As many of you know, on December 15, 2021, the City Council approved the Soho/Noho neighborhood plan which allowed those who occupy Joint Live-Work Quarters for Artists (“JLWQA”) without an artist certification to legalize their non-artist occupancies by applying to the Department of Building to change the use of their units from JLWQA to Residential Use Group 2 upon the one-time payment of a contribution to an Arts Fund, in the sum of $100 per square foot.
One item that was not addressed by this Soho/Noho rezoning was the interplays of the Loft Law, and whether current and/or former interim multiple dwelling (“IMD”) units would be exempt from the conversion and Art Fund contribution requirements.
Last week, a partial settlement was reached with the City of New York, in which New York City agreed that both current and former IMD’s are exempt from the requirement of having an artist certification, even if the certificates of occupancy (if any) carry such restriction and exempt from paying a contribution to an Arts Fund. Simply put, owners of former IMD’s will not be required to convert their units from JLWQA to Residential Use Group 2 or pay the Arts Fund fee and are free to use them residentially, regardless of an artist certification, as well as sell or transfer them to anyone.
If you wish to discuss these new developments in greater detail, contact us.