On July 17, 2025, the Loft Board voted to initiate the rulemaking process under the Citywide Administrative Procedure Act for two different sections of the Loft Board’s regulations, found in Title 29 of the Rules of the City of New York.
Proposed Changes to Protected Occupancy Eligibility
The first set of proposed amendments concerns the Loft Board’s protected occupancy regulations. Specifically, “the proposed amendments would make clear that representations and deductions on tax returns prior to filing for protected occupancy alone are not determinative.”
This rule change would effectively make applying for protected occupant status easier. The Loft Board’s “Statement of Basis and Purpose of Proposed Rules” admits this by referring back to the “unique circumstances of loft living” and the “remedial purpose of the Loft Law.”
Article 7-B Compliance and Enforcement
The second regulatory section targeted for amendment relates to Article 7‑B compliance and enforcement.
Historically, owners of interim multiple dwellings were allowed to file with the Loft Board a sworn statement by a registered architect or professional engineer stating that the building has achieved Article 7-B compliance, by completing all necessary fire and safety work. The filing of this sworn Article 7-B compliance form would be evidence of compliance and would allow an owner of an IMD to then increase the legal regulated rent by the statutory increase found in MDL 284. The proposed rule would eliminate this option completely. Under the proposed rule, Article 7‑B compliance could be documented only through the issuance of a temporary or final residential certificate of occupancy by the Department of Buildings.
Further, the Loft Board is proposing an enforcement mechanism against Owners, Landlords, or Responsible Parties of IMD buildings that filed a sworn certification of Article 7-B compliance but have not obtained a residential certificate of occupancy. Owners in these situations would be required to obtain a temporary or final residential certificate of occupancy within six months from the effective date of these amended rules, or face severe monetary penalties ($3K for the first violation, $10K for the second, $15K for the third, $18K for the fourth and $25K for the fifth and every violation thereafter).
Additional Enforcement and Penalty Provisions
In addition, the Loft Board is proposing:
- To remove the cure period for failing to file a quarterly report;
- To add a fine for not filing an alteration application within six months of a finding of Article 7-C Coverage.
The comment deadline for these proposed rules is March 23, 2026. A public hearing is scheduled for March 19, 2026. We are continuing to monitor these proposed rule changes and will keep our clients informed as the rulemaking process moves forward.
Contact Us
Reach out to your BBG attorney of record or contact us here to discuss how this requirement applies to your property.
Written by Michael Bobick, Partner, Loft Law Practice.