Illegal Industrial Conversions May Soon Be Fined

The City Council is considering cracking down on the illegal conversion of industrial buildings for residential housing through hefty fines and jail sentences that would last up to one year.

Under a bill proposed by council member Diana Reyna of Brooklyn, anyone involved in an illegal conversion would be fined up to $5,000 for the first offense, up to $15,000 for a second offense within 18 months, and up to $20,000 for a third offense during the same period. They also would face jail time.

Ms. Reyna said rents for small businesses are skyrocketing because industrial space designed for commercial tenants has been turned into housing. The council will hold a hearing on the bill today.