The Cypress Hills Local Development Corporation (CHLDC), a local non-profit organization, in cooperation with the New York City Department of Housing Preservation recently launched the Basement Apartment Conversion Pilot Program or BACPP.
The program aims to provide East New York and Cypress Hills (Brooklyn, Community District 5) low- to mid-income homeowners with low- to zero-interest housing loans that would allow them to convert their cellar or basement into a legal and safe apartment for rent. This is based on the revised legislation for building codes that was passed on February 2019. The program also provides homeowners with the technical assistance that is needed to secure a loan and construction project completion. Overall, BACPP would be a means for the homeowner to earn income from rent while providing the tenants with safe and legal housing.
Eligibility Requirements
The homeowner must meet the following criteria to be recognized as eligible for BACPP:
- Owns a one-, two-, or three-unit home located in East New York or Cypress Hills.
- Resided in the said home for not less than 270 days in a year.
- Meets additional eligibility requirements based on their gross household size and income. These include the number of persons residing (1 – 8 persons) with a corresponding gross household income that does not exceed 165% of area median income (ranging from $123,255 to $232,485).
- The one-, two-, or three-unit home should be housing zone compliant.
One factor that can cause ineligibility for the program, aside from not being house zoning compliant would be that the home is located in an area that is considered as a future flood risk.
Process at A Glance
Homeowners that have passed the eligibility requirements are provided with low- to zero-interest loans for a maximum loanable amount of $120,000 as a form of financial assistance. This would give the homeowner enough capital to convert their home basement or cellar into a livable and safe apartment. As part of the program, CHLDC will assist the homeowner throughout the loan application process to guarantee approval.
Technical assistance to the homeowner to assure completion of the construction project will also be provided by CHLDC through navigation and management of the pre-development and construction process. CHLDC will also assist the homeowner in procuring a Certificate of Occupancy from the New York City Department of Buildings.
Building Code Standards
The conversion of a basement or cellar is recognized as an increase in housing unit. It is with this in mind that BACPP aims to make use of the recent New York City Building Code Standards revisions that would allow the conversion of a one-unit home into a two-unit home.
Alternatively, the conversion from a two- to a three-unit home and a three- to a four-unit home falls under the Multiple Dwelling Law. BACPP will also assist eligible homeowners that would fall under the jurisdiction of the Multiple Dwelling Law.
Participation
Interested homeowners were requested to submit their application on or before the 31st of May 2019; however, there are no guarantees that all applicants would be considered eligible for BACPP. The applicants would undergo several processes including prescreening and home assessments. Once approved for BACPP, it is estimated that it would take no more than a year from the start to the completion of construction.
As building code and Zoning experts, we could assist you in pre-determination of whether your existing space could conform to the revised NYC Building Code/Zoning for your residence. Please feel free to contact us if you would like an assessment.