Administered by the New York City Department of Housing Preservation and Development (HPD), in partnership with Cypress Hills Local Development Corporation, a local non-profit, the Basement Apartment Conversion Pilot Program (BACPP) provides eligible low- and middle-income homeowners living in one- to three-family homes in East New York and Cypress Hills, Brooklyn (Community District 5) with low or no-interest, or possible forgivable, loans to convert their basement or cellar into a safe, legal, and rentable apartment, based on altered building code legislation passed in February 2019, Intro. 1004. The homeowner is also provided with technical assistance needed to close on a loan and complete the construction project.
This pilot program will help to create safe housing for tenants or occupants, while providing homeowners an opportunity to earn rental income.
For information on loan terms and the program, see the BACPP term sheet. It is also available in Spanish: Hoja de condiciones del Programa Piloto de Conversión de Sótanos en Apartamentos.
To be eligible for the program, a homeowner must:
Eligible homeowners are provided with financial assistance in the form of a loan to convert their basement or cellar into a safe, livable apartment by providing low - or no-interest loans, with a maximum loan amount of $120,000, and the technical assistance necessary for completing a construction project.
Cypress Hills Local Development Corporation will provide the technical assistance by managing and navigating the pre-development and construction process on behalf of the homeowner to convert the basement or cellar into an apartment and obtain a Certificate of Occupancy from the NYC Department of Buildings. Cypress Hills Local Development Corporation will also guide the homeowner through the process of applying and obtaining the loan.
The pilot program will utilize modifications to the NYC Building Code standards for a one unit home converting to a two unit home, since a basement or cellar converting into an apartment is an increase in units. The code modifications will help to make it more financially feasible to convert a basement or cellar into an apartment, while upholding the highest health and safety standards for the occupants of these apartments.
The Multiple Dwelling Law has jurisdiction over an existing two-unit home converting to a three-unit home or an existing three-unit home converting to a four-unit home, as a result of a basement or cellar converting into an apartment. The program will also provide low or no-interest, or possibly forgivable, loans to homeowners who fall under the Multiple Dwelling Law jurisdiction.
We appreciate your interest in the Basement Apartment Conversion Pilot Program. We are no longer considering applications at this time.
The deadline to file plans with the NYC Department of Buildings under the Basement Apartment Conversion Pilot Program legislation (local law Int. No. 1004-A) previously available to homeowners within Brooklyn Community District 5 has also now passed.