We have a complicated system in NYC.
One can have a legal one family house (me, for instance) but because it is over 70 years old, it doesn’t have a Certificate of Occupancy. Its hallways are not (necessarily) a legal width, the staircase is probably not up to code. Safe and stable, yes, but in the last 70 years the city has changed what the minimum rise height and step length must be.
This is fine, because no neighbor has complained that I’m doing anything illegal (doing renovations to the stairs without a permit, for instance).
But as soon as a neighbor (Or a hotel lobbyist) calls the department of buildings and complains, they have to send someone to see for themselves.
Historically, the dob beaurocrat, who wants to be knocking on your door as little as you want them to knock on it, arrives, is not allowed inside, and so marks “not at home” on their paperwork. If they visit twice and are not able to enter the premises, they mark the file closed and you’re left wondering which neighbor hates you.
If you make the naive assumption that it is safe to let the inspector into your home (you had permits, the work was done to code 4 months ago) you will discover the code got changed 3 months ago (this happened to my friend’s father, regarding insulation around the pipes he had just installed), and they will also find all the other non code work. (A friend did a gut renovation of the interior of her new house. The garage, 50 years old of it was a day, was untouched. But the city files said the garage was in the wrong place. Whatever city employee surveyed the street 30 years ago, put the garage a foot to the left. The city said she had to move her 50 year old garage a foot to the left. She only got out of it by having a breakdown in the city office and paying a bunch of “fines”)
What seems to have changed is that instead of writing “not at home” the inspectors are writing “was unable to verify correct insulation depth” … So the dob can claim you don’t have it and treat you accordingly.
I don’t know what the OP’s version of the wrong insulation was, but other people have said they got fined for not having sprinklers. It’s a private home, but the judges in these cases don’t necessarily have an in depth understanding of the law in regards to short term rentals of private homes, nor do they have an incentive to get educated. Cough cough.
Sure, it’s legal for me to host since we’re always on the premises and it’s a less than 3 family home and we don’t serve breakfast and we do pay income taxes on it. But. I probably don’t have minimum width hallways, I’m not handicap accessible, i don’t have sprinklers. I’m not a hotel, but the city and the judge doesn’t care. I’m legal, but I’m probably in violation of a code somewhere.
(One reason owners of old houses don’t bother to get Certificates of Occupancy is without one on file, you are in a vague limbo state where no one seems to care because there is no paperwork to check)
And it’s just easier to pay the fine than stand up, alone, against the city (And hotel industry).
For me, I’ve never made much more than 8k a year, so a 12k fine is daunting. They’ll never say I’m illegal. Just fine me to death.
Ugh.
Recently we’ve faced the irony that we can’t afford to create a legal ( And get all the city permits) basement apartment, because we’ll have to bring Everything up to code if we do. Builders won’t do it. But they’re happy to make you a “legal but no permits” renovation.
Our basement will remain scary until we win the lottery. Yay.