Int. No. 1166
By Council Member Morano
A Local Law to amend the administrative code of the city of New York, in relation to the denial of building permits where certain taxes and charges are owed to the city
Be it enacted by the Council as follows:
Section 1. Section 28-105.1.6 of the administrative code of the city of New York, as added by local law number 160 for the year 2017 and redesignated by local law number 126 for the year 2021, is amended to read as follows:
§ 28-105.1.6 Denial of permits for certain arrears. The commissioner shall not issue a permit for a new building, demolition, place of assembly or major alteration that will change the use, egress or occupancy for a property if $25,000 or more in covered arrears is owed to the city with respect to such property or if the owners of such property owe, in aggregate, $25,000 or more in covered arrears to the city, provided that, where a dwelling unit within a property is owned as a condominium or held by a shareholder of a cooperative corporation under a proprietary lease, covered arrears owed to the city for such unit shall not be considered covered arrears owed to the city for such property. For the purposes of this section, the term “covered arrears” may include any of the following, but shall not include any such items that are currently in the appeals process:
1. Unpaid fines, civil penalties or judgments entered by a court of competent jurisdiction or the environmental control board pursuant to chapter 2 of this title; [and]
2. Unpaid and past due fees or other charges lawfully assessed by the commissioner[.];
3. Unpaid and past due real property taxes, and the interest and charges thereon;
4. Unpaid and past due water rents, as defined in section 11-301 of the administrative code, and the interest and charges thereon; and
5. Unpaid and past due sewer rents and sewer surcharges, as defined in section 11-301 of the administrative code, and the interest and charges thereon.
Exceptions:
1. The commissioner may issue a permit for a property if the applicant submits a certification from the department of finance that binding agreements are in force requiring payment of all covered arrears owed by the owners of such property, and such owners are in compliance with such agreement.
2. The commissioner may issue a permit for a property where the issuance of such permit is necessary to correct an outstanding violation of this code, the New York city housing maintenance code or any other applicable provisions of law or rule or where the commissioner determines that issuance of such permit is necessary to perform work to protect public health and safety.
3. The commissioner may issue a permit for a portion of a property occupied by a tenant who is not an owner of such property or responsible for any covered arrears owed with respect to such property.
4. The commissioner may issue a permit, for a dwelling unit within a property that is owned by a condominium or held by a shareholder of a cooperative corporation under a proprietary lease, if the owners of record for such unit do not owe, in aggregate, $25,000 or more in covered arrears to the city.
5. The commissioner may issue a permit where a property was the subject of an in rem foreclosure judgment in favor of the city and was transferred by the city to a third party pursuant to section 11-412.1 of the administrative code.
6. The commissioner may issue a permit where a property is the subject of a court order appointing an administrator pursuant to article 7-a of the New York state real property actions and proceedings law in a case brought by the department of housing preservation and development.
7. The commissioner may issue a permit where a property is the subject of a loan provided by or through the department of housing preservation and development or the New York city housing development corporation for the purpose of rehabilitation that has closed within the five years preceding the application for such permit.
8. The commissioner may issue a permit for a property where the department of housing preservation and development or the New York city housing development corporation notifies the commissioner that the permit is required for participation in a program that involves rehabilitation of such property.
§ 2. This local law takes effect 120 days after it becomes law, except that the commissioner of buildings may take such measures as are necessary for its implementation, including the promulgation of rules, prior to such effective date.
JPA
LS # 22197
10/22/2026 3:53 PM