TCO vs CO for a New NYC Apartment Building

Two documents with different purposes

A certificate of occupancy (opens an external site) states the legal use and type of occupancy of a building. Every new building must have one. DOB issues the final CO when the completed work matches the approved plans, the paperwork is complete, fees are paid, violations are resolved and the approvals required from other City agencies have been received.

A temporary certificate of occupancy (opens an external site) is issued when DOB determines that the building is safe to occupy but outstanding issues must still be resolved before the final CO. For a developer, the TCO is usually the document that allows tenants or buyers to move in, and the final CO is the document that closes the job.

Both are requested through a Certificate of Occupancy Request in DOB NOW: Build, which DOB's technical and operations staff review. If a space under a TCO is left unoccupied for more than 30 days, DOB requires a new TCO before it is re-occupied.

What it takes to reach the first TCO

The first TCO is the milestone most construction schedules and loan documents are built around, so the items it needs should be tracked from the start of construction, not assembled in the last month.

• A construction inspection sign-off for the areas to be occupied.
• Plumbing and electrical inspection sign-offs on the permits held by the licensed master plumber and master electrician.
• An elevator sign-off, where the building has an elevator, which depends on the elevator contractor's schedule and inspection.
• An approved Schedule of Occupancy in DOB NOW: Build that matches the floors, units and uses actually built.
• The energy code requirements that apply to the job, including the air-leakage test where it is required; see our guide to air-leakage testing for new buildings.
• Payment of the TCO fee.

Whether a TCO can cover some floors while others are still in progress, and which areas can be included on a given job, is a question for the architect or engineer of record.

What the final CO adds

The final CO requires everything the TCO required, with final rather than temporary sign-offs, plus documents and conditions that are often left open during lease-up.

• Final construction, plumbing, electrical and elevator sign-offs.
• A final building survey.
• The final Builders Pavement Plan (BPP).
• The Owner's Cost Affidavit (PW3), which reports the cost of the work.
• No open applications on the property, for example permits for sidewalk sheds, fences or other temporary equipment.
• No open violations on the property.
• An approved Schedule of Occupancy in DOB NOW: Build.

Common reasons closeout stalls

Most delays between the last trade leaving and the final CO come from a short list of items. Each can be anticipated.

• An open application on the property, such as a sidewalk shed, a construction fence or a subsidiary permit that was never signed off or withdrawn. A sidewalk shed removal request (opens an external site) is filed in DOB NOW: Build and is approved only after a DOB inspection.
• An open violation, including violations issued during construction for site safety or worker training, which must be resolved before the CO.
• A permit or insurance record that lapsed. DOB permits (opens an external site) have a maximum duration of two years and can expire with the permit holder's general liability insurance, so permits must be renewed and kept in effect while work continues.
• An as-built condition that differs from the approved plans or the Schedule of Occupancy, which usually requires an amendment to the approved plans before sign-off.
• A failed or unscheduled air-leakage test, which DOB states (opens an external site) must pass before the building is signed off for a CO.
• Punch items found at inspection in the finish scopes, such as doors and hardware in fire-rated openings, fire-stopping at penetrations, and unfinished common areas.
• Missing cost data for the PW3 or missing reports from special and progress inspection agencies.

Permit requirements for alterations to existing buildings follow a different path, covered in our guide to NYC renovation permits.

TCO renewals

DOB states that TCOs typically expire 90 days after issuance and may be renewed if the outstanding issues for the final CO have not been resolved by the expiration date. DOB advises owners whose property has a TCO to consult a professional engineer or registered architect to determine what is needed for the final CO.

Renewals are routine but not automatic. Each renewal is a deadline, and a building that is occupied on an expired TCO is occupied without a valid certificate. A closeout log that lists every remaining item, its owner and its target date makes each 90-day cycle a progress check toward the final CO rather than a repeat of the same request.

Planning closeout from the start of construction

• Open a closeout log at permit issuance that lists every application on the property, every required inspection and every document the CO will need.
• Assign each item to a named party: architect, engineer, expediter, general contractor, licensed trade or inspection agency.
• Keep cost records in a form that supports the PW3 at the end of the job.
• Compare the Schedule of Occupancy with the as-built floors and units before requesting the TCO, and file any amendment early.
• Schedule elevator, air-leakage and other third-party inspections with time for one correction and re-inspection.
• Withdraw or sign off sidewalk shed, fence and equipment permits as soon as they are no longer needed.
• Run punch for each floor and unit before the inspection walkthrough, not after it.

The height of the building also affects closeout, because site safety requirements on major buildings continue until the building is enclosed and the sidewalk shed is removed. Our guide to six versus seven stories explains that threshold.

How we help with closeout

We close punch lists floor by floor and unit by unit in the finish scopes, prepare units for turnover, and, as an owner's representative, maintain the closeout log and track sign-offs, inspection reports and documents for the TCO and the final CO. Electrical and plumbing sign-off items are coordinated through licensed partner contractors. Our construction services work with your architect, expediter and general contractor so the items that remain after the last trade leaves are known, assigned and dated.