For those who do not know or are new to the Loft Law, come June of every year, the New York City Loft Board finalizes and mails out to all interim multiple dwelling (“IMD”) owners of the annual registration invoices and applications for their buildings.
The Loft Board’s rules require all IMD owners to register their IMD buildings by July 1 of every year. In order to register their buildings properly, owners are required to sign the annual registration application and pay the required registration fee of $500 per residential unit. The annual registration application and registration fees are due by July 1, with a grace period to July 31. If the documents and fees are not submitted by July 31, a per-unit late fee is automatically generated by the Loft Board on August 1. Late fees will then accrue monthly until paid.
There are severe consequences should an owner fail to comply with the Loft Board’s registration requirements. If an IMD owner fails to register, the Loft Board will commence an enforcement proceeding against the owner. The owner will then have one final opportunity to register— and should an owner still fail to register as required, the Loft Board will issue a Loft Board Order which will impose hefty fines of $5,000 for one year; $10,000 for two years and $17,500 for three or more years of delinquency. In addition, a delinquent owner will not be able to file applications at the Loft Board; obtain Loft Board approval letters for legalization work and non-legalization work; schedule narrative statement conferences; or challenge proposed sales of improvements.
By this point, owners should have received a package from the Loft Board with all required documentation. If you have not received the registration package, or if you have questions regarding any of the documentation within the package, or any general questions regarding the Loft Law, please contact BBG.