Illegal Basement Apartments in NYC (rent, insurance, mortgage)
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I just got nailed for an illegal cellar apt, the inspector wrote on the report that it was a hazardous apt because of the means of egress.There are 2 additional exits out of the apartment, a door that leads to an enclosed court and a door that leads to the back yard. You cant get to the street from the back yard or court (its a mutliple dwelling block) but in my other 4 legal apts if the main door out of those apts were to be blocked by a fire my tenants would have to jump out of windows(and in two of the apts the windows lead to teh back yard so they too cant get to the street). This is "sufficient" to the city, but a door leading directly to the back yard is not.
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Now I am not saying my apt should be legal. I understand the ceiling height/air/ventilation issues, but the egress thing baffles me. Maybe it has something to do with making it more difficult for the FDNY having to do a rescue.
Not just "rescue" -- "escape."
If those two doors were blocked by debris, or if conditions above (and available space below) prevented easy ground approach, those tenants (a) couldn't get out at all, or (b) might not be rescued in time.
You think of it it two ways, risk to tenants and risk to fire/rescue.
You do not want Firemen to have a choice like that, you want to make sure THEY have a way to get in and out with the proper equipment if they can.
But also, when a slumlord CAN go cheaper, they will. They will try to get the most for the least, and when someone is desperate for cheap living, they will not flinch at less accomodating for about the same price (I do not see them "House Hunting").
One other reason is kind of tricky, and may depend more on how a house/apartment is defined by the city. But I know a lot of apartments and rented rooms are not really "official" declared rooms. They are that extra bedroom being rented to help pay the mortgage, or a converted basement being given over to a college student. I do not think that many of these are official in any sense to avoid additional requirements like a house-wide fire alarm system, possible sprinklers, means of egress, and most importantly, taxes.
Saying that an apartment needs access to the street may also define it as an official domicile/unit by the tax code. It may be a technicality, but I would not be surprised if this WAS a reason...
Beyond the safety issues, the city has an interest in controlling how many housing units it contains and where those units are. If everyone who could physically create an extra unit was actually permitted to, then traffic, parking, schools, parks and other government services would be overcrowded or overburdened. The government is also responding to NIMBY-ism where people do not want the additional tenants that basement units would bring to the neighborhood. I, personally, wish the process was easier because the increased housing supply might bring rents down a little.
Beyond the safety issues, the city has an interest in controlling how many housing units it contains and where those units are. If everyone who could physically create an extra unit was actually permitted to, then traffic, parking, schools, parks and other government services would be overcrowded or overburdened. The government is also responding to NIMBY-ism where people do not want the additional tenants that basement units would bring to the neighborhood. I, personally, wish the process was easier because the increased housing supply might bring rents down a little.
That makes sense. But that's what NYC is like already lol. Ugh...sooooo overcrowded. If people can't rent basements..they just cram 3-4 of them into a one bedroom anyway.
I know but I mean, the doors are the only way to get out in a lot of houses. I understand the public saftey perspective..but I don't agree with the city. I think people are able to make their own decisions for themsleves and it's fine if it doesn't hurt anyone else..
Btw..I still don't know if my apt. is illegal then? From what I read...it isn't...*sigh* who knows?
Platinum333
Personally I believe the illegal basement apartments are exaggerated. As for the illegal cellar apartments, they may be dangerous.
Most of the basement apartments I've seen have two means of egress, yet they are considered illegal because the landlord didn't have a CofO. Which boils down to the city wants to know how much rent your collecting so you can pay the proper taxes. The more taxes you pay, the better the city does. Not to mention it cost thousands of dollars to convert a basement apartment. In which case everybody makes money except the landlord.
And don't think the landlord makes money once the legal basement apartment is rented. Because that takes years to recoup. Not to mention the landlord had better hope he/she finds a tenant that pays on time and not one who plays the system.
I understand that most landlords are in bad financial situations and need to rent the basement to make ends meet. Almost all of them can't afford to convert to legal apartments. Now I'm not saying this is ok, I'm just saying I could see why it is done.
Most of the basement apartments I've seen have two means of egress, yet they are considered illegal because the landlord didn't have a CofO. Which boils down to the city wants to know how much rent your collecting so you can pay the proper taxes.
Well. Yeah. That's how the world works. You earn income, you pay taxes on that income.
Further, just because a basement apartment has two means of egress does not mean it's necessarily safe for someone to live there.
Quote:
And don't think the landlord makes money once the legal basement apartment is rented. Because that takes years to recoup. Not to mention the landlord had better hope he/she finds a tenant that pays on time and not one who plays the system.
Isn't renting out an illegal apartment and not reporting taxable income "play[ing] the system" as well?
I was unclear. When I said "the city wants to know how much rent your collecting" I meant that it is a way for the city to raise your property taxes. Not income taxes. I would hope or assume that landlords are reporting their true income taxes, which is their responsibility.
As for the basement apartment. Like I said, "the ones that I have seen", had all of the required things to occupy it. They just didn't have the CofO. No violations were written as to them being a saftey hazard. Now with that said, I don't know what you have seen and therefore cannot judge.
Lastly, I said "And don't think the landlord makes money once the Legal basement apartment is rented". However, I could see how you could have mis-read the word.
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