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Basement and cellar apartments in NYC: legality and risks

Many NYC basement and cellar rentals are illegal. Learn the basement vs cellar test, how to check a certificate of occupancy, flood risks and your rights.

7 min read · Updated

A basement apartment in NYC is legal only if the Department of Buildings has approved it for living, which shows up on the building's certificate of occupancy. HPD's rule is that a cellar in a one- or two-family house can never be lawfully rented as things stand; the city's new accessory dwelling unit laws create narrow, DOB-approved exceptions that don't cover existing illegal units. Many below-ground units are rented anyway, so check before you sign. Illegal units carry real fire and flood dangers and can be emptied by a city vacate order.

You don't lose basic rights by living in one. Your landlord still can't lock you out, and the city provides relocation help if it orders you out. Here's how to tell what you're looking at and what to do.

At a glance

Basement
≥ half above curb
Can be legal if approved
Cellar
> half below curb
Never rentable in a 1–2 family home
Minimum ceiling (1–2 family)
7 feet
Plus a window in every room
Hurricane Ida, 2021
11 of 13 deaths
In basement apartments, mostly in Queens and Brooklyn
People in basement/cellar units
300,000–500,000
Older estimate cited by the Comptroller
Legalization pilot deadline
April 20, 2029
Owners must apply by then; rules still pending

Basement or cellar? The difference that matters

HPD uses a simple height test. A basement is a story partly below curb level with at least half its height above the curb. A cellar has more than half its height below curb level. Stand outside, find the curb in front of the building and compare: if most of the room's height is below the curb, you're looking at a cellar.

Legal basement (1–2 family)Cellar (1–2 family)
Can be rentedOnly with DOB approval and HPD standards met
Minimum ceiling height7 ft
Window in every room
Can be used for sleeping or eating
Who can live thereOne family, no boarders

HPD's rules for renting a basement in a one-family house also say the yard can't be higher than six inches below a required window's sill, walls must be damp- and water-proofed if soil conditions require, and rooms must meet Housing Maintenance Code size minimums. In a two-family house, a basement can't be rented if doing so would turn the building into a multiple dwelling that needs a new certificate of occupancy. For buildings of every size, HPD's rule is the same: basements and cellars can never be lawfully rented unless they meet minimum light, air, sanitation and exit standards and have DOB approval.

How to check a certificate of occupancy

A certificate of occupancy (CO) states a building's legal use and type of permitted occupancy. No one may legally occupy a building without a CO or temporary CO, unless it's an older building exempt from needing one. If the CO for a two-family house lists two apartments on the first and second floors and nothing residential in the basement, a basement apartment is not legal.

  1. 1

    Get the exact address and block/lot

  2. 2

    Open the CO on the DOB site

  3. 3

    Read the basement or cellar line

  4. 4

    If there is no CO

  5. 5

    Look for red flags in the record

The flood danger is real

When the remnants of Hurricane Ida hit in September 2021, 13 New Yorkers died. The City Comptroller reported that 11 of them drowned in mostly unregulated basement apartments in Queens and Brooklyn. Flash flooding from heavy rain can fill a below-grade room in minutes, and a unit with one exit and barred windows is a trap.

  • Sign up for alerts. At nyc.gov/notify, subscribe to Notify NYC and choose the basement apartments option to join the Basement Alert Group, which sends targeted warnings about life-threatening weather.
  • Move up early. NYC Emergency Management advises basement residents to move to a higher floor when it rains, without waiting for water to reach the unit. Arrange this with upstairs neighbors in advance.
  • Check your flood risk at floodhelpny.org, and keep valuables off the floor.
  • Insurance: ask your insurer whether your renters policy covers flood damage before a storm, not after. See flood insurance in NYC.

Your rights if the apartment is illegal

  • No lockouts. If you've lived there 30 days or more, or have a lease, the owner can't remove you by force, by changing the locks or by cutting utilities. Only a court order or a government vacate order can. Violations carry civil penalties of $1,000 to $10,000. See illegal lockouts.
  • Habitability. Every residential lease, written or oral, includes the warranty of habitability, and it can't be waived.
  • Rent in multiple dwellings. In a building that legally counts as a multiple dwelling (three or more families) and is occupied without the required certificate, the Multiple Dwelling Law bars the owner from recovering rent for that period or evicting for nonpayment of it. This rule doesn't reach one- and two-family houses, where most basement units are. Talk to a tenant lawyer before you stop paying anything.
  • Relocation help. If the city issues a vacate order, HPD says occupants can receive relocation services, and the owner is billed for the cost. See vacate orders explained and help after displacement.
  • Free legal help. If you're sued in Housing Court, you may qualify for a free lawyer under Right to Counsel.

The legalization pilot (not open yet)

Local Law 126 of 2024 created a pilot to bring some existing basement and cellar units in one- and two-family homes up to code. It covers only certain community districts: Bronx 9, 10, 11 and 12; Brooklyn 4, 10, 11 and 17; Manhattan 2, 3, 9, 10, 11 and 12; and Queens 2. Units in high-risk flood areas (FEMA Special Flood Hazard Areas, Coastal Flood Risk Areas and DEP's 10-year rainfall flood risk area) are excluded. Separately, since April 2026 DOB has accepted applications for newly built cellar ADUs in one-family homes under Local Law 80 of 2026; that is a construction path, not a way to legalize an existing rental.

  1. Before April 20, 2024

    Unit must already exist

    Only basement and cellar units in place before this date can enroll.
  2. December 2024

    Local Laws 126 and 127 enacted

    Passed alongside City of Yes for Housing Opportunity.
  3. November 10, 2025

    Rules proposed

    DOB and HPD propose an Authorization for Temporary Residence (ATR) that would let tenants stay while owners make upgrades over ten years, with a right to return after construction.
  4. Pending

    Applications open when rules are final

    DOB says pilot and ATR applications are not being accepted until its rules are promulgated.
  5. April 20, 2029

    Owner application deadline

Until an owner has an ATR or an amended CO, a unit in the pilot area is still unpermitted. Ask the owner directly whether they plan to enroll, and read ADUs in NYC for the homeowner side.

Fact-checked October 12, 2026

Re-checked 2026-10-12. Basement/cellar definitions, 7 ft ceiling, window and occupancy rules, “cellars in one- and two-family homes can never be lawfully rented,” vacate and relocation info from HPD. Pre-1938 CO rule and BIS/DOB NOW lookup from DOB. LL126 pilot districts, April 20, 2024 / April 20, 2029 dates, flood exclusions and “applications not yet accepted” status from DOB ADU page; Nov. 2025 proposed ATR rules from DOB press page. Ida deaths (13, 11 in basements) and 300,000–500,000 residents estimate from the Comptroller. Notify NYC basement option from NYCEM April 2026 release. MDL § 302(1)(b) applies to multiple dwellings only, stated as such. RPAPL 768 protections (30 days or lease, $1,000-$10,000 civil penalty) from statute. DOB ADU page (rev. 04/09/26) still says pilot applications not accepted until rules are promulgated; added its Local Law 80 of 2026 cellar-ADU note and softened the absolute cellar statement accordingly.

Sources

  1. Basement and Cellar Apartments · NYC HPD (accessed October 12, 2026)
  2. Certificate of Occupancy · NYC Department of Buildings (accessed October 12, 2026)
  3. Local Laws 126/127: Ancillary Dwelling Units · NYC Department of Buildings (accessed October 12, 2026)
  4. Proposed rules for legalizing basement and cellar apartments (Nov. 10, 2025) · NYC Department of Buildings (accessed October 12, 2026)
  5. NYCEM shares steps for New Yorkers to prepare for flash floods (Apr. 3, 2026) · NYC Emergency Management (accessed October 12, 2026)
  6. Bringing Basement Apartments Into the Light (Aug. 30, 2022) · NYC Comptroller (accessed October 12, 2026)
  7. NY Multiple Dwelling Law § 302 (no rent without certificate of occupancy) · New York State Senate (accessed October 12, 2026)
  8. NY RPAPL § 768 (unlawful eviction) · New York State Senate (accessed October 12, 2026)
  9. NY Real Property Law § 235-b (warranty of habitability) · New York State Senate (accessed October 12, 2026)

General information, not legal, tax or financial advice. Rules change; confirm with the agency or a professional before you act.

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