New York City’s Local Law 80 of 2026 created a narrow rental-use exception for a cellar accessory dwelling unit in a newly constructed one- or two-family dwelling. The law took effect when enacted on April 9, 2026. The cellar unit must meet the Building Code definition of an ADU and have a certificate of occupancy (CO) or temporary certificate of occupancy (TCO).
The certificate is part of the rule
The exception does not make an unapproved cellar a lawful rental unit. Confirm that the space is classified as an ADU under the applicable Building Code provisions and that the CO or TCO covers the unit and intended occupancy. A cellar’s kitchen, separate entrance, prior rental, or description in a listing does not substitute for that record.
The amended section separately continues to restrict occupants of a one- or two-family dwelling from using a cellar room for sleeping, eating, or cooking, except for a secondary kitchen used for accessory cooking. Read the enacted law together with the current Administrative Code, Building Code, and Department of Buildings records; do not treat the ADU exception as blanket permission for cellar rooms.
Keep other NYC rules in view
Local Law 80 addresses this cellar-rental condition. It does not itself authorize short-term rentals, waive construction or fire-safety requirements, or resolve other ADU eligibility, flood-area, legalization, or zoning issues. New York City’s short-term-rental registration rules remain a separate use question; see the NYC ADU short-term-rental guide.
Before renting or buying a cellar ADU, verify the unit’s legal classification, current CO or TCO, permit and inspection history, and any separate licence or private restrictions. Ask the City to confirm the records for the address. The law describes a pathway, not a determination that a specific cellar qualifies.