving costs incurred in vacating the unit. All such transactions shall be fully in accordance with 29 RCNY § 2-07 regarding Sales of Improvements. These rights are in addition to any other remedies the occupant may have.

(ii) Any municipal vacate order shall be deemed an order to the owner to correct the noncompliant conditions, subject to the provisions of Article 7-C. The issuance of such an order as a result of the owner's unlawful failure to comply with the code compliance timetable shall result in a rebuttable presumption of harassment in a harassment proceeding brought by an occupant or occupants before the Loft Board.

(iii) When the owner has corrected the noncompliant conditions, the occupants will have the right to reoccupy the unit and will be entitled to all applicable occupant protections of Article 7-C, including the right to reoccupy the unit at the same rent paid prior to the vacancy period plus any rental adjustments authorized by Article 7-C or the Loft Board rules. Furthermore, the occupant will be entitled to recover from the owner reasonable moving costs incurred in reoccupying the unit in accordance with 29 RCNY § 2-07 regarding Sales of Improvements.

(iv) At no time may rent for the unit be due or collectible for such period of vacancy.

(d) Procedure for Occupant review of Narrative Statement and Legalization Plan, resolution of Occupant objections, and certification of estimated future rent adjustments.

(1) Notice: form and time requirements.

(i) Except as otherwise stated in these rules, all notices, requests, responses and stipulations served by Owner or Responsible Party and Occupants directly upon each other must be in writing, with a copy delivered or mailed to the Loft Board, accompanied by proof of service, within five days of delivery, if service was made personally, or within five (5) days of mailing if service was performed by mail. Service of a notice, request, response or stipulation by the parties must be effected either:

(A) By personal delivery or

(B) By certified or registered mail, return receipt requested, with an additional copy sent by regular mail.

Proof of service must be in the form of: a) a verified statement by the person who effected service, setting forth the time, place and other details of service, if service was made personally, or b) by copies of the return receipt or the certified or registered mail receipt stamped by the United States Post Office, and verified statement of mailing, if service was performed by mail. Communications by the Loft Board pursuant to these rules will be sent by regular mail.

Service is deemed effective on the date of personal delivery or five (5) days following service by mail. Deadlines provided herein are to be calculated from the effective date of service.

(ii) Modifications on consent, change of address. Applications, notices, requests, responses and stipulations may be withdrawn and disputes may be resolved, by written agreement of the parties, subject to Loft Board approval. Parties may change their addresses upon service of written notice to the other parties and the Loft Board, and such notice is effective upon personal delivery or five (5) days following service by mail.

(2) Procedure for Occupant review of the Narrative Statement and Legalization Plan and resolutions of Occupant objections.

(i) Buildings not covered under MDL § 281(5). This paragraph (2) shall apply to IMDs for which a building permit for achieving compliance with the fire and safety standards of Art. 7-B, alternative building codes or provisions of the MDL has not been issued as of October 23, 1985, the date of adoption of these regulations. In the case of a building permit that has been issued as of October 23, 1985 and that remains in effect or is renewed, an Owner or Responsible Party who thereafter requests reinstatement of the underlying Alteration Application must comply with all provisions of this paragraph (2) with respect to all work yet to be performed as of the date that reinstatement is requested.

This paragraph (2) shall apply where an Owner or Responsible Party is required to amend an Alteration Application to reflect Grandfathering approval of additional units pursuant to 29 RCNY §§ 2-01(a)(1)(ii)(B), (iii)(B), (v)(B), or (vi)(B), or where an Owner or Responsible Party is required to amend an Alteration Application to reflect the coverage of additional units under MDL § 281(4); however, if the proposed work is to be performed solely within the additional unit(s), this paragraph (2) shall only apply to the Occupant(s) of such unit(s).

This paragraph (2) shall not apply to IMDs for which a building permit for achieving compliance with Art. 7-B, alternative building codes or provisions of the MDL has already been issued and is in effect as of the date of adoption of these regulations, and which remains in effect or is renewed without reinstatement of the underlying Alteration Application until such compliance is achieved. However, an Occupant of such IMD may file an application with the Loft Board based on the grounds that the scope of the work approved under the Alteration Application for which the permit was issued constitutes an unreasonable interference with the Occupant's use of its unit in accordance with the provisions of 29 RCNY § 2-01(h).

This paragraph (2) also shall not apply to those units in IMDs for which a temporary or final certificate of occupancy as a class A multiple dwelling has been issued and is in effect as of the date of adoption of these regulations.

(ii) For Buildings covered under MDL § 281(5) as a result of the 2010 amendments to the Loft Law. The requirements of 29 RCNY § 2-01(d)(2) ("paragraph (2)") apply to an IMD covered by MDL § 281(5) that became subject to Art. 7-C pursuant to Chapter 135 or 147 of the Laws of 2010 as follows:

(A) Paragraph (2) does not apply to those units for which a building permit for achieving compliance with the fire and safety standards of Art. 7-B, alternative building codes, or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B has been issued on or before June 21, 2010, and which remains in effect or is renewed without reinstatement or amendment of the underlying Alteration Application and Legalization Plan until the final certificate of occupancy is obtained.

(B) If a building permit has been issued before June 21, 2010 and the Owner or Responsible Party thereafter files for reinstatement of the underlying Alteration Application and Legalization Plan related to any part of the Building or files for an amendment to the underlying Alteration Application and Legalization Plan, the Owner or Responsible Party will be required to comply with all provisions of paragraph (2) with respect to all work in the Alteration Application and Legalization Plan yet to be performed as of the date of the reinstatement or with respect to the proposed work in the amendment.

(C) If, before June 21, 2010, the Building was already registered as an IMD because other units in the Building are covered by Art. 7-C pursuant to MDL §§ 281(1) or (4); the Building had an Alteration Permit in effect on June 21, 2010; and the proposed work is solely within the additional unit(s) covered under MDL § 281(5) ("additional unit(s)"), paragraph (2) only applies to the Occupant(s) of the additional unit(s).

(D) Paragraph (2) does not apply to those units for which a temporary certificate of occupancy is in effect as of June 21, 2010 and which remains in effect or is renewed without reinstatement or amendment of the underlying Alteration Application and Legalization Plan until the final certificate of occupancy is obtained.

(iii) For Buildings covered under MDL § 281(5) as a result of the 2013 amendments to the Loft Law. The requirements of 29 RCNY § 2-01(d)(2) ("paragraph (2)") apply to an IMD covered by MDL § 281(5) that became subject to Art. 7-C pursuant to Chapter 4 of the Laws of 2013 as follows:

(A) Paragraph (2) does not apply to those units for which a building permit for achieving compliance with the fire and safety standards of Art. 7-B, alternative building codes, or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B, has been issued on or before June 1, 2012, and which remains in effect or is renewed without reinstatement or amendment of the underlying alteration application and Legalization Plan until the final certificate of occupancy is obtained.

(B) If a building permit has been issued before June 1, 2012 and the Owner or Responsible Party thereafter files for reinstatement of the underlying Alteration Application and Legalization Plan related to any part of the Building or files for an amendment to the underlying Alteration Application and Legalization Plan, the Owner or Responsible Party must comply with all provisions of this paragraph (2) with respect to all work in the Alteration Application and Legalization Plan yet to be performed as of the date of the reinstatement or with respect to the proposed work in the amendment.

(C) If, before June 1, 2012, the Building was already registered as an IMD because other units in the Building are covered by Art. 7-C pursuant to MDL §§ 281(1), 281(4) or 281(5); the Building had an Alteration Permit in effect on June 1, 2012; and the proposed work is solely within the additional unit(s) covered under MDL § 281(5) as a result of Chapter 4 of the Laws of 2013 ("additional unit(s)"), this paragraph (2) only applies to the Occupant(s) of the additional unit(s).

(D) Paragraph (2) does not apply to those units for which a temporary certificate of occupancy is in effect as of June 1, 2012 and which remains in effect or is renewed without reinstatement or amendment of the underlying Alteration Application and Legalization Plan until the final certificate of occupancy is obtained.

(iv) An Occupant of an IMD covered by Art. 7-C pursuant to MDL § 281(5), who did not participate in the Narrative Statement process because 29 RCNY § 2-01(d)(2) did not apply to the unit as described in 29 RCNY § 2-01(d)(2)(ii)(A) or (d)(2)(iii)(A), may file an application with the Loft Board based on the grounds that the scope of the work approved in the underlying Alteration Application for which the permit was issued constitutes an unreasonable interference with the Occupant's use of its unit in accordance with the provisions of 29 RCNY § 2-01(h).

(v) For Buildings covered under MDL § 281(5) as a result of the 2019 amendments to the Loft Law and § 281(6). The requirements of 29 RCNY § 2-01(d)(2) ("paragraph (2)") apply to an IMD covered by MDL § 281(5) or 281(6) that became subject to Art. 7-C pursuant to Chapter 41 of the Laws of 2019 as follows:

(A) Paragraph (2) does not apply to those units for which a building permit for achieving compliance with the fire and safety standards of Art. 7-B, alternative building codes, or provisions of the MDL that provide alternative means of meeting the fire and safety standards of Art. 7-B, has been issued on or before June 25, 2019, and which remains in effect or is renewed without reinstatement or amendment of the underlying Alteration Application and Legalization Plan until the final certificate of occupancy is obtained.

(B) If a building permit has been issued before June 25, 2019 and the Owner or Responsible Party thereafter files for reinstatement of the underlying Alteration Application and Legalization Plan related to any part of the Building or files for an amendment to the underlying Alteration Application and Legalization Plan, the Owner or Responsible Party must comply with all provisions of this paragraph (2) with respect to all work in the Alteration Application and Legalization Plan yet to be performed as of the date of the reinstatement or with respect to the proposed work in the amendment.

(C) If, before June 25, 2019, the Building was already registered as an IMD because other units in the Building are covered by Art. 7-C pursuant to MDL § 281(1), 281(4) or 281(5); the Building had an Alteration Permit in effect on June 25, 2019; and the proposed work is solely within the additional unit(s) covered under MDL § 281(5) as a result of the 2019 amendments to the Loft Law or § 281(6) ("additional unit(s)"), this paragraph (2) only applies to the Occupant(s) of the additional unit(s).

(D) Paragraph (2) does not apply to those units for which a temporary certificate of occupancy is in effect as of June 25, 2019 and which remains in effect or is renewed without reinstatement or amendment of the underlying Alteration Application and Legalization Plan until the final certificate of occupancy is obtained.

(vi) Narrative Statement.

(A) Except as otherwise provided in this paragraph (2), the Owner or Responsible Party of an IMD must serve all Occupants with a Narrative Statement, on the Loft Board approved form, within fifteen (15) days of the filing of its Alteration Application with the DOB. The Narrative Statement must separately describe all the work the Owner or Responsible Party will perform in each unit and all of the work to be performed in common areas. If the Occupant provides the Owner or Responsible Party with a current and valid email address, the Owner or Responsible Party must also supply the Occupant with an electronic copy of the plans referred to in the Narrative Statement. The description of work to be performed must include:

(a) a listing of all noncompliant conditions;

(b) citation to the specific provisions of law or regulation that require their correction;

(d) an estimated time schedule for performance of the work; and

(e) a certification signed by an architect or engineer, licensed and registered to practice under the Education Law of the State of New York, stating that the Narrative Statement is a complete and accurate statement reflecting all of the work proposed in the filed Alteration Application and the corresponding Legalization Plan, as defined in subdivision (a) of this section.

(B) Service of the Narrative Statement. The Owner or Responsible Party must serve a copy of the Narrative Statement and Alteration Application on each Occupant. The Owner or Responsible Party may serve each Occupant by:

(a) personal service. Proof of personal service consists of a sworn affidavit indicating the date, time, place, location, and mode of identification of such personal service; or

(b) email, if the Occupant consents to such service and has provided the Owner or Responsible Party with an email address for such purpose. Proof of service by email consists of a copy of a delivery receipt from an email server indicating the email was delivered to such email address; or

(c) fax, if the Occupant consents to such service and has provided the Owner or Responsible Party with a fax number for such purpose. Proof of service by fax consists of a fax machine receipt indicating the transmission was successfully delivered to such number; or

(d) first class mail. Proof of service by first class mail consists of a United States Post Office-stamped copy of the certificate of mailing indicating the mailing address of the Occupant; or

(e) delivery by a Private Delivery Service. Proof of service by a Private Delivery Service consists of a copy of a receipt showing acceptance by the delivery service for delivery to the address of the Occupant.

(C) Filing with the Loft Board. Within five (5) days of service of the Narrative Statement on the first Person of all Persons required to be served, the Owner or Responsible Party must file one electronic copy or one hard copy of the following with the Loft Board:

(a) The original Narrative Statement with proof of service;

(b) The Alteration Application; and

(c) The Legalization Plan submitted to DOB. The hardcopy of the plan filed with the Loft Board must be no larger than fourteen by seventeen (14 x 17) inches.

(D) Occupants may examine the Alteration Application and Legalization Plan by appointment at the Loft Board.

(E) An Occupant may request from the Owner or Responsible Party a copy of the Alteration Application and Legalization Plan, including the tenant protection plan required by Administrative Code § 28-120.1. The Owner or Responsible Party must supply such copy within seven (7) days of the request. The Occupant making the request must pay all copying costs up to the amount listed in 1 RCNY § 101-03. However, the Owner or Responsible Party must supply electronic copies of all requested documents free of charge.

(vii) The Owner or Responsible Party must certify to the DOB on the approved Loft Board form that it has complied with the provisions of subparagraph (vi); that it will comply with all other requirements of this paragraph (2) and with the requirement for a tenant protection plan pursuant to New York City Administrative Code § 28-120.1; and that before obtaining the building permit, the Owner or Responsible Party will submit to the DOB a letter from the Loft Board, certifying compliance with all requirements of 29 RCNY § 2-01(d)(2). The Owner's or Responsible Party's certification must be filed with the DOB within five (5) days after the Owner's or Responsible Party's filing with the Loft Board pursuant to the procedures described in the preceding subparagraph (vi).

(viii) Narrative Statement Conference.

(A) Within thirty (30) days after the Owner or Responsible Party has filed a complete Narrative Statement, as required by 29 RCNY § 2-01(d)(2)(vi), the Loft Board will notify the Owner or Responsible Party and all Occupants that a conference has been scheduled. The conference may be scheduled in the evening. The notice from the Loft Board will be sent by regular mail. Upon the request of the Owner, the Responsible Party or the Occupant(s), the Loft Board may schedule a conference for any IMD unit for which 29 RCNY § 2-01(d)(2) does not apply.

(B) A Narrative Statement conference is for informational and conciliatory purposes. The Loft Board representative assigned to conduct the conference may review the provisions of these code compliance rules, including 29 RCNY § 2-01(f), dealing with Occupant participation and may address the participants' questions. Information or responses to questions provided by the Loft Board representative are advisory only and should not be relied upon as a substitute for professional advice of lawyers, architects or engineers retained by the participants.

(C) The Owner or Responsible Party or its representative will present its Alteration Application, Narrative Statement, Legalization Plan, notice of objections issued by the DOB plan examiners and the estimated time schedule for performance of the work. The Occupants may raise any questions, comments or suggestions regarding the Alteration Application, Narrative Statement and Legalization Plan and the estimated schedule. The Loft Board representative will encourage the Owner or Responsible Party and Occupants to discuss the Alteration Application, Narrative Statement, Legalization Plan, and the schedule, and to reach an agreement as to the performance of code compliance work.

(D) The Loft Board representative may authorize an additional period of time, not to exceed thirty (30) days, for the parties to negotiate an agreement. If the parties are unable to come to an agreement within the authorized time period, the remaining provisions of this paragraph (2) shall apply. Any agreement reached by the parties, including any agreement reached after the above-mentioned thirty (30) day period, must be in writing, signed by the parties, and filed with the Loft Board as provided in 29 RCNY § 2-01(f).

(E) With the exception of material contained in any written agreement(s) among the parties, the conference will not be electronically recorded, and the specifics or nature of communications made at the conference or in the course of negotiations during the authorized time period are not admissible as evidence in any Loft Board proceedings.

(ix) (A) Pursuant to the time periods stated in section (B) below, any Occupant:

(a) May file with the DOB an Alternate Plan Application, including a Legalization Plan, for work affecting the Occupant's use of its unit if the proposed work in the Owner's or Responsible Party's Alteration Application and Legalization Plan unreasonably interferes with the Occupant's use of the unit and the Occupant's alternate plan requires a review by DOB;

(b) May file with the DOB an Alternate Plan Application in support of a claim that the Owner's or Responsible Party's Alteration Application and Legalization Plan will diminish services to which the Occupant is legally entitled; and

(c) May file Comments with the Loft Board opposing the Owner's or Responsible Party's Alteration Application and Legalization Plan on the ground that such plans unreasonably interfere with the Occupant's use of the unit or diminish services to which an Occupant is legally entitled, provided that the Occupant's claim does not require DOB review in order for the Loft Board to resolve the dispute.

(B) (a) For Buildings containing one (1) to fifteen (15) registered IMD units, the Occupant must file an Alternate Plan Application or Comments within forty-five (45) days after the Loft Board issues a notice.

(b) For Buildings containing sixteen (16) to thirty (30) registered IMD units, the Occupant must file an Alternate Plan Application or Comments within sixty (60) days after the Loft Board issues a notice.

(c) For Buildings containing thirty-one (31) or more registered IMD units, the Occupant must file an Alternate Plan Application or Comments within seventy-five (75) days after the Loft Board issues a notice.

(d) Upon request filed before the expiration of the time period stated in section (B)(a), (b) or (c), the Executive Director may extend the deadline for an additional thirty (30) days upon application by an Occupant if the Occupant demonstrates extraordinary circumstances prevented the Occupant from filing an Alternate Plan Application or Comments.

(C) If the occupant's alternate plan proposed pursuant to this subparagraph (ix) is required to be filed with the DOB because it requires DOB review, the Occupant must, at the Occupant's expense, hire a registered architect or professional engineer who must file the alternate plan with the DOB. If the Alternate Plan Application includes an Alteration Application describing plumbing work, the Alteration Application must be filed with the DOB by a licensed plumber retained by the Occupant, who is responsible for any required fees. Two (2) or more Occupants may file a joint Alternate Plan Application.

(D) If an Occupant files an Alternate Plan Application with the DOB that does not affect any other units or common areas, the Occupant must, within seven (7) days after filing the Alternate Plan Application, serve the Owner or Responsible Party with a narrative statement describing the Occupant's objections to the Owner's or Responsible Party's plan.

(E) If an Occupant files an Alternate Plan Application with the DOB that affects any other units or common areas, the Occupant must, within seven (7) days after filing the Alternate Plan Application, serve the Owner or Responsible Party and all Affected Parties with a narrative statement describing the Occupant's objections to the Owner's or Responsible Party's plan and any code compliance costs related to the Occupant's alternate plan.

(F) The Occupant must serve a copy of the narrative statement and Alternate Plan Application by:

(a) personal service. Proof of personal service consists of a sworn affidavit indicating the date, time, place, location, and mode of identification of such personal service; or

(b) email, if the Owner or Responsible Party or other Affected Parties consents to such service and has provided an email address for such purposes. Proof of service by email consists of a copy of a delivery receipt from an email server indicating the email was delivered to such email address; or

(c) fax, if the Owner or Responsible Party or other Affected Parties consents to such service and has provided a fax number for such purpose. Proof of service by fax consists of a fax machine receipt indicating the transmission was successfully delivered to such number; or

(d) first class mail. Proof of service by first class mail consists of a United States Post Office-stamped copy of the certificate of mailing indicating the mailing address of the Owner or Responsible Party or other Affected Parties; or

(G) Filing with the Loft Board. Within seven (7) days of service of the narrative statement and Alternate Plan Application, the Occupant must file one electronic copy or one hard copy of the following with the Loft Board:

(a) The original narrative statement with proof of service;

(b) The Alteration Application along with proof that an acceptable set of plans have been filed with DOB; and

(c) The Legalization Plan submitted to DOB. The hard copy of the plan filed with the Loft Board must be no larger than fourteen by seventeen (14 x 17) inches.

(H) Owners, Responsible Parties and other Occupants may examine and copy, at their own expense, the Alteration Application and Legalization Plan by appointment at the Loft Board.

(I) An Owner, Responsible Party or Occupant may request from the Occupant filing the alternate plan, a reproducible copy of the Alteration Application and Legalization Plan, including the tenant protection plan. The Occupant filing the alternate plan must supply such copy within seven (7) days of service of the request. The Owner, Responsible Party or Occupant making the request must pay all copying costs up to the amount listed in 1 RCNY § 101-03.

(J) The failure of an Occupant to file an Alternate Plan Application with the DOB and the Loft Board or Comments with the Loft Board within the prescribed time period will constitute a waiver of an Occupant's right to challenge the Owner's or Responsible Party's submitted Legalization Plan on the ground that it would unreasonably interfere with the Occupant's use of the unit or constitute a diminution of services. However, the Loft Board may permit the late filing of an Alternate Plan Application if, upon application, the Loft Board, by order or by staff Administrative Determination, finds that good cause existed for the Occupant's failure to timely file and if a building permit has not yet been issued, or upon agreement of the Owner or Responsible Party and all Affected Parties.

(x) If the DOB issues objections to an Alternate Plan Application submitted by an Occupant of the Building, the Occupant, through his or her architect or engineer, must take all necessary and reasonable actions to cure such objections within forty-five (45) days of notice of objections from the DOB.

The Owner or Responsible Party, through its architect or engineer, must take all necessary and reasonable actions to cure the DOB objections within sixty (60) days of notice of objections from the DOB for its Alteration Application and Legalization Plan. The failure to take all necessary and reasonable actions to cure the objections within the prescribed time period may subject the Owner or Responsible Party to fines in accordance with 29 RCNY §§ 2-01.1 and 2-11.1 to be imposed by the Loft Board or the Environmental Control Board, if designated by the Loft Board, for failure to comply with these rules.

If the Occupant's opposition to the Owner's or Responsible Party's plan does not require DOB review, the Occupant must serve the Owner or Responsible Party and the other Occupants with the Comments describing how the Owner's or Responsible Party's plan will unreasonably interfere with the Occupant's use of the unit or how it will result in a diminution of services to which the Occupant is entitled. The Occupant's Comments must be filed within the requisite time provided in § 2-01(d)(2)(ix)(B), unless extended pursuant to 29 RCNY § 2-01(d)(2)(viii). Proof of service to the Owner or Responsible Party and the other Occupants must be attached to the filing of the Comments with the Loft Board.

(xi) Amendments to Legalization Plan Before Loft Board's Certification. If the Owner or Responsible Party amends the Legalization Plan initially submitted to the Loft Board after the issuance of the notice described in § 2-01(d)(2)(ix)(B) but before the Loft Board issues certification, the Owner or Responsible Party must file two copies of any amended plans with the Loft Board, along with a detailed amendment to the narrative statement listing the changes. Proof of service of the narrative statement on all of the Occupants of the Building and copies of the plans must be filed with the Loft Board in accordance with the procedures described in subparagraph (vi) above.

Within forty (40) days of the Loft Board's notice of the revised plan, any Occupant who has not previously done so, may file with the DOB an Alternate Plan Application for work affecting the Occupant's use of the unit, if DOB review is required or may file Comments opposing the Owner's or Responsible Party's revised plan with the Loft Board. The Occupant must comply with all the requirements of subparagraph (ix) above. The Occupant may object to only those items that represent a change from the Owner's or Responsible Party's submissions previously received. The procedures for DOB review provided in subparagraph (x) above shall apply.

(xii) Loft Board's Certification of the Legalization Plan.

(A) (a) When the DOB has no further objections to the Owner's or Responsible Party's Alteration Application and Legalization Plan, and if no Comments or Alternate Plan Application has been filed by an Occupant of the Building within the time period provided for filing in this rule, the Loft Board shall issue a letter certifying compliance with all requirements of 29 RCNY § 2-01(d)(2). To receive Loft Board certification, the Owner or Responsible Party must verify to the Loft Board that no revisions have been made to the Legalization Plan since the last filing of the Narrative Statement.

(b) If an Occupant's Alternate Plan Application has been filed and the forty-five (45) day period provided in subparagraph (x) above for addressing objections to the Occupant's Alternate Plan Application has expired without all necessary and reasonable actions having been taken by the Occupant to cure the objections, the Loft Board shall issue a letter certifying the Owner's or Responsible Party's compliance with all requirements of 29 RCNY § 2-01(d)(2).

(B) (a) (i) Where the Occupant has submitted an Alternate Plan Application and is unable to agree with the Owner or Responsible Party about the work to be performed, and the DOB has no objections to such Alternate Plan Application, or if the Occupant has cured such objections, the Occupant must advise the Loft Board and refer the Alternate Plan Application to the Loft Board for review and resolution of the dispute.

Such referral to the Loft Board will occur no sooner than thirty (30) days after notification of the removal of the last objection or of the lack of objection.

In addition, the Loft Board staff may authorize such referral before all objections have been removed if the remaining objections do not need to be resolved in order for the Loft Board to resolve the dispute. If the Owner or Responsible Party and the Occupant come to an agreement, they must immediately inform the DOB and the Loft Board of the agreement in writing and must provide the Loft Board with a copy of the agreement. In such case, the Owner or Responsible Party must amend the Alteration Application and Legalization Plan for the IMD Building to include the changes agreed upon by the parties, if any.

(ii) Where the Occupant has submitted Comments and DOB review is not required, the Comments must be resolved before certification can be issued. The Executive Director may resolve the Comments by issuing an Administrative Determination without starting a Dispute Resolution Proceeding or may start a Dispute Resolution Proceeding about the Comments.

(b) Loft Board-Initiated Dispute Resolution Proceeding. If an Occupant's Alternate Plan Application or Comments are referred to the Loft Board, pursuant to 29 RCNY § 2-01(d)(2)(xii)(B)(a) above, the Loft Board shall review the Alternative Plan Application or Comments and on its own initiative may commence a Dispute Resolution Proceeding to determine whether the Owner's or Responsible Party's Alteration Application and Legalization Plan would result in an unreasonable interference of the Occupant's use of the unit or a diminution of service. The Dispute Resolution Proceeding will be governed by the Loft Board's rules.

The Owner or Responsible Party and the Occupants of the Building will have an opportunity to submit an answer. In the case of an Occupant challenging the Owner's or Responsible Party's Alteration Application and Legalization Plan, the answer must include an explanation of how the Owner's or Responsible Party's proposed Alteration Application and Legalization Plan would result in an unreasonable interference with the Occupant's use of the unit or a diminution of service.

(c) If the Loft Board, after a fact-finding hearing, or the Executive Director, if a fact-finding hearing is not required, finds that the Owner's or Responsible Party's Alteration Application and Legalization Plan would result in an unreasonable interference, the Loft Board or the Executive Director shall order the Owner or Responsible Party to amend its Alteration Application, Legalization Plan and corresponding Narrative Statement to incorporate the Occupant's Alternate Plan Application or Comments within sixty (60) days or may certify the Alternate Plan Application submitted by the Occupant for the space involved.

A failure or refusal to comply with such an order or Administrative Determination may constitute a violation of the Owner's or Responsible Party's obligation to take all reasonable and necessary action to obtain an Alteration Permit under § 284 of Art. 7-C and these rules, and the Owner or Responsible Party may be subject to civil penalties in accordance with 29 RCNY § 2-11.1. The Loft Board may also initiate an action to compel specific performance, and seek all applicable penalties authorized by the Loft Board rules or Art. 7-C.

If the Owner or Responsible Party has cleared all DOB objections and if the Loft Board or its Executive Director finds that the Owner's or Responsible Party's Alteration Application and Legalization Plan would not unreasonably interfere with the Occupant's use of the unit, the Loft Board or its Executive Director shall issue an order or an Administrative Determination certifying compliance with all requirements of 29 RCNY § 2-01(d)(2).

(xiii) Within ten (10) days after the issuance of a building permit by the DOB, the Owner or Responsible Party must file a copy of the building permit with the Loft Board. In the case of an IMD subject to Art. 7-C pursuant to MDL § 281(5) which has an Alteration Permit on September 11, 2013, the effective date of this rule, the Owner or Responsible Party must file a copy of the building permit with the Loft Board by October 11, 2013, thirty (30) days after the effective date of this rule.

(xiv) Amendments to Legalization Plan after the Loft Board's certification of compliance with 29 RCNY § 2-01(d)(2).

(A) If the Owner or Responsible Party intends to amend the Legalization Plan certified by the Loft Board, the Owner or Responsible Party must file with the Loft Board two copies of the amended narrative statement listing the changes and the amended Legalization Plan within ten (10) days after the filing of the amendment with the DOB in accordance with (B) below. The Legalization Plan must identify all of the amendments.

(B) The Owner or Responsible Party must follow the procedures for notice to the residential and non-residential Occupants set forth in 29 RCNY § 2-01(d)(1) above, except that notice of the amendment(s) is (are) only required to those units that are affected by the amendment(s). If an Owner or Responsible Party amends the Legalization Plan and the proposed work is located within IMD space, or within the common areas of the Building, the Owner or Responsible Party must serve an amended narrative statement on the Occupants in accordance with the notice provisions provided in 29 RCNY § 2-01(d)(1) above. The Owner or Responsible Party must file proof of service and the amended narrative statement and Legalization Plan with the Loft Board. In accordance with the requirements of 29 RCNY § 2-01(d)(2)(ix) and within forty (40) days from the Loft Board's notice of the Owner's or Responsible Party's revised Legalization Plan, any Occupant: 1) may file with the DOB an Alternate Plan Application or 2) may file with the Loft Board comments opposing the work proposed in the amendment. The Occupant may only object to those items that represent a change from the Legalization Plan certified by the Loft Board. The Owner or Responsible Party must obtain a Loft Board certification described in 29 RCNY § 2-01(d)(2)(xii) for any amended Legalization Plan.

If the Occupant and the Owner or Responsible Party are unable to agree to the proposed work in the amended narrative statement and Legalization Plan, the Loft Board must follow the procedures in 29 RCNY § 2-01(d)(2)(xii)(B) regarding the Loft Board-initiated alternate plan dispute.

(xv) Approval of an Owner or Responsible Party 's Legalization Plan by the DOB pursuant to this subsection does not constitute approval of the construction costs for the work proposed in the plan as necessary and reasonable costs of code compliance work for purposes of a rent adjustment based of code compliance costs under these rules.

(3) Procedures for certification of estimated further rent adjustments. Following the DOB's approval of an Owner or Responsible Party's Alteration Application and Legalization Plan or an Occupant's Alternate Plan Application, an Owner or Responsible Party may apply to the Loft Board for certification of estimated future rent adjustments, based on the Legalization Plan and the Loft Board's Chart of Necessary and Reasonable Costs. The filing of an Application for estimated future rent adjustments is at the discretion of the Owner or Responsible Party and shall not be a basis for staying commencement or continuation of work under a valid building permit issued by the DOB.

All Applications for certification of estimated future rent adjustments will be processed in accordance with 29 RCNY § 1-21, except as provided herein. The Owner or Responsible Party must file with the Loft Board an Application on a Loft Board approved form. The Application must describe separately: i) the work to be performed in each residential unit; ii) the work to be performed in common areas; and iii) the work to be performed in the non-residential Units. The Application must include a calculation of the necessary and reasonable costs based on the Loft Board schedule and any other necessary and reasonable costs as permitted in the Loft Board's rules. If the Owner or Responsible Party anticipates the use of financing, the Application must also include any statements, letters of intent or commitment, or other materials from institutional or non-institutional lenders regarding the terms or conditions of such financing. In addition, the Owner or Responsible Party must file with the Loft Board two copies of the approved Alteration Application and Legalization Plan.

The Owner's or Responsible Party's Application must be served on all of the Building's Occupants by the Owner or Responsible Party in accordance with the service requirements for Applications set forth in 29 RCNY § 1-21. Occupants may review the Alteration Application and Legalization Plan at the DOB in accordance with the DOB's procedures or by appointment at the Loft Board's office. An Occupant may request from the Owner or Responsible Party a reproducible copy of the Alteration Application and Legalization Plan, and the Owner or Responsible Party must supply such a copy within seven (7) days after service of the request at a cost to the Occupant of up to the amounts listed in 1 RCNY § 101-03. Occupants may submit an answer to the Owner's or Responsible Party's Application within twenty (20) days after the date on which service of the Application was completed. The answer may list any objections, comments or suggestions regarding the calculation of necessary and reasonable costs of approved work.

The Loft Board may schedule a conference to discuss objections, comments or suggestions raised by the Occupants and responses by the Owner or Responsible Party. Following such a conference, the Application will be processed, and the Loft Board will issue findings on the necessary and reasonable code compliance work and associated costs, and the estimated future rent adjustments. Such findings will be a reasonable estimate based on available information. However, actual rent adjustments will be determined by the Loft Board in accordance with 29 RCNY § 2-01(i) through (l).

(4) Requirement of a Letter of No Objection ("LONO") for Alteration Permits in IMD Buildings.

(i) Proposed work in non-IMD spaces: An Owner or Responsible Party of an IMD Building who is applying to the DOB for an alteration permit to perform work in the non-IMD spaces of such Building, including any commercial space or residential space not covered by Art. 7-C of the MDL, must provide DOB with a LONO from the Loft Board before issuance of an alteration permit.

(ii) Proposed work in IMD spaces: Any request for a LONO by or on behalf of the Owner or Responsible Party for work to be performed in the IMD units will be processed by the Loft Board as an amendment to the Owner's or Responsible Party's Narrative Statement and Legalization Plan certified pursuant to 29 RCNY § 2-01(d)(2). The Loft Board will issue an amended certification for the revised narrative statement and Legalization Plan.

(iii) Requirements to obtain a Letter of No Objection:

(A) Before a LONO may be granted, a Building Owner or Responsible Party must demonstrate compliance with the annual registration requirements set forth in 29 RCNY § 2-11, and all outstanding fees and fines payable to the Loft Board for the Building must be paid or an arrangement for payment must be made.

(B) The LONO request must include:

(a) a formal request, which must be submitted on the Loft Board approved form, if any, at the time of the request;

(b) a copy of the current quarterly report relating to the legalization projects in the Building, in accordance with the requirements of 29 RCNY § 2-01.1(a)(1)(ii);

(d) a copy of the DOB objection sheet listing the only remaining DOB objection to be the requirement to obtain a LONO from the Loft Board, or proof that all DOB objections have been cleared and all required items have been submitted; and

(e) a copy of the corresponding drawings or plans with DOB bar code numbers filed with the DOB, on paper no larger than fourteen by seventeen (14 x 17) inches.

(C) The Loft Board's staff will not consider an incomplete request or a request containing inaccurate information for a LONO.

(D) The Loft Board's staff may request additional information or documentation, as it deems necessary in its review of the LONO request. If the Owner or Responsible Party does not respond to the Loft Board staff's request within ten (10) days of the request, the request for a LONO will be deemed to be withdrawn.

(E) The Loft Board's staff may deny a LONO request for the proposed work where:

(a) the Owner or Responsible Party does not have an Alteration Application filed with the DOB to perform the legalization work in the IMD spaces;

(b) the Loft Board issued a certification of the legalization work in the IMD spaces pursuant to 29 RCNY § 2-01(d)(2)(xi), and the Owner or Responsible Party does not have a current permit to perform the legalization work in such IMD units;

(c) the DOB had issued a temporary certificate of occupancy for the residential portion of the subject Building before the Owner or Responsible Party applied for a LONO, and the temporary certificate of occupancy expired and has not been renewed;

(d) the Owner's or Responsible Party's quarterly reports as required in 29 RCNY § 2-01.1(a)(1)(ii) show no advancement of legalization projects in the Building. The Loft Board's staff may supplement its review of the Owner's or Responsible Party's quarterly reports to consider any relevant information contained in the Loft Board's files;

(e) the IMD Building already has a final certificate of occupancy, but the Owner or Responsible Party has not applied to the Loft Board for removal;

(f) the Owner or Responsible Party applied to the Loft Board for removal of the subject Building before filing the LONO request, but the Owner or Responsible Party has not exercised all diligent efforts to submit additional information that was requested by the Loft Board's staff for processing the removal Application; or

(g) any other circumstance exists that indicates to the Loft Board's staff that the Owner or Responsible Party has failed to take all reasonable and necessary action to obtain a final certificate of occupancy for the residential portions of the IMD spaces to legalize the Building or to remove the Building from the Loft Board's jurisdiction.

(F) Granting of a LONO is not a finding by the Loft Board that the Owner or Responsible Party is exercising all reasonable and necessary action toward obtaining a final certificate of occupancy for the residential portions of the IMD units to legalize the Building.

(iv) Nature of the proposed work. In granting a LONO request, the Loft Board's staff may consider the effect the proposed work may have on the IMD units and the Protected Occupants of the Building. If the proposed work would (1) result in a change in the use, egress, Buildings' systems, or occupancy of IMD space in the Building, or (2) affect an Occupant of an IMD unit in which there is an active dispute or finding of Harassment by the Loft Board, or (3) adversely affect any Protected Occupants of the IMD units in the Building, the Loft Board's staff may conduct an informal conference with the Protected Occupants and the Owner or Responsible Party upon at least fifteen (15) days' notice. Service of the conference notice by the Loft Board will be sent by regular mail.

(v) Appeal of Decision.

(A) If the Loft Board's staff denies a LONO request, the Owner or Responsible Party may appeal to the Executive Director for an Administrative Determination.

(B) To be considered timely, the appeal to the Executive Director must be received by the Loft Board within fifteen (15) days from the mailing date of the LONO's denial. An untimely appeal is subject to dismissal by the Executive Director. The appeal to the Executive Director must include:

(a) the basis for the appeal;

(b) a statement that requirements for the LONO set forth in subparagraph (iii) above are true, correct and complete as of the date of the appeal;

(d) a detailed schedule of the work to be performed in connection with achieving compliance with Art. 7-B of the MDL, and a projected compliance date, to the extent the Building is not yet in compliance therewith.

(D) The Executive Director will not consider any incomplete appeals. Failure to file a complete appeal may result in rejection of the appeal without consideration of the issues raised.

(E) Appeals from the written determination of the Executive Director shall be governed in accordance with 29 RCNY § 1-33.

(e) Code compliance for nonconforming units. If the DOB has issued an objection to the owner's alteration application because an IMD unit cannot be brought into compliance under appropriate building codes, provisions of the MDL or the Zoning Resolution because of its size, design, or location within the building, the owner and affected occupant(s) should make every effort to reach accommodations that would permit every covered residential unit to be made code compliant.

If the owner and affected occupant are unable to reach a resolution about how to legalize the unit, either the owner or the residential occupant may apply to the Loft Board for a determination as to whether the unit can be made code compliant. In processing such an application the Loft Board may, following a hearing, or if a fact-finding hearing is not necessary, the Executive Director may:

(1) Order the owner to apply for a non-use related variance, special permit, minor modification, or administrative certification, where the granting of such an application would make compliance possible; or

(2) Order the owner to alter the unit, or to redesign residential units and common area space into a configuration that would allow the legal conversion of the unit to residential use; or

(3) Revoke the unit's Article 7-C coverage, if these remedies are unavailing.

If the Executive Director or the Loft Board orders (1) or (2) above, a specific date for compliance shall be provided and the occupants will be required to cooperate to achieve code compliance in accordance with the requirements of this section.

(f) Occupant participation in the code compliance process.

(1) The Loft Board encourages the owners and occupants of IMD buildings to work together to achieve code compliance. Such cooperation may include, but is not limited to, occupants' performance of code compliance work. Owners, occupants and their representatives should make good faith efforts to communicate and cooperate with each other throughout the process so as to reduce or eliminate potential disputes during the course of code compliance. Cooperation may result in benefits to all the parties insofar as:

(i) Costs incurred by the owner may be minimized, reducing the capital the owner would have to raise and reducing the rent adjustment increases that would have to be passed along to residential occupants;

(ii) Access difficulties may be minimized;

(iii) Incidents of harassment may be eliminated or reduced;

(iv) Losses incurred by nonresidential occupants may be eliminated or minimized; and

(v) Code compliance may be achieved in a timely fashion.

(2) While occupants have no right as a matter of law to perform code compliance work, the owner and the occupant may agree voluntarily to allow such occupant to perform code compliance work or any portion thereof, within the building, to the extent permitted by applicable laws and regulations.

The owner is required to obtain the appropriate DOB approval for all work to be performed, but where the owner and the occupant have agreed that work will be performed by the the occupant, they may also agree that the occupant will obtain the required DOB approvals, permits, and consents in accordance with all applicable laws, codes and rules on any work so permitted.

Should the owner and the occupant agree upon performance of the code compliance work or any portion thereof by such occupant, the owner and the occupant must file a written agreement with the Loft Board in accordance with the procedures set forth in 29 RCNY § 2-01(d)(1). Such agreement must include:

(i) an outline specification of all work to be performed and who will perform it;

(ii) a time schedule for work to be performed as well as the identification of who is to supervise all construction work;

(iii) a certification that the parties will provide all information required in the processing of applications for rent adjustments, if any, by the Loft Board;

(iv) a certification by the owner and occupant that all work will be performed in accordance with the code compliance timetable provided in 29 RCNY § 2-01(a).

Such agreement by the owner and the occupant must be consistent with the alteration application, corresponding legalization plan certified by the Loft Board, and any other job type alteration applications, limited alteration applications (LAA), electrical work applications, elevator application (EA) or Elevator Building Notice applications (EBN) filed with the DOB and the Loft Board.

(3) If at any time after execution of the agreement but prior to the completion of the code compliance work, the occupant or the owner rescinds the agreement, the rescission must be in writing, served upon all other parties to the agreement and filed with the Loft Board in accordance with the procedures provided in 29 RCNY § 2-01(d)(1). Neither the agreement nor its abrogation will relieve the owner of the obligation to comply with Article 7-C and these rules. The owner and the occupant may also agree in writing, with a copy served on the Loft Board, to:

(i) Waive the procedure for occupant review of plans and resolution of occupant objections set forth in 29 RCNY § 2-01(d)(2); or

(ii) Modify the procedure for notice to occupants of proposed work set forth in 29 RCNY § 2-01(d)(2) and (g)(3).

Any agreement to waive the procedure for occupant review of plans must be completed on the Loft Board's approved form and must identify the relevant plan and narrative statement by date. Any other agreement for waiver or modification of other provisions of these rules must be submitted to the Loft Board for its approval. The Loft Board will not give any effect to an agreement which proposes that code compliance will not be achieved or that it will be achieved after the deadlines prescribed in 29 RCNY § 2-01(a) and MDL § 284(1).

(4) If an owner who has agreed to allow an occupant to perform code compliance work applies to the Loft Board for an extension of time to obtain a final residential certificate of occupancy pursuant to 29 RCNY § 2-01(b), the owner must exercise due diligence in monitoring the timely completion of such code compliance work in order to have grounds of good cause for its inability to meet the code compliance timetable.

(g) Notice to Occupants of proposed work, repairs and inspections and Occupant's obligation to provide access.

(1) Unless otherwise agreed by the parties, the Owner or Responsible Party must provide Occupants with written notice of the approximate commencement date, duration and scope of all work to be performed within their units and of all common area work that may interfere with access to their units or the provision of services to their units.

The notice need not provide an exact date for the work, but must provide a range of three consecutive working days during which work to be completed in one working day will take place and a range of five (5) consecutive working days during which work expected to require more than one (1) consecutive working day will begin.

The access notice must be served by personal service, first class mail, registered mail return receipt requested, or certified mail return receipt requested, such that service is deemed completed at least five (5) days before the first date in the range of days for work that may reasonably be expected to be completed within one (1) working day and at least ten (10) days before the first date in the range of days for all other work expected to require two (2) or more consecutive working days.

(2) No later than the day preceding the first day in the range of work days listed on the access notice referenced in paragraph (g)(1) above, the Owner or Responsible Party must provide written notice, either confirming a specific starting date from among those specified or cancelling the scheduled work for the day or days specified. In instances where scheduled work is cancelled, it must be rescheduled in accordance with the provisions of 29 RCNY § 2-01(g)(1) above.

The Owner or Responsible Party or Agent must deliver the second access notice personally to the Occupant or, in the Occupant's absence, to a person of suitable age and discretion within the unit. If the Owner or Responsible Party or Agent cannot achieve delivery to a person as described, the Owner or Responsible Party or Agent must deposit the notice under the main entrance of the unit or, if that is not possible, must affix such notice to the main entrance of the unit.

An Occupant may designate in writing another Occupant within the Building to receive an access notice pursuant to this 29 RCNY § 2-01(g) provided that the designee is authorized to provide reasonable access to the Occupant's unit as required in such notice. Such designation must be served on the Owner or Responsible Party by (i) personal service or (ii) first class mail, and registered mail return receipt requested or certified mail return receipt requested.

(3) Upon appropriate notice, the Building Occupants must provide reasonable access to their units so that all requisite code compliance or repair work, inspections and surveys as may be required for the purpose of code compliance, may be performed.

(4) Upon the failure of an Occupant to provide such access, the Owner or Responsible Party may apply to the Loft Board for an order affording the Owner or Responsible Party reasonable access to the unit. Recognizing the necessity of construction work proceeding without unnecessary delays caused by administrative processing, the Loft Board will process Applications for access under the following expedited procedures:

(i) The Owner or Responsible Party must serve the Occupant with a copy of the Owner's or Responsible Party's verified or affirmed Application for access on the Loft Board's form. Service on the Occupant must be either by:

(A) personal service or

(B) certified or registered mail, return receipt requested, with an additional copy sent by regular mail. The Owner or Responsible Party may, in addition, send a copy to the Occupant by email, if the Occupant has consented to such service and provided Owner or Responsible Party with a current and valid email address for such purpose.

Within five (5) days after delivery or service by mail on the Occupant, the Owner or Responsible Party must file five (5) copies of the Application at the offices of the Loft Board, along with proof of service of the Application upon the Occupant. Proof of service is required at the time of filing the access Application with the Loft Board.

(ii) The Occupant must file with the Loft Board five (5) copies, including the original, of a written answer in response to the Application within fifteen (15) days after service of the Application is deemed complete. Service is deemed complete on the date of personal service or five (5) days after the Owner or Responsible Party mailed the Application.

(iii) (A) Before the Occupant files an answer with the Loft Board, the Occupant must serve a copy of the answer on the Owner or Responsible Party by regular mail at the address designated on the Application. Occupant may, in addition, send a copy to the Owner or Responsible Party by email, if the Owner or the Responsible Party has consented to such service and provided the Occupant with a current and valid email address for such purpose. Both Owner or Responsible Party and Occupant will be notified of a hearing date, which will not be fewer than eight (8) days or more than fifteen (15) days from the mailing of the notice. There will be no more than one adjournment per party, limited to seven (7) days, for good cause shown. Except as provided herein, the provisions of 29 RCNY § 1-21 apply to an Application for access under this subdivision.

(B) Even if the Occupant fails to file an answer, the Loft Board may issue an order granting access.

(iv) A finding by the Loft Board of failure by the Owner or Responsible Party to comply with any of the notice provisions of 29 RCNY § 2-01(g) or a finding by the Loft Board that an Occupant has unreasonably withheld access may be the basis for a civil penalty in accordance with 29 RCNY § 2-11.1 for each violation of the notice provisions, or the unreasonable denial of access to the unit.

The necessary and reasonable cost of bringing and pursuing a Loft Board access proceeding that results in a finding that a residential Occupant has unreasonably withheld access, including the labor or other costs incurred by the Owner or Responsible Party because access was unreasonably denied, may be included in the owner's Application for code compliance rent adjustment as an allowable cost to be allocated to such Occupant's Residential Unit, as provided for in 29 RCNY § 2-01(l)(1).

(v) The failure of an Occupant to comply with a Loft Board order regarding access may be grounds for eviction of that Occupant in a proceeding brought before a court of competent jurisdiction.

(h) Unreasonable interference with use.

(1) Whenever reasonably possible, work to achieve code compliance should be performed without any, including the temporary, dislocation of Occupants from their units and with minimal disruption to the Occupants' use of their units. The Owner or Responsible Party must take all reasonable actions to ensure that code compliance work does not unreasonably interfere with the use of any occupied unit. Arrangements should be made for each day's work to be a full day's work, to the extent possible. Scheduling of work must be done, to the extent possible, in a fashion that minimizes disruptions in the provision of essential services. Regular maintenance must be performed within the Building during the construction period, except when construction renders regular maintenance impossible.

(2) After the filing of an Alteration Application by the Owner or Responsible Party, but before the issuance of a building permit, Occupants who object to the proposed work because it will unreasonably interfere with the use of their units must oppose the proposed plan as provided in 29 RCNY § 2-01(d)(2)(ix)(A). After a permit has been issued through the process described in 29 RCNY § 2-01(d)(2), in which the Occupants have had an opportunity to participate, the Occupants may raise no further objections to the scope of the work approved under the permit on the grounds that it constitutes an unreasonable interference with the use of their units.

(3) (i) In the case of an IMD for which a building permit for achieving code compliance with Art. 7-B, alternative building codes or provisions of the MDL has been issued and is in effect as of the date of adoption of these regulations, such that 29 RCNY § 2-01(d)(2) is not applicable, an Occupant of such an IMD may file an Application pursuant to this subdivision (h) on the grounds that the scope of the work approved under the permit constitutes an unreasonable interference with the Occupant's use of its unit. This subparagraph (i) is not applicable to IMD units subject to Art. 7-C pursuant to MDL § 281(5) or 281(6).

(ii) IMD Units subject to Art. 7-C pursuant to MDL § 281(5) as a result of the 2010 amendments to the Loft Law. An Occupant of an IMD unit subject to Art. 7-C pursuant to MDL § 281(5) that became subject to Art. 7-C pursuant to Chapter 135 or 147 of the Laws of 2010 may file an unreasonable interference Application under this subdivision (h) if: (1) an Alteration Permit was in effect on June 21, 2010; (2) the Occupant was not able to participate in the Narrative Statement process because 29 RCNY § 2-01(d)(2) was not applicable to the IMD at the time of the issuance of the Alteration Permit; and (3) the scope of the work approved under the Alteration Permit constitutes an unreasonable interference with the Occupant's use of the unit.

(iii) IMD Units subject to Art. 7-C pursuant to MDL § 281(5) as a result of the 2013 amendments to the Loft Law. An Occupant of an IMD unit subject to Art. 7-C pursuant to MDL § 281(5) that became subject to Art. 7-C pursuant to Chapter 4 of the Laws of 2013 may file an unreasonable interference Application under this subdivision (h) if: (1) an Alteration Permit was in effect on June 1, 2012; (2) the Occupant was not able to participate in the Narrative Statement process because 29 RCNY § 2-01(d)(2) was not applicable to the IMD at the time of the issuance of the Alteration Permit; and (3) the scope of the work approved under the Alteration Permit constitutes an unreasonable interference with the Occupant's use of the unit.

(iv) IMD Units subject to Art. 7-C pursuant to MDL § 281(5) as a result of the 2015 amendments to the Loft Law. An Occupant of an IMD unit subject to Art. 7-C pursuant to MDL § 281(5) that became subject to Art. 7-C pursuant to Chapter 20 of the Laws of 2015 may file an unreasonable interference Application under this subdivision (h) if: (1) an Alteration Permit was in effect on June 15, 2015; (2) the Occupant was not able to participate in the Narrative Statement process because 29 RCNY § 2-01(d)(2) was not applicable to the IMD at the time of the issuance of the Alteration Permit; and (3) the scope of the work approved under the Alteration Permit constitutes an unreasonable interference with the Occupant's use of the unit. Upon the request of the Owner, Responsible Party or the Occupant(s), the Loft Board staff may schedule a conference for any IMD unit for which 29 RCNY § 2-01(d)(2) does not apply.

(v) IMD Units subject to Art. 7-C pursuant to MDL §§ 281(5) and 281(6) as a result of the 2019 amendments to the Loft Law. An Occupant of an IMD unit subject to Art. 7-C pursuant to MDL §§ 281(5) and 281(6) that became subject to Art. 7-C pursuant to Chapter 41 of the Laws of 2019 may file an unreasonable interference Application under this subdivision (h) if: (1) an Alteration Permit was in effect on June 25, 2019; (2) the Occupant was not able to participate in the Narrative Statement process because 29 RCNY § 2-01(d)(2) was not applicable to the IMD at the time of the issuance of the Alteration Permit; and (3) the scope of the work approved under the Alteration Permit constitutes an unreasonable interference with the Occupant's use of the unit. Upon the request of the Owner, Responsible Party or the Occupant(s), the Loft Board staff may schedule a conference for any IMD unit for which 29 RCNY § 2-01(d)(2) does not apply.

(4) In considering an application pursuant to this subdivision, the Loft Board shall process the application in accordance with Loft Board rules. The Loft Board may order the owner to amend its alteration application or may recommend that the DOB revoke the permit if it finds that the proposed work unreasonably interferes with the occupant's use of the unit. If the permit is revoked by the DOB on these grounds, the occupants will have the opportunity to participate in the review of plans through the process described in 29 RCNY § 2-01(d)(2).

(5) Unreasonable interference during the legalization process. An aggrieved occupant may file an application with the Loft Board claiming an unreasonable interference with use of the unit, if, in the course of performing the code-compliance work, the owner or its agent:

(i) Engages in work that is outside of the scope authorized by the permit;

(ii) Departs significantly from the work described in the owner's narrative statement and legalization plan;

(iii) Departs significantly from the estimated time schedule for performance of the work as amended according to the requirements of 29 RCNY § 2-01(d)(2);

(iv) Engages in repeated or substantial violations of the notice provisions provided in 29 RCNY § 2-01(g); or

(v) Violates the provisions of the tenant protection plan provided in 29 RCNY § 2-01(d)(2)(vi).

Such application must provide the factual basis for a claim that such unauthorized work, departure from the schedule, or violation of the tenant protection plan unreasonably interferes with the occupant's use of its unit.

A finding by the Loft Board that the owner or its agents engaged in unreasonable interference with an occupant's use may result in civil penalties in accordance with 29 RCNY § 2-11.1 for each violation. A finding by the Loft Board that the owner or its agents engaged in unreasonable and willful interference with an occupant's use of its IMD unit may result in civil penalties in accordance with 29 RCNY § 2-11.1 for each violation, may constitute harassment of occupants, and may subject the owner to penalties resulting from a finding of harassment. As further provided in 29 RCNY § 2-02, the penalties may include, but are not limited to the denial of exemptions from rent regulation provided to an owner pursuant to § 286(6) of the MDL and Loft Board rules.

(i) Applications for Rent Guidelines Board ("RGB") increases and for rent adjustments based on costs of compliance.

(1) RGB increases.

(i) Upon issuance of a final certificate of occupancy, an owner shall be eligible for a rent adjustment based upon the percentage rent increases established by the RGB (hereinafter "RGB Increases"). The first RGB Increase shall commence on the first day of the first month following the day an owner submits to the Loft Board a Notice of RGB Increase Filing form on the Loft Board approved form. Each subsequent rent increase shall be effective on each one or two-year anniversary of such commencement date, as applicable. This one or two-year period during which a particular RGB Increase is effective is referred to herein as the "RGB Increase Period." The last RGB Increase prior to issuance of a final rent order by the Loft Board setting the initial legal regulated rent, pursuant to 29 RCNY § 2-01(m), shall remain effective until expiration of the applicable RGB Increase Period.

The amount of each RGB increase shall be equal to the percentage increase applicable to one or two-year leases as established by the RGB on the date the Notice of RGB Increase Filing form is submitted to the Loft Board and on each one or two-year anniversary thereafter, as applicable, and shall be applied to the maximum rent permissible under Loft Board rules as of the date the Notice of RGB Increase filing is submitted to the Loft Board.

The RGB Increase shall apply to all covered residential units, except for those units that are exempt from rent regulation under Article-7-C.

(ii) To obtain the RGB Increase, the owner shall submit to the Loft Board:

(A) Two copies of the Notice of RGB Rent Increase Filing form and the required attachments. The Notice of RGB Increase Filing form shall contain the rent in effect, including escalations and increases permitted in accordance with MDL § 286(2) or the Loft Board's rules, for each covered residential unit subject to rent regulation;

(B) A copy of the final residential certificate of occupancy;

(D) The "Tenant Response Form" sent by the owner to the affected occupants; and

(E) An affidavit that such notices were sent by first class mail and certified or registered mail to each affected occupant.

(iii) The owner shall mail to each affected occupant a an individual notice of RGB Increase form setting forth the maximum permissible rent under Loft Board rules for the unit. The mailing of the individual notice of RGB Increase shall also include the "Tenant Response Form" with instructions for the tenant to elect RGB increases applicable to one-year or two-year leases. Such election shall be binding upon the occupant for the entire period prior to expiration of the last RGB Increase before issuance by the Loft Board of the final rent order setting the initial legal regulated rent. The failure of an occupant to make an election between RGB increases applicable to one-year or two-year leases within 45 calendar days of the mailing of the Notice of RGB Increase Filing shall be deemed to be an election to be governed by increases applicable to one year leases.

(iv) The occupant may dispute the maximum permissible rent set forth in the owner's Notice of RGB Increase Filing, by detailing the amount in dispute on the Tenant Response Form. The occupant must file the dispute with the Loft Board within 45 calendar days of the mailing date of the individual notice of RGB Increase, as indicated on the affidavit of service. Failure of such occupant to notify the Loft Board of a dispute within such 45-day period shall be deemed to be an acceptance by the occupant of the amount of rent claimed by the owner. The Notice of RGB Rent Increase Filing form, the individual notices and the Tenant Response Form may not be altered or re-typed. During the period prior to the resolution of the dispute, the occupant shall pay rent in a sum equal to the amount of the monthly base rent that is not in dispute plus the amount of RGB Increase based on the undisputed amount. For example, if the owner claims the rent in effect is $450 and the occupant claims it is $400, the rent paid to the owner prior to resolution of the dispute shall be equal to $400 plus the applicable RGB Increase based on the undisputed amount of $400. The occupant shall pay any deficiency in one lump sum together with the first rent payment due following resolution of the dispute.

(v) RGB increases may also take effect in accordance with 29 RCNY § 2-01(i)(2)(i)(B) where the Loft Board sets the initial legal regulated rent.

(2) Rent adjustments based on the cost of code compliance.

(i) (A) An Owner or Responsible Party may apply for rent adjustments based on the necessary and reasonable costs of compliance:

(a) once upon certification of compliance with Art. 7-B of the MDL, alternative local building codes or provisions of the MDL, by a registered architect or a professional engineer licensed in the State of New York or upon issuance of a temporary residential certificate of occupancy, or

(b) once upon issuance of a final residential certificate of occupancy, or both.

(B) Notwithstanding any other provision of this title and in addition to any rights afforded to Owners or Responsible Parties or Tenants under this section, in accordance with MDL § 286(3), if an Owner or Responsible Party applies for a rent adjustment based on the code compliance costs for compliance with Art. 7-B of the MDL and the Loft Board approves of such compliance, the Loft Board shall set the initial legal regulated rent, and each residential Occupant qualified for protection pursuant to Art. 7-C shall be offered a residential lease subject to the provisions regarding evictions and regulation of rent set forth in the Emergency Tenant Protection Act of 1974, except to the extent the provisions of Art. 7-C are inconsistent with such act. If the initial legal regulated rent has been set based upon Art. 7-B compliance only, a further adjustment may be obtained upon the obtaining of a residential certificate of occupancy.

(C) Except as set forth in this paragraph, the rent adjustment Application based on code compliance costs filed with the Loft Board for IMD units covered under Art. 7-C pursuant to MDL § 281(1), may include those necessary and reasonable code compliance costs incurred before June 21, 1982 for which the residential Occupants have not either reimbursed or begun to reimburse the Owner or Responsible Party. A residential Occupant who claims that reimbursement has been or is being made for such costs must present satisfactory proof of such reimbursement to the Loft Board.

(D) Except as provided in this subparagraph, rent adjustments shall be allowed for necessary and reasonable code compliance costs incurred by an Owner or Responsible Party in obtaining the building permit under which code compliance work is performed and for necessary and reasonable costs incurred for code compliance work performed after the issuance of such a permit.

(a) Limitations of rent adjustments based on costs of compliance.

1. An Owner or Responsible Party who has failed to register its Building as an IMD:

(i) on or before December 1, 1985, in the case of a Building covered by Art. 7-C pursuant to MDL § 281(1) or,

(ii) on or before February 11, 1993, in the case of a Building which is covered by Art. 7-C solely pursuant to MDL § 281(4) or,

(iii) on or before September 11, 2013, the effective date of this rule, in the case of a Building covered by Art. 7-C pursuant to MDL § 281(5), shall be allowed rent adjustments only for necessary and reasonable code compliance costs incurred after registration.

2. An Owner or Responsible Party who fails to register its Building as an IMD:

(i) on or before March 1, 1986, in the case of a Building covered by Art. 7-C pursuant to MDL § 281(1) or,

(ii) on or before May 11, 1993, in the case of a Building which is covered by Art. 7-C solely pursuant to MDL § 281(4) or,

(iii) on or before December 10, 2013, 90 days after the effective of this rule, in the case of a Building covered by Art. 7-C pursuant to MDL § 281(5), shall be allowed only the necessary and reasonable code compliance costs incurred after registration, and such costs shall be based upon the schedule of costs referenced in subdivision (p) below, without indexing, regardless of when such costs were incurred.

(ii) An Application filed pursuant to this paragraph (2) of 29 RCNY § 2-01(i) must be filed no later than nine (9) Months after the Owner or Responsible Party has obtained a certificate of occupancy or February 1, 2000, whichever date is later. An Owner or Responsible Party that fails to file an Application for code compliance rent adjustments in a timely manner pursuant to this provision shall be deemed to have waived its right to seek such a rent adjustment. An Application submitted pursuant to this paragraph must be submitted on a form prescribed by the Loft Board and must meet the requirements of this paragraph and 29 RCNY §§ 1-21 and 2-11, except that for Applications filed pursuant to clause (A) of subparagraph (iii) of this paragraph, only two copies must be filed plus one for each Affected Party, and for precertified Applications filed pursuant to clause (B) of subparagraph (iii) of this paragraph, only two copies of the Application must be filed. As part of the Application the applicant must submit an itemized statement of costs incurred, including paid bills, cancelled checks or receipts for work performed, any construction contracts, the certificate issued by the DOB for the pertinent level of compliance, and such other information or materials as the Board requires. If the applicant seeks reimbursement for interest and service charges incurred in connection with compliance costs, the applicant must submit the information and materials required under paragraph (4) of 29 RCNY § 2-01(k). In accordance with the provision of 29 RCNY § 1-24, the Board may require the applicant to furnish such reports and information as it may require concerning the code compliance work performed and may audit the books and records of the applicant with respect to such matters.

(iii) An Application filed pursuant to this paragraph (2) of 29 RCNY § 2-01(i) may be submitted to the Loft Board for an audit or may be precertified pursuant to clause (B) of this subparagraph.

(A) If the Application is not precertified, the Loft Board shall audit the Application to ascertain whether the code compliance costs set forth in the Application:

(a) are substantiated by invoices and copies of cancelled checks or other similarly reliable documentary evidence submitted as part of the Application; and

(b) do not exceed the reasonable code compliance costs set forth in the schedule contained in these rules. Once the Loft Board's audit of an Application is completed, the Executive Director shall, by first class mail, send the affected residential Occupants a copy of the Owner's or Responsible Party's Application and send the affected residential Occupants and the Owner or Responsible Party a copy of the auditor's report.

(B) An Owner or Responsible Party shall have the option to file a precertified Application for code compliance rent adjustments pursuant to this clause (B). Costs attributable solely to the precertification of the Application shall not be included as reimbursable code compliance costs. A precertified Application must meet the requirements of subparagraph (ii) of this paragraph as to form and content, must be served on all affected residential Occupants, and must be filed, together with:

(a) certification by a certified public accountant ("CPA"), certifying that said CPA has audited the code compliance cost information contained in the Application and that the code compliance costs set forth in the Application (i) are substantiated by invoices and copies of cancelled checks or other similarly reliable documentary evidence; and (ii) do not exceed the reasonable code compliance costs set forth in the schedule contained in these rules;

(b) certification by a registered architect that the code compliance work described in the Application for which the Owner or Responsible Party seeks reimbursement has been performed, meets the requirements of MDL Art. 7-B, and is reimbursable pursuant to these rules; and

(C) Residential Occupants may, no later than forty-five (45) days following mailing by the Loft Board of the auditor's report pursuant to clause (A) of this subparagraph or service of a precertified Application pursuant to clause (B) of this subparagraph, as the case may be, serve comments concerning the Application upon the Owner or Responsible Party, and must file such comments with the Loft Board along with proof of such service. Comments may include, but are not limited to, such matters as the scope of work performed, its necessity and reasonableness, the quality of the workmanship, and the actual costs claimed by the Owner or Responsible Party. Such comments must specify the items in contention and the reasons therefor, and must be supported by corroborating evidence, e.g., contractors' estimates, invoices, or architects' statements. The Executive Director may extend the forty-five (45) day period for a period of time not to exceed twenty-one (21) days, upon a written request of a registered architect, contractor or CPA stating that he or she has been retained by an affected residential Occupant for the purpose of reviewing the Owner's or Responsible Party's Application and the Loft Board audit, where an audit has been performed, and stating the reason an extension of time is needed to complete such review. Within the forty-five (45) day period, or within the period of any extension granted by the Executive Director, an affected residential Occupant may request that the Executive Director schedule a conference at the offices of the Loft Board with the Owner or Responsible Party. The conference shall be scheduled expeditiously and shall be limited to the issues presented in the Owner's or Responsible Party's Application and in the Loft Board audit, where an audit has been performed.

(D) If the Executive Director determines that there are no genuine issues of material fact with regard to the Application, the Executive Director shall recommend approval of the Application. If the Executive Director finds that a genuine issue of material fact has been raised with regard to any item in the Application, he or she shall proceed with respect to such item in accordance with clause (E) or (F) of this subparagraph, as appropriate, and at the same time shall recommend approval of the part of the Application as to which he or she has determined there are no genuine issues of material fact. In considering the Application under this clause (D), the Board shall review the Application, the comments submitted, and the recommendation of the Executive Director, and shall determine whether to approve the Application or any part thereof.

(E) Where the Executive Director finds that a genuine issue of material fact has been raised he or she may take appropriate action to obtain such relevant information as in his or her discretion is necessary to assist him or her in reaching a determination. Such action may include, but shall not be limited to, ordering an inspection of the premises, directing the parties to serve and file additional information or corroborating evidence in support of their positions, holding an informal conference with the parties, or directing that a hearing be scheduled pursuant to the provisions of clause (F) of this subparagraph. No later than forty-five (45) days following the end of the period in which residential Occupants may submit comments pursuant to clause (C) of this subparagraph, the Executive Director shall either make findings of fact and a recommended determination to the Board, or shall direct that a hearing be scheduled pursuant to clause (F) of this subparagraph; provided, however, that the forty-five (45) day period shall be extended an additional thirty (30) days if, before the expiration of the forty-five (45) day period, the Executive Director has requested additional information or documentary evidence pursuant to item (2) of this clause (E) and the time to provide such additional information or documentary evidence, or to respond to such additional information or documentary evidence, has not yet passed. In making a recommended determination pursuant to this clause (E), the Executive Director shall consider, and shall make available to the Board, the Application, any comments of the residential Occupants, inspection results, information provided by the parties at an informal conference, additional comments, information or corroborating evidence submitted by the parties in writing, or other relevant information.

(a) If the Executive Director orders an inspection of the premises, the results of the inspection shall be mailed to the parties within three (3) Business Days of completion of such inspection, and the parties may serve and file comments concerning the inspection results within eight (8) Business Days after the date of mailing of such results.

(b) A party directed to serve and file additional information or documentary evidence must serve and file the additional information or evidence within fourteen (14) Business Days of such order. The party upon whom the additional information or evidence has been served must serve and file its response, if any, within five (5) Business Days after service of the information or evidence.

(c) If the Executive Director obtains any other relevant information to assist in making a recommended determination under this clause (E), the Executive Director shall ensure the parties are provided with such information, shall provide the parties an opportunity to comment in writing on such information within up to fifteen (15) Business Days after service thereof, and shall provide the parties an opportunity to respond to each other's comments within five (5) Business Days after service of such comments.

(F) If the Executive Director determines that a genuine issue of material fact has been raised which may be resolved only by a hearing, the Executive Director may bifurcate the Application into two parts:

(a) the part that requires no hearing, which shall proceed pursuant to clause (D) or (E) of this subparagraph, as applicable, and

(b) the part as to which a hearing is required, which shall proceed pursuant to this clause (F). Such hearing may be preceded by an informal conference, but in any case, shall be commenced not more than thirty (30) days after the decision of the Executive Director to bifurcate the Application, unless the parties stipulate in writing otherwise. Within thirty (30) days after the conclusion of the hearing, the hearing officer shall make findings of fact and a recommended determination. In making the recommended determination the hearing officer shall consider, and shall make available to the Board, the Application, any comments of the residential Occupants, inspection results, information provided by the parties at an informal conference, additional comments, information or corroborating evidence submitted by the parties in writing, testimony given at any hearing, or other relevant information. The hearing officer shall submit his recommended determination with respect to the portion of the Application proceeding pursuant to this clause (F) to the Board for its consideration.

(G) Nothing in this subparagraph (iii) of 29 RCNY § 2-01(i)(2) shall be construed to preclude partial approval of an Application by the Board pursuant to clause (D) or (E) of this subparagraph before a hearing pursuant to clause (F). If the Board issues an initial order determining the portion of the Application that proceeded under clause (D) or (E) of this subparagraph and grants a rent adjustment to the Owner or Responsible Party pending the conclusion of a hearing pursuant to clause (F), the Owner or Responsible Party may continue to collect rents in the amounts stated in the initial order unless and until a supplementary order is issued.

(iv) In evaluating all Applications for code compliance rent adjustments, the Loft Board shall review the Owner's or Responsible Party's Application, the comments of residential Occupants, the Loft Board schedule of costs described in 29 RCNY § 2-01(j), or alternative schedule described below, and any other information considered by the Executive Director and the hearing officer in making a recommended determination. The Board shall determine the necessary and reasonable code compliance costs incurred by the Owner or Responsible Party, which shall be charged to all affected residential Occupants as rent adjustments. Owners or Responsible Parties shall be allowed to pass along no more than the costs recited in the current Loft Board schedule as of the date on which the construction contract(s) is (are) entered into for items included in the contract(s), except as provided in the first paragraph of this subdivision (i) and other necessary and reasonable costs not on the schedule pursuant to 29 RCNY § 2-01(j) below. For items not included in the construction contract(s), costs will be determined based upon the schedule in effect at the time work was performed and 29 RCNY § 2-01(j) below. Owners or Responsible Parties submitting Applications on or after June 1, 1989 shall be allowed to pass along no more than the costs recited in the revised schedule of costs promulgated by the Board on October 25, 1990. In all cases, if actual compliance costs are less than the amount recited in the Loft Board schedule, rent adjustments shall reflect the lesser actual costs.

(v) An Owner or Responsible Party may elect that the Loft Board shall deem the total cost of compliance to be the amounts certified by the Department of Housing Preservation and Development in any certificate of eligibility issued in connection with an application for tax exemption or tax abatement (such as "J-51") to the extent that such certificate reflects categories of costs approved by the Loft Board.

(vi) An Owner or Responsible Party may expressly waive its right to a rent adjustment based on the cost of compliance. To do so, it must indicate its waiver decision on the Notice of RGB Increase form described in 29 RCNY § 2-01(i)(1) and follow the procedures therein for notification of the affected Occupants. In addition, an Owner or Responsible Party may be deemed to have waived its right to a rent adjustment based on the cost of compliance pursuant to 29 RCNY § 2-01(i)(2)(ii).

(vii) Whenever service upon parties is required in this 29 RCNY § 2-01(i)(2), service shall be made, and proof of service filed, in accordance with the requirements of 29 RCNY § 2-01(d)(1)(i).

(viii) If the Loft Board finds, following notice and an opportunity to be heard, that an architect or CPA has knowingly made a misleading material statement in the context of a certification issued pursuant to 29 RCNY § 2-01(i)(2)(iii)(B), the Loft Board may refuse to accept subsequent certifications from such architect or CPA, and shall refer its findings to the appropriate licensing agency.

(j) Schedule of costs. The Loft Board schedule of reasonable code compliance costs for obtaining a residential certificate of occupancy promulgated pursuant to §§ 280 and 286(5) of Article 7-C is appended to these regulations. The schedule is current as of September, 1984, will be applicable to applications filed with the Board before June 1, 1989 and shall be indexed annually, both prospectively and retroactively, based upon the average of the annual percentage change reported in the Dodge Building Cost Index and the Engineering News-Record Building Cost Index for New York as of September of each year. However, for periods prior to 1977 and after 1988 only the Engineering News-Record Building Cost Index will be used. The schedule promulgated by the Board on October 25, 1990 will be applied to all rent adjustment applications submitted on or after June 1, 1989 and shall be indexed annually, both prospectively and retroactively, based upon the annual percentage change reported in the Engineering News-Record Building Cost Index for New York as of September of each year. The schedule is intended to include all necessary and reasonable code compliance cost items. It includes the allowable costs of materials and labor for demolition and construction necessary for achieving minimal code compliance. It also includes professional fees and municipal filing fees necessary for code compliance. Rent adjustments shall not be allowed for items not included in the schedule unless upon owner application they are shown to be necessary and reasonable costs of code compliance, nor shall rent adjustments be allowed for costs not necessary to obtain a residential certificate of occupancy. In addition, notwithstanding the existence of a work item on the schedule, rent adjustments shall not be allowed for:

(1) costs incurred in repairing or replacing items located in the common or commercial areas of the building or involving its exterior (such as masonry, fire escape, or skylight repairs) to the extent such items are repaired or replaced with a similar or comparable item due to their deteriorated condition (such costs being "deferred maintenance" costs);

(2) the costs of curing preexisting violations in the building evidenced by municipal notices of violation to the extent such violations would have to be cured even if the building did not have to be made code compliant pursuant to Article 7-C; and

(3) other "soft" costs, such as BRAC payments. The repair or replacement of work items (other than windows, as provided below) located within the residential units of the building shall not constitute a deferred maintenance cost. The foregoing rules are qualified to the following extent; (x) if the roof is required to be repaired or replaced, and it has been replaced within the 10-year period prior to the narrative statement conference for the building, half the necessary and reasonable costs shall be recognized as code compliance costs and allocated equally among any residential units whose occupants had made significant use of the roof during this 10-year period ("significant use" may be evidenced by the presence on the roof of the residential occupants' property, such as outdoor furniture, plants, decking, and clotheslines); otherwise, the costs of roof repair and replacement shall be excluded as deferred maintenance; (y) if windows are required to be repaired or replaced, the necessary and reasonable costs shall be recognized as code compliance costs if incurred to meet residential certificate of occupancy standards, but shall be excluded if they resulted instead from the deteriorated condition of the windows; and (z) the repair or replacement of utility risers, other building system components, or structural components due to their deteriorated condition with similar or comparable items shall constitute deferred maintenance costs unless these components had been installed by a residential tenant. In determining the appropriate rent adjustment for code compliance for each affected unit the Loft Board will decide on a case-by-case basis whether the work item applied for was necessary and reasonable to achieve minimal code compliance in the building. "Minimal code compliance" shall not be limited exclusively to the least expensive method of compliance but may also include other reasonable approaches to meeting legal requirements which are not unduly burdensome to the residential occupants. In assessing the reasonableness of the approach, the Board may consider the construction standards and specifications applied in housing programs financed by the Department of Housing Preservation and Development and other affordable housing programs in New York City. Where the cost of an allowable code compliance item has been included in the initial rent adjustment based upon Article 7-B compliance, the cost of any subsequent work performed to repair or replace that item may not be included in the final rent adjustment based upon issuance of a final residential certificate of occupancy. Rent adjustments for approved work items will be based on the lower of the actual cost or the scheduled amount for the item. In the case of approved work items that do not appear on the schedule, the necessary and reasonable cost of such items will be determined and included in the rent adjustments. Further, if in order to provide heat as required by Loft Board Minimum Housing Maintenance Standards, the landlord is or was required to install a central heating system or individual heating systems or to modify an existing system, the necessary and reasonable costs incurred in purchasing and installing or modifying such system or systems shall be costs that may be passed along to tenants as part of the rent adjustment calculated pursuant to these regulations. If in order to meet utility company standards or rules, an owner is required to perform work such as installing meters or constructing meter rooms, the necessary and reasonable costs of such work shall be costs that may be passed through as rent adjustments pursuant to these rules. Also, if in order to provide elevator services as required by the Department of Buildings or Loft Board Minimum Housing Maintenance Standards, the landlord has modified or replaced an existing elevator, the necessary and reasonable costs of performing such work shall be costs that may be passed along to the tenants as part of the code compliance rent adjustments. As part of the legalization work, the landlord shall also replace elevator hoistway door locks where prohibited with a security device on residential floor landings that provides substantially the same or enhanced security to the tenants, and the necessary and reasonable costs of performing such work shall be costs that may be passed along to the tenants as part of the code compliance rent adjustment. "Substantially the same or enhanced security" shall be defined as follows:

(1) a "zero clearance vestibule," if the elevator is equipped with sliding doors and the vestibule may be created without altering their operation;

(2) a vestibule extending into the IMD unit, with the minimum dimensions required to meet code requirements, if the elevator is equipped with swinging doors which open into the IMD unit; or (3) any other security arrangement to which the owner and tenant agree which meets DOB and Fire Department requirements. On request of the residential tenant, additional security measures such as mirrors and reinforced vestibule walls shall be installed by the owner, provided they are acceptable to DOB and the Fire Department, and the cost of their installation shall also be a recognized cost of code compliance. If a tenant has performed construction without the owner's consent at any time after the initial narrative statement conference, and additional costs are incurred by the owner as a result, such as architectural fees to revise plans or labor and material costs to perform additional work, these costs may be passed through to the tenant as part of the code compliance rent adjustments. In situations in which the owner alters or reconfigures residential units in a manner which results in changes in residential floor area pursuant to a Loft Board order or agreement among the parties, the Loft Board may determine the base rents to be charged for such spaces reflective of the change. Installation of an elevator vestibule to provide a tenant with security from intruders using the elevator shall not be the basis for an adjustment of base rent. Also, see 29 RCNY § 2-01(0).

(k) Rent adjustments.

(1) When an owner files an application for code compliance rent adjustments pursuant to 29 RCNY § 2-01(i)(2) prior to obtaining a certificate of occupancy, rent adjustments granted by the Board shall be retroactive to the first day of the month following the date of the filing of the completed rent adjustment application by the owner. When an owner files an application for code compliance rent adjustments pursuant to 29 RCNY § 2-01(i)(2) after obtaining a final certificate of occupancy, rent adjustments granted by the Board shall be retroactive to the first day of the month following the date of the issuance of the final certificate of occupancy. In either case, rent adjustments granted by the Board shall take effect on the first rent payment date that occurs at least 10 days after the Loft Board has mailed a final rent adjustment order to the owner and all affected residential occupants. For example, in a case where an owner filed an application for a rent adjustment prior to obtaining a certificate of occupancy, if the owner filed its application on March 15, 1986, and the Loft Board's order was mailed on October 6, 1986, the increase would be effective November 1, 1986, retroactive to April 1, 1986. At the option of the residential occupant, such retroactive increase may be paid either in a lump sum or as an addition to the regular monthly rent payments at a rate equal to 20 percent of the rent in effect, including any escalators, as of the date of application for adjustment ("base rent") until payment of the full retroactive amount is completed. Also, see 29 RCNY § 2-01(o).

(2) The total rent adjustment per building shall be determined by the Loft Board:

(i) by dividing the allowable cash costs of compliance approved by the Loft Board, exclusive of interest and service charges, over a 10-year period of amortization; or

(ii) by dividing the allowable cash costs of compliance approved by the Loft Board over a 15-year period of amortization and adding the actual mortgage debt service, incurred by the owner to pay allowable cash costs of compliance approved by the Loft Board that are attributable to interest and service charges in each year of indebtedness to an Institutional Lender (as defined in paragraph (4) of this subdivision) or any Qualified Noninstitutional Lender (as defined in paragraph (4) of this subdivision) that is approved by the Loft Board pursuant to such paragraph. The portion of the rent adjustment attributable to mortgage debt service shall be computed on the basis of the average annual debt service attributable to interest, finance and service charges over the loan term, provided that the maximum total amount of interest charged includable in rent shall not exceed that reflected in a 15 year self-amortizing mortgage. Service charges shall include mortgage application fees; commitment fees; fees for professionals who are required to be paid by the lender (such as appraisers, attorneys and surveyors); mortgage title examination and insurance fees and charges; origination fees; points; mortgage recording tax; and other recording charges. The use of a 10-year period of amortization, not including debt service, or of a 15-year period of amortization, including debt service, shall be at the option of the owner when interest and service charges are incurred to pay for any portion of allowable cash costs of compliance approved by the Board.

(3) In cases where the owner of a building receives tax abatement and exemption under Part 1 of Subchapter 2 of Chapter 2 of Title 11 (§ 11-243 formerly J-51) of the Administrative Code, the total annual rent adjustment for the IMD shall be adjusted to reflect a reduction equal to one-half of the total annual tax abatement granted for the IMD for those categories of costs approved by the Loft Board as necessary and reasonable for code compliance. The allocation of such reduction shall be in accordance with the formulae for allocation of rent adjustments contained in 29 RCNY § 2-01(l).

(4) (i) Definitions. For purposes of amortizing code compliance costs and interest and service charges over a 15-year period, the following terms have the following meanings:

(A) "Institutional lender" shall mean any bank, trust company, national bank, savings bank, state or federal savings and loan association, state or federal credit union, insurance company; any pension fund or retirement system of any corporation, association or any other entity owned or controlled by any one of the above, provided the same is supervised by or responsible to any agency of the federal government, or the State or the City of New York; and any governmental agency.

(B) "Qualified noninstitutional lender" shall mean any person or entity other than (A) the owner of the building, (B) any person or entity that owns, directly or through another entity, more than 50% of the ownership interest in the property, or any person or entity that at any time after March 26, 1993 has owned directly or through another entity, more than 50% of the ownership interest in the property, or (C) the spouse of any person described in clauses (A) or (B) above.

(ii) Procedure for applying for rent adjustment based on loans used to finance allowed compliance costs.

(A) Required documentation for all loans. An applicant seeking a rent adjustment based on interest and service charges for any loan from an institutional lender or qualified noninstitutional lender shall submit, as part of the application described in 29 RCNY § 2-01(i)(2), a description of the terms of the loan, the identity of the lender, a copy of all documents (including amendments thereto) evidencing or securing the loan (e.g., the note, loan agreement, mortgage, and security agreement, if any) certified by the lender as being true and correct copies; and evidence of the payment of service charges in the form of paid bills, canceled checks or other similar evidence.

(B) Additional documentation required for a loan from any qualified noninstitutional lender. In the case of a loan from a qualified noninstitutional lender, an applicant must submit, in addition to the documents enumerated in sentence (i) of subparagraph (b) of this paragraph, a completed Application for Noninstitutional Lender Approval in the form prescribed by the Loft Board together with an affidavit of Noninstitutional Lender-Lender Approval Form and an Affidavit of Noninstitutional Lender-Loan Approval Form. A completed Application for Noninstitutional Lender Approval and Affidavit of Noninstitutional Lender-Lender Approval Form must be submitted before the Loft Board will begin to process the rent adjustment application described in 29 RCNY § 2-01(i)(2).

(C) Additional documentation required for a loan from a qualified noninstitutional lender that is related to the applicant by blood, marriage or ownership of stock, partnership interests or other ownership interests. In the case of a loan from any qualified noninstitutional lender that is related to the applicant by blood, marriage or ownership of stock, partnership interests or other ownership interests, an applicant must submit, in addition to the documents enumerated in § 2-01(k)(4)(ii)(A) and (B),, a statement from the lender's certified public accountant to the effect that the loan under consideration is a bona fide loan and that the interest payable thereunder has been included or is includable as income in the lender's federal income tax return or, alternatively, a true and correct copy (certified as such by the lender or the lender's certified public accountant) of the lender's federal income tax return(s) (or the applicable schedules thereto) showing that such interest has been included in the lender's income for federal income tax purposes for each year to date of such application that interest under the loan has been paid to an including the most recent year in which a federal income tax return has been filed; and copies (both sides) of canceled checks drawn on an account of the lender evidencing payment of the proceeds of the loan to or on behalf of the Owner or Responsible Party. The Loft Board shall approve a noninstitutional lender in determining rent adjustments pursuant to 29 RCNY § 2-01(k)(2); provided, however, in the case of a qualified noninstitutional lender that is related to the applicant by blood, marriage or ownership of stock, partnership interests or other ownership interests, that the applicant submits reliable evidence (in the form described above) that the loan under consideration is a bona fide loan. Service charges shall be reimbursable only to the extent that they have been paid on or before the date of the Application and only when supported by reliable evidence (in the form described above). Only that portion of interest charges on a noninstitutional loan that does not exceed 2 points over the Federal National Mortgage Association's yield on multi-family, 15-year fixed-rate loans shall be included in rent adjustments. The procedures for Applications to the Loft Board set forth in 29 RCNY § 1-21 of these rules shall not apply to Applications for Non- Institutional Lender Approval. The Owner or Responsible Party must submit two copies of the Application for Non-Institutional-Lender Approval. Such Application will be approved provided such filing contains the information required by these rules. The portions of the preceding provisions of 29 RCNY § 2-01(k) pertaining to loans from qualified noninstitutional lenders (specifically, the reference to qualified noninstitutional lenders in 29 RCNY § 2-01(k)(2)(ii), and (k)(4)(i)(B), (k)(4)(ii)(B), (k)(4)(ii)(C), and the paragraph immediately following 29 RCNY § 2-01(k)(4)(ii)(C)) shall terminate on June 30, 1995 unless extended by the Loft Board.

(l) Allocation of rent adjustments. The total rent adjustment per IMD determined pursuant to 29 RCNY §§ 2-01(i) through (k) above, for obtaining a residential certificate of occupancy shall be allowed among individual residential units in the following manner:

(1) Allowable code compliance costs of work performed in a residential unit to bring the unit into compliance shall be allocated to that residential unit.

(2) Allowable code compliance costs of systems work, such as utility service or heat, that only services and is only capable of servicing the residential units and of work performed in nonresidential units solely to achieve Article 7-C compliance for the residential units shall be allocated equally among those residential units regardless of where the work is performed.

(3) An equal share of allowable code compliance costs of work in common areas and nonresidential units, except as provided in 29 RCNY § 2-01(l)(2), in the building shall be allocated to each residential unit. Allowable code compliance costs for systems work, such as utility service or heat, which services or is capable of servicing nonresidential units shall be deemed to be code compliance costs of work in common areas. This share, as described in this 29 RCNY § 2-01(l)(3), shall be equal to the portion of total allowable code compliance costs of work in common areas and nonresidential units, except as provided in 29 RCNY § 2-01(l)(2), which bears the same proportion to the total as the sum of the amount of floor area devoted to the maximum number of residential units in the building at any time after April 1, 1980 which qualified for coverage under M.D.L. Article 7-C and of the residential units which appear on the final certificate of occupancy which did not qualify for coverage under M.D.L. Article 7-C bears to the building's total floor area, divided equally among the sum of the maximum number of residential units in the building at any time which qualified for coverage under M.D.L. Article 7-C and the number of residential units which appear on the final certificate of occupancy which did not qualify for coverage under M.D.L. Article 7-C so that

S = (TC × RA/TA)
R

that is S equals (TC multiplied by (RA divided by TA)) divided by R,

where S = Share per residential unit

TC = Total allowable code compliance costs of work in common areas and nonresidential units, except as provided in 29 RCNY § 2-01(l)(2)

RA = Sum of the floor area of the maximum number of residential units in the building at any time which qualified for coverage under M.D.L. Article 7-C and of the residential units which appear on the final certificate of occupancy which did not qualify for coverage under M.D.L. Article 7-C

TA = Total Floor area

R = Sum of the maximum number of residential units in the building at any time which qualified for coverage under M.D.L. Article 7-C and the number of residential units which appear on the final certificate of occupancy which did not qualify for coverage under M.D.L. Article 7-C

For purposes of allocating rent adjustments pursuant to 29 RCNY § 2-01(l)(3): Total floor area (TA) is defined as the sum of the gross areas of the floors of a building measured from the exterior faces of exterior walls or from the center line of walls separating two buildings. Floor area includes rentable space, such as space in penthouses, cellars, and basements, but excludes rooms with mechanical, heating and air conditioning equipment and elevator and stair bulkheads, water tanks and cooling towers. Nonresidential tenant, residential tenant and vacant rental spaces are included in the floor area. Floor Area of Residential Units (RA) is defined as the sum of the clear area of the floor contained within the partitions or walls enclosing any room, space, foyer, hall or passageways of each of the residential units. It shall not include common areas, public halls, public vestibules, public rooms or other public parts of the building. Common areas are defined as spaces used for bulkheads, stairs, hallways, cellars, basements, fire escapes, rooms used for mechanical, elevator and heating equipment, and other areas used by all the residential occupants of the building, including storage areas.

(m) Initial legal regulated rents/issuance of residential leases.

(1) Following the calculation of code compliance rent adjustments or the waiver of an owner's right to such rent adjustments pursuant to 29 RCNY § 2-01(i)(2)(ii), the Loft Board shall set the initial legal regulated rent for all covered residential units remaining subject to rent regulation under M.D.L. Article 7-C.

(2) If an owner has waived its right to code compliance rent adjustments, the Loft Board may establish the initial legal regulated rents for covered residential units subject to rent regulation under M.D.L. Article 7-C based on the owner's RGB application pursuant to 29 RCNY § 2-01(i)(1), or, if no RGB application was filed, by evidence including, but not limited to, Loft Board records, documents submitted by affected parties, and the testimony of witnesses.

(3) (i) Upon the issuance by the Loft Board of an order establishing the initial legal regulated rent, the owner shall offer each residential occupant a residential lease subject to the provisions regarding evictions and regulation of rent set forth in the Emergency Tenant Protection Act of 1974, except that to the extent the provisions of Article 7-C are inconsistent with such act, the provisions of Article 7-C and these rules shall govern. At such time, the owner shall register with the New York State Division of Housing and Community Renewal in accordance with the ETPA.

Note: § 285(3) of the M.D.L. requires registration with a real estate industry stabilization association; however, amendments to the ETPA (Chapter 403 of the Laws of 1983) modified that filing requirement as shown.

(ii) If the owner has received any RGB Increase under 29 RCNY § 2-01(i)(1), then the initial term of such lease shall end upon expiration of the last RGB Increase Period (as defined in 29 RCNY § 2-01(i)(1)) prior to the setting of the initial legal regulated rent; provided, however, that no notice or proceeding by the owner to recover the unit pursuant to § 2524.4 of the Rent Stabilization code may be commenced during the pendency of this initial abbreviated lease term. The initial legal regulated rent established by the Loft Board pursuant to this subparagraph (ii) shall be equal to:

(A) the rent in effect, including escalations, and any RGB Increase granted under 29 RCNY § 2-01(i)(1) as of the date of the rent order ("base rent"), plus

(B) the maximum annual amount of any increase allocable to compliance as provided herein.

(iii) If an owner has not received any RGB Increases under 29 RCNY § 2-01(i)(1), then the rent shall be the sum of clauses (A) and (B) of subparagraph (ii) above plus the percentage increase then applicable to one-or-two year leases, as elected by the tenant, as established by the RGB and applied to the base rent, provided, however, such percentage increases may be adjusted downward by the Loft Board if prior increases based on Loft Board guidelines cover part of the same time period to be covered by the Rent Guidelines Board adjustments. For units in buildings that have been rented at market value subject to subsequent rent regulation as a result of the owner's purchase of improvements pursuant to M.D.L. § 286(6) and 29 RCNY § 2-07(f)(5), the initial legal regulated rent shall be calculated as set forth above except that the code compliance cost increase shall be zero.

(4) Rental adjustments attributable to the cost of code compliance shall not become part of the base rent for purposes of calculating rent adjusted pursuant to Rent Guidelines Board increases and shall terminate, after 10 or 15 years, as established by Loft Board order.

(n) Cooperatives and condominiums.

(1) Cooperative or condominium conversion of an IMD shall be fully in accordance with Article 23-A of the General Business Law, as amended, and the rules and regulations promulgated by the New York State Attorney General pursuant thereto. No eviction plan for conversion to cooperative or condominium ownership for a building that is, in whole or in part, an IMD shall be submitted for filing to the office of the New York State Attorney General pursuant to the General Business Law until a final residential certificate of occupancy is obtained and the residential occupants are offered residential leases in accordance with these regulations.

(2) Noneviction plans for such buildings may be submitted for filing provided that the sponsor or owner association remains legally responsible for bringing all rental, cooperative, and condominium units and all common areas of the building into compliance with Article 7-B of the M.D.L., or alternative building codes or provisions of the M.D.L. described in 29 RCNY § 2-01(a)(3) and for all work in common areas required to obtain a residential certificate of occupancy. An IMD that has been converted to cooperative or condominium ownership is subject to compliance with Article 7-C and Loft Board rules and regulations promulgated pursuant thereto.

(3) Cooperative and condominium units occupied by unit owners or tenant-shareholders are not subject to rent regulation pursuant to Article 7-C of the M.D.L. Cooperative and condominium units occupied by residential occupants qualified for the protection of Article 7-C of the M.D.L., i.e., who are not unit owners or tenant-shareholders, are subject to rent regulation pursuant to the statute.

(4) The sponsor or owner association of an IMD building that has converted to cooperative or condominium ownership shall file for code compliance rent adjustments for any units remaining subject to rent regulation pursuant to M.D.L. Article 7-C by the time set forth in 29 RCNY § 2-01(i)(2)(ii). A sponsor or owner association that fails to file an application for code compliance rent adjustments in a timely manner pursuant to this provision shall be deemed to have waived its right to seek such a rent adjustment.

(5) At any time after obtaining a residential certificate of occupancy, the sponsor or owner association of such an IMD building shall file with the Loft Board a list of all units originally registered as IMD units that are occupied by unit owners or tenant-shareholders, certifying that such units are occupied by unit owners or tenant-shareholders, and affirming that the sponsor or owner association seeks exemption for those units from the Loft Board's order setting the initial legal regulated rents. The building shall remain subject to the annual registration renewal requirement pending completion of Loft Board review of such list.

(o) [Reserved.]

(p) Schedule of costs.

(1) Demolition.

Description	Unit	Revised Schedule*
Dumpster (incl. permit)	Mini	30.45/load
	10 yd.	385.78/load
	20 yd.	482.13/load
Demolition susp. plaster or sheetrock ceiling	sq. ft. sq. ft.	1.27 0.76
Demolition of non fire-rated partition	sq. ft.	1.02
Removal of non-code compliant hot water heater	each	76.13
Removal of non-code compliant space heater	each	64.35
Removal of non-code compliant heater, ceiling unit	each	193.05
Removal of non-code compliant plumbing fixture	each	64.35
Remove window and frame on lot lines	each	64.35
Demolition of wooden stairs	per floor	256.39

(2) Masonry

Allowance for openings in interior walls for exhausts, vents and heaters	per opening	50.75
Fireproofing columns, 4" solid block	sq. ft.	6.44
New window opening in brick or concrete block wall	each	386.11
New door opening in sheetrock	each	76.13
New door opening in brick or concrete block wall	each	386.11
Exterior wall opening for exhausts, vents and space heater	each	321.76
New fire-rated stair enclosure –
top floor to roof	each	1,287.02
first floor to cellar	each	1,287.02
Extend brick parapet to provide 3'6" height	sq. ft.	32.18
New bulkhead (25 linear feet)	each	3,217.55
Bulkhead ventilation louver (12" x 12") completely installed	each	128.70
Gypsum block (4") to enclose boiler/meter rooms	sq. ft.	6.44

(3) Metals

New metal stair, 2'6" wide, for top floor to roof*	floor	2,233.00
New roof railings to provide 3'6" parapet	lin. ft.	19.31
Metal stair to cellar to replace existing*	floor	1,930.53
Skylight including screen 20 sq. ft.	each	772.21
Scuttle ladder to roof	each	257.40
Fire escape, new	floor	2,445.44
Extend fire escape to roof & platform	each	1,930.53
Exterior screened stair	floor	3,217.55
Cellar "engineer's" hatch with frame, ladder, cutting, patching1 hardware new steel (24" x 24") completely inst.	each	1,930.53

(4) Carpentry

Floor joist, 3 × 10	lin. ft.	10.15
Floor joist, 3 × 12	lin. ft.	12.18
Subflooring replacement	sq. ft.	1.83
Framing for new partitions	sq. ft.	1.29

(5) Doors and Windows

Building entry and/or vestibule, new installation	lin. ft.	257.40
Hollow metal door and frame (common area) – replacement	each	450.46
Hollow core wood door and frame	each	128.70
Dwelling unit entrance door with frame including lock, door knobs and hinges	each	514.81
Bulkhead door with frame	each	450.46
Repair existing dwelling unit entrance door	each	128.70
New dwelling unit entrance door lock	each	128.70
Reversing swing of door	each	86.28
Double hung window (double glaze) 20 sq. ft.	each	321.76
Double hung window (single glaze) 20 sq. ft., installed	each	268.98
Windows larger than 20 sq. ft.	each sq. ft. above 20	25.74
Lot line window	each	406.00
Glazing – wired	sq. ft.	10.94

(6) Finishes

Painting (primer coat on sheetrock, plus one coat)	sq. ft.	0.37
Plaster patching	sq. ft.	1.93
Gypsum board, non-fire rated (1/2") for interior unit partitions	sq. ft.	2.03
Fire-rated gypsum board (5/8") to fireproof underside of stairs, 2 hrs. rating	sq. ft.	2.58
To separate commercial/manufacturing from residential portion of building, 1 or 2 hrs. rating	sq. ft.	1.29/2.58
To separate apartments, 1 hr. rating	sq. ft.	1.29
To enclose fire stairs and/or fire corridor, 1 or 2 hrs. rating	sq. ft.	1.29/2.58
To enclose cellar, common area rooms 1 or 2 hrs. rating	sq. ft.	1.29/2.58
To enclose bath and/or kitchens	sq. ft.	1.29
Dry-wall, impervious to water, for bathroom use	sq. ft.	1.93
Note: All gypsum board descriptions and prices are finished, i.e. taped and spackled.
INSULATION
Wall Insulation (R-11)	sq. ft.	0.32
Roof Insulation (R-30)	sq. ft.	0.64
TILE AND FLOORINGS
Tile repair in residential bathroom	sq. ft.	7.61
Tile work in residential bathroom (new base only)	bathroom	64.35

(7) Specialities

Mail Boxes	each	56.84
Floor Signs	each	12.87
Peephole Bell Chain on Existing Door	per door	64.35
Smoke Detector, Hard Wired	each	128.70
Intercom in Buildings with 8 or more units	per D.U.	152.25
Bell and Buzzer System	per D.U.	50.75

(8) Equipment

Electric or Gas Range

each

386.11

(9) Conveying Systems

ELEVATORS
New Elevator: Base Price	each	57,915.90
Additional	per floor	7,722.12
Seal Off Shaft	per floor	514.81
Service Car	per floor	15,225.00

(10) Mechanical

HEAT AND HOT WATER
Hot Water Heater, Gas Fired, 40 Gal.	each	321.76
Hot Water Heater, Electric, 40 Gal.	each	450.46
Separate Domestic Central	per D.U.	321.76
Hot Water System Central Heating System, Gas or Oil, Including Piping and Radiators	per D.U.	3,861.06
Central Boiler, Gas or Oil	per D.U.	1,287.02
Gas Fired Heater, Residential	each	965.27
Gas Meter: Lines (3/4") to Individual D.U.	lin. ft.	7.61
Electric Baseboard Heater to Heat 1,000 Sq. Ft.	per D.U.	1,930.53
New Radiator or Convector	each	450.46
Radiator: I. Valve and Air Vent	each	96.53
Radiator: II. Valve and Steam Trap	each	115.83
Gas Riser for Heat or Hot Water	per D.U.	772.21
Gas Riser for Cooking	per D.U.	643.51
Gas-Fired Hot Water Boiler for Individual Dwelling Unit, Installed with Piping, Venting and Valving	per D.U.	4,504.57
Plumbing Valve on Existing Fixture	each	45.05
Mechanical Ventilation (Including Exhaust Ducts) for Internal Units (with Existing Shaft)
– Bathroom	each	304.50
– Kitchen	each	365.40
– Fan (Including Wiring)	each	609.00
WATER DISPOSAL AND PLUMBING
Water Closet	each	231.66
Bath Tub w. Trim	each	463.33
Shower Body, Piping with Trim	each	160.37
Kitchen Sink with Trim	each	231.66
Lavatory with Trim	each	193.05
Sink Faucet	each	96.53
Copper pipe (1/2")+	lin. ft.	6.44
Copper pipe (3/4")+	lin. ft	9.01
Replace Inadequately Sized Sink Trap	each	193.05
Waste and Trap for Existing Tub	each	208.08
Lead Bend for Water Closet	each	257.40
New Water Riser and Branches	per D.U.	1,480.07
New Water Main Assuming 6-story building 2" copper main street main on same of street as building2	each	3,552.50
Replace Sprinkler Head	each	38.61
Sprinkler System, New, Based on Per Head	each	261.87
Relocate Existing Sprinkler Head	each	193.05
Siamese Connection**	each	772.21
Fire Pump**	each	15,444.24
Alarm Valve**	each	965.27
New Standpipe Main**	each	9,009.14
Siamese, Check Valve**	each	1,544.42
Siamese, Check Valve with Piping and Water Flow Alarm**	each	3,861.06
Roof Tank 5,000 Gal. Inc. Structural Supports**	each	19,305.30
New Water Meter:
2"	each	2,030.00
3"	each	3,045.00
4"	each	4,060.00
AIR DISTRIBUTION
Supply Air Fan or Roof Exhaust Fan	each	487.20
Wall Exhauster	each	436.45
Fire Damper and Grill in Existing Shaft	each	64.35
Turbine Fan in Existing Shaft	each	193.05
Provide Ventilation for Enclosed Central Heating System Equipment	each	1,287.02
VENTILATION EXHAUST RISER
Kitchenette	each	386.11
Bath	each	321.76

(11) Electrical

Panel Board with Separate Electric Riser, Single Phase, Three Wire Service	each	900.91
Single Pole Switch Outlet Fully Installed	each	77.22
Lighting Outlet, Fully Installed	each	128.70
New Fixture on Switch, Fully Installed	each	193.05
Hall Lighting Outlet, Fully Installed	each	154.44
110 V Outlet	each	116.73
110 V Outlet (Ground Fault Interrupter Electrical Meter:	each	137.03
– Panel & Rough Wiring	building	1,319.50
– Meter (Assembly) Plan	per D.U.	167.48

(12) Municipal Filing Fees, Professional Fees, Local Law Compliance and Extraordinary Costs of Legalization

Municipal fees for filing necessary for Code Compliance (e.g. Dept. of Buildings Alteration Application, City Planning Commission Special Permit, etc.). Does not include regular annual filings for inspections or regulation.	Actual fee charged
All Architectural and Engineering Fees	Maximum 7 percent of approved, necessary and reasonable costs of Code Compliance items in categories 1 - 12 of this schedule.
Legal Fees – costs incurred in obtaining financing for Code Compliance	Maximum 4 percent of approved necessary and reasonable costs of Code Compliance for cost items in categories 1 - 12 of this schedule.
Local Law Compliance (Handicapped, Landmarks and Asbestos)	Approved necessary and reasonable costs of Code Compliance, reviewed and determined by the Loft Board case by case.
Extraordinary Costs of Legalization (construction management fees; overtime costs for alterations required to be done after hours; and excessive costs above scheduled allowance resulting from individual building characteristics)	Maximum 7.5 percent for this category of approved, necessary and reasonable costs of Code Compliance.

1 Includes concrete plan.

2 All other situations will be resolved on a case by case basis.

+ Plumbing items include necessary pipe installation. These items are for replacement work only.

* The figures in this final cost schedule have been calculated by using the 1989 prices, published in the City Record on August 13, 1990, multiplied by 1.5 percent, the yearly index for 1990.

** These items will only be considered as necessary and reasonable when installation is mandated resulting from other required code compliance work.

The following Department of Buildings memoranda are included here for informational purposes only and not for comment. These directives are referred to in 29 RCNY § 2-01(d)(2).

(Amended City Record 3/1/2023, eff. 3/31/2023)

Disclaimer: The Codes and other documents that appear on this site may not yet reflect the most current legislation or rules adopted by the City. In addition, certain textual errors and omissions may temporarily exist, resulting from problems in the source database provided to American Legal and from which this website was created. Although these errors and omissions are being corrected, any user discovering any such error is invited to please contact the publisher at NYC.editor@amlegal.com or at 800-445-5588 and/or the New York City Law Department at NYCCodeRulesCharter@law.nyc.gov.

Hosted by: American Legal Publishing

Back to Code Library

Previous Doc

Next Doc