Occupant Qualified for Article 7-C protection

Proposed Rules: Closed to Comments

Comment By: 
Thursday, July 12, 2012
Download Copy of Proposed Rule (.pdf): 



Statement of Basis and Purpose



Pursuant to § 282 of Article 7-C of the Multiple Dwellings Law (MDL), also known as the “Loft Law,” the Loft Board may promulgate rules to ensure compliance with the Loft Law.


Effective as of June 21, 2010, the New York State Legislature amended the Loft Law and enacted Chapters 135 and 147 of the Laws of 2010, which among other things, added MDL § 281(5). When it added § 281(5), the New York State Legislature expanded the criteria for coverage under the Loft Law.


The proposed changes conform § 2-09 of the Loft Board’s rules to the amended Loft Law, by extending the rule’s requirements to buildings covered pursuant to the newly added MDL § 281(5), and clarifying the existing provisions regarding subletting rights, privity with the owner, the right to recover subdivided space, and sale of improvements.


To summarize, the proposed rule:


(a)  Updates the definition of an occupant qualified for possession of a residential unit and protection of Article 7-C;


(b)  Clarifies the conditions necessary for privity between the subtenant and owner or prime lessee;


(c)  Describes when a prime lessee may recapture the IMD unit or subdivided space if the prime lessee still occupies a portion of the IMD unit; and


(d)  Clarifies the procedure for a prime lessee to be compensated for the improvements made by the prime lessee.



Public Hearing

Opportunity to comment on the proposed rule changes to Section 2-09 of the Loft Board rules, which covers occupant protection under Article 7-C, subletting rights, privity with the owner, and the right to recover subdivided covered space.

Public Hearing Date: 
Thursday, July 12, 2012 - 2:00pm

New York City Loft Board
280 Broadway
3rd Floor
New York, NY 10007
(212) 566-5663

22 Reade St, 1st Floor
New York, NY 10007