New York City landlords will soon be able to legally rent out finished basement apartments in newly constructed single- and two-family homes, following the passage of a new city council ordinance on March 10, 2026. The measure, which awaits the signature of New York City Mayor Jordan Mamdani to become law, aims to alleviate the city’s chronic housing shortage.
The ordinance, sponsored by Councilmember Pierina Ana Sanchez, applies specifically to basements in new single-family and two-family homes. It will allow homeowners to legally rent out these spaces, providing tenants with legal protections. Sanchez stated that the legislation builds upon a previous city council measure, “City of Yes,” which already permitted the legal rental of basement apartments. “Thanks to the ‘City of Yes’ housing package passed by the City Council last year, basement apartments were already allowed as legal rental spaces,” Sanchez said. “This ordinance will further boost New York City’s housing supply, which has been facing a chronic shortage.”
The passage of this ordinance comes as Mayor Mamdani, who took office in 2025, has championed policies aimed at addressing the city’s affordability crisis. Mamdani, 33, is the city’s first Muslim mayor and the first of South Asian descent, representing a significant shift in New York City’s political landscape. His election, described by the BBC as a “critical turning point” for the American progressive movement, was fueled by a campaign focused on issues like housing affordability, free public transportation, and raising the minimum wage.
The move also arrives amid broader political tensions. During the mayoral campaign, former President Donald Trump urged voters against supporting Mamdani, endorsing instead former New York Governor Andrew Cuomo, who had lost the Democratic primary. Trump argued that Mamdani lacked the ability to lead the city effectively. NewsM.com reported that Mamdani’s victory signaled a growing strength of progressive and left-wing movements within New York City politics, and potentially across the United States.
The ordinance’s approval is expected to be welcomed by property owners and housing advocates seeking to increase the availability of affordable housing options in the city. However, the long-term impact on housing costs and tenant protections remains to be seen. The city council has not yet announced a date for Mayor Mamdani’s signing of the ordinance.
