Effective July 8, 2026, owners of Interim Multiple Dwellings (“IMDs”) subject to the Loft Law who previously had their architect or engineer self-certify to the completion of all Article 7-B fire-safety work must now obtain, at a minimum, a Temporary Certificate of Occupancy (“TCO”) for the residential portions of the building.
Owners who do not obtain the required TCO within six months of the effective date, on or before January 8, 2027, will be subject to an automatic $3,000 penalty. If compliance is not achieved, the Loft Board may impose additional penalties every 6 months on an escalating basis:
- Second violation: $10,000;
- Third violation: $15,000;
- Fourth violation: $18,000; and
- Fifth and each subsequent violation: $25,000.
The rule changes also impose stricter consequences for missed quarterly reporting. Owners will be subject to an automatic $1,000 penalty for each missing quarterly report, and the Loft Board will no longer permit owners to cure missed reports in order to avoid the penalty.
These changes materially increase the financial consequences of noncompliance and underscore the importance of promptly reviewing Loft Law compliance status, TCO requirements, and ongoing reporting obligations.
Contact Us
Reach out to your BBG attorney of record or contact us here for assistance in navigating these new requirements.
Written by: Michael Bobick, Partner, Loft Law Practice Leader