“New NYC Law to Increase Safety and Expedite DOB Permit Renewals for Stalled Construction Sites”

On October 14, 2009, the New York City Council approved a new law, first introduced to the public on June 11, 2009, which is designed to increase safety and expedite the renewal of Department of Buildings (“DOB”) permits at construction sites throughout the City where work is temporarily suspended or abandoned.  Currently, all DOB permits expire and become invalid if authorized work is suspended or abandoned for a period of twelve (12) months and if such work is suspended for a period in excess of two (2) years, a developer loses the opportunity to reinstate the permit upon showing of good cause.  The new law amends the existing regulations by authorizing the DOB commissioner (the “Commissioner”) to establish a program (the “Program”) to renew DOB permits that have expired on stalled construction sites even when work is suspended for more than twelve (12) months.

This Stroock Real Estate Practice Group Special Bulletin provides a brief overview of the Program and its potential implications for owners and developers of, and investors in, properties in New York City.